Public Knowledge: FilmOn X Decision Could Be Boon to Streaming Video Competition

The streaming video market could see a big competitive boost from a preliminary federal court decision Thursday in a lawsuit against online streaming service FilmOn X, Public Knowledge said. The decision by U.S. District Court Judge George Wu in Los Angeles was that FilmOn X could be entitled to a compulsory license under Section 111 of the Copyright Act as it operates somewhat akin to a cable system. "Similar services should not be subject to totally different rules depending on whether they are offered over coaxial cable, fiber, satellite transmissions or online," said John Bergmayer, Public Knowledge senior staff attorney, in a statement. One of the plaintiffs, Fox, said that the Wu decision doesn't allow FilmOn X to resume streaming its broadcast signal because it remains under a preliminary injunction. In a statement Friday, plaintiff CBS said the court announcement "does not resolve anything, as it is only a tentative ruling. It is also wrong, as other courts and the US Copyright Office -- which administers Section 111 -- has rejected that position." The ruling also only concerns copyright law, and does not address the separate issue of retransmission consent that multichannel video programming distributors must obtain from programmers, CBS said. Parties in the case have until July 23 to submit a joint proposed judgment, after which the court will enter a final judgment and certify the case for appeal to the 9th U.S. Circuit Court of Appeals.