The Supreme Court ruled unanimously on March 25 that Cox Communications is not liable for copyright infringement committed by its subscribers, reversing a 2024 appeals court decision that had upheld the ISP’s liability.
Sony Music Entertainment and other major labels sued Cox in 2018, arguing the company failed to terminate internet service for subscribers repeatedly flagged for pirating copyrighted music. A jury awarded $1 billion in statutory damages after finding Cox willfully infringed all 10,017 copyrighted works at issue, though this was overturned on appeal and a new trial was ordered.
Writing for the court, Justice Clarence Thomas said a provider is not liable “for merely providing a service to the general public with knowledge that it will be used by some to infringe copyrights.” A provider is liable only if it intended or actively encouraged the infringement, Thomas wrote. The decision applies the same framework the court used in 2005 when it found file-sharing service Grokster liable for promoting piracy.
Cox serves approximately six million subscribers and contractually prohibits them from using their connections to distribute copyrighted content. A firm enlisted by the labels to track piracy sent Cox 163,148 infringement notices over a roughly two-year period. Cox terminated just 32 subscribers for copyright infringement during that span.
