Edtech Platform Held Liable For Hosting Infringing Content

In a recent judgement, the Madras High Court held that:

• Platforms hosting user content and retaining control over the content, by exercising their right to modify and refuse uploads, cannot claim safe harbour protection under Section 79 of the Information Technology Act, 2000 ("IT Act").
• An infringer cannot seek protection under the fair use provisions of the Copyright Act, 1957 ("Copyright Act") against claims of copyright infringement when use of the copyrighted works is commercial in nature.

Recently, Fermat Education ("Plaintiff") filed a suit¹ against Sorting Hat Technologies Pvt. Ltd. and 13 others ("Defendants") in the Madras High Court ("Madras HC") claiming infringement of copyright and seeking damages and a permanent injunction restraining the Defendants from using the literary works of the plaintiffs. The dispute revolved around the copyright in question banks created for Common Admission Test ("CAT") exams by the Plaintiff. These questions