Guilt Upon Accusation: New Zealand Businesses(crossposted from CreativeFreedom.org.nz)
So, what's the harm? As Henry Aung says these documents form a legal protection and without them Lixtor would stop trading. The company would lose revenue until it could replace them and trading may cease for days.
One important point is that lawyers often cut-and-paste together legal documents. Introducing variation for the sake of creating a unique work for each client is not the goal, and by using time tested snippets a legal document is more robust. Copyright is used by many sectors of society and in this case unnecessary deviation may be considered harmful.
MED's advice to website hosting companies is:
"The ISP is required to consider the notice of infringement and as soon as possible after receiving the notice either delete the infringing material or prevent access to it. If the ISP fails to take prompt action after receiving the notice, it could be liable for copyright infringement even if it was not directly responsible for the posting of the infringing material on the website."
(funny that MED don't even say allegedly infringing)
So with the threat of copyright infringement an ISP must promptly decide whether it's infringing or not.
TradeMe still claim that the Terms and Conditions document was taken from their site, but TradeMe has not pursued this further.
Now this article hasn't been written to pass judgment on the merits of Lixtor or TradeMe, both are very good trading sites. This is however yet another example of how ISPs will have great difficulty deciding copyright infringement under 'Section 92'.
Different sectors of society have different approaches to copyright and reuse, and the legal sector is quite different to that of the creative.