Internet service provider Altice settles $1bn copyright infringement lawsuit with music companies

Altice USA, which owns the Optimum broadband and cable brand, has settled a $1 billion copyright infringement lawsuit brought against the internet service operator by music industry giants in December 2022.

BMG Rights Management, Universal Music Group (UMG), Capitol Records, and Concord Music Group sued Altice for allegedly failing to act against copyright violators among its customers. The music companies accused Altice of knowingly contributing to, and earning “substantial profits from, copyright infringement committed by thousands of its subscribers.”

“The infringement that Altice has abided, profited from, and materially contributed to has injured Plaintiffs, their recording artists and songwriters, and others whose livelihoods depend on the proper licensing of music and the ability to be fairly compensated for the use of their music and earn a living from their vocations,” the lawsuit added.

A joint filing dated August 14, and first spotted by Torrent Freak, revealed that the lawsuit has been dismissed “with prejudice,” ensuring it will never be reopened.

Confirmation of the settlement came in a recent SEC filing by Altice, which stated that the lawsuit had been settled on July 1.

“On July 1, 2024, we and the BMG Plaintiffs settled this lawsuit and as part of the settlement we expect a stipulation of dismissal with prejudice to be filed by the parties on or before August 20, 2024. The settlement amount was accrued for as of June 30, 2024.”

Altice, however, is facing a similar complaint from Warner Records and Sony Music Publishing, filed in December 2023. The lawsuit alleges that certain of Altice’s internet subscribers directly infringed over 10,700 of the companies’ copyrighted works.

The legal action cites the maximum statutory fine of $150,000 per alleged violation, implying that damages sought by Warner Records and Sony Music, among other plaintiffs, from Altice USA could exceed $1.6 billion.

“We intend to and are vigorously defending against the claims in the Warner Matter,” Altice in its 10-K filing to the SEC dated August 1. “In addition to contesting the claims of liability, we have an affirmative defense under the Digital Millennium Copyright Act that, if successful, would preclude or limit monetary damages against us in connection with some or all of the Warner Plaintiffs’ asserted claims.”

The legal battles come amid a broader strategy by music companies to combat online piracy. The music industry initially targeted peer-to-peer file-sharing services and shifted its focus to internet service providers, viewing them as gatekeepers who could help suppress illegal activity.

Last month, multiple record companies including Sony Music, UMG and Warner Music sued US-based ISP Verizon for alleged “massive copyright infringement committed by tens of thousands of its subscribers.”

Other ISPs that have faced similar lawsuits include Bright House Networks, Grande Communications and Cox Communications.

In a lawsuit filed in 2018, music companies accused Cox of knowingly profiting from massive copyright infringement by “thousands of its subscribers.” The following year, a court ordered Cox to pay approximately $1 billion in damages. However, in February of this year, a federal appeals court overturned the damages award, but left part of the ruling against Cox intact.

Cox last week petitioned the US Supreme Court to overturn the ruling, arguing that it could result in households and businesses being cut off from the internet.Music Business Worldwide