Online TV service Ivi Gets it's Own Cord Cut - Ordered to Close Doors in Legal Battle

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Published on Wednesday, 23 February 2011 13:24

The LA Times is reporting that bad-boy online company ivi TV has been ordered by a federal judge in New York to shut down operations, effective immediately.

Ivi TV captured the broadcasts of 55 stations in Los Angeles, Seattle, Chicago and New York, then retransmitted them through the Internet to subscribers for a fee of just under $5 a month. For an additional 99 cents a month, viewers could pause, rewind and fast-forward shows, although they could not record them for later viewing.

Copyright law gives cable operators the right to carry broadcast stations if several conditions are met, and provided that they pay a small portion of their revenue in royalties. But the law also requires that cable operators abide by Federal Communications Commissions regulations, which (among other things) give broadcasters the right to demand higher fees for retransmission rights.

Ivi TV Chief Executive Todd Weaver responded to the ruling with a statement.

Judge Buchwald's opinion is premised on her statement that ivi is 'not complying with the rules and regulations of the FCC'. This conclusion is simply false, as ivi has met with the all the commisioner's offices of the FCC repeatedly and has received assurances that we are in full and complete compliance. Judge Buchwald makes the legal mistake of misinterpreting the copyright law to instead make communications policy. Communications policy is the province of the FCC and, by basing a judicial copyright decision on communications regulations to be administered by the FCC, the judge is overstepping her constitutional authority.

Appmarket.tv has covered the saga since 2010 with articles by editor Paul Johnon at:

Ivi Inc wants to help viewers cut the cord... and Ivi Inc could get its own cord cut...