The case dates back to August last year when the Recording Industry Association of America (RIAA) took the telecoms giant to court because it refused to identify customers who were making available MP3 files of copyrighted songs from their home computers, using file-sharing services like KaZaA.
The RIAA had served a subpoena on the company, basically a demand for the identity of alleged infringers, under a provision of America's controversial Digital Millennium Copyright Act (DMCA), which states that: "a copyright owner or a person authorized to act on the owner's behalf may request the clerk of any United States district court to issue a subpoena to a service provider for identification of an alleged infringer".
Verizon argued that because the allegedly infringing files resided on a home PC, not Verizon's servers, the subpoena was not valid. The RIAA countered that the legislation does not specify that the infringing material reside on the ISP's network.
In April the court decided in favour of the RIAA and Verizon immediately asked for a stay in identifying the subscribers while the decision was appealed. The court rejected the request for a stay, but granted a temporary one, until Verizon had appealed the rejection.
It is this appeal that has now been decided – in favour of the RIAA. Verizon must now reveal the identities of its customers, even though the original appeal as to the validity of the subpoenas has still to be heard.
Cary Sherman, president of the RIAA, welcomed the news. In a statement issued on Wednesday he said, "The Court of Appeals decision confirms our long-held position that music pirates must be held accountable for their actions, and not be allowed to hide behind the company that provides their internet service".
He went on, "Given that an epidemic of illegal downloading is threatening the livelihoods of artists, songwriters and tens of thousands of other recording industry workers who bring music to the public, we look forward to Verizon's speedy compliance with this ruling."
Verizon has agreed to reveal the identities of the subscribers.
Sarah Deutsch, a vice president at Verizon, told CNet News: "We intend to comply, but we remain concerned about the RIAA and other copyright and non-copyright holders' potential uses and abuses of these subpoenas."
The disclosure by Verizon will open the door for legal action against the individuals by the RIAA. Suing individuals seems to be the RIAA's latest tactic in its war against internet music piracy.
The US music industry's response to internet piracy is well documented. The British music industry's response and the laws that apply are less well known. This is the subject of the cover story in the latest OUT-LAW Magazine.