Last Thursday, the Fourth Circuit decided a closely followed case on one of the safe harbor defenses under the Digital Millennium Copyright Act (DMCA). See BMG Rights Management (US) LLC v. Cox Communications, Inc., No. 16-1972 (4th Cir. Feb. 1, 2018). The court also addressed the intent standard for contributory copyright infringement.
BMG, an owner of copyrights in digital music files, sued Cox, an internet service provider, for contributory copyright infringement by Cox subscribers engaging in “peer-to-peer” music file sharing. The district court held that Cox was not entitled to the safe harbor defense under Section 512(a) of the DMCA because Cox did not satisfy the conditions under Section 512(i)(1)(A) that it “adopted and reasonably implemented … a policy that provides for the termination in appropriate circumstances of subscribers … who are repeat infringers.” At trial, a jury found Cox liable and awarded BMG $25 million.