Record labels Universal, Warner, and Sony are seeking higher damages from internet provider Grande Communications in their latest legal battle over user piracy. The labels want damages calculated per song rather than per album after winning a case regarding Grande's failure to terminate accounts of repeat copyright infringers.

The US Court of Appeals for the Fifth Circuit recently ruled that Grande violated the law by not terminating accounts of users identified through IP addresses as repeat infringers. However, the court ordered a new trial for damages, stating the original $46.8 million judgment ($33,333 per song for 1,403 songs) was excessive.

The appeals court cited the Copyright Act's provision that "all parts of a compilation constitute one work," meaning only one statutory damage award per album is permitted. The labels argue this interpretation threatens their ability to obtain fair compensation and are requesting an en banc rehearing to reverse this portion of the ruling.

Grande Communications is also petitioning for a rehearing, claiming they shouldn't be liable at all since "providing internet service is not actionable conduct." They argue that passive provision of internet access shouldn't result in contributory liability.

This case parallels another involving Cox Communications, where Sony is seeking reinstatement of a $1 billion verdict after the Fourth Circuit ordered a new trial to determine damages for "willful contributory infringement."

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