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Speaker 1: Got a little bit of music news, and I will

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be very curious to see how people react to this

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on social media or if you are listening live. Of course,

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you can always chime in in the chat room as well.

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Because I say that because I have what maybe among

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people who are active in the music industry as I

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am and a lot of our audiences people in the

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music industry, I have what may be an unpopular opinion

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about this. I'm not sure though. So this is something

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that the Supreme Court has ruled on regarding piracy and

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copyright and record labels and all of it. And this

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isn't important. This could be you know, we use the

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term landmark ruling, so this is important and it does

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involve the Supreme Court. You know, we don't do politics

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on this iteration of the show, but this isn't political.

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This is but it does. It is something that affects

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the music industry, and I have my opinion about this

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might be a little bit unpopular. We'll see, we'll get

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into it. But I actually agree with the Supreme Court's

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ruling on this in a time where you know, I

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may not agree with a lot of Supreme Court rulings,

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but I do agree on this, but I'll be very

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curious to get audience feedback, either live and or afterward

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on social media. But this is from one of my

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favorite websites for music industry news, music businessworldwide dot com.

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US Supreme Court. This has happened this week. US Supreme

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Court sides with Coxcommunications in landmark music piracy case brought

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by record labels. Okay, so here's the article. This we'll explain.

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The US Supreme Court has ruled that internet service provider

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Coxcommunications cannot be held responsible for music piracy committed by

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its subscribers, ending a landmark copyright case in which the

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major record companies had won a one billion dollar jury verdict.

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This was This was unanimous, by the way, The unanimous

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decision by the Supreme Court was handed down on March

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twenty five, so this was just a few days ago.

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Justice Clarence Thomas writing for the court. Again, if you

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know me, we don't get into politics on this iteration

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of the show, but not anymore. We used to a

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long time ago. But if you know me, you know again,

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Justice Thomas not someone I would necessarily agree with much,

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if ever, but he's got it right here. In my opinion,

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Justice Clarence Thomas, writing for the court, said that Cox

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quote neither induced its users infringement nor provided a service

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tailored to infringement. So, in other words, saying that an

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Internet service provider, just because they are providing you internet

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service does not mean that that somehow is inducing you

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to do something illegal like piracy, like infringing on somebody's copyright.

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They're just providing you the service, you know. He's right, uh,

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He also said. He also wrote in his opinion, quote

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Cox provided internet service to its subscribers, but it did

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not intend for that service to be used to commit

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copyright infringement. Holding Cox liable merely for failing to terminate

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Internet service to infringing accounts would expand secondary copyright liability

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beyond our precedence. Unquote. Again, if you know me, you

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won't hear me say this often, if ever. But in

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this case, Justice Clarence Thomas got this right. He's right.

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I agree absolutely. Now. The reason I say this may

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be an unpopular opinion within some of with some of

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our audience and people in the music industry who listen

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to the show is there are some in the music

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industry who are who are upset about this, who say no, uh,

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piracy is uh has always been a problem, and we

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need to do whatever we can to tamp down piracy

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and copyright infringement. And look, I am someone who again,

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if you know me, if you know my background, if

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you're a regular listener to the show, you know that

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ultimately I will always advocate on behalf of artists and

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the music industry, you know, the people, not necessarily the

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major labels who But we won't get into that, and

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certainly not I won't advocate on behalf of Live Nation

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and Ticketmaster, but we won't get into all of that.

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But I'm saying artists making money, making a living, which

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is much harder than people might realize, Artists making a

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living within the music industry and being paid for their work.

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I will always advocate on behalf of that, always, always, always,

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That's what I care about most is artists get getting paid,

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being compensated for their work, and being able to make

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a living. It's it's crucial, it's critical, and we talk

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about that a lot on the show, especially with AI

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and the advent of all this AI generated music and

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the threats that that that that holds, And you know,

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we talk about this stuff all the time on the program.

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But I do think it's a little bit absurd this

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idea that you're going to hold internet service providers responsible

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and make them have to pay for what individual users

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are doing. That would be like, you know, penalizing auto

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manufacturers every time someone gets into a car accident where

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somebody ends up dead. You know, is the is it

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the fault of the auto manufacturers for producing a product

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that someone uses to accidentally kill someone on the highway.

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You know, let's see some common sense. Let's be reasonable

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and rational about this. And again some people will say, Matt,

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we have to do whatever we can, literally whatever we

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can to stop piracy, to stop people from having their

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copyrights infringed upon. I understand that, but but we also,

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again we have to be reasonable and use common sense,

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and so to hold Internet service providers responsible for what

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individual users are doing, whether it's piracy, whether it's using

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the dark Web to do other things that are illegal,

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accessing the dark web, whatever it is, right, you know,

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unless the Internet service provider is somehow And again, as

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just as Thomas said, there's no inducing of individual users

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to commit fraud or to do any kind of illegal activity,

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you know, unless you have an Internet service provider who

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is marketing their service in a way that they're actually

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saying somewhere in their marketing. By the way, you know,

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you can do whatever you want. You can do illegal

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things if you use our internet service, and we won't

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even nobody will even get mad at you about it,

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you know. But obviously that's not happening. Okay, So more

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to this article. Again, this is from Music Business Worldwide

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dot com. Commenting on the decision, Mitch our i AA

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chairman and CEO CEO said, and okay, so here's the

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dissenting opinion, dissenting against me. I feel like I'm the

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dissenting opinion because again I feel like I have an

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unpopular opinion about this within the music industry. Here's what

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Here's what Mitch Glazier said. Again, he's the RIAA chairman

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and CEO. He said, quote, we are disappointed in the

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court's decision vacating a jury's determination that Cox Communications contributed

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to mass scale copyright infringement based on overwhelming evidence that

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the company knowingly facilitated theft, knowingly facilitated theft. Come on,

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so by that logic, you know, take the music industry,

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take the piracy part out of it. Let's just you know,

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back up and take a broader view of this what

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and what he's saying By that logic, anything that anyone

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ever does that might be illegal, It might be fraudulent,

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that might be deceptive. On the Internet, if they're using

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Coxcommunications for their Internet service, anything anybody ever does online

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while using that service, well it's it was facilitated by

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by the Internet service provider. I mean, that's absurd, that's crazy.

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That's that's that's truly, that's that's an insane standard. How

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could any business live up to that and and and

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be held responsible for that. That's nuts to me, um,

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he said more mits. Glazier said more quote. To be effective,

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copyright law must protect creators and markets from harmful infringement,

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and policymakers should look closely at the impact of this ruling.

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The Court's decision is narrow, applying only to contributory infringement

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cases involving defendants like cos that they do not themselves, copy, hosts,

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distributor publish infringing material, or control or induce such activity unquote.

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The ruling means that simply knowing some subscribers are pirating

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music and continuing to provide them with Internet access is

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not enough to make an ISP liable for copyright infringement,

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right because again the ISP, Yeah, they know that some

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people are pirating music. Of course they do, because we

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all know that. But is there I guess maybe there's

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an implicit expectation that the ISP is supposed to detect

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who is pirrating music and then turn off their service.

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Is that? Is that what we're expecting? Oh? What could

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possibly go wrong there? I mean, come on, this is

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this is crazy. So again I agree with the court's decision.

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There's more to this. Under the standard set of today

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is set by today's decision, rights holders must provide either

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must prove either that a provider actively encouraged infringement or

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that its service was designed for piracy with no real

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lawful use. Internet access, the court said, clearly has many

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lawful purposes. The case dates back to twenty eighteen, when

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Sony Music, Universal Music Group, Warner Music Group, and dozens

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of other rights holders sued Cox, arguing the company ignored

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over one hundred and sixty three thousand infringement notices about

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subscribers illegally downloading more than ten thousand copyrighted songs. The

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labels pointed to evidence that a Cox manager overseeing piracy

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compliance told his team to quote f the DMCA unquote

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and the DMCA is a law that is designed to

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I wish I could remember exactly what it stands for

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digital media copyr Is that the Digital Media Copyright Act. Again,

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it's an antipiracy law. A jury sided with the labels

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in twenty nineteen, awarding one billion dollars. The Fourth Circuit

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Court of Appeals partially overturned the verdict in twenty twenty four,

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throwing out the vicarious liability finding but keeping the contributory

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infringement ruling and ordering a retrial on damages that could

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have reached one point five billion. The Supreme Court took

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up the case last June, heard oral arguments in December,

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and has now reversed the remaining contributory liability, including finding

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entirely The Thomas opinion laid out two and only two

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paths to contributory copyright liability. The first is inducement, where

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a provider actively promotes its service as a tool for piracy,

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as in a landmark two thousand and five MGM versus

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Groster ruling involving file sharing software. By the way, remember

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if you're old enough to remember two thousand and five,

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early to mid two thousands. That's the era of napster.

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That's the era of mass panic and I do mean

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panic within the music industry about file sharing. That was

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when in two thousand and five, I was still working

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for trans World Entertainment, which owned Strawberries and Fye and

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all of that at the time, and there was panic

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because it was I remember having conversations with people where

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I just, you know, kind of shrugging and said, well,

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music is free. Now, that's it. You can't stop it,

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you can't help it. Music is now free. What are

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you gonna do? But anyway, so that's why I say,

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you know, two thousand and five, remember what was happening

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and too again, if you're old enough, remember what was

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happening in two thousand and five within the music industry

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at that time. Okay, So the second path is where

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a service is specifically tailored to infringement and has no

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real commercial use beyond fire. So now so when you're

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talking about that, I mean, I don't know of an

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Internet service provider anywhere that actively promotes itself as a

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service designed specifically for piracy. Now, there's lots and lots

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of websites. I won't get into how I know that

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that you can do that. You can you can download

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things that you otherwise might be required to pay for. Uh.

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But but I don't know of an internet service provider

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that actively markets themselves as Hey, if you need to

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pirate something, where where? Where the place to go for it?

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I don't I don't know that. Okay, So Cox, the

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court found met neither test. The company had contractually prohibited

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subscribers from using its service to infringe copyrights, sent warnings,

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suspended services, and terminated accounts. The opinion stated, quote, this

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court has repeatedly made clear that mere knowledge that a

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service will be used to infringe is in se efficient

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to establish the required intent to infringe. Elsewhere in the opinion,

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Thomas wrote, quote based on this theory of infringement respondence,

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Sony Music, Entertainment and other major copyright owners secured a

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billion dollar verdict against Cox. The United States Court of

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Appeals of the Fourth Circuit agreed that because Cox provided

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Internet service to known infringers, it was a willful infringer itself.

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Under our precedence, a company is not liable as a

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copyright infringer for merely providing a service to the general

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public with knowledge that it will be used by some

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to infringe copyrights. Accordingly, we reverse unquote yeah, because even

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if you know and look, even if you know that

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there are specific people, maybe customers you've had in the

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past who have bought your internet service, you know that

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these people have been flagged previously for copyright infringement, for

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piracy somehow they've been flagged. What are you gonna do,

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so you're never going to give them service again? Do

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they just depending on where they live? I mean, look,

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depending on where you are geographically, you might have very

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limited options for home internet service. So does someone who

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may have got caught or have been at least noticed

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by an internet service provider at some point in the past,

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you know, downloaded something that maybe they didn't pay for,

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maybe they pirated something. So now they just don't get

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to have internet ever again. I mean, what are you

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supposed to do again? From just let's be practical about it,

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think about it practically, what do you want these internet

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service providers to do? There's no practical way for them

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to do what you want them to do. If what

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you want them to do is make sure that nobody

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ever pirates anything. It's it's an unfair, untenable burden to

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be placing on these Internet service providers. So the ruling

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also found that the Fourth Circuit had gone wrong by

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creating a broader form of liability, holding that quote supplying

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to product with knowledge that the recipient will use it

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to infringe copyrights was enough. The Supreme Court said this

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conflicted with decades of its own case law. Justice Sonia

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Soda Mayor, joined by Justice Katanji Brown Jackson, agreed Cox

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should not be liable in this case, but warned that

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the majority's ruling goes too far. Soda Mayor argued that

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it strips ISPs of any real reason to deal with

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piracy on their networks, making the DMCA's Safe Harbor rules pointless.

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Those rules require ISPs to cut off repeat infringers in

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exchange for legal protection. She wrote that the majority's decision

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completely upends the balance Congress created end quote, consigns the

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Safe Harbor provision to obsolescence, adding that ISPs no longer

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face any realistic probability of secondary liability for copyright infringement,

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regardless of whether they take steps to address infringement on

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their networks. Unquote again, I agree with the Supreme Court's

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decision on this, but I'll be very curious. Like I said,

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I will be very curious to see on social media

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how you all feel about it, or you know, on YouTube,

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you can you know, we stream the show on YouTube,

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you can leave comments and so forth. But I really

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do want to get feedback on this because, like I said,

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I know that my opinion may be unpopular in some circles,

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and but I'm happy to I'm happy to fight it

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out with anyone who wants to, all right,

