After Cox ruling, record labels offer to walk away from Grande piracy case – but clash with ISP over $4m in bond costs

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After Cox ruling, record labels offer to walk away from Grande piracy case – but clash with ISP over $4m in bond costs

Music Business Worldwide · 3 hours ago

The three major record labels — Universal, Sony and Warner — have told the US Fifth Circuit Court of Appeals that they will not continue pursuing the substance of their piracy case against internet provider Grande Communications, following the Supreme Court's ruling in Cox v. Sony Music. That March ruling held that ISPs cannot be held liable for their users' infringement unless they actively induced it, a standard the labels concede they cannot meet against Grande, effectively ending a case that has run since 2017.

What remains unresolved is who pays the costs, particularly around USD $4 million in bond premiums Grande says it incurred while appealing a $46.8 million damages award handed down by an Austin jury in 2022 for infringement of 1,403 recordings. The labels want each side to bear its own costs and have proposed the court vacate the judgment and remand the case, while Grande wants judgment entered in its favour along with recovery of its appeal costs and attorneys' fees, and disputes that the labels have properly challenged its $4 million bond figure.

  • Labels drop piracy case against ISP Grande after Cox v. Sony ruling
  • Dispute now centres on who pays roughly $4m in bond costs
  • Case dates to 2017; $46.8m damages award had already been under appeal

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