Major Labels Fight to Preserve $47 Million Piracy Verdict Against Grande Communications
Record labels are urging a Texas federal court to maintain its $47 million verdict against Grande Communications for copyright infringement. The case centers on the ISP's handling of customer piracy notifications.
Austin skyline with Colorado River
A jury found Grande Communications guilty of willful contributory copyright infringement in 2022, ordering a $47 million payment in damages. Grande appealed in September, arguing that ISPs shouldn't be liable for customer piracy based on third-party allegations.
In an 89-page response, record labels defend the original verdict, stating that overturning it would severely hamper anti-piracy efforts. They argue that ISPs are uniquely positioned to address online piracy since they can identify subscribers through IP addresses.
Key points from the labels' argument:
- Grande understood its legal obligations but ignored them to maximize revenue
- The company continued collecting fees from known repeat infringers
- Grande terminated accounts for non-payment but not for copyright violations
- The practice lasted nearly seven years
Grande's appeal relies heavily on the Twitter vs Tammneh ruling, where social media platforms were found not liable for terrorist users. However, labels contend this precedent shouldn't apply to copyright cases.
Grande Communications company logo
The record labels maintain that Grande's selective enforcement of policies demonstrates conscious participation in copyright infringement. Should the original ruling be overturned, the music companies plan to file a counter-appeal.
Grande logo on black background