Entertainment
Broadcasters win big legal victory over app streaming TV – The Hollywood Reporter
ABC, CBS, Fox and NBC have secured a huge court ruling that could jeopardize the continued viability of Locast, a high-profile digital app that streams live TV stations. On Tuesday, a New York federal court granted partial summary judgment to broadcasters in the closely watched copyright case.
Locast has helped cord cutters by providing digital access to local stations without a cable or satellite subscription. It’s like Aereo, a similar streamer who lost big in the Supreme Court, except for one key fact that Locast was hoping to help save him from copyright liability. Locast operators presented it to the public for free. Under § 111 (a) (5) of the Copyright Act, a non-profit organization is permitted to operate a secondary transmission service.
But during the summary judgment, broadcasters wondered if it was really free given that the service solicits donations from its users. For those who do not pay $ 5 per month, the service is interrupted several times per hour. In other words, it’s “freemium”.
In an order in favor of the broadcasters, U.S. District Court Judge Louis Stanton writes that under the law, fundraising can only be used to cover the costs of operating the service, not for the expand to new markets.
“Since a portion of its user payments funds Locast’s expansion, its charges exceed those” necessary to cover the actual and reasonable costs of maintaining and operating the secondary transmission service “, which is the only exemption granted in section 111 (a) (5). “
According to Locast’s website, it now operates in 36 markets serving 55% of the US population. It has a few million users.
While the impact of the order is to exclude Locast’s main affirmative defense against copyright claims, the case is not quite over and may point to a lawsuit over ultimate liability. of the company.
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