A New York court has issued a temporary restraining order against FilmOn, the rogue video digital site, which has been re-airing TV networks' live transmissions since October.
FilmOn says it respects the court's decision. In a few weeks, it will launch a similar service for mobile devices.
The digital entity has begun airings of TV networks via filmon.com, seen on laptops and mobile devices and timed with the new broadcast network season. It was almost immediately sued by the major TV networks for copyright infringement.
FilmOn chairman/CEO Alki David stated: "We have, in essence, shown full proof of concept of the FilmOn delivery system, proving that millions of viewers will watch our superior television service online, all with commercials, adding millions of extra impressions that enhance network's value to its viewers and advertisers."
David says the company has begun financial discussions with the "TV network affiliates and other content owners" for its new service.
FilmOn began because it believes its digital distribution system to be exempt from copyright infringement laws targeted to "cable systems." Instead, it believes it had the right to retransmit signals based on the "compulsory copyright" rules -- which would eliminate having to negotiated with the networks over retrans fees.
Except a quick scan of the compulsory copyright (Section 115) rules clearly shows that they are for the use of phonorecords, i.e., nondramatic musical recordings. Those rules were not written nor intended for video retransmission of television shows.