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Tokyo Court Orders Cloudflare to Pay ¥500 Million Over Role in Manga Piracy

The ruling narrows Japan’s transmission-efficiency exception by finding that CDN caching that causes unjust harm falls outside lawful use.

Overview

  • The Tokyo District Court, presided over by Judge Aya Takahashi, ordered Cloudflare to pay about ¥500 million to Kodansha, Shueisha, Shogakukan, and KADOKAWA.
  • At issue was whether Cloudflare’s content-delivery caching qualified for a legal exception or constituted conduct that unjustly harmed rights holders under Japan’s copyright law.
  • The publishers alleged Cloudflare’s servers distributed pirated data for series including Attack on Titan and ONE PIECE, drawing an estimated 70 million to 2 billion views per month between April 2020 and December 2021.
  • The companies said they warned Cloudflare in 2020 to stop providing CDN services to the pirate sites and filed suit in February 2022 after distribution continued.
  • Cloudflare argued it only passively transmitted data and that site operators were responsible, but the court accepted the publishers’ claims in this case.