Hey I have a good idea for a site, where a user can upload a .mp3 and share the link with others. They can then visit the link and stream the .mp3, along with some other things. I'm quite eager with this idea but im not so sure about the legal troubles. It will be hosted in the US and its not offshore, although I can get offshore if it means less trouble. Ive heard if I use things like a DMCA policy and and in my ToS say that you are only allowed to upload content you own... What is your opinion on this? Thanks
It depends if the person who uploads the .mp3 files own the copyright to them. If this person does not then it's copyright infringement.
I knew that, but I would not be able to control what the users upload, so would I be held responsible? Also if I had a good system to delete any .mp3's that get reports I should be fine no?
So many have tried before (think Napster, KazaA, BearShare, etc.) and these were major companies who still got hammered. Even if you have a fail-safe ("good system to delete any .mp3's") you'll still be held liable because you're the bridge; you're giving the people the means to share files copyrighted content. Unlike posting in which admins/mods do not know what will come out of the minds of their members you have enough control to minimize and possibly to prevent actions of wrongdoing. You can set the rules and what you're suggesting is people can upload whatever and you'll turn your back until you're served with legal action. The only defense I can see is "Safe Harbor" but that's highly unlikely because you have actual knowledge that these people will use it to share copyrighted material. Off-shore servers won't help you either since the connection is to you. At best you need to live in a country that has little or no copyright law. If you want to run the risk it's up to you.
It can be done you just really need to cover your back as the music industry is losing a lot of money due to the internet and would like to close down as many P2P sites as possible.