Supreme Court Reverses $1 Billion Verdict, Rules Cox Not Contributorily Liable for Subscribers' Copyright Infringement

"The Supreme Court held that a service provider is contributorily liable for a user's infringement only when it intended for its service to be used in that way, which is established only if the provider either encouraged the infringement or designed the service specifically to facilitate it."

"The Fourth Circuit affirmed as to contributory liability, reasoning that 'supplying a product with knowledge that the recipient will use it to infringe copyrights is exactly the sort of culpable conduct sufficient for contributory infringement.'"

"Cox argued that the Fourth Circuit's holding 'flouts a century of this Court's case law' by imposing contributory liability without proof of culpable conduct."

The U.S. Supreme Court ruled that internet service providers like Cox Communications are not contributorily liable for copyright infringement unless they intended for their service to be used for that purpose. The decision reversed a Fourth Circuit ruling that held Cox liable based on knowledge of infringement. The case originated from a lawsuit by Sony Music Entertainment, which claimed Cox was responsible for its subscribers' infringement. The Supreme Court emphasized the need for evidence of intent or encouragement for contributory liability to apply.

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