The U.S. Supreme Court ruled unanimously that Cox Communications cannot be held liable for music piracy committed by its users, rejecting a billion-dollar lawsuit filed by major labels.
Along with dozens of other rights-holders, Universal Music Group, Sony Music Entertainment and Warner Music initially sued Cox Communications — the largest unit of privately owned Cox Enterprises and the third-largest broadband service provider in the U.S. — in 2018 after it was sent tens of thousands of notices flagging infringement of copyrighted songs. The following year, the labels won their lawsuit with a $1 billion award.
But in 2024, the 4th U.S. Circuit Court of Appeals in Richmond, Virginia, ruled that the $1 billion in damages was not justified and that a federal district court should hold a new trial to decide an appropriate amount. The Supreme Court picked up the case last June, and oral arguments were held in December.
In the ruling, Justice Clarence Thomas wrote, “Under our precedents, a company is not liable as a copyright infringer for merely providing a service to the general public with knowledge that it will be used by some to infringe copyrights. Accordingly, we reverse.”
He also clarified, “Cox provided internet service to its subscribers, but it did not intend for that service to be used to commit copyright infringement. Holding Cox liable merely for failing to terminate internet service to infringing accounts would expand secondary copyright liability beyond our precedents.”
In a statement shared with Variety, Cox Communications said, “The Supreme Court’s unanimous opinion is a decisive victory for the broadband industry and for the American people who depend on reliable internet service. This opinion affirms that Internet service providers are not copyright police and should not be held liable for the actions of their customers — and after years of battling in the trial and appellate courts, we have definitively shut down the music industry’s aspirations of mass evictions from the internet.
“Internet service providers provide the critical communications infrastructure for millions of Americans,” the statement continued. “Today’s decision allows us to focus on our goals of preserving open internet access, protecting consumers’ privacy, and ensuring that broadband remains a reliable resource for the families and businesses in the communities we serve.”
Love Film & TV?
Get your daily dose of everything happening in music, film and TV in Australia and abroad.
Mitch Glazier, RIAA chairman and CEO, said in a statement, “We are disappointed in the Court’s decision vacating a jury’s determination that Cox Communications contributed to mass scale copyright infringement, based on overwhelming evidence that the company knowingly facilitated theft. To be effective, copyright law must protect creators and markets from harmful infringement and policymakers should look closely at the impact of this ruling. The Court’s decision is narrow, applying only to ‘contributory infringement’ cases involving defendants like Cox that do not themselves copy, host, distribute, or publish infringing material or control or induce such activity.”
Reps for Sony, Warner and Universal did not immediately respond to Variety‘s request for comment.
From Variety US