On Tuesday, the Supreme Court heard arguments in the Aereo case that could cause legal implications for cloud computing businesses such as Dropbox and Google, especially if remote storage and data transmission are classified as “public performance.” Broadcasters accuse the Internet startup Aereo of violating copyright laws by using antennas to stream over-the-air broadcasts to paid subscribers. Justices will determine if Aereo’s service is “public performance” that requires permission. Continue reading Aereo Supreme Court Case Could Upend Cloud Computing

Major record labels Sony, Universal and Warner Music, along with indie label ABKCO, filed a lawsuit in New York State Supreme Court in Manhattan last week, claiming that streaming music service Pandora is violating New York’s common-law copyright protections by using songs recorded prior to 1972 without licenses. The suit acknowledges that older songs are not protected under federal copyright, but contends that Pandora needs permission to use them under state law. Continue reading Labels File Copyright Suit Against Pandora Under State Law

Television broadcasters, which are suing for an injunction to shut down Aereo, are also said to be considering back-up plans in case the Supreme Court rules in favor of the video startup. Options being considered range from lobbying Congress for legislative solutions to possibly transitioning from broadcast to cable transmission. Broadcasters such as ABC, CBS, Fox and NBC contend that Aereo is violating copyright law by capturing over-the-air signals and streaming them via the Web to paying customers. Continue reading TV Networks Consider Plan B Options if Court Sides with Aereo

Maker Studios announced that Disney’s offer to acquire the YouTube multichannel network (MCN) has been approved by a majority of its shareholders, despite Relativity Media throwing its hat in the ring with a surprise bid of $1.1 billion (mostly stock) on Sunday. Also, the Superior Court for the State of California in L.A. yesterday rejected a request by former Maker executives, including former CEO Danny Zappin, seeking to block the shareholder vote on the proposed Disney acquisition. Continue reading Maker Studios Says Disney Offer Approved by Shareholders

Major film studios — including 20th Century Fox, Disney, Paramount, Universal, Columbia Pictures and Warner Bros. — have filed a civil lawsuit against the now defunct entertainment website Megaupload and its founder, Kim Dotcom. The studios claim that visitors to the Hong Kong-based site illegally downloaded thousands of copyrighted works. Damages could reach a maximum of $150,000 for each infringement. In addition, four music labels filed a similar lawsuit yesterday. Continue reading Studios and Music Labels File Lawsuits Against Megaupload

The Federal Communications Commission explained that it does not plan to support the request made by Netflix CEO Reed Hastings to expand net neutrality rules in order to regulate how companies connect across the infrastructure of the Internet. Hastings had asked the FCC to consider an approach that would not require companies like Netflix to pay additional fees to service providers such as Comcast for special connections that help ensure customers can access video without problems. Continue reading FCC Rejects Netflix Plea for Expanded Net Neutrality Rules

CBS Chief Executive Officer Les Moonves said the network would consider launching its own over-the-top streaming TV service with other leading television networks if the Supreme Court rules that New York-based startup Aereo is allowed to continue reselling broadcast programming over the Internet without permission. The Supreme Court is expected to rule on the Aereo case later this year. “We are going to win either way,” Moonves said. Continue reading Will Networks Consider Cable or OTT Service to Combat Aereo?

In a blog post yesterday, Netflix CEO Reed Hastings said that broadband providers should be required to connect their networks to major content providers (including Netflix) free of charge. Hastings issued a call for new rules that would prevent broadband providers like Comcast from charging content companies fees to connect directly to their networks (a practice referred to as “paid interconnection” or “paid peering”). Netflix recently struck such a deal with Comcast to improve its video service for subscribers. Continue reading Netflix CEO: Broadband Companies Should Interconnect for Free

The long-running legal battle between Viacom and Google over YouTube has been resolved. Viacom has been suing Google since 2007, arguing that the online video site violated copyrights. The two companies announced yesterday that they have settled out of court. Specific terms of the settlement were not disclosed, but people familiar with the matter suggest that both sides are now free to explore potential business partnerships, including the possibility of collaboration on advertising technology. Continue reading Viacom and Google Resolve Copyright Litigation Over YouTube

In somewhat anticlimactic fashion, the lengthy, dramatic battle regarding what digital music service Pandora should pay ASCAP ended Friday when U.S. District Judge Denise Cote ruled that Pandora should continue to pay the performing rights organization what it has been paying through 2015. Pandora had argued that it should pay less than the current 1.85 percent of revenue, while ASCAP had argued for an escalating rate structure that would require Pandora to pay 2.5 percent of revenue for 2013 and 3 percent in 2015. Continue reading Judge Rules in Royalty Lawsuit Between Pandora and ASCAP

TV startup Aereo has temporarily shut down its service in Denver and Salt Lake City. The U.S. Court of Appeals for the Tenth Circuit refused to overturn a preliminary injunction granted by a Utah District Court judge that prohibits Aereo from operating in Colorado, Montana, New Mexico, Oklahoma, Utah and Wyoming. Aereo is issuing full refunds for this month to customers in the two cities. Despite the setback, Aereo continues its expansion with a recent launch in Austin, Texas one week before the SXSW conference. Continue reading Aereo: Internet TV Service on Hold in Denver and Salt Lake City

ABC, CBS, Fox and NBC filed a 59-page brief to the Supreme Court a few weeks ago that detailed how online video startup Aereo is stealing their programming and undermining the TV business model. The filing also noted that “a ruling against Aereo would pose no threat to innovative online-distribution services such as Hulu, Netflix, and Amazon,” since those services “pay for the right to use copyrighted content.” In a Supreme Court filing yesterday, the Justice Department backed the networks in their fight with Aereo. Continue reading TV Networks Battle Aereo, Gain Support of Justice Department

For the past 73 years, the Justice Department has governed licensing organizations ASCAP and BMI to ensure songwriters receive fair royalty rates when their songs are played. Now Pandora is taking on ASCAP in a trial over royalty payments that is being carefully followed by the publishing industry. Music publishers including Sony/ATV and Universal are calling for an overhaul of the system, while tech firms are claiming that publishers are attempting to skirt federal rules designed to protect them.

Continue reading Pandora Lawsuit Could Impact Music Industry’s Royalty Model

Known for filing copyright infringement lawsuits, musician Prince has targeted 22 individuals for posting links of his live concerts and posting them on Facebook and blogs, and filed a lawsuit for $22 million in damages. The lawsuit was filed in the United States District Court in the Northern District of California. Only two of the defendants are referenced by their real names in the lawsuit, and the others are referenced by their online usernames.  Continue reading Music: Prince Sues Facebook Users for Copyright Infringement

A new Web application named Hola is bypassing copyright laws to deliver content to users who otherwise don’t have access to it. The app essentially unlocks international versions of Netflix so U.S. users can watch shows like “True Grit” or “Community” — only available overseas — whenever they want. By changing users’ IP addresses and making their devices act as routers, content is never copied illegally. Since beta testing began, the app has become incredibly popular, and it could alter the way the Internet operates. Continue reading Hola: New App Skirts Copyright Law to Stream TV Shows, Music