Why record labels filed a $2.6 billion lawsuit against Verizon
What's the story
Major record labels, including Universal, Sony, and Warner, have filed a $2.6 billion lawsuit against internet service provider (ISP) Verizon. The complaint alleges that Verizon "knowingly provides its high-speed service to a massive community of online pirates." The lawsuit was filed in the US District Court for the Southern District of New York. It claims that despite receiving over 340,000 copyright infringement notices since early 2020, Verizon has continued to serve customers accused of pirating music.
Ignored notices
Record labels accuse Verizon of ignoring infringement notices
The record labels accuse Verizon of ignoring their copyright infringement notices, stating that the ISP "ignored Plaintiffs's notices and buried its head in the sand." They argue, "Verizon has knowingly contributed to, and reaped substantial profits from, massive copyright infringement committed by tens of thousands of its subscribers." The lawsuit alleges that despite being aware of repeat infringers on its network, Verizon has failed to take any meaningful action against these accounts.
Damages sought
Damages of up to $150,000 for each pirated work sought
The record labels are seeking damages of up to $150,000 for each work infringed, with a "non-exhaustive" list of 17,335 titles included in the lawsuit. This implies requested damages totaling over $2.6 billion. The lawsuit is part of a series of similar legal steps taken by record labels and movie studios against internet providers, including an ongoing case involving Cox Communications which has been fighting a $1 billion jury verdict since 2019.
Anti-piracy program
Criticism for inadequate anti-piracy measures
The lawsuit criticizes Verizon's "Anti-Piracy Cooperation Program," stating that it has such onerous conditions that it is rendered a nullity. The program forces participants to pay burdensome fees, waive all copyright claims, broadly indemnify Verizon, and keep the terms of the program confidential.
Allegation
Verizon accused of neglecting infringement email notices
The lawsuit further alleges that Verizon permits copyright owners to send email notices of infringement, but "Verizon does not forward these notices to subscribers or track the number of email notices sent regarding repeat infringing subscribers." The record labels also claim that Verizon arbitrarily puts a cap on the number of notices permitted per copyright holder, thereby limiting their ability to report infringements effectively.