Not sure if this is the right place to ask, but it seemed like one of the better options.
Example here. Say, I have an online library where users can submit e-books and PDFs they created. All fine and dandy, until someone comes around and starts uploading books that are not their own. Sure, we have a moderation team in place that regularly checks new additions, but some may slip past the radar, especially when dealing with fairly unknown authors.
The author of the (illegally) uploaded books finds the site, browses it for a bit, and to his shock finds that his books are available there for free. Copyright infringement! They sue me for hosting the library website, and I get in deep trouble because some user did something he wasn't allowed to.
How can I avoid getting in trouble over this?
UPDATE: Also asked a lawyer online. They gave an answer pretty close to what the people on here said. See this link.