Supreme Court confirms failure of copyright watchdog
News-Service Europe B.V. (NSE) – once the fastest growing online messaging platform in the Netherlands – is taking the BREIN Foundation (BREIN) to court. The former Usenet provider is demanding significant compensation because it was forced by the copyright watchdog to cease its activities at the end of 2011. A ruling by the Supreme Court has established that BREIN acted unlawfully in 2011 by purposefully torpedoing NSE. With the abrupt end of NSE’s platform, the entire team lost their jobs and the founders were left with high costs. Today, they are seeking full compensation for the inflicted damage, which is estimated at several million euros.
In 2009, BREIN launches a lawsuit against NSE, because it believes that NSE is responsible for the copyrighted content that Usenet users post on the platform. The court rules in favor of BREIN and orders that NSE must ensure that no copyright-protected content is offered, under penalty of a fine of €50,000 per day. This court order, essentially a filtering obligation, is technically unenforceable for NSE. Nevertheless, BREIN refuses to await the outcome of the appeal filed by NSE. Huge fines are looming for NSE and that is why the company has no other option than to completely cease its activities.
No copyright infringement
As expected, the Amsterdam Court of Appeal annulled the incorrect judgment of the court. The court states that NSE does not infringe copyrights, that as an intermediary it is not liable for infringements committed by others on its platform and that NSE does not act unlawfully. But the battle is not over yet. BREIN decides to take the case to the Supreme Court. After years of legal battle, the Supreme Court rejects all BREIN complaints in 2023. After 14 years of litigation, this is a major victory for NSE and its founders, but still one with a bitter aftertaste.
Complete justice
NSE co-founder and former CEO Patrick Schreurs: “BREIN knowingly made it impossible for us to continue. It was clear to friends and foes in 2011 that the court’s verdict could not stand. Then BREIN director Tim Kuik called the verdict ‘groundbreaking’ in 2011 and thus acknowledged that there was a real chance that the verdict could not stand. And yet BREIN decided not to wait for the appeal and to force us immediately to comply with the judgment. That was completely unnecessary. We have always found this completely incomprehensible.”
Former CFO and co-founder Wierd Bonthuis: “The confirmation of the highest Dutch court is a great first step towards complete justice. This will come if BREIN fully compensates us for the damage that its obstinacy has caused. We are looking forward to the ruling in this case with great confidence.”
Usenet provider NSE started in 1998 and quickly became internationally active. A Usenet provider allows users to post messages in public newsgroups and makes those messages available to the entire Usenet. Like internet providers, it is a neutral intermediary that provides access to a technological platform, without interfering with users’ content. NSE served companies worldwide, such as resellers and internet providers.
About News-Service Europe B.V.
News-Service Europe B.V. (News-Service.com) started in 1998 and was a successful Netherlands-based Usenet provider with an international customer base. At the end of 2011, News-Service Europe was forced to discontinue its services. News-Service Europe only provided access to Usenet to companies, such as resellers and internet providers.
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