Major record labels are seeking increased piracy damages from internet service provider Grande Communications, arguing for per-song rather than per-album penalties following a recent court victory.

Universal, Warner, and Sony have requested an en banc rehearing after the US Court of Appeals for the Fifth Circuit ruled that Grande should only pay damages per album for failing to terminate accounts of users engaging in piracy. The labels argue this "threatens copyright owners' ability to obtain fair damages."

The Fifth Circuit panel previously ruled that Grande violated the law by not terminating repeat infringers' accounts, but ordered a new trial for damages, finding the original $46.8 million ($33,333 per song for 1,403 songs) excessive.

Key points of contention:

• The Copyright Act states "all parts of a compilation constitute one work," which the court used to justify per-album damages
• Record labels argue this shouldn't apply as they proved infringement of individual recordings, not compilations
• Grande Communications seeks to avoid liability entirely, arguing that providing internet service isn't actionable conduct

This case parallels the ongoing Cox Communications lawsuit, where Sony is pursuing reinstatement of a $1 billion verdict after the Fourth Circuit ordered a new damages trial.

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