Locast, a nonprofit service that used a loophole in copyright law to stream local TV channels on the cheap, delivered a blow to cord cutters this week by abruptly suspending its operations.
Locast had argued that it was allowed to stream local channels to viewers via its own antennas, using a provision of copyright law that lets nonprofit groups retransmit broadcast signals. The major TV networks—ABC, NBC, CBS, and Fox—disagreed, and sued the group nearly two years ago.
On Wednesday, a federal judge in New York sided with the networks, tossing Locast’s request for summary judgment.
While the service was ostensibly free, Locast would interrupt users’ video streams every 15 minutes unless they paid a $5 per month donation. District Judge Louis Stanton said that with this approach, Locast was soliciting payments for a service, not charitable contributions. He also took issue with the way Locast used donations in existing markets to fund expansion into others, saying the nonprofit…
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Source : fastcompany.com
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