The trial court in 2010 rejected the plaintiffs' claim that YouTube infringed on their copyrights by allowing users to upload unauthorized clips from Comedy Central's The Daily Show with Jon Stewart, citing the Safe Harbor provision, Title II of The Digital Millenium Copyright Act of 1998, which shields Internet Services Providers from liability provided they promptly block access to infringing material when they receive notice of the infringement from the copyright holder.
The appellate court, however, found "a reasonable jury could conclude that YouTube had knowledge or awareness" of the infringement regarding "a handful of specific clips." The Second Circuit ordered the lower court to determine whether YouTube turned a blind eye to the actions of its users.
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