We wrote yesterday about US telco Cox Communications’ setback in its legal battle with BMG over the ISP’s failure to pass on settlement notices from anti-piracy group Rightscorp to customers accused of illegal filesharing.
Yesterday, Cox received more bad news: its insurer is suing it in an effort to avoid covering legal costs relating to the case. Lloyd’s underwriter Beazley says it shouldn’t have to stump up, because Cox was made aware of the implications of not passing on the notices.
“By letter dated January 9, 2012, Cox was advised by an agent of copyright holders that if it did not forward those notices to its customers, it would be exposed to claims of contributory and vicarious copyright infringement,” claims Beazley in its legal filing. “Cox continued to intentionally ignore the notices and did not forward them to its customers.”
With the judge in the case ruling that Cox cannot use a DMCA-based defence, the telco has problems – with ripples for its peers if BMG prevails in the case.