The Supreme Court unanimously found that internet service providers are not liable for online piracy committed by its users, rejecting a lawsuit brought by multiple record labels, including Sony, against Cox Communications, a major internet service provider.
Justice Clarence Thomas wrote the majority opinion in Cox Communications v. Sony Music Entertainment, which was joined by six other justices, overturning a ruling from the U.S. Court of Appeals for the 4th Circuit that found Cox liable for copyright infringement committed by its users.
“Under our precedents, a company is not liable as a copyright infringer for merely providing a service to the general public with knowledge that it will be used by some to infringe copyrights,” Thomas wrote. “Accordingly, we reverse.”
Thomas rejected the assertion by Sony that ISPs should be held liable for users’ actions simply because they had knowledge some of its users were committing copyright infringement, noting the complexity of tracking down infringing users and Cox’s established programs to curb piracy among its customers.
“Cox provided Internet service to its subscribers, but it did not intend for that service to be used to commit copyright infringement,” Thomas wrote. “Holding Cox liable merely for failing to terminate Internet service to infringing accounts would expand secondary copyright liability beyond our precedents.
“Cox neither induced its users’ infringement nor provided a service tailored to infringement,” Thomas said. “As for inducement, Cox did not ‘induce’ or ‘encourage’ its subscribers to infringe in any manner. Sony provided no ‘evidence of express promotion, marketing, and intent to promote’ infringement. And, Cox repeatedly discouraged copyright infringement by sending warnings, suspending services, and terminating accounts.”
Thomas’s majority opinion was joined by Chief Justice John Roberts, along with justices Samuel Alito, Elena Kagan, Neil Gorsuch, Brett Kavanaugh, and Amy Coney Barrett. Justice Sonia Sotomayor filed her own opinion, joined by Justice Ketanji Brown Jackson, that also sided with Cox over Sony in the case, but for reasons different than the majority. Sotomayor’s concurring opinion agreed that the facts of this case did not justify holding Cox liable, but took issue with the broad scope of the majority’s opinion.
The ruling marks a significant loss for the record labels, which had been successful in two previous lower courts. A district court had handed them a $1 billion judgment and while a higher appeals court tossed the judgment, it still found Cox liable for copyright infringement of its users.
The Justice Department backed Cox up in its appeal to the Supreme Court, warning that finding the ISP liable in this case would radically expand the scope of legal liability and could cause “numerous non-infringing users to lose their internet access.”
The ruling came less than four months after the Supreme Court heard arguments in the case. The Supreme Court is expected to release rulings in the remaining cases this term by the end of June.