In its long-running bid to transform broadcasting, controversial firm fails to persuade judges to extend protections granted to cable companies. TV networks complained high-tech company’s through-air, content “capture,” and re-transmissions constitute infringement.
FilmOn boasts that it provides its customers through its website with an impressive access to “600 free live TV Channels” as well as “45,000 complimentary movies.” While Internet streaming services like Hulu and Netflix often say they have been forced to raise their prices to cover expensive content-licensing fees how, then, can FilmOn offer online such a wide, no-cost offering of copyright protected entertainment?
The answer—or so FilmOn thought, at least—rests in Section 111 of the Copyright Act. It allows bona fide cable systems to secure licenses that permit them to re-transmit a “performance or display of a work” previously broadcast by others—but without securing consent of the material’s copyright holder. Cable systems are protected against infringement claims, provided they pay fees to the U.S. Copyright Office, as spelled out by statute.
For FilmOn, which has become something of a broadcast copyright bad boy, Section 111 was a key legal step to advance the company’s controversial ambitions to transform broadcasting. But the U.S. Court of Appeals for the Ninth Circuit has pulled the plug on yet another aspect of its complex, continuing technology-based arguments in its battle with competitors and the TV networks. The appellate judges in Pasadena, Calif., recently ruled in favor of Fox, NBC, ABC, CBS and other broadcasters, finding that FilmOn can’t qualify as a cable system and thereby can’t obtain federal licenses allowing it to re-transmit copyrighted material from the networks.
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