Washington — The Supreme Court has ruled in a copyright case that will give online businesses more clarity and certainty amid an environment of growing copyright lawsuits. Justices had the opportunity in the Cox v. Sony case to set clear boundaries on the scope of secondary copyright liability and associated statutory damages, and today they took it.
In a 9-0 decision in favor of Cox, the Justices said, “a company is not liable as a copyright infringer for merely providing a service to the general public with knowledge that it will be used by some to infringe copyrights.” Cox had argued that holding them liable for what users do online would threaten universal internet access.
The Computer & Communications Industry Association had filed a Supreme Court amicus brief which offered examples of copyright damage awards that have become unmoored from actual harm, and the billions or sometimes even trillions of dollars in potential liability a company or startup faces.
The following can be attributed to CCIA President & CEO Matt Schruers:
“The Supreme Court decision is a win for sensible, sustainable copyright policy that impacts a wide range of U.S. companies, future startups and consumers. Copyright damages claims had been running amok in recent years. If the $1 billion damages award in this case were allowed to stand, the precedent would have encouraged more frivolous lawsuits, and threatened every legitimate digital service provider.”
