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Record Labels File 'Billion Dollar' Piracy Lawsuit Against ISP Cox (torrentfreak.com)

An anonymous reader quotes a report from TorrentFreak: This week Cox's problems doubled after a group of high profile record labels filed a new piracy liability lawsuit against the Internet provider. Sony Music Entertainment, EMI Music, Universal Music, Warner Bros Records, and several others accuse the company of turning a blind eye to pirating subscribers. The labels argue that Cox has knowingly contributed to the piracy activities of its subscribers and that it substantially profited from this activity. All at the expense of the record labels and other rightsholders. "Indeed, for years, Cox deliberately refused to take reasonable measures to curb its customers from using its Internet services to infringe on others' copyrights -- even once Cox became aware of particular customers engaging in specific, repeated acts of infringement," the complaint reads. To stop the infringing activities, the music companies sent hundreds of thousands of notices to the Internet provider. This didn't help much, they claim, noting that Cox actively limited the number of notices it processed.

"Rather than working with Plaintiffs to curb this massive infringement, Cox unilaterally imposed an arbitrary cap on the number of infringement notices it would accept from copyright holders, thereby willfully blinding itself to any of its subscribers' infringements that exceeded its 'cap.'" Cox has previously stressed that it implemented a "thirteen-strike policy" to deal with the issue. According to the record labels, it is clear that Cox intentionally ignored these repeated copyright infringements. As such, they believe that the ISP is liable for both contributory and vicarious copyright infringement. As compensation for the claimed losses, the companies demand statutory or actual damages, as well as coverage for their attorney fees and other costs.
Since the complaint lists over 10,000 musical works, and there's a statutory maximum of $150,000 per work, the case could in theory cost Cox more than $1.5 billion.

2 of 122 comments (clear)

  1. Re:They should sue by bobstreo · · Score: 3, Informative

    They should sue the road owners for helping piracy

    You mean the electrical companies for providing electrons.

    Their lawyers must have forgotten the concept of safe harbor as part of the DCMA act/

  2. Cox literally said "F the dmca!!!" by raymorris · · Score: 3, Informative

    To qualify for safe harbor under the the DMCA, an isp must implement a reasonable policy regarding repeat offenders. Quoting from the complaint:

    --
      Specifically, the Court concluded:
    Cox did not implement its repeat infringer policy. Instead, Cox publicly purported to comply with its policy, while privately disparaging and intentionally circumventing the DMCAâ(TM)s requirements. Cox employees followed an unwritten policy put in place by senior members of Coxâ(TM)s buse group by which accounts used to repeatedly infringe copyrights would be nominally terminated, only to be reactivated upon request. Once these accounts were reactivated, customers were given clean slates.

    5. The Court further found that starting in September 2012, Cox abandoned its tacit policy of temporarily suspending and reactivating repeat infringersâ(TM) accounts, and instead stopped terminating accounts altogether. Id. at 655-58.
    7. The Fourth Circuit affirmed this Courtâ(TM)s holding, explaining that although âoeCox formally adopted a repeat infringer âpolicy,â(TM) . . . both before and after September 2012, [Cox] made every effort to avoid reasonably implementing that policy. Indeed, in carrying out its
    thirteen-strike process, Cox very clearly determined not to terminate subscribers who in fact
    repeatedly violated the policy.â 881 F.3d at 303. The former head of Coxâ(TM)s Abuse Group,
    Jason Zabek, summed up Coxâ(TM)s sentiment toward its DMCA obligations best in an email
    exclaiming: âoef the dmca!!!"
    --

    According to the complaint, Cox chose not to follow the DMCA requirements for safe harbor, and literally wrote "f the dmca!!!"

    I'm sure Cox has their side of the story, but they already told the side of the story in court and after hearing thier side the judge already ruled that they did not in fact implement a reasonable policy.