The speed and convenience of content distribution through the Internet has long posed a threat to traditional distribution channels and challenged courts to balance the benefits of freedom of access for the public with protection of the rights of intellectual property owners. Those issues were on display in WPIX v. ivi, 2012 WL 3645304 (2d Cir. Aug. 27, 2012), where the U.S. Court of Appeals for the Second Circuit upheld a preliminary injunction against a streaming video service.
In WPIX, owners of copyrighted television programming, including major broadcast networks, brought copyright infringement claims against ivi, an online video distributor. ivi retransmitted live signals from various broadcast stations, charging subscribers $4.99 a month for access to live streaming video and an additional $.99 a month to record, pause, fast forward and rewind. While the Copyright Act grants copyright owners the exclusive right to authorize retransmission of broadcast signals, Section 111 of the act provides an exception to this rule, allowing “cable systems” to retransmit broadcast signals provided they pay a compulsory license rate and abide by the statute’s procedures. The compulsory license was established to facilitate the expansion of cable systems and encourage television service in areas that had difficulty receiving over-the-air broadcasts.
