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Originally Posted by Abecedary
I may be mistaken, but I believe that checking or verifying the validity of the works beforehand opens them up to considerably larger damages in the event that something ever does slip through.
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I think what you're referring to is willful infringement? I believe that has to do with whether or not they were aware that they were distributing, not whether or not they were aware that they didn't have rights. It's hard to argue that the distribution was not willful when they are actively selling the material.
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Also, as it is, they are working within the current legal framework (i.e., removal of infringing material after receiving a takedown notice).
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No, removing infringing material after the fact based on a takedown notice only absolves you of liability if you qualify for safe harbor. Amazon does not. So, for them, regardless of whether or not they removed the material later, they are still liable for the infringement. Selling the material disqualifies them from safe harbor, unlike an ISP that is just hosting material but not directly benefiting.