How much knowledge is “enough” to require preemptive removal has been a key question at the heart of some of the most important and precedential litigation over the DMCA since its enactment, including UMG v. Veoh and Viacom v. YouTube. In those cases and others, courts have generally set the bar for red-flag knowledge quite high, much to the dismay of copyright owners. But in its report, the Copyright Office makes clear it thinks the courts have got it wrong and that Congress should “clarify” that it intended the bar to be lower.
Source: Seeing Red Over The DMCA