Supreme Court Reverses ISP Pirate Ban Ruling
▼ Summary
– The US Supreme Court overturned a lower court ruling that had held ISP Grande Communications liable for contributory copyright infringement.
– This action follows the Court’s recent precedent in Cox v. Sony, which found ISPs are not liable merely for providing service used by some for piracy.
– The case is sent back to the 5th Circuit Court to reconsider its decision against Grande in light of the new Cox precedent.
– Record labels had previously won a ruling that Grande was willfully blind to subscriber piracy and chose not to prevent it.
– Grande and Cox had faced massive potential damages, with verdicts of $46.8 million and $1 billion respectively being overturned prior to these Supreme Court actions.
In a significant development for Internet service providers, the Supreme Court has vacated a lower court ruling that held Grande Communications liable for its subscribers’ copyright infringement. This decision, issued yesterday, prevents a potential mandate requiring the ISP to disconnect customers accused of piracy. The move reinforces a legal precedent established just last month in a similar case involving Cox Communications, signaling a clear judicial stance on the limits of ISP liability for user piracy.
Last month’s landmark ruling in Cox Communications, Inc. v. Sony Music Entertainment established a crucial principle. The Court found that merely providing a general public service, with awareness some users may misuse it, does not constitute direct copyright infringement. This framework directly influenced yesterday’s brief order. The Supreme Court granted Grande’s petition, vacated the Fifth Circuit’s judgment, and remanded the case for reconsideration in light of the Cox precedent. This procedural step effectively nullifies the earlier ruling against the provider.
The overturned decision originated from a lawsuit filed by major record labels, including Universal, Warner, and Sony. In October 2024, the Fifth Circuit Court of Appeals ruled unanimously that Grande was liable for contributory copyright infringement. That court concluded Grande knew, or deliberately avoided knowing, the identities of subscribers repeatedly linked via IP address to illegal torrenting, yet continued providing them service. The labels have pursued this legal strategy against several ISPs, seeking substantial financial damages for failing to police their networks.
The financial stakes in these cases are enormous. Grande previously faced a damages verdict of $46.8 million, an amount the Fifth Circuit deemed excessive and ordered retried. Cox was once subject to a staggering $1 billion jury verdict, which was also overturned prior to the Supreme Court’s review. Yesterday’s ruling spares Grande from immediate liability for millions in damages and sends a powerful message about the application of secondary liability in copyright law.
With the case now returned to the Fifth Circuit, judges must re-evaluate whether Grande’s actions cross the threshold from providing a general service into actively fostering infringement, as defined by the Supreme Court’s recent guidance. The outcome will further clarify the obligations of digital infrastructure providers in the ongoing battle against online piracy.
(Source: Ars Technica)
