​​Imagine you are an internet provider. You offer a service that lets people stream, browse, and download content. However, some of those users are engaging in illegal activities — like pirating copyrighted music. What do you do? What are you responsible for?

According to a recent ruling by the U.S. Court of Appeals for the 5th Circuit, the answer is clear: terminate the accounts of customers who repeatedly pirate copyrighted content or be held liable for contributory copyright infringement. 

Caught Pirating? ISPs Are Now Legally Obligated to Act

In 2017, several major music publishers, including Universal, Warner, and Sony, filed a lawsuit against Grande Communications, a subsidiary of Astound Broadband. The publishers claimed that Grande was aiding piracy by failing to terminate the accounts of flagged users who were caught downloading copyrighted songs without permission.

In this case, the publishers argued that Grande, despite being notified of the infringement, turned a blind eye and kept providing internet access to the alleged pirates. The court agreed that this inaction was a form of “contributory infringement,” meaning Grande was indirectly supporting the piracy by not doing more to stop it.

The appeals court sided with the music publishers, affirming that Grande was responsible for not terminating accounts of users who repeatedly infringed on copyrights. The court made it clear that terminating those accounts was a “simple measure” for Grande to prevent further illegal downloads. In short: Grande knew about the problem and did not act to stop it, which made them liable for contributory copyright infringement.

However, the appeals court also found the damages awarded by the lower court to be excessive. The original damages award was  $46.8 million, which the appeals court deemed too high. The appellate court ordered a new trial on damages. 

Contributory Copyright Infringement Forces ISPs to Face the Music

This ruling could have lasting consequences for internet providers who encounter piracy on their service.. The court’s decision reinforces that ISPs have a responsibility to prevent infringement on their networks, especially when they are notified by copyright holders or third-party companies. 

The key takeaway? If you are an ISP and you are made aware of customers pirating copyrighted content, you may be legally required to take action — like terminating their accounts. Ignoring those piracy notices could leave you on the hook for hefty fines and lawsuits.