Supreme Court Clarifies Contributory Liability Standard in Copyright Infringement
In a decision with broad implications for internet service providers and generative AI, on March 25, 2026, the United States Supreme Court unanimously held in the Cox Communications, Inc. v. Sony Music Entertainment that an internet service provider is not contributorily liable for copyright infringement solely on a provider’s knowledge of infringement and failure to take sufficient action to prevent infringement. Rather, liability arises only where the provider intended that its service be used to facilitate infringement.
What Happened?
Cox Communications is an internet service provider serving six million subscribers. Sony Music is a major music copyright owner. Sony sent Cox over 163,000 notices identifying IP addresses of Cox subscribers associated with infringing activity. Sony then sued Cox in federal district court, advancing claims of secondary copyright liability. The jury originally found in favor of Sony Music on both theories and awarded $1 billion in statutory damages. The Fourth Circuit affirmed, reasoning that knowledge that the recipient of the service will use the service to infringe copyrights is sufficient for contributory infringement. The Supreme Court reversed that decision.
The Supreme Court’s Decision
The Court held Cox was not contributorily liable for the individual users’ infringement because Cox did not intend that its internet service be used for infringement. Such intent can be shown only if the service provider induced the infringement or provided a service that is tailored to infringement. The Court further held that inducement can only be shown through specific acts, such as promoting or marketing the service as a tool to infringe, and that a service is tailored to infringement only if it is not capable of a substantial or commercially significant non-infringing use.
Importantly, the Court held that a service provider’s failure to take affirmative steps to prevent infringement by users, even though it was aware of and profiting from that activity, is not sufficient for secondary liability.
The opinion emphasized that it may be difficult for a service provider to determine that its services were used for infringement. For example, many internet service subscribers provide connections to multiple different people (e.g., a household, coffee shop, or college dormitory), and network traffic from all such users will ordinarily originate from a single internet address. The Court reasoned that it would be extremely difficult, in many cases impossible, for a service provider to determine which individual was infringing. The Court also noted that a service provider cannot directly control how subscribers use their services. Thus, without evidence of express promotion, marketing, or intent to promote infringement, a service provider’s mere knowledge that infringement was occurring through its services was insufficient to hold the service provider contributorily liable for it.
Justice Sotomayor, joined by Justice Jackson, concurred in judgment only, holding the majority unnecessarily limited secondary liability even though common-law theories, such as aiding and abetting, could be applicable to copyright cases, and that the majority dismantled the statutory incentive structure created in the Digital Millennium Copyright Act (“DMCA”).
Why it Matters
This decision limits the scope of contributory copyright liability for internet service providers in key respects. By requiring evidence of express promotion, marketing, or intent to promote infringement, rather mere knowledge of it and the failure to stop infringing activity, the decision shifts much of the burden of policing the internet for copyright infringement from service providers to copyright holders. Major commercial service providers are unlikely to meet the newly articulated standard for liability. Copyright owners have noted for some time that the DMCA’s balance is tilted too far in favor of service providers. This decision will tilt the scales further.
Copyright owners thus will be increasingly dependent on their own policing efforts in pursuing individual infringers directly, which is logistically difficult for similar reasons to those noted by the Court. Once infringing content is removed, on-line infringers can simply re-post it with the push of a button, requiring copyright owners to send repeated takedowns, and the service providers have little legal incentive to disable such accounts. This may result in greater emphasis on enforcement strategies that leverage technical limitations, rather than legal remedies, which could make copyrighted material more difficult to obtain and use electronically.
It should be recognized that the DMCA safe harbor framework, including notice and takedown obligations, remains in place. Thus, service providers still must comply with the DMCA’s notice-and-takedown procedures to enjoy the benefits of the so-called “safe harbor” provisions, which immunize service providers from contribution infringement claims in certain circumstances. Further, the quantity of takedown requests may increase due to this ruling.
If you have questions about copyright infringement or secondary liability in light of this decision, please contact a member of our Intellectual Property team to discuss how these developments may affect your business, compliance obligations, and enforcement strategies going forward.