So, I'm about to launch a complete redo(everything completely different) of my website www.upload-fast.com. The users will be allowed to upload both images AND files (some extensions like exe, bat, etc. will not be allowed). Now, I'm scared that some user will go ahead and upload something that is copyrighted and I might get sued by some angry company for hosting illegal files. However, I have built a system that allows anyone to flag a file as copyright. If that file is flagged, it is immediately put on lock and users will not be able to download it. Flagged files will be checked every 8 hours and if it's not a copyrighted file, I will unlock it and remove the flagging option for that file. If the file is copyrighted, it will automatically be removed. So, according to what I have told you about how the file system works, do you think that there is a chance of a company suing me? Also forgot to mention that these files will be stored on a server on my office as soon as I buy one.
99.9% of companies will send a cease and desist order before they sue. I would be more worried about getting kicked off your hosting company for hosting illegal files if anything
Well, I'm not going to use online hosting. I'm going to host everything from my office. I'll have an office server. But, yeah, I'm just worried that someone will get really pist off and sue me before giving me a chance. Well it's good to know that they will give me a chance to delete a file, I seriously didn't want to face legal problems.
Since you are allowing user uploaded content, there WILL be illegal content, but if the offended company realizes that your site will work to prevent illegal downloads, they should just cut you some slack. A wordy TOS stating that all content is user submitted and that you guys don't allow illegal content would be helpful, too. But in the end, it really is your responsibility. I mean, look at YouTube.
post a DMCA notice for safe harbor and then remove content immediately upon receipt of notices. the most extreme method to protect yourself is to certify all uploaders and retain copies of their photo id's.