Last month, the Supreme Court granted Cox Communications’ petition for a writ of certiorari in a landmark copyright liability battle.

The internet provider challenged the $1 billion damages award by a Virginia jury in 2019, which went in favor of a group of major record labels, including Sony, Universal, and Warner.

Cox successfully convinced the Supreme Court that the contributory infringement standards, which determine how ISPs should respond to pirating subscribers, should be reviewed. The same applies to the associated willfulness finding, which contributed to the initial billion-dollar verdict.

The Supreme Court’s review offers potential clarity for an industry grappling with complex legal issues. The outcomes of other lawsuits between ISPs and rightsholders will be directly impacted too, especially when it comes to claims for contributory infringement.

Labels vs. Altice Case on Hold

A lawsuit between several major record labels and Internet provider Altice is one of those affected. The matter was scheduled for trial in September, but both parties agreed that it would be wise to stay the proceeding until the Supreme Court issues its decision.

In a joint motion, the parties informed the Texas federal court that the Cox decision will potentially change the liability standards when it comes to repeat infringers, an issue central to the case. Therefore, it’s sensible to put the case on hold.

“The Parties agree that proceeding to trial now, before the Supreme Court’s decision in Cox, risks both the Parties and this Court expending significant resources to complete pre-trial proceedings and prepare for and hold a trial, only to have wasted the jury’s time and have to repeat those efforts as a result of the decision in Cox,” the joint motion reads.

The request for a stay was granted by U.S. Magistrate Judge Roy Payne last week, who put the case on hold, canceling the plans for a September trial.

Verizon Asks for a Stay

Contrary to their agreement in the Altice case, the labels are not willing to put a similar case against Verizon on hold. While many of the same companies are listed as plaintiffs, they believe that this case can continue for now, as it’s nowhere near a trial.

Verizon previously requested a stay pending the Cox review. While the case is in its early stages, with a motion to dismiss pending and no discovery taking place at the time, the ISP sees no reason to rush it forward and potentially ‘waste’ resources.

“The Supreme Court’s ruling in Cox will control this Court’s decision on that issue. A stay is therefore warranted in the interest of judicial economy and will not prejudice any party,” Verizon wrote.

Labels Oppose More Stalling

This week, the labels objected to the request, asking a New York federal court to keep the case active. According to the music companies, several of their claims won’t be affected by the Supreme Court ruling so should be allowed to move forward.

The labels reiterate that Verizon received thousands of piracy notices for its customers, which it allegedly ignored. After being sued, Verizon allegedly tried to stall the litigation, including the labels’ request to begin discovery.

Verizon’s recent request to stay the case is another attempt to delay, they say.

“Now, Verizon seeks what would be a yearlong stay based on speculation that a Cox ruling might impact some aspects of Plaintiffs’ contributory infringement claim—though it will not impact their vicarious liability claim or Verizon’s primary defense under the [DMCA],” the labels write.

“This case is already one year old and has not left the gate. Verizon has failed to carry its burden to justify further delay. The request should be denied.”

The labels’ position clearly differs from that adopted in the Altice case, where they agreed to put the case on hold. In addition to the different claims at stake, this can be explained by the Verizon case being in its early stages.

In the Altice lawsuit, the dispute was preparing to go to trial, while the Verizon case still has a motion to dismiss pending, as well as a discovery process, where both sides can gather further evidence.

Whether the court rules in favor or against, the Supreme Court decision will ultimately affect the Verizon case too, at least when it comes to the contributory infringement claim and the issue of willfulness.

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A copy of Verizon’s request to stay the case is available here (pdf) and the opposition brief from the record labels can be found here (pdf)

From: TF , for the latest news on copyright battles, piracy and more.