TV Networks Take Battle Against Streaming TV Companies to Court

By Tracey E. Schelmetic, TMCnet Contributor

The world of digital television is getting increasingly complicated. On one side, we have the media companies that produce and control the content, leery of any and all Web-based streaming technology of which they might not get as big a cut as they want (or any cut at all, in some cases). On the other side are the technology start-ups striving to produce Internet services that stream TV stations online: something viewers very much seem to want.

According to an article in today's Wall Street Journal tech section, owners of the major U.S. broadcast television networwks are filing suit in federal court against two start-up companies that stream broadcast TV stations online without their consent. The networks are arguing that the start-ups are infringing on their copyrights. A judge in New York has is scheduled to rule this week on the networks' request for a temporary restraining order against FilmOn.com Inc. A second, similar case against Ivi, Inc., will probably be heard in coming weeks.

Both Ivi and FilmOn take free over-the-air broadcast signals and convert them to online streams. The companies have claimed it's their right to distribute the network material under a provision in the U.S. Copyright Act. Seattle-based Ivi maintains the argument that it is not governed by a separate communications statute that requires cable and satellite companies to negotiate licenses with content owners before transmitting their networks.

The networks have disagreed, arguing that the fledgling companies don't qualify as “cable systems” or “passive carriers,” groups entitled to protections in the Copyright Act. NBC Universal, ABC (owned by Disney), CBS, News Corp (News - Alert).'s Fox and other content owners have all filed separate suits against Ivi and FilmOn in U.S. District Court.

The lawsuits are a symptom of expanding network fears that their business will be eroded by Web-based companies delivering streaming content in cheaper and more accessible ways, essentially taking control away from the networks. Companies like Ivi and FilmOn point out they are merely providing a service viewers really want. The Journal has pointed out that real-time entertainment, including video streaming, today accounts for about 43 percent of North American Internet traffic, according to Internet-network-management company Sandvine (News - Alert), Inc., up from just 10 percent in 2008. 

FilmOn founder Alki David believes the networks need to embrace newer technology instead of fighting it. The networks, said David, will “have to deal with me or someone like me or be devoured by the pirates.”

Tracey Schelmetic is a contributing editor for TMCnet. To read more of Tracey's articles, please visit her columnist page.

Edited by Tammy Wolf

(source: http://legal.tmcnet.com/topics/legal/articles/119881-tv-networks-take-battle-against-streaming-tv-companies.htm)

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