D.C. Circuit Rules FilmOn Liable for Infringing on Copyright

Streaming TV service FilmOn X isn't eligible for a compulsory license and is liable for infringing on the copyright of CBS and other broadcasters, ruled U.S Court of Appeals for the D.C. Circuit Judge Rosemary Collyier in an order issued Thursday. FilmOn X could face damages of $750-$100,000 per instance of infringement, an industry attorney told us Friday. Collyier also denied a summary judgment motion filed by FilmOn X and denied one from the broadcasters without prejudice, meaning it could be filed again. The case stems from a lawsuit brought against FilmOn X in U.S. District Court in Washington before the Aereo ruling by the U.S. Supreme Court. After the Aereo ruling (see 1406260071), FilmOn X argued in the D.C. Circuit and in similar cases in other venues that it was entitled to a compulsory copyright license, like a cable system. It also has been lobbying the FCC to designate it as an MVPD. U.S. District Judge George Wu ruled in Los Angeles (see 1507170024) that FilmOn X is eligible for a compulsory license, while the 2nd Circuit ruled that streaming video services aren’t eligible for such licenses. The L.A. decision was appealed to the 9th Circuit. Collyier’s opinion in the case was sealed because of sensitive information referenced in it, but the parties are to file a public version by Dec. 1, the order said. FilmOn X Attorney Ryan Baker of Baker Marquart said FilmOn is weighing its options for appealing the D.C. Circuit decision.