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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.

29 of 122 comments (clear)

  1. Nice twist. by JaredOfEuropa · · Score: 5, Insightful

    How do ISPs "contribute" to piracy, and by that I mean that they do something that aids or enables piracy specifically, instead of just providing a conduit to anything and anyone? By the same token: how have ISPs profited from piracy specifically... do they charge extra for Torrent traffic or something? That is not at all the same thing as "refusing to take measures", the latter should only be actionable if the ISPs are actually responsible for curtailing piracy. Or are the cops now going to send my speeding tickets to the authority responsible for our highways as well, because they "refuse to take measures" to make me slow down?

    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    1. Re:Nice twist. by Anonymous Coward · · Score: 4, Insightful

      This is where Net Neutrality was a benefit to them.

      If they treated all traffic the same and didn't interfere or "shape traffic", they would have no liability to shape traffic in a way that limited piracy. What ISPs did, was show that they could shape traffic based on origin and were willing to do it when it benefited them but were not willing to limit the illegal activities of their subscribers.

    2. Re:Nice twist. by Anonymous Coward · · Score: 2, Insightful

      The only thing that obligates them in any way to do anything about piracy that goes over their services is the DMCA. The DMCA requires a site to maintain a reasonable policy regarding repeat offenders. If a member violates the policy, their account must be terminated. I have long argued that the "reasonable policy" that should be implemented is that if a subscriber is taken to court and the courts have found that repeat infringement is going on, then and ONLY then should the "repeat infringement" subscriber's account be terminated. After all, a DMCA takedown notice is only an allegation of guilt and anyone can file one without any risk of legal repercussions (the only penalty in the DMCA is for people knowingly falsely claiming to hold the copyright and no one has ever been prosecuted for that as far as I am aware.) A few unproven allegations (DMCA takedown notices) can get your internet connection permanently terminated; that sounds quite unreasonable.

      So, the only good answer that will greatly infuriate these copyright organizations while cleanly absolving the ISPs of any guilt for their users' actions is to rely on the judgment of the courts to legally determine "repeat infringer" status and terminate the account. This also seems to be the most fair way to handle it. It protects against loss of internet connectivity based solely on unproven allegations and defers the legal fact-finding to the courts that hold the power to make those judgments. I don't know why the ISPs aren't doing this already.

      Posted as AC so the RIAA/MPAA won't know who is fucking up their program.

    3. Re:Nice twist. by Applehu+Akbar · · Score: 2

      Just this once, I hope the record companies win every penny. This will be an object lesson to ISPs in why they should lobby for common carrier status.

    4. Re:Nice twist. by Kjella · · Score: 2

      How do ISPs "contribute" to piracy, and by that I mean that they do something that aids or enables piracy specifically, instead of just providing a conduit to anything and anyone?

      Go back and read the Betamax case and how it was a close 5-4 call that VCRs remained legal and that the majority opinion was initially the dissenting one. The law and courts have always struggled with products and services that are used to facilitate crime, because naturally it would be quite profitable if you could stay on the legal side and rent it out to crime while claiming ignorance. Think ships for piracy on the high seas, distilleries during prohibition, selling lock picks, date rape drugs, large amounts of cough medicine, whatever. It's the same shithole civil forfeiture laws came from too, the property was involved in crime so let's take it even though we can't prove the owner was involved.

      That is not at all the same thing as "refusing to take measures", the latter should only be actionable if the ISPs are actually responsible for curtailing piracy.

      In some cases due to an insane amount of scrutiny they've made quite specific laws on what's necessary, for example I think gun shops are regulated so that if they've done the necessary background checks and whatever it doesn't matter what the statistic is on how they're used or how many other "suspect" circumstances there were they can't be held liable. The DMCA was this sort of a compromise, an ISP is by default not liable for what people do online unless you've been notified and then there were various rules for take downs, counter-notifications etc. but they mostly applied to hosting and search engines. What should an ISP do? Well:

      (i) Conditions for Eligibility.
      (1) Accommodation of technology. The limitations on liability established by this section shall apply to a service provider only if the service provider
      (A) has adopted and reasonably implemented, and informs subscribers and account holders of the service provider's system or network of, a policy that provides for the termination in appropriate circumstances of subscribers and account holders of the service provider's system or network who are repeat infringers; and

      So what's a "reasonable" system, "provides for" termination, "appropriate circumstances" and "repeat infringers"? I mean any ToS says they may kick you out if you break the law, but it doesn't say they have to. And it doesn't define repeat infringers, like is an uncontested notice equal to an admission of guilt because some random guy from the peanut gallery sent your ISP an accusation? It doesn't say. And it's never been properly settled in court. My thought is that this will probably go all the way to the Supreme Court because it's just terribly written law.

      --
      Live today, because you never know what tomorrow brings
  2. Dear Cox by Rockoon · · Score: 2

    Dear To Whom It May Concern,

    We would like you to spend your profits to help our efforts. Its the moral thing to do. See you in court.

    --
    "His name was James Damore."
  3. 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/

  4. Re:Nice twist - common carrier status lost by dyfet · · Score: 5, Insightful

    I think this touches upon common carrier status. Clearly if they have a right to throttle and selectively manage who people can communicate with by becoming a "selective" conduit, a right they have demanded in rejecting net neutrality, they are asserting they have both that right and also the explicit legal responsibility/liabilities for all traffic that does pass thru their network. Clearly the sharks are circling...

  5. Countersuit by orlanz · · Score: 4, Interesting

    I hope Cox counter sues for all the money they take from their customers and shareholders to protect the music industry's decrepit business model.

    The cost of processing those requests, the monies wasted with erroneous requests, and the cost of defending their policies.

    1. Re:Countersuit by Greyfox · · Score: 3, Interesting
      Yeah. The engineering effort of supporting DRM that has already been broken by some wiseass kid in Sweden is astronomical. Among other things, it makes automated testing of all the different ways video can be delivered incredibly difficult. This has an impact on customer satisfaction when bugs slip through the build process, on development costs of those delivery methods themselves and in the requirement to hire more manual testers in order to verify that mobile devices and set top boxes work at all before they're shipped out the door.

      And that doesn't even begin to cover consumer frustration when none of their AV equipment works with any of their other AV equipment. Or when a customer has to maintain a relationship with 5 different media delivery companies in order to access all the content they've purchased.

      I could make a pretty good argument that the AA's have cost the legitimate content delivery industry billions of dollars. Their rabid defense of profits has the opposite effect that the various IP laws have been set up to encourage -- stifling innovation and creativity of content producers and delivery companies. Not that anything can really be done about it until the the public is willing to have what is really a pretty boring discussion about the sad state of IP law and how it should be fixed.

      Besides, don't they already have a law that says they don't need to police their own user base as long as they take down content when notified about it?

      --

      I'm trying to teach myself to set people on fire with my mind... Is it hot in here?

  6. Re:They should sue by jonsmirl · · Score: 4, Insightful

    I'll fully support their actions when we go back to a 20 year copyright instead of the ridiculous 140 years under the current system. It is obscene that photos and recordings of WWII won't be freely available until generations that haven't even been born yet are adults.

  7. Here is the solution by gerald.edward.butler · · Score: 3, Insightful

    Take all the music executives out back and cave their skull in with a sledgehammer. Problem solved. I'm tired of hearing about this shit. I don't care about their shitty-ass "Music" they produce anyways. I don't download. Couldn't care less about it. If they produce something of true value, people would buy it. What they produce is shit-drivel.

  8. Surely... by YuppieScum · · Score: 4, Insightful

    ... this is "alleged infringement" until such time it has been investigated and been proven.

    Last time I checked, the "presumption of innocence" was still a corner-stone of the rule of law for most - nominally civilised - countries.

    --
    This sig left unintentionally blank.
    1. Re: Surely... by Anonymous Coward · · Score: 3, Insightful

      Hahaha ha haha ha hahahahaha *wipes tears* hahaha ha haha ha ha....ha

    2. Re:Surely... by whoever57 · · Score: 2

      Last time I checked, the "presumption of innocence" was still a corner-stone of the rule of law for most - nominally civilised - countries.

      ... that only applies to criminal law. This is civil. There is usually no presumption of anything on either side.

      --
      The real "Libtards" are the Libertarians!
  9. DMCA provides safe harbor... by KJ+Hrim · · Score: 3, Interesting

    So, they love the DMCA (I believe that's part of this filing...). but, they hate the DMCA because "pass through" or "facilitators" are enabling theft. What most people don't realize is that for the past couple years all ISP's have been pushing IPv6 to the home. The addresses are static, and unless you are taking fairly drastic measures broadband users are not anonymous. With static IP addressing, I'm not sure what this complaint is about.

    1. Re:DMCA provides safe harbor... by Rockoon · · Score: 2

      They have no duty to go through their logs and take action against one of their customers at the request of corporations in hollywood and memphis, nor a duty to provide those logs to corporations in hollywood and memphis, nor a duty to protect corporations in hollywood and memphis.

      --
      "His name was James Damore."
  10. Re: Nice twist - common carrier status lost by reanjr · · Score: 2

    Firstly, having a right to select which traffic goes through the network does not limit your common carrier status. Only acting on that right limits your common carrier status. Secondly, traffic shaping is not even close to what they are talking about with common carrier status; they are talking about censorship and controlling messaging.

  11. automated complaints by Revek · · Score: 2

    That require the ISP to expend its resources to deliver.

  12. Dear Record Labels, by PPH · · Score: 3, Funny

    We are not your personal army.

    -- Cox Communications

    --
    Have gnu, will travel.
  13. Record Labels vs Cable Carriers by phantomfive · · Score: 4, Insightful

    May they all lose.

    --
    "First they came for the slanderers and i said nothing."
  14. Re: Nice twist - common carrier status lost by Anonymous Coward · · Score: 2, Informative

    Firstly, having a right to select which traffic goes through the network does not limit your common carrier status. Only acting on that right limits your common carrier status. Secondly, traffic shaping is not even close to what they are talking about with common carrier status; they are talking about censorship and controlling messaging.

    None of that is the case any longer.

    It used to be true, as that was the case back in the 90's when the FCC classified companies as telecommunication carriers, which are the same laws that provided for common carrier classification as well.

    All of the laws that let the FCC make such classifications were very recently repealed earlier this year, so no longer apply.

    With the massive FUD campaign intentionally confusing what laws existed and what laws would disappear, I can understand the reason you would be unaware of this.
    There were thousands of people paid to spread FUD, and millions more that were willing to do so for free.
    They would say laws allowing classification as a telecom aren't needed to classify something as a telecom, yet there is now no such classification to apply or not apply. They also intentionally mislead people about how old the laws were, typically claiming "those laws dated in the 90s were only just made in 2015" when that was proven false before and after.

    So no, COX and all other ISPs in the USA are not telecommunication providers under the law anymore, and there is no such thing as common carrier to fall under or to not fall under, it simply doesn't exist as a concept in law anymore.

    So it doesn't at all matter what COX situation is, or what their actions are, there is no common carrier status to be assigned or not assigned, thus they are not common carriers.

    They are fully and wholly responsible under the law for the actions of all of their customers now.
    If the label can prove in court that the customer infringed copyright, that's all that's needed for COX to be found guilty of "secondary infringer of copyright"

    There is also "accomplice to copyright infringement" that they are no longer shielded from.
    This would require a separate court case against the ISP, but ironically due to the name, does not actually require the accused copyright infringer to be found guilty.
    "accomplice" is different from "accessory" in that accessory requires direct action to assist in the crime, or to be physically present (which the latter part I don't believe applies), where accomplice does not require any specific actions to be made to qualify, but the penalties for accomplice are supposed to be FAR lesser.

    But since both accomplice and accessory take additional work to prove, while secondary infringer does not, that is what they are going after now.
    Secondary infringer can be liable up to the same amount as the primary infringer, and guilt is assumed based off the primary infringer, requiring an appeal case to change.

    When it was possible to classify companies as telecommunication carriers, there was additional protections in place for the company to not be automatically liable unless very specific conditions were met. This tended to be quite a high bar so wasn't an option exercised often, and even when it was it didn't succeed often either.

    Now that those protections no longer exist things fall back to just what is under title 17 which are far easier to get a successful conviction for.

  15. 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.

    1. Re:Cox literally said "F the dmca!!!" by harvey+the+nerd · · Score: 2, Insightful

      The proper response to a criminal law like DCMA is "FOAD".

  16. Re:They should sue by Joce640k · · Score: 3, Insightful

    I'll fully support their actions when we go back to a 20 year copyright instead of the ridiculous 140 years under the current system. It is obscene that photos and recordings of WWII won't be freely available until generations that haven't even been born yet are adults.

    LOL! In 20 years they're going to extend it all over again. God forbid that Steamboat Willie should ever enter the public domain.

    (or maybe what we really need is for copyright owners to pay to extend protection beyond a certain time, eg. if Disney wants perpetual copyrights on its stuff then they should pay a yearly fee for it. Any stuff that isn't making a useful amount money will then enter the public domain automatically)

    --
    No sig today...
  17. Re:They should sue by jonsmirl · · Score: 3, Insightful

    Free for 20 years and then requiring a renewal fee would solve 90% of the copyright's problems. The fee bit is critical since it achieves two purposes, it solves the orphan work problem and it removes copyright protection from all of the non economically viable works. Plus it creates a database of exactly what is under copyright. I'm fine with 20 year renewal periods, but it would be for an escalating fee on each renewal. This model allows extremely costly works like big budget movies to maintain copyright indefinitely while simultaneously pushing all of the minor items that make up our culture into the public domain.

  18. Re:They should sue by drinkypoo · · Score: 2

    (or maybe what we really need is for copyright owners to pay to extend protection beyond a certain time, eg. if Disney wants perpetual copyrights on its stuff then they should pay a yearly fee for it. Any stuff that isn't making a useful amount money will then enter the public domain automatically)

    After 5 years, require that it be submitted to the LoC for archival. After 10 years, start charging fees which double every year... Structure the initial fee such that it becomes expensive around year 25.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  19. Re: Nice twist - common carrier status lost by nierd · · Score: 2

    They are fully and wholly responsible under the law for the actions of all of their customers now.

    If two people infringe copyright by exchanging USB keys in a restaurant, then are you saying that the restaurant is a secondary infringer, liable up to the same amount as the primary infringer?

    No but if you setup a meeting place where two people could exchange USB keys by giving them to you first, and then handling the swap - yes - you would be.

  20. Re:They should bring that up in court by sjames · · Score: 2

    Given the many false accusations, it is also reasonable to argue that a mere accusation is worthless to any policy, particularly when there is no legal consequence at all for a false accusation. Where's the proof, preferably in the form of a finding by a court of law?

    Essentially an argument that given the public knowledge that the accusations tend to be based on nothing more than buggy algorithms and scanners that have been publicly documented to not only flag non-infringing content but also to accuse the wrong source IP, the mere receipt of such a report is not actionable. Further that the 13 strikes rule was based on the assumption, now proven false, that the *AA and it's agents would perform some reasonable level of due diligence before sending a complaint.