Cox Communications, Inc. v. Sony Music Entertainment
Headline: Court limits copyright secondary liability, reverses billion-dollar verdict against an internet provider, making it harder for music companies to hold ISPs responsible without proof of intent or tailored services.
Holding: The Court held that an Internet provider is contributorily liable only if it intended its service to be used for infringement, and because Cox neither induced nor tailored its service for infringement, it is not liable.
- Makes it harder for copyright owners to hold ISPs liable without proof of intent or tailored services.
- Preserves ISPs’ ability to offer general Internet access without facing automatic liability.
- Reverses the billion‑dollar verdict and sends the case back for further proceedings.
Summary
Background
A major music company and other copyright owners sued Cox, an Internet service provider that serves about six million subscribers, after MarkMonitor sent Cox over 163,000 notices tying Cox IP addresses to alleged illegal file‑sharing. A jury found Cox willfully liable on theories of contributory and vicarious liability and awarded about $1 billion. The Fourth Circuit affirmed contributory liability but reversed vicarious liability, prompting review by the Supreme Court.
Reasoning
The Court explained that contributory liability for someone else’s copyright infringement requires intent that the service be used to infringe. That intent can be shown only by evidence the provider induced infringement or that the service was designed or tailored for infringement. The Court found no inducement and held that general Internet access has substantial lawful uses, so Cox neither induced infringement nor provided a service tailored to it. The Court therefore reversed the Fourth Circuit’s finding of contributory liability. It also said the DMCA safe harbor creates defenses but does not itself impose liability.
Real world impact
The ruling makes it harder for copyright owners to hold ISPs liable simply because ISPs knew some customers infringed. Internet providers that offer general access and take some anti‑infringement steps will be less exposed to contributory liability. The $1 billion verdict against Cox was vacated and the case is sent back for further proceedings consistent with the Court’s rule.
Dissents or concurrances
Justice Sotomayor agreed with the judgment but warned the majority unduly narrows possible common‑law secondary liability theories; she would still have rejected liability here because plaintiffs failed to prove the required intent.
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