US Supreme Court Hears Landmark Cox Copyright Case

The U.S. Supreme Court on Monday heard oral arguments in Cox Communications, Inc. v. Sony Music Entertainment, a high-stakes battle over whether internet service providers (ISPs) like Cox can be held financially liable for customers' music piracy, potentially exposing the company to $1 billion in damages sought by major record labels.

The case pits Cox, which serves over 6 million homes and businesses across 13 states, against a coalition of more than 50 labels—including Sony Music, Warner Music Group, and Universal Music Group—representing artists from Bob Dylan and Beyoncé to Sabrina Carpenter and Givēon. The labels accuse Cox of contributory copyright infringement for failing to terminate repeat offenders despite receiving thousands of automated notices under the Digital Millennium Copyright Act (DMCA), allowing users to illegally download and share over 10,000 songs. 

A 2019 Virginia jury initially awarded the labels $1 billion, but the 4th U.S. Circuit Court of Appeals in 2024 upheld liability for contributory infringement while vacating the full damages and ordering a retrial on the amount, prompting Cox's appeal to the high court.

During arguments, several justices appeared skeptical of broad ISP liability, questioning whether "mere knowledge" of infringement suffices without direct encouragement, and warning of unintended consequences like internet cutoffs for hospitals, military bases, or entire households based on unverified accusations. 

Cox's attorney, Joshua Rosenkranz, argued the ruling could trigger "mass evictions from the internet," harming innocent users in shared networks like hotels or barracks, and emphasized that Cox's terms prohibit illegal activity without extra profits from piracy. The Trump administration and tech giants like Google and Verizon back Cox, citing risks to the open internet economy.

The labels countered that Cox ignored a "13-strike" internal policy, terminating just 32 users for infringement while cutting off over 619,000 for nonpayment, prioritizing profits from "serial thieves" over enforcement.