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The decision is a victory for operators of social networking sites in the EU, but a setback for those who seek to protect copyrighted material from being distributed without payment or permission.
It also comes as protests are growing in Europe against ACTA, the proposed international Anti-Counterfeiting Trade Agreement, which is meant to protect intellectual property rights.
In Thursday's decision, the EU Court of Justice, which is based in Luxembourg, ruled that requiring general filters that would cover all the site's users would not sufficiently protect personal data or the freedom to receive and impart information.
SABAM, a Belgian company that represents authors, composers and music publishers, filed the lawsuit leading to Thursday's ruling. In it, the company objected to the practices of Netlog NV, a social networking site, saying users' profiles allowed protected works to be shared illegally.
Michael Gardner, head of the intellectual property practice at London law firm Wedlake Bell, called the ruling a further blow to copyright owners because it appears to rule out forcing operators of social network sites and Internet service providers — at their own expense — to impose blanket monitoring and filtering aimed at stopping infringements.
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