In a story that has wide-ranging implications, the two companies have reached a “substantial settlement.” Music company BMG Rights Management and Cox Communications have long been at loggerheads over a digital copyright case and this deal marks a turning point. Three years back, the courts awarded $25 million in damages and $8.5 million in costs to BMG, having found Cox liable for copyright infringement — a verdict overturned on a technicality. Now a retrial has been headed off.
“I can confirm we’ve reached a settlement with BMG,” a Cox official said in an emailed statement. “We’re honoring the confidentially agreement and not commenting beyond that.”
The case tested an Internet service provider’s responsibilities for policing the copyright-infringing actions of its users. BMG hired Rightscorp, which flagged nearly two million instances of infringement and informed Cox that its users were uploading and downloading music using BitTorrent.
“Other ISPs should take note that the law gives protection to the work of artists and songwriters. We will not hesitate to take action where necessary,” Keith Hauprich, BMG North America’s general counsel, said in a statement.
A group of other major labels, including Sony, Universal, and Warner Bros recently filed a similar suit against Cox. That suit is still active.
In addition, Universal and Warner have also been pursuing a contributory copyright lawsuit against Grande Communications Network in Texas. That litigation has just hit the summary judgment phase where the plaintiffs are asking a judge to rule out a safe harbor defense.
