The Supreme Court of the United States agreed on June 30, 2025, to review a potentially landmark case, *Cox Communications, Inc. v. Sony Music Entertainment*, which could redefine Internet Service Provider (ISP) liability for copyright infringement committed by their subscribers.
Supreme Court to weigh ISP liability in landmark copyright case that could transform internet enforcement
The case stems from a 2018 lawsuit in which more than 50 record labels accused Cox of turning a blind eye to rampant copyright violations occurring through peer-to-peer file sharing on its network.
In December 2019, a jury found Cox contributorily and vicariously liable for infringement of 10,017 copyrighted works, resulting in a staggering $1 billion statutory damages award. The Fourth Circuit later vacated the monetary judgment but affirmed Cox’s underlying liability, applying a “material contribution” standard that holds an ISP liable when it knows of infringement yet fails to act appropriately.
The Supreme Court will address several critical questions, including whether mere knowledge of users’ infringement constitutes “material contribution” sufficient for liability, and if an ISP’s failure to act can be considered “willful” infringement warranting enhanced statutory damages.
Industry observers note this decision could fundamentally reshape how ISPs respond to copyright notices.
Cox argues that liability should require affirmative promotion of infringement, not merely knowledge and inaction. Meanwhile, music industry plaintiffs contend broad liability is necessary to address large-scale copyright harm facilitated by internet providers.
The Electronic Frontier Foundation and various library associations have warned that expansive secondary liability could lead to innocent users losing internet access based on mere accusations.
The music labels involved are represented by performance rights organizations that collect and distribute royalties for public performances of copyrighted music.
This case is particularly significant for musicians seeking to protect their streaming royalties and other digital revenue streams in an increasingly complex online landscape.
Stakeholder positions reflect deeply divided perspectives, with only the American Intellectual Property Law Association fully supporting the plaintiffs’ approach among the 21 filed amicus briefs.
Legal professionals are turning to Wolters Kluwer’s compliance and regulatory solutions to navigate the complex implications of this case for their clients in both technology and entertainment sectors.
A decision affirming the Fourth Circuit could compel ISPs to aggressively terminate accounts based on infringement allegations, while narrowing liability would preserve their traditional role as neutral conduits.
The case is scheduled for oral arguments in December 2025, with a decision expected by June 2026 that will likely have far-reaching implications for internet policy, content distribution, and digital rights management.
The Solicitor General supported Cox’s petition to the Supreme Court while recommending denial of Sony’s counter-petition that sought to uphold the original damages award.
