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The major broadcast networks have won a big copyright ruling against Locast, a nonprofit organization that provides online access to broadcast TV stations. Although it’s a partial summary judgment, the ruling by a federal judge rejects Locast’s primary defense against claims of copyright infringement.
Locast was sued by ABC, CBS, Fox, and NBC in July 2019. The companies alleged that Locast “must have a license to retransmit copyrighted television programming” even though the TV channels are available over the air for free. The lawsuit argued that Locast must “secure the consent of the broadcasters to retransmit the broadcast signals” in the same manner as cable, satellite, and online video services. Locast fought the lawsuit, saying it qualified for a copyright-law exemption available to nonprofits.
US District Judge Louis Stanton yesterday granted the networks’ motion to dismiss Locast’s affirmative defense that its service is exempt from liability under the US copyright law. The law enacted in 1976 allows secondary transmissions by nonprofit organizations if they receive no “commercial advantage” and do not charge users anything more than what’s “necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.” Locast cites this exemption as the key to its argument that its service is legal.
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