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You are here: Home > Law > Free Speech > Defamation Online

Defamation Online

Several decisions have come down which must be used to update this article. The newer cases have found that even when the ISP or OSP pays the content provider and sponsors the content that it is immunized from defamation claims.

Court rulings have been mixed in terms of the liability of organizations for online content.

In Stratton Oakmont, Inc. v. Prodigy Services Co., 1995 N.Y. Misc. LEXIS 229 (Sup. Ct. Nassau Co.), in which Prodigy, an online service provider, was sued for alleged libelous statements that were posted on one of its bulletin boards, the court found the firm liable for content because Prodigy was in a position to monitor content.

In response to this decision, the Telecommunications Act of 1996 sought to limit an organization's responsibility for online content. However, the Act has been challenged in ACLU v. Reno, 929 F.Supp. 824 (E.D. Pa. 1996), and parts of the new law have since been declared unconstitutional. The case is now before the Supreme Court, which will hear oral arguments in March.

In Cubby, Inc. v. CompuServe, 776 F.Supp. 135 (SDNY 1991), action was taken against this online service provider for alleged defamatory remarks. In this case, CompuServe was not held liable because the remarks appeared through a service offered by a third party; therefore, the company was considered a distributor and not a publisher of content.


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