http://www.dslreports.com/shownews/...acy-on-Its-Network-Must-Pay-25-Million-135916
A Virginia federal jury has held Cox Communications liable for piracy on its network in a landmark ruling that could have a profound impact on ISPs and broadband consumers alike. According to the full ruling (pdf), Cox was found guilty of willful contributory copyright infringement and ordered to pay $25 million because it didn't kick pirates off of its network -- permanently.
With help by the RIAA, Cox was sued by BMG Rights Management of Berlin and Round Hill Music of New York in late 2014.
Cox was effectively being punished for refusing to participate in the entertainment industry's six strikes initiative, and the kind of shake downs being perpetrated by companies like Rightscorp, which threaten broadband subscribers with lawsuits if they don't pay up. Cox in court has likened this to harassment, and has failed to forward on these complaints or hand over subscriber data.
Since 2008 we've noted that Cox has had an anti-piracy program of their own in play, which includes repeated notices for infringement. Cox also terminates the accounts of repeat offenders, but the company has told me they believe the total number of booted users accounts for less than 1% of the company's entire customer base.
But in recent weeks the Judge in charge of the case has supported the entertainment industry claim that Cox would boot users off the network -- then simply allow them to join again. This, US District Judge Liam O'Grady has argued, means that Cox didn't do enough to combat piracy, lost its safe harbor protections under the DMCA, and therefore could be held liable to the copyright infringement occurring on its network.
The $25 million Cox needs to pay comes out to roughly $18,000 for each of the 1,397 copyrights -- less than the statutory maximum of $150,000 Cox could have faced, but still something Cox will surely appeal. And other ISPs will be watching closely as well, given that should they lose safe harbor protections they'll be shoved -- harder than ever -- into the role of playing copyright nanny on their networks.
A Virginia federal jury has held Cox Communications liable for piracy on its network in a landmark ruling that could have a profound impact on ISPs and broadband consumers alike. According to the full ruling (pdf), Cox was found guilty of willful contributory copyright infringement and ordered to pay $25 million because it didn't kick pirates off of its network -- permanently.
With help by the RIAA, Cox was sued by BMG Rights Management of Berlin and Round Hill Music of New York in late 2014.
Cox was effectively being punished for refusing to participate in the entertainment industry's six strikes initiative, and the kind of shake downs being perpetrated by companies like Rightscorp, which threaten broadband subscribers with lawsuits if they don't pay up. Cox in court has likened this to harassment, and has failed to forward on these complaints or hand over subscriber data.
Since 2008 we've noted that Cox has had an anti-piracy program of their own in play, which includes repeated notices for infringement. Cox also terminates the accounts of repeat offenders, but the company has told me they believe the total number of booted users accounts for less than 1% of the company's entire customer base.
But in recent weeks the Judge in charge of the case has supported the entertainment industry claim that Cox would boot users off the network -- then simply allow them to join again. This, US District Judge Liam O'Grady has argued, means that Cox didn't do enough to combat piracy, lost its safe harbor protections under the DMCA, and therefore could be held liable to the copyright infringement occurring on its network.
The $25 million Cox needs to pay comes out to roughly $18,000 for each of the 1,397 copyrights -- less than the statutory maximum of $150,000 Cox could have faced, but still something Cox will surely appeal. And other ISPs will be watching closely as well, given that should they lose safe harbor protections they'll be shoved -- harder than ever -- into the role of playing copyright nanny on their networks.
