Cox Communications hit with $1 billion verdict over music piracy

A big win for the recording industry, which is also suing other ISPs.

Kate Cox – Dec 23, 2019 11:56 am | 289

The Blind Justice statue standing outside of District Court in Alexandria, Virginia, US, on Thursday, Aug. 16, 2018. Credit: Yuri Gripas | Bloomberg | Getty Images

A jury in Virginia awarded some of the largest names in the music recording industry a whopping $1 billion in damages from Cox Communications, finding that the ISP did not act sufficiently to curb music piracy on its platform.

The verdict was the result of a three-week trial in federal court in Alexandria, Virginia, Variety was first to report. The jury found that Cox was liable for just over 10,000 infringing recordings and compositions on its network, and it awarded the plaintiffs almost $100,000 per work.

A coalition of more than 50 companies, including Sony, Universal, and Warner, filed the suit against Cox in 2018, arguing that at least 20,000 Cox customers were repeat infringers and saying the ISP “prioritized its own profits over its legal obligations.”

Cox in a statement called the verdict “unwarranted, unjust and an egregious amount,” pointing out that legal downloads can be had for a dollar, but the jury awarded 100,000 times that amount per item. “We don’t condone [infringement], we educate on it and we do our best to help curb it, but we shouldn’t be held responsible for the bad actions of others,” the company added.

The case is considered a potential harbinger of things to come, as infringement lawsuits proliferate following the 2017 demise of the failed “six strikes” system.

The recording industry group filed similar suits against other ISPs earlier this year, including a complaint against Charter Communications in Colorado and one against RCN in New Jersey. AT&T, meanwhile, became more aggressive about booting alleged music pirates from its network in 2018 after completing its acquisition of Time Warner.

The recording industry’s main trade group, the Recording Industry Association of America (RIAA), applauded the ruling. “The jury’s verdict sends a clear message—Cox and other ISPs that fail to meet their legal obligations to address piracy on their networks will be held accountable,” the organization’s chief legal officer, Kenneth Doroshow, said in a written statement. “The jury recognized these companies’ legal obligation to take meaningful steps to protect music online and made a strong statement about the value of a healthy music ecosystem for everyone.”

The jury verdict is not yet final; the court has to resolve post-trial motions first, after which Cox plans to appeal.