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GIFs uploaded from subscribers were stored in "an upload file, where an RNE employee briefly checked the new files to ascertain whether they were 'acceptable,' meaning not pornographic, and not blatantly protected by copyright." If the GIFs passed muster, they were made available to all users of defendant's service.

A party is liable for contributory infringement when, "with knowledge of the infringing activity, [the party] induces, causes or materially contributes to the infringing conduct of another." Of interest here is the court's analysis of the scienter element of contributory infringement.

Of these files, approximately 50,000 were graphic image files (or "GIFs"), of which approximately 40,000 contained "adult" photographs.

In addition to this service, defendant RNE also provided its subscribers with e-mail services, chat lines, advertisements, technical assistance and a dating service.

Defendant Hardenburgh was the President and sole shareholder of RNE.

To increase the number of GIFs it could offer its customers, defendants offered subscribers "credits" for each GIF they uploaded on defendant's BBS.

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