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Indirect liability refers to
legal liability In law, liable means "responsible or answerable in law; legally obligated". Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government a ...
imposed on an entity which is facilitating an infringement of another's rights, particularly of
intellectual property Intellectual property (IP) is a category of property that includes intangible creations of the human intellect. There are many types of intellectual property, and some countries recognize more than others. The best-known types are patents, co ...
rights, but not accruing benefit (or loss) from the infringement. Indirect liability can be imposed on the facilitator if it is
economically efficient In microeconomics, economic efficiency, depending on the context, is usually one of the following two related concepts: * Allocative efficiency, Allocative or Pareto efficiency: any changes made to assist one person would harm another. * Productiv ...
. One reason it can be efficient is that a facilitator might be in best position to stop the infringement. This is relevant and often talked about in context of content holders vs ISPs or other media manufacturers lawsuits.Landes, William and Douglas Lichtman, "Indirect Liability for Copyright Infringement: Napster and Beyond," The Journal of Economic Perspectives, Vol. 17, No. 2 (Spring, 2003), pp. 113-124.


References

Legal terminology Public liability {{law-term-stub