The main phonogram producers in the United States, including Sony Music Entertainment, UMG Recordings, Inc.; Capitol Records, among others, and the internet service provider RCN Telecom Services, LLC (RCN), have agreed to resolve their legal dispute over neighboring rights through the mediation process.
Prior to accepting mediation, the phonogram producers filed a lawsuit in the United States District Court District of New Jersey, arguing that RCN had not implemented adequate measures to prevent intellectual property infringements by repeat users of its service.
As reported by Instituto Autor, in recent years, major Internet service providers have chosen to reach agreements with rights holders, thus avoiding the lengthy resolution of conflicts through the courts. An example of this is the case in 2018 between Bertelsmann Music Group (BMG) and Cox Communications (Cox), one of the major Internet service providers in the United States, which concluded with an agreement between the two companies on May 6, 2019, before the District Court for the Eastern District of Virginia.
In the United States, as in other regions, mediation is an alternative dispute resolution process carried out outside the traditional judicial system. This method offers various advantages, such as speed, cost reduction, flexibility, confidentiality, party control over the outcome, preservation of relationships between the parties, and increased compliance.
Agreements reached through mediation tend to be more enduring and complied with, as both parties actively participate in the solution. Specifically, in the United States, a mediation agreement must be presented to the country's courts to be legally binding and enforceable.
Sources: Instituto Autor (Un ISP de Estados Unidos compartirá los nombres de los usuarios comerciales que infrinjan derechos de propiedad intelectual, Bertelsmann Music Group llega a un acuerdo económico con Cox Communications), Complete Music Update (Music industry’s copyright battle with US net firm RCN moves into mediation).