The U.S. Supreme Court unanimously ruled on March 25, 2026, that internet service providers (ISPs) are not liable for copyright infringement committed by their users, overturning a $1 billion jury verdict against Cox Communications[3]. Justice Clarence Thomas wrote for the court that "a company is not liable as a copyright infringer for merely providing a service to the public with knowledge that it will be used by some to infringe copyrights."[3] The decision applies specifically to contributory copyright infringement, establishing that an ISP can only be held liable if it actively induced infringement or provided services specifically tailored to infringement—mere knowledge is insufficient.[5]
Key Players & Litigation History
Cox Communications, one of the nation's largest ISPs, faced a lawsuit from Sony Music Entertainment and other major record labels (including Warner Music Group and Universal Music Group) beginning in 2018.[8] The labels alleged that Cox knew about hundreds of thousands of instances of subscribers illegally sharing copyrighted music but failed to terminate user accounts.[4][5] A jury in Alexandria, Virginia, found Cox liable in 2019 and awarded $1 billion in damages based on both contributory and vicarious infringement theories.[3][8] The Fourth Circuit Court of Appeals later vacated the damages award while affirming the contributory liability finding, prompting Sony's appeal to the Supreme Court.[5]
Why It Matters
The ruling significantly reshapes secondary copyright liability law and is a major defeat for the music and film industries' efforts to hold ISPs accountable for user piracy.[4] Music industry leaders expressed disappointment; Mitch Glazier of the Recording Industry Association of America warned that "copyright law must protect creators and markets from harmful infringement."[4] However, two justices—Sotomayor and Jackson—filed a concurring opinion disagreeing with the majority's broader reasoning, arguing it "unnecessarily limits secondary liability" and "upends the statutory incentive structure that Congress created."[3] The decision comes amid broader tensions over copyright enforcement in the age of AI-generated content and online piracy.[4]