Court Blocks $1 Billion Copyright Ruling That Punished ISP for its Users’ Piracy

upstart writes:

"Cox did not profit from its subscribers' acts of infringement," judges rule:

A federal appeals court today overturned a $1 billion piracy verdict that a jury handed down against cable Internet service provider Cox Communications in 2019. Judges rejected Sony's claim that Cox profited directly from copyright infringement committed by users of Cox's cable broadband network.

Appeals court judges didn't let Cox off the hook entirely, but they vacated the damages award and ordered a new damages trial, which will presumably result in a significantly smaller amount to be paid to Sony and other copyright holders. Universal and Warner are also plaintiffs in the case.

"We affirm the jury's finding of willful contributory infringement," said a unanimous decision by a three-judge panel at the US Court of Appeals for the 4th Circuit. "But we reverse the vicarious liability verdict and remand for a new trial on damages because Cox did not profit from its subscribers' acts of infringement, a legal prerequisite for vicarious liability."

If the correct legal standard had been used in the district court, "no reasonable jury could find that Cox received a direct financial benefit from its subscribers' infringement of Plaintiffs' copyrights," judges wrote.

The case began when Sony and other music copyright holders sued Cox, claiming that it didn't adequately fight piracy on its network and failed to terminate repeat infringers. A US District Court jury in the Eastern District of Virginia found the ISP liable for infringement of 10,017 copyrighted works.

Cox's appeal was supported by advocacy groups concerned that the big-money judgment could force ISPs to disconnect more Internet users based merely on accusations of copyright infringement. Groups such as the Electronic Frontier Foundation also called the ruling legally flawed.

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