Locast Halts Free TV Streaming After Networks Score In Copyright Infringement Court Ruling

Locast, a nonprofit that provides free streaming of broadcast television channels in select U.S. cities, has halted its service after a federal court ruling that its service resulted in copyright infringement.

What Happened: Locast was sued by the four major broadcast networks — Walt Disney Co.'s DIS ABC, ViacomCBS' VIAC CBS, Fox FOX and Comcast's CMCSA NBC — in July 2019, arguing that Locast didn't have their consent to retransmit their copyrighted programming.

Locast argued its status as a nonprofit qualified it for copyright law exemption and that it offered the service for free, to which the networks countered that Locast solicited $5 per month donations from its users and would briefly interrupt transmissions for users who did not those payments.

According to Ars Technica, Locast made $4.5 million in 2020, with $4.37 million coming from direct user payments and the rest from donations by pay-TV providers including AT&T T that include Locast in their cable service.

On Tuesday, New York City-based U.S. District Judge Louis Stanton ruled in favor of the broadcasters by noting the Copyright Act of 1976 allowed nonprofit organizations to make secondary transmissions of broadcasts if they do not receive a “commercial advantage” and only charge users for what is “necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.”

The judge added that Locast used its donations to finance its expansion, which fell outside of the law’s restrictions.

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What Happened Next: Locast posted an announcement on its website declaring it would abide by the court’s ruling.

“We are suspending operations, effective immediately,” the company wrote. “As a nonprofit, Locast was designed from the very beginning to operate in accordance with the strict letter of the law, but in response to the court’s recent rulings, with which we respectfully disagree, we are hereby suspending operations, effective immediately.”

However, Locast attorney R. David Hosp of the firm Partner Orrick, Herrington & Sutcliffe hinted this wouldn't be the last word on the matter.

“We are disappointed in the ruling today and disagree with its conclusions and reasoning,” Orrick said in a statement. “Our client is in the process of evaluating the decision and formulating next steps.”

Photo: Mysid / Wikimedia Commons.