Section 512 of Title 17, a Report of the Register of Copyrights
On red flag knowledge, OSPs and user advocacy groups similarly agree that “the courts that have narrowly interpreted ‘red flag’ knowledge have been correct.”609
…
Similarly, the Center for Democracy and Technology and the R Street Institute assert that adopting a red flag knowledge standard that requires less than specific knowledge would eviscerate the section 512(c) safe harbor and “would destroy the cooperation between rightsholders and service providers envisaged by the statute.”616
…
One participant notes that “[m]ost users don’t have a legal education and they don’t know what fair use is, and they might not read the terms of service to find out what fair use may or may not be.”918