Supreme Court Reverses Fourth Circuit In $1 Billion Copyright Case: What ISPs And Digital Platforms Need To Know

Supreme Court reversed Fourth Circuit in Cox Communications v. Sony Music Entertainment, rejecting $1 billion copyright damages award. Court held ISPs not contributorily liable for subscriber infringement merely by continuing service to known infringing IP addresses. Requires proof of intent through inducement or infringement-tailored service. Cox's internet access had substantial noninfringing uses and company discouraged infringement through warnings and terminations. Decision limits knowledge-based liability theories, requiring active inducement or infringement-specific services for contributory copyright liability.