Record labels Universal, Warner, and Sony are seeking higher damages from internet provider Grande Communications, demanding per-song rather than per-album compensation for user piracy. This follows their court victory where Grande was found liable for not terminating accounts of repeat copyright infringers.

The Fifth Circuit Court of Appeals recently ruled that Grande violated the law by failing to terminate accounts of users flagged for torrent downloads. However, the court ordered a new trial for damages, stating the original $46.8 million ($33,333 per song for 1,403 songs) was excessive and should be calculated per album instead.

The record labels argue that the Copyright Act's "one work" provision shouldn't limit their ability to collect damages for individual songs within compilations. They claim this interpretation "threatens copyright owners' ability to obtain fair damages."

Grande Communications contests any liability, arguing that merely providing internet service shouldn't constitute contributory infringement. This case parallels Sony's ongoing lawsuit against Cox Communications, where a similar debate over damages calculation is pending Supreme Court review.

Key Points:

• Record labels want damages calculated per song, not per album
• Court found Grande liable for not terminating pirating accounts
• Original $46.8 million damage award deemed excessive
• Case highlights broader debate about ISP liability for user piracy

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