BMG Rights Management et al. v. Cox Communications
Analysis Group client BMG Rights Management won a copyright infringement case against Internet service provider Cox Communications. In this first-of-its-kind case, BMG sued Cox for contributory infringement for allowing subscribers to Cox's broadband Internet service to illegally download music using file sharing services. A Virginia federal jury found Cox guilty of willful direct and contributory copyright infringement and awarded BMG damages of $25 million. Analysis Group affiliates Dr. William Lehr and Dr. Terrence McGarty testified at trial.
The Analysis Group team, led by Principal David Sosa and including Vice President Eric Korman and Manager Tracy Danner, supported Dr. Lehr and Dr. McGarty and provided consulting support to Steptoe & Johnson, counsel for BMG. Dr. Lehr offered testimony on the economic benefit to Cox from not interfering with subscribers' illegal conduct so as to retain subscribers who repeatedly engaged in illegal file sharing. Dr. Lehr also opined on issues related to the harm suffered by BMG as a result of the infringement. Dr. McGarty testified that Cox monitored and controlled its network in the normal course of business and that Cox's tolerance of the infringing behavior was inconsistent with stated company policy. Dr. McGarty also opined that Cox had the ability to evaluate infringement notices received from rights holders and terminate the subscriptions of serial infringers.