Cubby, Inc. v. CompuServe, Inc

In Cubby, Inc. v. CompuServe, Inc. (S.D.N.Y. 1991) 776 F. Supp. 135, the defendant service provider was held to the standard of liability applicable to a distributor, not a primary publisher. In Cubby a journalist claimed he was defamed by material posted on a CompuServe newsgroup for journalists. CompuServe had contracted with CCI requiring the latter to "manage, review, create, delete, edit, and otherwise control the contents" of the newsgroup. Another company, DFA, which had no direct relationship with CompuServe, agreed in a contract with CCI to provide part of the content, a publication called "Rumorville." In an issue of Rumorville posted on the CompuServe newsgroup site, DFA allegedly made defamatory comments about the plaintiff's competing newsgroup. Before the action was filed, CompuServe received no complaints about the Rumorville publication or about DFA. The Cubby court found that CompuServe "has no more editorial control over such a publication than does a public library, bookstore or newsstand, and it would be no more feasible for CompuServe to examine every publication it carries for potentially defamatory statements than it would be for any other distributor to do so." ( Cubby, Inc. v. CompuServe, Inc., supra, 776 F. Supp. at p. 140.) Determining that CompuServe was in effect a distributor, and that the appropriate standard of liability was "whether it knew or had reason to know of the allegedly defamatory Rumorville statements," the court held that liability was barred by the absence of notice. ( Id. at p. 141.)