Per-Song or Per-Album? Record Labels Challenge Court’s Piracy Damages Ruling
Several major record labels are asking the Fifth Circuit Court of Appeals for a rehearing en banc in their piracy lawsuit against Grande Communications. They argue that the court erred in holding that piracy damages should be calculated per album, rather than per song. They argue that this decision, which will lower the $47 million damages award, doesn't reflect the way that music is commercialized today.
In late 2022, several of the world’s largest music companies including UMG, Warner and Sony Music prevailed in their lawsuit against Internet provider Grande Communications.
The record labels accused the Astound-owned ISP of not doing enough to stop pirating subscribers. Specifically, they alleged that the company failed to terminate repeat infringers.
The trial lasted more than two weeks and ended in a resounding victory for the labels. A Texas federal jury found Grande guilty of willful contributory copyright infringement, and the ISP was ordered to pay $47 million in damages to the record labels.
