Locast Court Ruling

either that, or keep it at $5 but improve the service (think 60fps, which is something they desperately need)...hell, they could even just do 60fps for the main channels only, and it would be a huge improvement.

IANAL but that seems like a bad decision to me. Lots of non-profits expand their mission over time.

you're missing the other part: he granted summary judgement for the networks at the same time, saying locast cannot use the non-profit exemption as a defense. in other words, they now have no defense for retransmitting the signals.

it's all BS, of course. when the law was written in 1976, congress never could have imagined the internet existing in the manner it does today...so of course they didn't write expansion into the law. there was never a thought at that time that a single non-profit could cover the entire country the way locast is trying to do.

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It has nothing to do with being a non-profit. They could still expand, they could even take on new roles like starting a nursing home if they wanted; they just cannot use the fees they collect in their current operating markets to do so. They'd have to collect money to start in those markets and other endeavors another way.

The law in question here is the one about retransmission of OTA signals and what narrow exceptions are made to do so without reimbursing the broadcasters first. In order to do that, a non-profit must not make excess dollars through their fees, which Locast admits they do have for the express purpose of expansion. Lowering their fees or raising their costs (as @crackers8199 suggests by using more bandwidth and more expensive equipment) are the only options to align to the law, according to this judgment.

I always thought Locast felt more like a subscription service than a non profit. In order to avoid interruptions you had to subscribe.

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Freemium I guess.

You are correct ....

Understanding Freemium

Under a freemium model, a business gives away services at no cost to the consumer as a way to establish the foundation for future transactions. By offering basic-level services for free, companies build relationships with customers, eventually offering them advanced services, add-ons, enhanced storage or usage limits, or an ad-free user experience for an extra cost.

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Just got this email from Locast

Locast Nation

As you probably know, the federal district court in the Southern District of New York issued a ruling in the case brought against Locast by the big media companies. The court concluded that by interrupting programming to ask users for donations, and by suspending those interruptions based on whether a user makes contributions, Locast actually was charging a fee, not merely seeking a voluntary contribution. The court then concluded that revenues Locast collects in this manner exceed the cost of operating the service because funds are used to add new markets, rendering Locast ineligible to use the copyright exemption for non-profits (17 U.S.C. 111(a)(5)).

Although we disagree with this interpretation and are exploring our legal options to contest it, out of respect for the court's order,

Locast is suspending immediately all programming interruptions to request donations .

This means that anyone located in a market we serve who signs up for Locast will get the service without interruption, regardless of whether or not they donate.

Of course, it is up to you whether or not to contribute to Locast. But if you currently contribute, we humbly request that you continue to do so. And if you don't contribute, we hope that you will do so if you can afford it.

Thank you.

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Does that mean we can get it added as an additional source without donating? I just tried and Channels wouldn't let me.

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I wonder why I thought it would.

Just got the same email.

I bet the Networks are seething after reading this

I think Locast changing their plan in less than 24 hours proves yesterday’s ruling does carry some weight. I think the question is how many users will continue to donate and can Locast expand or maintain their current locations with current or less donations.

My gut feeling is that soon it will shutdown .. I do not think they will have the funds to continue the fight.

Locast is run by lawyers that do this for a living, maybe Dish and Att will donate.

I will continue to donate.

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as will i. $5/mo for the service they provide is well worth it.

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Likewise. Actually, I have 2 separate accounts—1 which is basically never used—so I guess I'm all-in for their cause, too!

And even if the trial doesn't really go forward, the judge's overly narrow reading of the non-profit exemption is a large opening for appeal.

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Same.

Nice, but their quality is no where near OTA quality for main HD channels - right? Also - no 5.1 sounds. Both those things would be a huge drawback for me when OTA quality is pristine and only want best quality.