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29 October 2021CopyrightAlex Baldwin

TV rebroadcaster agrees to pay $32 million to networks

The operator of non-profit TV streaming service Locast has agreed to pay $32 million to US television networks for rebroadcasting local TV channels.

Locast was given the order from the  US District Court for the Southern District of New York to permanently cease operations last month in a two-year retransmission dispute.

The company would rebroadcast local TV channels online, with the goal of providing Americans access to local TV broadcasts in remote areas that would otherwise be unable to access them.

Locust founder David Goodfriend argued that this did not constitute copyright infringement, mainly as the operation was not for profit. However, this argument was dismissed as the service was found to charge users too much to purely cover costs.

Both parties are now looking to settle the dispute, with Goodfriend agreeing to pay the media companies $32 million in statutory damages according to a joint motion published on Thursday 28 October.

The joint motion also permanently restrains and enjoins Goodfriend, or any of his associates, from operating the Locast service.

“All claims, counterclaims, and defences in this action are hereby resolved by this

stipulated consent judgment and permanent injunction,” the motion said.

Infringement exemption

Several media companies, including  Disney,  Fox,  NBC and  CBS sued Locast owner David Goodfriend in 2019 seeking damages and injunctive relief for infringing their copyrighted programming through rebroadcasting.

Goodfriend filed his own counterclaim against the networks in September 2019, arguing that the secondary transmission of free broadcast television “without the purpose of commercial advantage” did not constitute copyright infringement.

The Manhattan court issued an opinion and order on cross-motions for summary judgment in August 2021, denying the Goodfriend’s motion, but granting the network companies’ motion for partial summary judgment based on the finding that infringement exemption did not apply to the Locast service.

In September this year, the court issued a permanent injunction, restraining Goodfriend and any of his associates from operating Locast.

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