Supreme Court to Consider Cox Communications’ Appeal in Music Piracy Case

The Supreme Court has announced it will hear an appeal by internet provider Cox Communications over the guilty verdict it received in 2019 concerning copyright infringement by its subscribers.

Some background:

• In 2018 more than 50 music companies – including Universal Music Group, Warner Music Group and Sony Music Entertainment (the lead plaintiff) – sued Cox, alleging it failed to stop its users from illegally downloading music.

• In 2019 a jury in federal court in Virginia, Alexandria, declared Cox guilty and the company was fined approximately $1 billion.

• As per Reuters, in early 2024 the 4th Circuit Court of Appeals upheld the “willful contributory infringement” part of the decision, “finding that the company committed secondary copyright infringement by failing to address user piracy.”

• It did, however, overturn the “vicarious liability verdict,” cancelling the $1 billion fine and ordering a new trial to determine appropriate damages.

• In August 2024 Cox filed to have the original verdict overturned at the Supreme Court, stating that if the jury’s decision were to stand it would force ISPs to terminate internet access for “entire households, coffee shops, hospitals, universities” due to unproven allegations of infringing activity.

• In May this year President Donald Trump’s Solicitor General John Sauer filed an amicus brief in support of Cox Communications; the record companies responded by calling his argument “bewildering.”

• The Supreme Court will hear the case during its October term.

Failed appeal:

• As per Music Business Worldwide (MBW), the Court “declined to hear an appeal by the record companies asking the top court to greenlight a new trial that would leave in place the guilty verdict and determine the damages Cox would be required to pay.”

The implications:

• As per MBW, if the Supreme Court finds in favor of Cox, “it could mean new protections for internet service providers that would shield them from liability for piracy committed by subscribers.”

• This in turn could impact other cases that music companies have brought against ISPs in the US, including a $2.6 billion case brought against Verizon by Sony, Universal, Warner and ABKCO Music.