The $1 billion copyright infringement verdict against Cox Communications was overturned by a federal appeals court, which ruled that Cox did not directly profit from its users’ piracy. This decision calls for a new damages trial, potentially reducing the financial liability for Cox.

The case emphasizes the challenges in holding ISPs accountable for users’ copyright infringements, highlighting the legal nuances of vicarious liability and the requirements for direct financial benefit from such activities. Cox may still be held liable in a future trial for turning a blind eye to copyright infringement, but this is presumed to draw a far lower penalty if they are found guilty.

However the case turns out, this has significant implications for ISPs and others who may hold or transmit copyrighted materials.