For the first time in nearly a year, the nation’s major television broadcasters have won a round in their legal battle against start-up firms that stream programs from local stations over the Internet without their consent.
The Federal District Court for the District of Columbia issued a preliminary injunction on Thursday against one such start-up, FilmOn X. The broadcasters that sued FilmOn, claiming copyright infringement, cheered the news. It was not immediately clear how the ruling might affect Aereo, a better-known streaming service backed by the head of IAC/InterActiveCorp, Barry Diller.
“We are pleased, but not surprised, that the court recognized that the commercial retransmission of our broadcast signal without permission or compensation is a clear violation of the law,” the Fox network said in a statement. The network said the preliminary injunction would apply across the country, with the exception of New York, Connecticut and Vermont, where the United States Court of Appeals for the Second Circuit has upheld Aereo’s business model in the face of lawsuits from the broadcasters.
Fox, which was joined in the suit by CBS, NBC and ABC, added, “This decision should finally put the matter to rest, and will hopefully discourage other illegal services from attempting to steal our content.”
FilmOn said the ruling was “just a temporary setback.” The service, previously named Aereokiller in a jab of sorts at Mr. Diller’s start-up, is the brainchild of the billionaire Alkiviades David. One of its features lets users live-stream programs from the local TV stations that are beamed over public airwaves in New York and elsewhere.
Both FilmOn and Aereo operate antennas that pick up the signals of local stations and send them over the Internet to viewers. This tactic has frustrated station owners because it bypasses the system of retransmission fees — paid by cable and satellite companies for the privilege of carrying those signals — which broadcasters have become increasingly dependent upon. Analysts have predicted that services like Aereo could seriously compromise retransmission fees.
Aereo has consistently said that it is operating within the law, and the Court of Appeals for the Second Circuit in New York has agreed. In July, Aereo won its third consecutive victory there when the court declined to hear the broadcasters’ appeal. Aereo, heartened by the court’s support, has expanded to markets like Boston and Atlanta, and the company says other market will follow.
The broadcasters have sought to stop companies like Aereo by seeking more favorable settings for lawsuits. In December, a federal court in California concluded that FilmOn had violated the copyrights of the broadcasters; the broadcasters pointed to that ruling when they filed suit in Washington.
In the ruling on Thursday, Judge Rosemary M. Collyer said she had considered the court decisions in both New York and California and had found the latter “to be more persuasive.”
“Because there is no dispute of fact between the parties — indeed, each has won and each has lost in a different forum on these same facts — the court will grant plaintiffs’ motion for a preliminary injunction,” she wrote.
The injunction bars FilmOn from streaming the stations’ programs until a trial concludes.
In an e-mail, Mr. David iobjected to the ruling.
“We will win on appeal,” he said.
He said he would keep the service partly functioning in the meantime by streaming from independent stations that were not parties to the suit. Aereo was not part of the lawsuit, either, so the ruling does not automatically affect it. Other courts could cite Thursday’s ruling in the future, however — and the Supreme Court may eventually be asked to hear the case.
Article source: http://www.nytimes.com/2013/09/06/business/media/networks-get-a-victory-in-court-over-streaming-service.html?partner=rss&emc=rss