Verizon faces $2.6 billion lawsuit from music giants

Major record labels, including UMG Recordings, Warner Music, and Sony Music, have filed a lawsuit against Verizon, accusing the telecommunications giant of intentionally ignoring its customers’ copyright violations to profit from increased service sales. The same companies had previously pulled their songs from TikTok over AI concerns.

Verizon lawsuit explained

• Plaintiffs and accusations: The Verizon lawsuit was filed by three of the largest record labels: UMG Recordings, Warner Music, and Sony Music. They allege that Verizon has been complicit in its customers’ copyright infringements, which involves illegally sharing and downloading copyrighted music.
• DMCA violations: The plaintiffs claim that Verizon has violated the Digital Millennium Copyright Act (DMCA) by not acting on infringement notices. Under the DMCA, copyright holders are entitled to statutory damages of up to $150,000 per infringement. Given the extensive list of infringements, this could total up to $2.6 billion.
• Scale of infringement: The lawsuit includes a list of 17,335 tracks that have been illegally shared. These tracks span a wide range of artists and bands, from Elvis Presley to Wiz Khalifa. The record labels have reportedly sent nearly 350,000 infringement notices to Verizon since 2020.

The record labels assert that Verizon has consistently ignored the infringement notices sent over the years. They argue that Verizon’s inaction has allowed persistent offenders to continue their illegal activities without consequence.

The Verizon lawsuit claims that Verizon violated the Digital Millennium Copyright Act (DMCA) by failing to act on nearly 350,000 infringement notices sent since 2020, potentially leading to statutory damages of up to $2.6 billion (Credit)

The lawsuit claims that Verizon’s failure to enforce copyright laws has made it a preferred service provider for those engaging in internet piracy. The plaintiffs allege that Verizon’s higher-speed internet services were particularly attractive to these users, who were willing to pay more for faster downloads to facilitate peer-to-peer (P2P) file sharing.

Verizon is accused of fostering a safe environment for copyright infringement. The lawsuit suggests that infringing subscribers knew Verizon would not terminate their accounts despite receiving multiple notices, which encouraged continued illegal downloading.

Legal grounds and charges

The Verizon lawsuit charges Verizon with both contributory and vicarious copyright infringement. Contributory infringement occurs when a party knowingly contributes to another’s infringement. Vicarious infringement involves profiting from direct infringement while having the right and ability to control the infringing activity.

The plaintiffs are seeking the maximum statutory penalty for every infringing track listed. In addition, they are requesting that Verizon cover their attorney’s fees. If awarded, these damages could reach $2.6 billion.

In a similar case, Viacom sued YouTube for copyright infringement. YouTube successfully argued that it was protected under the DMCA’s “Safe Harbor” provision, which shields service providers from liability if they promptly remove infringing content upon notification.

Another notable case involved a $1 billion judgment against Cox Communications, which was later overturned on appeal. The appellate court found that Cox did not profit from ignoring music piracy, highlighting the complexity of proving such cases.

Featured image credit: Verizon