As the use of the internet to stream or download copyrighted material without authorization continues to grow worldwide, the entertainment industry is turning its focus toward American internet service providers, seeking to hold them financially accountable for their customers’ alleged piracy. On Monday, the Supreme Court is set to hear a landmark case that could determine whether internet providers can face massive penalties—potentially hundreds of millions of dollars—if they are found to have “contributed” to copyright infringement by failing to suspend accounts engaged in illegal activity.
The case involves Cox Communications, the third-largest broadband provider in the U.S., which faces a $1 billion jury award granted to Sony Music Entertainment and other media companies over pirated content distributed online. A federal appeals court upheld the verdict, but Cox is asking the Supreme Court to overturn it and set limits on what it calls “contributory liability.” The company warns that if the ruling stands, it could face bankruptcy, potentially cutting off internet service to entire communities and triggering what it describes as “mass evictions from the internet” in homes, hospitals, barracks, and hotels where piracy has been suspected. Cox maintains that it opposes copyright infringement and takes measures to prevent it, but it cannot be held responsible for the actions of individual users, which are difficult to trace or identify.
Legal experts note that while federal law clearly criminalizes direct copyright infringement, the responsibility of secondary parties like internet providers remains a developing area. The Motion Picture Association of America (MPAA) argues that any party who “materially contributes to the infringing conduct of another” can be held liable as a contributory infringer. Copyright holders contend that the threat of lawsuits motivates providers to actively prevent piracy and suspend offending accounts. Sony Music attorneys accuse Cox of prioritizing profit over compliance with the law, allegedly providing habitual infringers with the means to violate copyrights in order to retain subscribers. According to the MPAA, nearly 19 billion pirated downloads of movies and TV shows occurred through peer-to-peer platforms in 2023, costing the U.S. economy over $29 billion and jeopardizing hundreds of thousands of jobs. The Supreme Court’s oral arguments on the scope of contributory liability are scheduled for Monday, with a final decision expected by June 2026.