A major legal showdown is unfolding between Cox Communications and record labels led by Sony Music. The battle is over internet service provider liability for subscriber piracy and copyright infringement. Cox faces a $1 billion damage award from a Virginia court for allegedly failing to take adequate action against customers who repeatedly infringed copyrights.
Cox’s Supreme Court Appeal
Cox petitioned the U.S. Supreme Court, arguing that ISPs shouldn’t be held liable for subscriber piracy activities. The company contested that merely knowing about subscriber infringement constitutes “willful” copyright violation, challenging the legal standard for ISP responsibility.
U.S. Government Backs Cox in Liability Case
In a significant development, the U.S. Solicitor General filed an amicus brief supporting Cox’s position. The government argued that ISPs aren’t automatically liable for copyright infringement simply by failing to terminate subscriber accounts after receiving infringement notices. The brief emphasized that “willfulness” requires actual knowledge or reckless disregard that subscriber conduct was unlawful, not just awareness of third-party infringement.
Record Labels Push Back Against Copyright Infringement
The music labels have filed a supplemental brief characterizing the government’s position as “bewildering.” They argue Cox’s liability is “straightforward” and doesn’t warrant Supreme Court intervention, claiming the ISP would face liability in any jurisdiction.
Labels Argue Insufficient Piracy Policing
The labels contend Cox was held liable not for insufficient policing efforts, but for taking “no meaningful steps” to stop infringement while continuing to serve identified repeat offenders. They argue Cox willfully allowed continued infringement because subscribers generate revenue, failing to implement proper termination policies.
Broader Implications of Court ISP Liability Ruling
This case could establish crucial precedent for ISP liability nationwide, affecting how internet providers handle copyright enforcement and subscriber termination policies. The Supreme Court’s decision will significantly impact the balance between ISP business operations and copyright protection obligations.