Shopify and false copyright reports: consider action against the complainant

The judgment: action was taken against the complainant

A musician released a new recording. His former label asserted rights in that recording to a streaming platform, and the content was blocked. Cologne Regional Court found that the label did not have the asserted rights. It therefore upheld the interim injunction against the label (judgment of 9 January 2025, 14 O 387/24, operative part and paragraphs 5 to 9, 50 to 66).

The court treated the unfounded platform complaint as interference with an established business. The musician did not first have to sue the streaming platform. The proceedings concerned the complainant’s conduct. A conventional cease-and-desist warning by the label was not necessary for such interference to arise (paragraphs 56 to 60 and 68).

The decision was made in interim proceedings. It awards no general amount of damages and does not decide Shopify contracts. Research did not locate a later decision reversing this particular judgment; we do not infer that it is formally final from that absence.

What may be relevant to a Shopify store

Our assessment: a seller’s business can also be affected by the targeted, unjustified assertion of rights that belong to someone else or do not exist. Applying this approach requires evidence of the complaint, the complainant’s lack of entitlement and the specific interference with the business. The Cologne case concerned a recording and the particular history of a terminated artist agreement. Those facts cannot simply be assumed for product photographs, text or store videos.

Our hypothetical example: a competitor reports a product photograph even though the seller took it and holds the original files. Authorship, the specific use and the complainant’s identity then need examination. If an agency supplied the photograph, the first question is what rights were actually granted. The store name displayed on the page does not itself prove permission to use the image.

Shopify’s copyright procedure is not a general reinstatement button

Shopify describes a DMCA process for copyright reports with a possible counter notice. Such a notice includes legal declarations, including consent to jurisdiction in the United States. It should not be submitted without review. The ten to fourteen business days stated by Shopify concern its described process after a valid counter notice; notification of legal action can prevent republication.

A trade mark complaint is not a DMCA copyright case. Restoring individual content, lifting an entire store suspension and stopping repeated complaints are also different objectives. The appropriate response depends on the actual notice.

Store suspended, Payments stopped or a reserve imposed?

Shopify distinguishes access to the store from Shopify Payments. Its help centre explains that a successful appeal can restore the store while Payments remains restricted. A separate appeal may be necessary for that restriction. An external payment provider connected to the store requires its own assessment.

A reserve holds an amount or proportion of revenue against expected refunds or payment disputes. According to Shopify, this does not automatically mean payment acceptance is completely disabled. Relevant factors include the reserve terms, amount, duration, specific risks and correct contracting party. The Cologne copyright case does not decide these payment issues.

Timing, evidence and freedom of expression

In the Cologne case, prompt action and the risk of repetition mattered. The court considered when the musician identified the actual complainant and the recording’s particularly important initial exploitation period (paragraphs 71 to 74). This does not establish a universal one-month deadline for merchants. The timeline and financial harm should be documented promptly.

Where the dispute additionally concerns suppression of critical writing or other expressions of opinion, freedom of expression under Article 5(1) of the German Basic Law must also be considered. Paragraph 2 sets limits, including general laws, and it does not automatically permit any use of another person’s images or music. The Cologne judgment rests on protection of the business; it establishes no general priority of freedom of expression over copyright.

What a focused assessment needs

Preserve the complete notice and affected content before making changes. A documented response is more useful than contradictory explanations across several support tickets. Passwords or two-factor authentication codes are not needed.

• Store address, account holder, affected service and full suspension or reserve notice.
• Complaint ID, complainant, asserted right and affected URLs.
• Original files, licences, agency agreements and previous counter notices.
• Timeline, affected listing downtime, payout reports and specific imminent liquidity problems.