We See Nothing: The Surprising Ruling of Non-Infringement in Cox

We See Nothing: The Surprising Ruling of Non-Infringement in Cox

In a major blow to copyright holders, a recent high stakes battle between Cox Communications and Sony Music Entertainment has redefined the boundaries of internet service provider (ISP) liability.

The Background: 163,000 Red Flags

As an ISP, Cox provides the “pipes” for the internet. Sony, representing various music copyright owners, employed the firm MarkMonitor to track illegal downloads. Over a two-year period, Sony sent Cox approximately 163,000 notices identifying specific IP addresses associated with copyright infringement.

Despite these thousands of notices, the infringing activity continued. Sony sued Cox in federal district court on two counts:

  1. Contributory Infringement: Claiming Cox contributed to the users’ illegal activity.
  2. Vicarious Liability: Claiming Cox was responsible for the infringement occurring on its network.

The initial jury found Cox liable on both counts. However, upon appeal, the Fourth Circuit Court of Appeals delivered a split decision: it affirmed the contributory infringement but reversed the vicarious liability. 

The Ruling: Intent is Everything

The Supreme Court ultimately held that Cox was not liable for contributory infringement. The reasoning? Cox did not intend for its service to be used for illegal downloading.

The court found that:

  • Cox did not actively induce users to infringe.
  • The service was not “tailored” specifically for copyright
  • Providing a general-purpose tool (internet access) that can be used for infringement is not the same as intending for it to happen.

The Takeaway: Knowledge vs. Intent

The court’s decision essentially looked past the fact that Cox received 163,000 notices and did nothing. The takeaway for IP owners is clear: To prevail on contributory infringement, you must prove intent. Simply knowing that a service can be used for infringing activity—or even being told it is being used that way—may no longer be enough to hold a service provider liable if the service has substantial non-infringing uses. In this case, the court decided that “knowing” wasn’t “doing.”


Protect Your Innovation

Protecting your intellectual property is critical to the survival of any organization. In a changing legal landscape, having the right counsel to help you navigate these decisions is more important than ever.

The Law Office of Kathleen Lynch PLLC is designed to help your business stay ahead of the game.

Your first consultation is free. Email us: kl****@*****aw.com

Fin to the Left

Fin to the Left

If anyone caught the halftime show at the Super Bowl this year, you may remember the dancing sharks that were a part of Katy Perry’s halftime show.  The sharks were an instant sensation, particularly the left shark who was seen dancing awkwardly behind Ms. Perry.  Now one businessman has tried to capitalize on that.

Fernando Sosa is in the 3D printing business.   Mr. Sosa makes and sells 3D printed sculptures typically of political figures.  After the Super Bowl, Mr. Sosa developed and offered for sale a replica “Left Shark” figure.  Attorneys for Katy Perry quickly fired off a cease and desist letter to Mr. Sosa claiming that the figure infringed Katy Perry’s intellectual property.  In particular, the letter alleged that Mr. Sosa’s selling of the shark figurine violated Ms. Perry’s copyrights in the shark.  Mr. Sosa has agreed to stop selling the shark.

According to CNN, Mr. Sosa remarked “ it looks like dictators and world leaders like Putin and Kim Jong Un or Chris Christie are much easier to deal with,” and “all this lawyer crap is stressful.” 

Take away: before considering copying something in a public domain, think about whether any third party may have rights to the subject matter.  This applies to sharks as well as digital images and content on the internet.  Even though a digitized item can be downloaded, doesn’t mean it should be.  One way to err on the side of caution is to check the ownership of the item.  If a copyright notice accompanies the material that indicates the owner.  Most owners can be contacted and some may grant a license to you to use their image or content (or shark) as you would like.  However, it is the owner’s right to grant and not yours to take.

 Protecting your innovative developments and respecting the intellectual property rights of third parties is critical to any organization.  Having the right person to help you make those decisions is important.  The Law Office of Kathleen Lynch PLLC is designed to help businesses such as yours keep ahead of the game.   The first telephone consultation is free.  Email us at kl****@*****aw.com.