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Appeals Court Throws Out $25 Million Piracy Verdict Against Cox, Doesn't Reinstate "Safe Harbor" - TorrentFreak
The most crucial matter in the case is whether Cox has safe harbor protection under the DMCA. In order to qualify, the company is required to terminate accounts of repeat infringers, when appropriate.

Cox argued that subscribers can only be seen as repeat infringers if they’ve been previously adjudicated in court, not if they merely received several takedown notices. This was still an open question, as the term repeat infringer is not clearly defined in the DMCA.

Today, however, the appeals court is pretty clear on the matter. According to Judge Motz’s opinion, shared by HWR, the language of the DMCA suggests that the term “infringer” is not limited to adjudicated infringers.

This is supported by legislative history as the House Commerce and Senate Judiciary Committee Reports both explained that “those who repeatedly or flagrantly abuse their access to the Internet through disrespect for the intellectual property rights of others should know that there is a realistic threat of losing that access.”

“The passage does not suggest that they should risk losing Internet access only once they have been sued in court and found liable for multiple instances of infringement,” Judge Motz writes in her opinion.

Losing Internet access would hardly be a “realistic threat” that would stop someone from pirating if he or she has already been punished several times in court, the argument goes.

This leads the Court of Appeals to conclude that the District Court was right: Cox is not entitled to safe harbor protection because it failed to implement a meaningful repeat infringer policy.

“Cox failed to qualify for the DMCA safe harbor because it failed to implement its policy in any consistent or meaningful way — leaving it essentially with no policy,” Judge Motz writes.

This means that, while Cox gets a new trial, it is still at a severe disadvantage. Not only that, the Court of Appeals interpretation of the repeat infringer question is also a clear signal to other Internet service providers to disconnect pirates based on repeated copyright holder complaints.
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