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If Digg wanted to prevent people posting the code on the Digg site, why couldn't they use automatic filtering, such as is typically used to prevent obscenity? Surely they must have had such a system in place, along with the ability to quickly tweak it to target any specific text string. (Perhaps their system couldn't cope with the rate of postings?)
If, on the other hand, people were simply posting links to the code on other websites, is Digg actually liable?
The point about links is a good one too -- it's my understanding that sites can't be held (or haven't been held) responsible for content posted in comments or chat forums, etc., at least not in the U.S. anyway. But that may be just for the purposes of libel -- not sure about the DMCA.
A pitchfork revolt! I wonder, is this unique to Digg, or is a situation that all social networks will find themselves in sooner or later?
What happens if The Daily Show gets pulled from YouTube? How do you stop this? What are the implications for big brands that are clamoring to create their own soc-nets? Are they ready for such Frankensteins? Will this dissuade them?
What this shows me is that if you build it, they will come...and then kick you out if you polarize/anger enough of them. This didn't happen with the Facebook hacker though... I guess his was not cause celebre enough. Fascinating.
Please keep updating.