“Non-profit” streaming service Locast has suspended operations after losing a copyright infringement lawsuit brought on by NBC, ABC, Fox, and CBS. While Locast offered free streams of local network channels in multiple markets, these streams would cut after 15 minutes unless users “donated” $5 per month. The ruling rejected Locast claims that it could legally operate under a 1976 law which allowed “secondary transmissions by nonprofit organizations if they receive no ‘commercial advantage’ and do not charge users anything more than what’s necessary to defray…costs of maintaining and operating” the service.
Because Locast used revenues to expand into new markets, and not just to maintain and operate the service, their defense was considered invalid. While many thought that Locast would continue operations while it appealed the decision, they instead suspended both their free and paid service. It is possible that Locast changes the way they operate, either by not charging, or by obtaining retransmission licenses; however it is possible that they may just disappear forever.
