The $1 Billion Copyright Rule Is Dead. Here’s What Lawyers Need to Know

The $1 Billion Copyright Rule Is Dead. Here’s What Lawyers Need to Know

Cox v. Sony and the New Contributory Infringement Standard: What ISPs, AI, and Platforms Must Do Now

For years, contributory copyright infringement followed a familiar script: if a service provider knew infringement was happening and didn’t stop it, liability wasn’t far behind.

That’s over.

In Cox v. Sony, the U.S. Supreme Court dismantled the knowledge-plus-inaction standard that drove copyright litigation for decades, reversed a $1 billion verdict, and replaced it with an intent-based framework that changes how plaintiffs plead cases, how defendants build their records, and how technology companies approach compliance.

This isn’t just an ISP story.

The new standard reaches generative AI platforms, social media companies, e-commerce marketplaces, cloud providers, and any business that facilitates user-generated activity. If your clients build, host, or operate digital platforms, this decision belongs on your radar.

On July 22 at 1:00 p.m. ET, our partner Courtney Lytle Sarnow shared what the Court actually held—and, more importantly, what lawyers need to do next in her myLawCLE presentation: Cox v. Sony and the New Contributory Infringement Standard: What ISPs, AI, and Platforms Must Do Now

What She Covered

  • Why knowledge alone is no longer enough to establish contributory infringement.
  • How the Supreme Court’s new intent test changes pleading standards.
  • What plaintiffs must allege—and prove—to survive dismissal.
  • How defendants can document anti-infringement efforts and substantial noninfringing uses.
  • Why repeat-infringer policies deserve a fresh look after the Court’s DMCA safe-harbor discussion.
  • How this decision affects AI companies, social media platforms, online marketplaces, and ISPs alike.

Program Agenda

1:00–1:30 p.m. ET
The Decision and the New Rule
Understand the Court’s reasoning, the rejection of the Fourth Circuit’s framework, and the surviving paths for contributory infringement.

1:30–2:00 p.m. ET
The DMCA and ISP Fallout
Learn what providers should be doing now, how compliance expectations have shifted, and what the ruling means for pending litigation.

2:10–2:40 p.m. ET
Beyond ISPs: AI, Platforms, and the Litigation Playbook
See how the decision reaches generative AI, social media, and online marketplaces—and what litigators should be pleading or defending under the new standard.

Whether you advise technology companies, litigate copyright disputes, or simply want to understand one of the year’s biggest IP decisions, this program offers practical guidance you can use immediately.

If you have questions about potential infringement liability, please connect with Courtney directly at csarnow@cm.law. 


About CM Law

CM Law (cm.law) – formerly Culhane Meadows – is the largest national, full-service, women-owned & managed (WBE) law firm in the United States. Designed to provide experienced attorneys with an optimal way to practice sophisticated law while maintaining a superior work/life balance, the firm offers fully remote work options, a transparent, merit and math-based compensation structure, and a collaborative culture. Serving a diverse clientele—from individuals and small businesses to over 40 Fortune-ranked companies—CM Law is committed to delivering exceptional legal services across a broad spectrum of industries.


The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.