The 1998 Digital Millennium Copyright Act (DMCA) includes a section entitled the "Online Copyright Infringement Liability Limitation Act" (Act) which grants an online service provider (OSP) a limitation of liability for vicarious and contributory copyright infringement when its subscribers infringe a third-party’s copyright online (17 U.S.C. § 512). The University of California provides online service to its students and faculty (or students, faculty, and employees); therefore, it meets the definition of an OSP. The limitation is available only under certain conditions and when procedures prescribed in the Act are followed. The DMCA's limitation on OSP liability was adopted as a compromise between demands by online service providers that they not be held liable for the infringing activity of their subscribers and counter-demands by content providers (e.g., publishers and recording companies) that online providers not have absolute limitations on liability.

The DMCA does not require online providers to adhere to its procedures, nor does it supersede or alter existing statutory or case law related to copyright. Any defense which would otherwise be available to a provider remains available; however, adherence to the procedures allows a provider to quickly dispose of certain infringement claims without concern for liability either to the alleged infringer (for the removal of the material) or to the person claiming infringement.