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Copyright laws don't shield a major Internet provider from liability for illegal music downloading by its subscribers, according to a ruling in a closely watched case between cable giant Cox Communications Inc. and two music publishers.

The ruling, by U.S. District Judge Liam O'Grady in Alexandria, Va., could open the door to more downloading lawsuits against the cable industry by movie studios and music publishers, according to some legal experts. The entertainment industry has repeatedly claimed that illegal theft of songs, movies and TV shows have cost them billions in lost revenue in recent years.

The brief ruling made earlier this month could also cause Internet providers to take a harder line with subscribers suspected of infringing, possibly by suspending or terminating their service altogether.

"This ruling is potentially very concerning to every user of the Internet, who may stand substantially less protected than before," said Charles Duan, a staff attorney with Public Knowledge, a Washington, D.C., group that advocates for greater consumer access to the Internet and other technologies.

Two music companies, BMG Rights Management LLC and Round Hill Music LP, sued Cox last year, claiming that Cox, which provides Internet service to millions of people, deliberately turned a blind eye to illegal downloading by its subscribers. That behavior violates federal copyright law, BMG and Round Hill claimed in the lawsuit. The lawsuit is an attempt by the music industry to cut down on the practice of downloading music without paying, an act it considers tantamount to theft.

"Cox has repeatedly refused to terminate the accounts of repeat infringers," argued lawyers for the plaintiffs, in court papers. "The reason that Cox does not terminate these subscribers and account holders is obvious—it would cause Cox to lose revenue."

Spokespeople for Cox didn't respond to requests for comment on Tuesday. In court papers, the company has previously said it had no "actual" knowledge of any specific infringements, and that the plaintiffs had no evidence of Cox account holders personally infringing through their Cox accounts.

The case is expected to go trial next week to determine whether Cox should be held liable for its alleged role in any infringement, and, if so, how much it should have to pay.

The lawsuit targets the practice of downloading music via so-called torrent services, ​through which two users can easily and quickly swap files. Rather than go after the torrent sites, which can be difficult to target through the U.S. legal system, BMG and Round Hill have chosen to go after Cox, using an untested legal theory.

A 1998 copyright law, known as the Digital Millennium Copyright Act, created a "safe harbor" from copyright claims for Internet-service providers as long as they ​took certain steps, like cracking down on customers they suspected of​downloading copyrighted material without paying for it.

BMG and Round Hill claim that through an agent called Rightscorp Inc., ​they ​have ​discovered and told Cox ​about "hundreds" of repeat infringers. They allege that Cox failed to ​do anything in regard to these customers and has thus given up its safe-harbor protections under the DMCA.

In the order, Judge O'Grady agreed with the plaintiffs, saying that Cox essentially failed to set up and enforce a "repeat-infringer" policy, as required under the law.

​At the same time, he cast doubt on whether ​the smaller of the two plaintiffs, Round Hill, ​should be allowed to continue in the suit, finding that the company didn't own "exclusive" rights to the copyrights in the case. Round Hill didn't respond to a request for comment.

Judge O'Grady said he would further explain his findings in a forthcoming opinion.

But the ruling itself "is quite significant," said Bruce Boyden, a law professor and copyright expert at Marquette University. Mr. Boyden said the ruling could force Internet service providers to take allegations of infringement more seriously and could "up the stakes" for Internet users.

"It's not like there are always a lot of places to turn [for service] if your ISP shuts you down," he said.

Write to Ashby Jones at ashby.jones@wsj.com

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

(END) Dow Jones Newswires

November 24, 2015 20:15 ET (01:15 GMT)

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