The court said Vimeo was not infringing copyright law by unknowingly hosting videos that had older music contained within them.
The case was hinged on the Digital Millenium Copyright Act and how it is interpreted and enforced.
Among the details of the ruling were that a website employee viewing a video with music did not constitute ‘red flag’ knowledge of copyright infringement, and that suspicion of infringement does not require a web company to inquire further about whether infringement is taking place.
The legal case saw many digital companies, including Facebook and Twitter side with Vimeo, against the recording industry.
Vimeo said the ruling was a victory for the wider online video sector.
“Today’s ruling by the Second Circuit court is a significant win for not just Vimeo, but all online platforms that empower creators to share content with the world,” Michael Cheah, Vimeo’s general counsel said after the ruling had been delivered.
“The court rightly preserved the balance struck by the DMCA in protecting rights holders and service providers, and we are very pleased with the decision.”