Major record labels are seeking higher piracy damages from internet service provider Grande Communications, arguing for per-song rather than per-album compensation in a recent court case.

Universal, Warner, and Sony won their case against Grande Communications when the US Court of Appeals for the Fifth Circuit ruled the ISP violated the law by not terminating accounts of repeat copyright infringers. However, the court ordered a new trial for damages, reducing the initial $46.8 million award.

The key dispute centers on damage calculation methodology. While the Fifth Circuit panel ruled that damages should be awarded per album based on the Copyright Act's "compilation" clause, the record labels argue they should receive separate damages for each individual song, as they proved infringement of individual recordings rather than compilations.

Grande Communications is contesting overall liability, claiming that merely providing internet service shouldn't constitute contributory infringement. This case parallels a similar dispute between Cox Communications and Sony, where Cox faces potential billion-dollar damages for copyright infringement.

The outcome of this case could significantly impact how damages are calculated in future digital piracy cases and affect ISPs' responsibilities in preventing copyright infringement.

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