Court Tosses $1 Billion Verdict Against Cox Communications for Music Piracy

A federal appeals court tossed a $1 billion verdict won by music publishers against Cox Communications, ordering a new trial on how much the internet provider should owe in damages for illegal downloads by its customers. The case stems from a 2018 copyright-infringement lawsuit filed by leading record companies and music publishers, including Sony, Universal Music and Warner Music. Instead of suing individuals for stealing copyrighted work, the labels targeted Cox for allegedly failing to prevent its customers from downloading and distributing songs without permission. A jury in Virginia in 2019 found Cox liable for infringement of more than 10,000 copyrighted works owned by the music labels and awarded $1 billion in damages. A three-judge panel of the Fourth U.S. Circuit Court of Appeals issued a mixed ruling, agreeing  with the plaintiffs that Cox failed to adequately police infringement on its network and was liable for contributing to infringement. Drawing an analogy to criminal law, Judge Allison Jones Rushing, writing for the majority, said, “Lending a friend a hammer is innocent conduct; doing so with knowledge that the friend will use it to break into a credit union ATM supports a conviction for aiding and abetting bank larceny.” But in a boost for Cox, the panel also ruled that the large damages award couldn’t stand because the evidence didn’t prove that the company profited directly from its subscribers’ infringement.