Federal Appeals Court Overturns $1 Billion Verdict Against Cox Communications

The court orders a new trial to determine appropriate damages, acknowledging contributory infringement but rejecting vicarious liability claims.

A federal appeals court overturned a $1 billion verdict against Cox Communications, ruling the damages for copyright infringement were not justified.
The court ordered a new trial to determine appropriate damages, acknowledging Cox's role in contributory infringement but rejecting vicarious liability claims.
Cox Communications was accused by major record labels of failing to curb user piracy and not adequately addressing copyright infringement notices.
The decision could result in significantly reduced damages for Cox, although the company will still be held accountable for its part in copyright infringement.
This ruling sets the stage for a new trial on damages, focusing solely on contributory infringement, and may influence future copyright infringement cases involving ISPs.