Supreme Court rejects internet providers' liability for piracy by users
In a unanimous decision, the high court ruled in favor of Cox Communications, one of the country's leading broadband providers, and established that an internet provider only incurs liability when it acts with the intent that its service be used to infringe copyrights.
The Supreme Court - file image.
The Supreme Court ruled Wednesday that internet providers cannot be held liable for online piracy of copyrighted music committed by their users.
The ruling has significant reach for both the entertainment sector and the millions of people who use the internet.
Cox Communications, one of the nation's leading broadband providers, had asked the Supreme Court to vacate a jury verdict that had awarded $1 billion in damages to Sony Music Entertainment and other record labels.
Court limits liability of internet providers
In a unanimous ruling, the high court sided with Cox and ruled that an internet provider only incurs liability when it acts with the intent that its service be used to infringe copyrights.
In December, when the Supreme Court heard arguments from both sides, Cox's attorney, Joshua Rozenkranz, claimed that, with penalties of that magnitude, internet providers could be forced to disconnect thousands of users.
"This could affect entire cities, universities or hospitals," he insisted, and pointed to the dangers of "turning ISPs into the internet police."
Industry accuses Cox of dodging DMCA
Prosecuting individually each person who engages in piracy, rather than holding internet providers accountable, is not a viable alternative, he then explained, comparing it to trying to empty the ocean with a teaspoon.
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