SCOTUS Says Fifth Circuit Must Reconsider Contributory Infringement Ruling for Record Labels after Cox v. Sony

By Editorial Team

The U.S. Supreme Court has granted certiorari to a petition brought by internet service provider (ISP) Grande Communications Networks LLC, appealing from a U.S. Court of Appeals for the Fifth Circuit decision that upheld a jury verdict holding Grande Communications liable for contributory infringement against a group of major U.S. record labels. The Supreme Court granted certiorari and then vacated the judgment and remanded the case to the Fifth Circuit for reconsideration under the Court’s recent opinion in Cox Communications, Inc. v. Sony Music Entertainment.

Grande Communications’ petition, submitted in March 2025, asked the High Court to consider whether an ISP is liable for contributory copyright infringement by providing content-neutral internet access to the general public and failing to terminate that access after receiving two third-party notices alleging infringement.

The respondents, including UMG Recordings, Inc. and Capitol Records, LLC, argued against the petition, stating that the question is not certworthy and divorced from reality. They highlighted Grande’s policy of never terminating service for copyright infringement, emphasizing the need for ISPs to take clear steps to stop infringement to be protected from contributory liability under the Digital Millenium Copyright Act (DMCA).

In Cox v. Sony, the Court reversed a decision by the U.S. Court of Appeals for the Fourth Circuit, holding that a service provider is contributorily liable for a user’s infringement only when it intended for its service to be used in that way. The Court emphasized that the Copyright Act does not expressly render anyone liable for infringement committed by another and that evidence of express promotion or intent to promote infringement is required for liability.

Grande Communications v. UMG Recordings must now be revisited by the Fifth Circuit under the standard set forth in Cox. The case underscores the importance of intent and design in determining contributory infringement liability for ISPs.