Social media platform X (formerly Twitter), acquired by Elon Musk, is potentially facing a payout of over 300 billion won (approximately $227 million) for allegedly neglecting music copyright infringement.
According to a report by CNN Business on the 6th, Judge Aleta Trauger of the U.S. District Court in Tennessee has allowed the trial to proceed with a civil lawsuit filed against X.
Judge Trauger told CNN Business, “If X knew that it would lead to copyright infringement and did not take action, they could be held (legally) responsible”.
The National Music Publishers’ Association (NMPA) filed a lawsuit against X in June 2023, alleging that they did not take reasonable measures to prevent music copyright infringement.
The issue is that X did not provide users with accurate information about copyright infringement when they shared copyrighted music illegally.
Major global music distributors, including Sony, Universal Music, and Warner Music, also joined the lawsuit.
The plaintiffs claimed that copyright infringement occurred on over 1,700 songs, requesting the court to compel X to pay statutory damages of up to $150,000 (approximately 198 million won) per case.
Statutory damages are commonly used in areas of the law in which it is difficult to prove the degree of harm or loss caused to the plaintiff.
According to The New York Times, X discontinued license agreements with three major record companies for cost-cutting purposes after being acquired by Elon Musk.
However, Judge Trauger did not accept the record companies’ claim that X should directly bear responsibility for infringing on intellectual property rights.
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