Cybernet Ventures operated the Age Verification Service "Adult Check" and sold users access to the Adult Check family of sites, which featured nude pictures. Perfect 10, held the copyright in many nude pictures, and sued Cybernet Ventures for copyright infringement because the Adult Check sites contained over 10,000 images that belonged to Perfect 10.
This case required Perfect 10 to prove that Cybernet had knowledge of the infringing activities.
The court decided that Cybernet had actual notice (knowledge) of copyright infringement. This was because the Association for the Protection of Internet Copyright had sent them about 2000 e-mails "notifying Cybernet of alleged copyright infringement on its system". Even though the Association was not in court to testify or be questioned, the evidence was only being used to prove that Cybernet had received them, NOT to prove that the emails were true.