Supreme Court rejects Sony's attempt to kick music pirates off the Internet

Key Points:

• The Supreme Court ruled unanimously that Internet service providers (ISPs) like Cox Communications cannot be held liable for customers' copyright infringement unless they intentionally induce infringement or provide a service tailored to infringement, reversing a lower court ruling that found Cox liable for contributory infringement.
• The court emphasized that merely providing internet service with knowledge of some users' illegal activity does not constitute contributory infringement, citing precedents like Sony's Betamax case and MGM Studios v. Grokster, and rejecting the notion that ISPs must act as copyright enforcers.
• Justice Clarence Thomas, writing for the majority, stated that Cox did not induce infringement nor tailor its service for it, noting Cox's efforts to discourage piracy through warnings and account suspensions; however, Justice Sonia Sotomayor concurred in the judgment but criticized the majority for limiting secondary liability and undermining the Digital Millennium Copyright Act's (DMCA) incentive structure.
• The ruling was hailed by Cox and digital rights advocates as a victory for ISPs and internet users, while the Recording Industry Association of America (RIAA) expressed disappointment, warning the decision could weaken protections for copyright holders.
• The decision revives the "substantial noninfringing uses" standard from the 1984 Sony case, creating potential challenges for lower courts in applying this standard in the modern internet context, with experts predicting ongoing legal debates over the scope of ISP liability for copyright infringement.