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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.

16 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: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/

  3. 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...

  4. 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?

  5. 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.

  6. 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.

  7. 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

  8. 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.

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

    We are not your personal army.

    -- Cox Communications

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

    May they all lose.

    --
    "First they came for the slanderers and i said nothing."
  11. 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.

  12. 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...
  13. 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.