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At what point will they lose their DMCA safe-harbor protection? Can we discourage them from actively policing copyright by suing them for copyright infringement?

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Yes. And when they lose their common carrier status, they'll be responsible for trafficking in child pornography if any of their customers do.

I anticipate failure.

I don't believe ISPs are considered common carriers.

but by doing this they ARE giving up their safe-harbour provisions.

Why do you think so?

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