This story was first published for the 1709 Blog, where I regularly write about copyright law in entertainment, technology and media. 

The Alliance for Creativity in Entertainment (ACE), an industry coalition of global entertainment companies and film studios, together with Netflix and Amazon, has secured a major legal victory against Tickbox, a type of so-called “Kodi Box” streaming device. As a result of the judgement and permanent injunction, which were handed down in Los Angeles, California on September 11th, Tickbox will pay $25m (£19m) in damages. Additionally, Tickbox will no longer provide software that allows users to access pirated content, and agrees to disable any such software within 24 hours.

In its coverage of the matter, Variety noted that in initial advertising, Tickbox promised customers that they could get “virtually the channels you get from your local cable company … without you having to worry about paying rental fees or monthly subscriptions.” Tickbox devices retailed for about $150 (£115).

In October of last year, ACE originally filed a lawsuit alleging that TickBox was promoting their streaming device as “a tool for mass infringement of copyrighted motion pictures and television shows”. By this point, TickBox had changed the advertising wording, and in its defence to the lawsuit attempted to feign innocence by “claiming that the device manufacturer could hardly be held accountable for what their customers chose to download” (nocable.org). Essentially, Tickbox’s fundamental argument was that it is merely a hardware company, and therefore no more responsible for copyright infringement than any other computer manufacturer.

Judge Fitzgerald disagreed with TickBox’s reasoning, explaining that “There is sufficient evidence that the Device can be and is used to access infringing content, and there is sufficient evidence of TickBox’s fault — primarily in the form of its advertisements and customer-support efforts. TickBox may be held responsible for the instances of infringement that would not have otherwise occurred in the absence of the Device.”

This successful action against TickBox is the first brought on by ACE that targeted a streaming device. Other similar “Kodi-Box” lawsuits remain pending, and the outcomes are likely to be similar now that this one against TickBox is on the books.

Worth noting is that one of Tickbox’s competitors, Dragon Box, was also sued earlier this year by Netflix, Amazon, and others for copyright infringement. Dragon Box then released the following statement: Instead of closing our doors and shutting down all boxes and riding off into the sunset we decided that it was in the best interest of you the customers and the company to change our business model and adapt to change and continue to try and bring you the best legal content we can and add in as many services we can to make Dragon Box the box that beats any competitors out there.