US appeals court tells ISP that safe harbor comes at a cost

A US appellate court has reversed a $25 million verdict against the US Internet Service Provider Cox Communications in what might be seen as a defeat for record label BMG, which had sought to hold Cox liable for copyright infringement for its subscribers who were sharing pirated files online. But looking at the judgment, and despite what looks like a set back for BMG Rights Management, it can be argued that its actually a win in the battle against piracyThe decision, by a three-judge panel of the 4th Circuit Court of Appeals, returns the case to the District Court for a new trial, based on a decision that there was an error in jury instructions. Irrelevant of arguments about safe harbor protection at the heart of the case, Cox might not been responsible for users' infringement as companies are only liable for contributing to infringement if the companies either know about acts of infringement, or are wilfully blind to them, and the appellate court ruled that…

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