The broadcast networks on Feb. 11 signed off on Locast‘s $700,000 settlement of a court ruling that the now-shuttered streaming platform had violated copyright law by streaming TV stations over the internet without permission or payment.

That is according to a copy of Federal Communications Commission nominee Gigi Sohn’s written answers to questions from Senate Commerce Committee Democrats following her second confirmation hearing in the committee.

Sohn had been a board member of Locast.

At the time of that Feb. 9 hearing Sohn had told the committee that while Locast had held up its part of the settlement, the broadcast networks that had sued Locast had not yet filed the Satisfaction of Judgment with the court signaling Locast had fulfilled terms of the settlement.

Also: Sohn Says She Will Be Fair and Unbiased Commissioner

Asked by committee chair Maria Cantwell (D-Wash.) whether the Satisfaction of Judgment as now been filed, Sohn said that while all of Locast‘s obligations had been completed by January 17 and the plaintiffs (ABC et al.) had agreed on January 24 to file it, the paperwork was not filed until February 11. That was two days after the hearing, at which Sohn raised the point about the missing signoff. ■

On Saturday (January 29), The Wall Street Journal published its fourth — fourth — editorial opposing the Federal Communications Commission nomination of Gigi Sohn. The editorial accuses Sohn of “prevarication” about the TV service Locast” But the facts in the Journal’s own editorial show that she told the truth — the settlement money came from Locast’s parent, Sports Fans Coalition of NY. Yes, the court judgment was larger than the settlement. But the plaintiffs reasonably settled for taking every last penny that SFCNY had!

As a lifelong broadcaster and Disney copyright advocate, I agree with the plaintiffs against Locast on the merits of the copyright issue. But these are legitimate questions about the law on which reasonable people can disagree.

Ms. Sohn’s association with Locast itself should not be disqualifying. For example, the prominent media and internet entrepreneur Barry Diller, former business partner of the WSJ’s owner, was associated with a venture almost identical to Locast called Aereo. I doubt that the Journal would editorialize that the highly regarded Mr. Diller is unfit for a prominent federal nomination.

Gigi Sohn is among the most qualified nominees in the history of the FCC. As a former News Corp. senior exec, I am at a loss to explain News Corp.’s all-out offensive against Ms. Sohn in both the WSJ and the New York Post! ■

Communications Workers of America president Christopher Shelton is blaming Sen. Roger Wicker (R-Miss.) for the failure, so far, of Federal Communications Commission nominee Gigi Sohn to get a vote in the Senate Commerce Committee.

Wicker is ranking member of the committee, but does not control the timing of a vote, which is in the purview of chairwoman Maria Cantwell (D-Wash.).

In an op-ed endorsing Sohn, Shelton likened Republican obstruction of the Sohn nomination to the Capitol insurrection, calling it “yet another Republican attempt to undermine our democratic system and the functioning of the federal government.”

Wicker has called for a second hearing on Sohn’s nomination. She already had one, but President Joe Biden had to resubmit the nomination earlier this month after the committee did not vote on it before the end of last year.

Wicker is concerned about, among other things, the potential ongoing conflict of interest related to Sohn's association with Locast, the TV-station streaming service that shuttered after a court ruled it was illegally streaming network content. That issue appears to have resolved itself with a settlement that relieved Sohn, a former Locast board member, of any liability.

Shelton called on Democrats to get moving and approve Sohn, saying: “She is known as a long-time, tireless advocate for the expansion of affordable internet access — one of the key issues on the Democrats’ agenda. There is currently a vacant seat on the FCC, and without a full commission it will be difficult to advance the policies necessary to expand affordable broadband service to the millions of American families left on the wrong side of the digital divide.” ■

The Big Four broadcast networks have reportedly settled with Locast for a fraction of the $32 million a court awarded them, which could remove one of the objections to the nomination of Gigi Sohn to fill the vacant seat on the Federal Communications Commission.

Bloomberg Law was reporting that according to the settlement, Locast would only have to pay ABC, CBS, Fox and NBC $700,000 for illegally streaming their content. Those networks also agreed to absolve any individuals, which would include former Locast board member Sohn, of liability for payment.

Sen. Roger Wicker (R-Miss.) had expressed concerns that Sohn‘s connection to Locast and any potential financial liability would be an ongoing conflict of interest since she would be regulating the broadcasters that carry that network programming.

Also: NAB Raises Red Flag Over Gigi Sohn’s Locast Directorship

But Sohn has already promised to recuse herself from any matter dealing with Locast parent Sports Fan Coalition NY, Inc. unless an agency designee affirmatively decides that the government's interest in her participation outweighs concerns about impartiality, and authorizes her to do so.

Locast had to shutter after a court concluded its model of streaming TV station signals without permission or payment was not covered under a non-commercial carveout from copyright protections, a suit brought by the networks.

As head of Public Knowledge, Sohn was an advocate for fair-use carveouts from copyright laws. Locast cited a noncommercial carveout in saying it was legally streaming TV station signals without having to get permission or payment, though the court ultimately disagreed.

While the networks pushed back hard, some stations didn't mind the extra over-the-top exposure for their local ads, particularly as networks started to stream some of their high-value content directly to consumers via their move into their own OTT services.

As to when Sohn might get a shot at the commission seat, Sen. Maria Cantwell (D-Wash.), chair of the Senate Commerce Committee that must approve Sohn's nomination before it can go to the Senate floor, has signaled that by the end of this week she wants to firm up a date for a vote.

A Washington insider said the buzz was that a Sohn vote could come next week (Wednesday or Thursday, perhaps). A Cantwell spokesperson had no comment on that timetable.

But there still remains the specter of a hold from Sen. Thom Tillis (R-N.C.), who has pledged to block the nomination, period, over what he has said are multiple issues, including copyright. ■

FCC nominee Gigi Sohn's history of championing fair use carveouts from copyrighted content has drawn the ire of North Carolina Republican Senator Tom Tillis, ranking member of the Senate Judiciary Committee, who asked the President to withdraw her nomination to a seat on the FCC.

In a letter to President Joe Biden Tuesday (Nov. 20), on the eve of Sohn's nomination hearing in the Senate Commerce Committee, Tillis said that he had many concerns about Sohn, chief among them her "history as an anticopyright activist."

Also: NAB Raises Red Flag Over Sohn Locast Directorship

As head of Public Knowledge, Sohn advocated for "fair use" of copyright material--the legally protected unlicensed use of copyrighted works in some instances like criticism, commentary, and scholarship--particularly so-called "transformative" uses--over what her group argued was overprotection by studios and other content owners.

But one person's protector of transformative unlicensed uses is Tillis' "radical open-content activist" defender of piracy with no respect for intellectual property rights.

He told the President that Sohn has for decades undercut copyright policies and laws and worked against commonsense approaches to curtailing that piracy.

In his letter, Tillis echoed broadcasters' concerns about Sohn's directorship role at TV station signal streamer Locast, whose business model of nonprofit streaming without paying a fee to content providers a court ruled violated copyright protections. "In Ms. Sohn's current position at Georgetown's Institute for Technology and Law Policy, he said, "she condemned media companies for trying to protect their content from unauthorized streaming from Locast."

Tillis also complained about Sohn's role as advisor to then-FCC chairman Tom Wheeler, whom she advised to open up cable set-top boxes "in ways that would guarantee a surge in piracy." Wheeler did tee up an open set-top box proposal in 2016, but failed to secure the necessary three Democratic votes, in part because then commissioner Jessica Rosenworcel did not agree with Wheeler's approach.

Tillis said that as someone who believes in strong intellectual property protections, Sohn's record is disqualifying. ■

The National Association of Broadcasters said though it does not “currently” oppose the nomination of Gigi Sohn to be the third Democratic vote on the five-member Federal Communications Commission, it has big problems with her connection to former TV station streamer Locast and wants Sohn to clear them up.

“We have serious concerns about her involvement as one of three directors of the illegal streaming service Locast,” NAB president and CEO Gordon Smith said of the Biden administration’s nominee for the agency’s decisive third Democratic seat. Sohn had joined the Locast board last March, when she was serving as a distinguished fellow at Georgetown Law Institute for Technology, Law & Policy. 

Locast was forced to suspend operations after a court concluded it was violating the law by streaming TV station signals without negotiating payment from those broadcasters. Locast had argued that because it was operating as a nonprofit, seeking a minimum “donation” of $5 a month from its users, it was protected under the Copyright Act.

Also: Byron Allen Urges Senate to Confirm Gigi Sohn

Though Smith said NAB believes its concerns can be resolved, he said that Sohn's ethics agreement — sent to the Senate in advance of her Dec. 1 nomination hearing — did not address what Smith said was the “inherent conflict presented by her recent leadership position at Locast and her potential role as an FCC commissioner.”

The NAB has asked Sohn to submit an amended ethics agreement that “effectively addresses” what Smith called a “clear and troubling conflict.”

Sohn has long championed a broad definition of fair use, which Locast founder David Goodfriend said his streaming service’s use of TV signals represented, citing a copyright law carve-out for nonprofits. ■

Followers of media technology court battles, who remember Aereo's unsuccessful legal fight against the major broadcasters in the U.S. Supreme Court eight years ago, have recently been watching another big legal showdown pitting a tech startup (Locast) against the Big Four.

Locast, founded two years ago by attorney and former Dish Network executive David Goodfriend, was a live TV streaming service operated by nonprofit advocacy group the Sports Fan Coalition NY. On Sept. 2, Locast suspended operations after suffering a major blow in its lengthy court battle against the Big Four broadcasters. (More on that later.)

The service provided local broadcast signals over the internet in various cities through an app that’s playable on Roku, Amazon Fire TV, Apple TV, Android TV and TiVo devices, as well as iOS and Android smart phones and tablets. With Locast, you can stream programming on the Big Four broadcast networks (ABC, CBS, NBC and Fox), among other outlets.

Also Read: The Five Spot: David Goodfriend

This lighting rod for media tech lawsuits fittingly launched in January 2018 in New York, using a four-foot antenna mounted on the Trump International Hotel in Manhattan. With the announcement of the streaming service's rollout in Pittsburgh on July 23,  Locast was available in 34 markets, including New York, Los Angeles, Chicago, Philadelphia, Dallas, Houston, San Francisco, Boston, Atlanta, Phoenix, Seattle, Denver, Baltimore, Madison, Wisconsin, and Portland, Oregon; along with Washington, D.C.; and Sioux Falls, Sioux City and Rapid City, South Dakota. Locast has also expanded into Puerto Rico. 

Up to the suspension of its services, Locast claimed more than 3 million viewers have signed up for the service.

There was no subscriber cost for Locast, and the platform wasn’t ad-supported, either. Donations, however, were suggested by its nonprofit operator. The nonprofit service launched a GoFundMe page with the goal to raise $500,000. Locast, in addition, had a donate button on its website (the donation button is still there!), suggesting subscribers donate at least $5 per month. If subs don't donate, their streams will be interrupted every 15 minutes with a solicitation for donations.

“There are considerable costs for equipment, bandwidth and operational support that helps run Locast,” according to a statement on the website. “These costs will only go up as we expand our service to new markets, as well as when more and more people cut the cord to become new Locasters.”

Locast's solicitation of "donations" was its Achilles' heel.

Also Read: Gigi Sohn Joins Locast Board

Locast Lawsuit

Few discussions about Locast’s legal underpinnings don’t involve Aereo, entrepreneur Chet Kanojia’s streaming startup that predated Locast by nearly a decade. As you may recall, Aereo ultimately crashed on the rocky shores of the U.S. Supreme Court. 

Launched in 2012, Aereo offered a viewing alternative for early cord cutters looking for a way to replace major broadcast stations in era that lacked platforms like CBS All Access. Aereo’s model let subscribers pay to lease individual, dime-sized antennas situated in local warehouses. But Aereo (like Locast today) didn’t obtain permission from the copyright owners of any programs it transmitted. And in a lawsuit filed against Aereo by a number of the broadcast networks, SCOTUS ruled against the startup. The 2014 ruling effectively put Aereo out of business.

Also Read: Locast Heading to Puerto Rico

So what made Locast think the same thing won’t happen to its service? 

Locast, in contrast, operated under a law written into the Copyright Act of 1976 (17 U.S.C. 111(a)(5) that allows nonprofit translator services to rebroadcast local stations without receiving a copyright license from the broadcaster, and even collect a fee to cover the cost of operations. Locast streamed signals from local TV stations, all positioned to comply with FCC exclusivity rules. Locast claimed it didn't have to negotiate retransmission fees from broadcasters, and was exempt from copyright restrictions, unless it was turning a profit.

Of course, the legal challenge from the major broadcasters was inevitable.

In July 2019, ABC, CBS, FOX and NBC filed suit against Locast, comparing it to Aereo and alleging that the streaming service violates their copyrights by retransmitting their programming without permission and compensation. The lawsuit also accuses Locast of allowing its service to be used as a pawn in broadcast retransmission negotiations with Dish and AT&T, operators of the Dish and DirecTV satellite TV companies, respectively. 

“Locast is simply Aereo 2.0, a business built on illegally using broadcaster content,” the suit contends. “While it pretends to be a public service without any commercial purpose, Locast’s marketing and deep connections to AT&T and Dish make clear that it exists to serve its pay TV patrons.”

Also Read: Locast Seeks Funds for Legal Fight Against Broadcasters

Both AT&T and Dish added Locast apps to their pay TV set-top boxes. (In the case of AT&T, this at the time also included U-verse set-tops.) AT&T also contributed $500,000 to Locast’s aforementioned nonprofit parent company, the Sports Fans Coalition.

“Locast is not a public service devoted to viewers whose reception is affected by tall buildings. Nor is Locast acting for the benefit of consumers who, according to Locast when promoting its purportedly free service, ‘pay too much,’” the lawsuit reads. “Locast is not the Robin Hood of television. Instead, Locast’s founding, funding and operations reveal its decidedly commercial purposes.”

Locast Countersuit

In its countersuit, Locast accused the Big Four broadcasters of colluding against it, claiming the plaintiffs are using their market power to prevent distributors and other platforms from partnering with them, citing virtual MVPD YouTube TV as an example.

“What Disney and the giant broadcasters don’t want the public to know is that they are attacking a tiny non-profit serving the public interest with free local broadcast channels over the internet, and that these companies just want to protect their billions of dollars in profits and fees for channels that are supposed to be free to the public in the first place,” said founder Goodfriend, in a statement. “Now that technology can deliver local broadcast channels over the internet without costing consumers an arm and a leg, Disney and these huge broadcasters will go to any length to shut us down, including through baseless claims, using expensive New York City and Washington, D.C., law firms.”

AT&T, additionally, chimed in with its support.

“Locast offers consumers an innovative new way to access free over-the-air signals,” the telecom said in a statement. “We support technologies that give consumers more choices and better access to this local content.”

In May 2020, Goodfriend said he believes it's now "very likely" that the service will prevail in its defense of a copyright suit filed against it by the major media companies.

September Trial

Locast will face off against the networks in court in a September 2021 trial.

In April, both sides filed letters to U.S. District Court Judge Louis Stanton, who is overseeing the case.

Gerson Zwelfach, a partner at Williams & Connoly LLP who represents the plaintiffs (ABC, CBS, Fox and NBC), argued that because Locast makes it difficult to use the service unless a monthly donation is made, the service is not a public service as it claims under the Copyright Act of 1976.

"Although Locast calls the amounts it extracts from users 'donations,' courts 'look beyond mere formal labels and consider the substance of the transaction,'" wrote Zwelfach in his letter. ”Here, the substance of the transaction is clear: Locast demands users pay a monthly fee in exchange for uninterrupted services.”

Orrick, Harrington and Sutcliffe LLP attorney David Hosp, representing Goodfriend and Locast parent Sports Fans Coalition NY, responded that the streaming service provides "secondary transmissions" transmitted legally via a nonprofit.

“No one owns SFCNY,” Hosp wrote. ”It pays no dividends, no distributions, and no salaries. It pays typical, market prices for its costs, such as physical space, equipment, technical upkeep, and internet access. And it defrays those costs by seeking and accepting donations, including donations from viewers, for the actual and reasonable costs of maintaining and operating the secondary transmission service. Plaintiffs cannot dispute any of these facts.”

At the end of August, Judge Stanton ruled on the letters filed by both parties, denying Locast's motion for summary judgment while granting the broadcasters' motion for partial summary judgment.

Judge Stanton's ruling was a major blow to Locast with Stanton shutting down the streamer's claim that it was a nonprofit translator service and therefore exempt from copyright restrictions.

"Based on the undisputed facts, it is clear that the Locast service is not offered without charges other than those 'necessary to defray the actual and reasonable costs of maintaining and operating' its service," wrote Stanton in his ruling. 

"The payments defendants elicit from users are charges assessed on users to avoid constant service interruptions, regardless of whether defendants euphemistically call them publicly 'recommended donations'."

The day after the ruling, Locast dropped its request for contributions to avoid service disruption. That move was then followed by the complete suspension of its service.

Locast has not indicated whether the suspension is permanent or whether it will continue to fight.

Locast said that it has suspended its operations, effective immediately, in the wake of a New York federal court ruling earlier this week that negated its core legal assertions. 

"As a non-profit, Locast was designed from the very beginning to operate in accordance with the strict letter of the law, but in response to the court’s recent rulings, with which we respectfully disagree, we are hereby suspending operations, effective immediately," Locast said in a statement released Thursday morning. 

The decision to suspend its live-streamed service altogether comes after an earlier announcement Wednesday that Locast would no longer interrupt the streams of users to solicit donations. 

For Locast, the cascading series of unfortunate events began late Tuesday, when  Judge Louis Stanton of the Southern District of New York ruled that Locast's position as a non-profit didn't exempt it from copyright infringement against the plaintiff Big 4 broadcasters, ABC, CBS, FOX and NBC. 

It was a devastating legal blow for the streaming service, which takes local broadcast feeds in more than 30 U.S. markets and combines them in live-streamed bundle.

Founded by former Clinton Administration and Dish Network attorney David Goodfriend, Locast had embarked on a technology model similar to Aereo, a startup that was shot down a decade ago by the U.S. Supreme Court in a similar battle against the same broadcasters. 

For its part, however, Locast was confident that because it was operating as a non-profit, seeking a minimum "donation" of $5 a month from its users, it was protected under the Copyright Act. 

"The legal basis and consumer offer are totally different," Goodfriend told Next TV in an interview conducted in May 2020. "We are relying on a statute that plainly says on its face that a non-profit may retransmit a broadcast signal. Period. Aereo relied on an interpretation of the performance right that required some complicated engineering. We offer our service for free but ask for a voluntary contribution. Aereo charged a fee. There’s another big difference: Aereo’s founder [Chet Kanojia] was a wealthy entrepreneur and raised millions of dollars from Barry Diller, who was even wealthier. I haven’t made a dime from this project and rely overwhelmingly on small, individual donors."

As of its most recent disclosures, Locast said 2.8 million users had signed up for its service. The company announced deployed into its 35th market, Pittsburgh, in late July. 

Network broadcasters have won a big victory that puts the future of online TV station streamer Locast in jeopardy.

According to Locast, the U.S. District Court for the Southern District of New York has ruled against its copyright defense of the service.

Locast was launched under the premise that because it did not charge a user fee — it solicits donations — it did not have to ask permission from the stations or pay them to retransmit the signal online.

Also Read: Locast Court Battle Heats Up

The major broadcast networks sued.

Locast launched in January 2018, relying on Title 17, Chapter 1, section 111 (a) (5) of the Copyright Act, which for those without a copy handy covers exemptions from exclusive rights to broadcast transmissions. It grants that exemption if ”the secondary transmission is not made by a cable system but is made by a governmental body, or other nonprofit organization, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.“

Locast currently delivers TV station signals in a host of markets to more than 3 million people, according to the company.

The networks argued that the service was capitalism in nonprofit‘s clothing and the court, which reportedly summarily dismissed Locast's copyright defense, apparently agreed.

”We are disappointed that the court ruled against Locast on its copyright defense,“ said Locast's legal team at the Electronic Frontier Foundation. ”The court interpreted the law in an artificially narrow way. Congress wrote copyright’s nonprofit retransmission exception to make sure that every American has access to their local broadcast stations, and expanding access is exactly what Locast does. This ruling that nonprofit retransmitters can’t use viewer contributions to expand access will do the opposite of what Congress intended.“

EFF said that some of those 3 million users can't afford cable or get the local station off the air, so the ruling is tantamount to cutting them off from local news and info during a pandemic. 

They said the court was treating copyright law as a moat around the broadcast networks.

“Locast has for too long evaded U.S. copyright laws, stealing broadcasters’ content under the guise of a not-for-profit entity," said National Association of Broadcasters senior VP of communications Ann Marie Cumming. "NAB is hopeful this illegal activity will end soon, as the U.S. District Court has stepped in to preserve the integrity of U.S. copyright laws that sustain the viability of local broadcasting.”

It appears Locast might suffer the same legal fate as the broadcast signal streaming service that preceded it a decade ago, Aereo.

A New York federal court on Tuesday threw out Locast's argument that it's exempt from copyright infringement liability because it's a nonprofit.

“Plaintiffs’ motion for partial summary judgment is granted. Defendants’ motion for summary judgment is denied,” wrote Judge Louis Stanton of the Southern District of New York in a ruling Tuesday.

The four biggest broadcasters, ABC, CBS, Fox and NBC, are suing Locast, which takes feeds from local stations and streams them in a service that festoons users with ads — unless they pay at least $5 a month in the form of what it calls a charitable donation.  

Judge Stanton, however, refused to buy the notion that the payment is “merely a recurring gift to a charitable cause.” Locast “still solicits, and receives, substantial amounts in charges from recipients for its uninterrupted service," he said.

"The federal court’s ruling is a victory for copyright law, vindicating our claim that Locast is illegally infringing copyrights in broadcast television content in violation of federal law. We will now seek a permanent injunction to stop Locast’s copyright infringement of the programming that the broadcasters and their partners work to create," said Gerson Zweifach, counsel for the plaintiffs.

"We are disappointed in the ruling today and disagree with its conclusions and reasoning," said Locast's attorney, R. David Hosp, in a statement. "Our client is in the process of evaluating the decision and formulating next steps. Locast provides a valuable service to its over 3 million users who are otherwise unable to access the over-the-air broadcasts to which they are entitled by virtue of their location or economic circumstances.  Our client remains committed to its mission of delivering free, local broadcast TV service to all Americans, and particularly for those consumers who can’t afford pay-TV services like cable, satellite, or streaming, or who can’t get their local broadcast channels using an over-the-air antenna."

Added the Electronic Frontier Foundation: "We are disappointed that the court ruled against Locast on its copyright defense. The court interpreted the law in an artificially narrow way. Congress wrote copyright’s nonprofit retransmission exception to make sure that every American has access to their local broadcast stations, and expanding access is exactly what Locast does. This ruling that nonprofit retransmitters can’t use viewer contributions to expand access will do the opposite of what Congress intended. Over 3 million people use Locast to access local TV, including many who can’t afford cable and can’t pick up their local stations with an antenna. This ruling threatens their access to local news and vital information during a global pandemic and a season of unprecedented natural disasters. And it treats copyright law not as an engine of progress but a moat protecting the privileged position of the four giant broadcasting networks."

Nine years ago, startup Aereo was shot down by the U.S. Supreme Court in its attempt to do largely the same thing — stream local broadcast stations in a subscription streaming bundle. 

Locast has expanded support for its app to Vizio smart TVs running the Vizio SmartCast operating system. 

Vizio was the third biggest supplier of smart TVs in the North America in 2020, according to Statista data. Smart TV-wise, Locast already has support from Roku, Amazon Fire TV and Android TV, covering it for major set suppliers like TCL and Hisense. 

The streaming app still lacks support from No. 1 smart TV supplier Samsung and its Tizen OS, as well as LG and its webOS platform. 

The non-profit streaming service streams local broadcast channels to 35 U.S. markets, touting 2.8 million users as of the beginning of the summer. 

The service asks for a minimum "donation" of $5.50 a month. Those who don't pay that freight are subject to a never-ending series of popup ads that render the platform virtually unwatchable.

Local TV streaming service Locast said it has launched in its 35th market, Pittsburgh.

The geofenced service will also include Morgantown, West Virginia, with is lineup of 40-plus TV station channels.

Also Read: Locast Court Battle Heats Up

Locast is supported by donations from users. Those who don't pony up are sent periodic requests for donations that interrupt the programming, but also offers a Locast Cares option for users who can't afford to pitch in, an option for which University students, for example, can qualify for.

Also eligible for the program--which is capped at the first 25,000 who apply--are first responders and low-income households.

Locast is available through, among others, Google Play, Apple TV, Android TV, Amazon, and Roku.

Locast streams TV station signals online, using a copyright carveout to do so without having to seek permission from the station or pay a license fee, which Locast argues is essentially a "fair use" of the signals under the law, though the TV networks see it quite differently.

Among Locast's board members has been Gigi Sohn, the former advisor to FCC chair Tom Wheeler and before that head of fair use advocates Public Knowledge. Sohn's name has been mentioned in recent weeks as a possible new FCC chair or third Democratic commissioner.

Locast is now available in the Tri-Cities market, which covers an area that includes Tennessee, Virginia and Kentucky. Locast says it will make available more than two dozen local TV channels to the area’s nearly 700,000 residents.

The Tri-Cities market includes Bristol, Johnson City and Kingsport in Tennessee; it also covers surrounding rural areas in Tennessee, Virginia and Kentucky. Locast collaborated with Bristol Tennessee Essential Services on the deployment.

Locast delivers local TV channels to residents over the internet and with no monthly fee, though the service does ask for a donation of $5 per month to support their operations. It pitches itself as serving consumers that have either become cord-cutters or are cord-nevers.

Also Read: Locast’s Goodfriend on Station Blackouts: ‘Forget DirecTV, Forget Dish’

The rebroadcast of local signals is a point of contention, however, as major broadcasters are suing Locast over its right to do so based on the Copyright Act of 1976.

For its deployment in the Tri-Cities market, Locast delivers 27 channels, including local NBC, Fox, ABC and CBS affiliates and the likes of the CW, Court TV, ION, TrueCrime, LAFF and more.

Viewers in 19 counties across the Tri-Cities market will now be able to receive Locast services, including Leslie and Letcher counties in Kentucky; Carter, Greene, Hawkins, Johnson, Sullivan, Unicoi and Washington counties in Tennessee; and Bristol City, Buchanan, Dickenson, Lee, Norton City, Russell, Scott, Smyth, Washington and Wise counties in Virginia.

Tri-Cities marks Locast’s 32nd market in the U.S. It claims that it has more than 2.6 million subscribers.

For more information, visit www.locast.org.

This story was originally published by Next TV sister publication TV Technology.

The sleepy court battle between streaming service Locast and the broadcasters trying to sue it out of existence, Aereo-style, heated up this week, with both parties filing letters to the federal judge overseeing the case. 

Williams & Connolly LLP partner Gerson Zwelfach, who represents the plaintiffs, a group including ABC, CBS, FOX and NBC, sought to shoot down Locast’s base defense, which uses the Copyright Act of 1976 to claim that it’s acting within the law to stream local feeds of network O&Os and affiliates to consumers on a “non-profit” basis. 

For one, Zwelfach argues that Locast’s scheme—which makes it really hard to use the service unless a user donates at least $5.50 a month—is tantamount to actual capitalism, not the public service the plaintiffs claim. 

Also Read: Locast Deploys in 31st DMA, Portland, Oregon

"Although Locast calls the amounts it extracts from users 'donations,' courts 'look beyond mere formal labels and consider the substance of the transaction,'" reads Zwelfach’s letter to U.S District Court Judge Louis Stanton. ”Here, the substance of the transaction is clear: Locast demands users pay a monthly fee in exchange for uninterrupted services.”

Meanwhile, representing the defendants, the Sports Fans Coalition NY and its founder, consumer rights attorney David Goodfriend, Orrick, Harrington and Sutcliffe LLP attorney David Hosp responded that Locast’s streams remain “secondary transmissions” legally transmitted under nonprofit circumstance. 

“No one owns SFCNY,” Hosp wrote. ”It pays no dividends, no distributions, and no salaries. It pays typical, market prices for its costs, such as physical space, equipment, technical upkeep, and internet access. And it defrays those costs by seeking and accepting donations, including donations from viewers, for the actual and reasonable costs of maintaining and operating the secondary transmission service. Plaintiffs cannot dispute any of these facts.”

Currently situated in 31 designated marketing areas across the U.S., and touting 2.5 million registered users, Locast streams feeds of local broadcast stations for free. Users who don’t want their streams disrupted every 15 minutes with a come-on for donations need to agree to donate at least $5.50 a month to Sports Fans Coalition NY.

Calling the service “Aereo 2.0”—a nod to a similar for-profit streaming service shot down by the U.S. Supreme Court nearly a decade ago—the Big Four broadcasters filed suit against Goodfriend and Sports Fans Coalition NY in 2019, aiming to shut down Locast. 

The case is scheduled to go to trial in September. 

“The Copyright Act of 1976 is clearly on our side, and we believe we will win,” Goodfriend said in a statement, re-issued to Next TV two weeks ago when we checked on the case. “These broadcast giants reap billions of dollars from charging users for programming that’s supposed to be free and are attempting to use their copyrights to maintain market power and force consumers to pay more. The law allows for nonprofits to retransmit local TV channels and to ask for donations to help cover costs. Locast clearly meets these guidelines.”

The dream of free live-streamed broadcast TV is alive in Portland.

Non-profit streaming service Locast has announced deployment into its 31st designated marketing area, the Portland, Ore. area. 

The service will deliver 39 local broadcast channels across 27 counties in Oregon and Washington, covering cities ranging from Salem and Tallamook in Oregon to Vancouver and Longview in Washington. 

Local channels in the Portland DMA include  KGW NBC 8, KPTV FOX 12, KATU ABC 2, KOIN CBS 6, PBS and PBS Kids, as well as DABL, Telemundo, Univision, Azteca America, Antenna, CourtTV, Mystery, MeTV, TrueCrime, The CW, Bounce, Quest, QVC, HSN, LAFF, Comet, ION, Grit and Charge!.

Founded in 2018 by consumer rights attorney David Goodfriend, Locast now has more than 2.5 million registered users nationwide in 31 markets.

Existentially, Goodfriend says the Copyright Act of 1976 gives Locast the right to live-stream local channels on a nonprofit basis. 

To fund its operations, Locast asks—in the form of annoying commercials that pop up on its service every 15 minutes—for donations starting at $5.50 a month. Agreeing to those terms makes the commercials go away. 

Locast said that only a small percentage of its users are donating at this point. 

Locast said that it has surpassed 2.3 million registered users for its nonprofit streaming service that provides local broadcast channels to consumers. 

The service, which operates on voluntary donations of $5 and above from its users, also announced expansion into Madison, Wisconsin, ahead of Saturday’s big NFL playoff matchup between the Green Bay Packers and Los Angeles Rams, which will be broadcast by FOX. 

The expansion opens Locast up to 650,000 additional homes. 

Locast delivers more than 30 local TV channels in the Madison designated market area (DMA), including WISC-TV CBS News 3, WMTV NBC 15, WKOW ABC Ch. 27, WMSN FOX Ch. 47, PBS Wisconsin and PBS Kids as well as CourtTV, AntennaTV, The CW, Bounce, Movies!, LAFF, Mystery, Grit, ION, CometTV, True Crime, Charge! and Azteca America.

Locast is accessible to viewers in 11 counties in the Madison DMA including Columbia, Dane, Grant, Green, Iowa, Juneau, Lafayette, Marquette, Richland, Rock, and Sauk.

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

Asked about the overall Locast business model, a company rep said only a small portion of registered users are donating at this point. However, donations have been robust enough to allow the service, founded by attorney and consumer advocate David Goodfriend and his Sports Fans Coalition, to keep expanding to its 26th market. 

“I was born and raised in Madison and graduated from Madison West High School and Beloit College,” said Goodfriend, in a statement. “I volunteered at the local NBC and PBS affiliates as a teenager. So launching Locast in my hometown means a lot to me personally.”

Goodfriend has declared Locast’s business model of streaming the broadcast feeds of local stations to consumers legal under the Copyright Act of 1976. He was unavailable Friday to update Next TV on the state of Locast’s ongoing legal battle with the major broadcasters. 

With 11:59 p.m. on Dec. 31 approaching, its retrans blackout season. 

Already, Tegna has pulled 60 TV stations in 52 markets off AT&T’s DirecTV and U-verse TV platforms, and Nexstar Media Group has blacked out 164 stations in 115 markets on Dish Network. 

Perhaps not so surprisingly, David Goodfriend, founder of nonprofit local broadcast streaming service Locast, is beating the drum for his platform as a cord-cutting alternative should, say, your favorite NFL team gets blacked out on your pay TV service. 

“In places that are hit by this [type of] dispute, I would say, ‘Don't you think it's time to cut the cord altogether?” Goodfriend told the Houston Chronicle. “Forget about DirecTV. Forget about Dish. Forget about cable. It's only going to get more expensive. It's only going to be more disruptive.

“Do yourself a favor and cut the cord,” Goodfriend added. “Sign up for Locast, sign up for some streaming services and save yourself the money and the hassle. That would be my advice.”

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

Locast is currently serving 1.8 million users in 25 domestic markets in which it streams local stations. The company doesn’t charge customers, but it does seek donations starting at $5 a month. (Users who don’t pay at least that are subject to an every-15-minute barrage of commercial fundraising come-ons.) With Locast currently battling the major broadcasters in federal court for the right to exist, the nonprofit is careful to contextualize Goodfriend’s comments. 

Goodfriend “isn’t taking either side of these retrans fights,” a Locast press rep told Next TV. Rather, he’s merely advocating for consumers to cut the cord. 

Also Read: Locast Opens in Indy and Scranton, Touts More Than 1.7 Million Users

“It used to be that we had a philosophy in this country that everybody was supposed to be able to get free local media in the form of broadcasting,” Goodfriend said. “And somewhere along the line, we lost that. We broke that social contract.”

Updated 10/29/2020: Locast announced additional deployments in Wilkes Barre and Scranton, Pennsylvania, reaching an additional 1.5 million potential users. 

Original story starts here:

Locast, the non-profit streaming service focused on local broadcast TV stations, announced Wednesday that it has debuted in its 24th U.S. market, Indianapolis. 

The streaming service also said it now has 1.7 million users. 

Also Read: Locast Founder David Goodfriend: On the Five Spot (Q&A)

Locast didn’t define what a user is, in this case. Is it a “monthly active user” (MAU), as defined by AVOD platforms like Tubi and Pluto TV? Is a “user” someone who pays the recommended $5-a-month “donation” to Locast? 

Again, unclear. But the audience performance disclosure does indicate growth for Locast, which reported 700,000 users in late-September of 2019. 

As for the expansion to Indianapolis, Locast is now delivering 42 local broadcast channels to residents in 32 counties within the Indy designated marketing area (DMA), upping the overall reach of the streaming service to 148 million people across the U.S.

Also Read: Locast: Everything You Need to Know

“For the first time, more than 3 million residents in Indianapolis and surrounding cities will be able to watch their local TV stations on their phones, tablets, laptops or streaming media devices,” said Locast Founder and Chairman David Goodfriend, in a statement. “When dealing with health, safety, or participation in our democracy through voting, Locast performs a critical public service by increasing access to local broadcast TV channels.”

TiVo said it now has “added” Locast to its TiVo Stream 4K OTT device, as well as its Linux-based DVRs, in the 23 markets the local broadcast channel streaming service operates. 

The ability for TiVo Stream 4K users to tap into the free Locast app isn’t exactly new—they already had access to it via Google Play

However, “Locast is now integrated into the TiVo experience, meaning TiVo Stream 4K users can search and browse Locast channels within the  guide and recommendations,” a rep for TiVo’s new parent company, Xperi, told Next TV. 

Also Read: Locast: Everything You Need to Know

Notably, in its marketing, TiVo is now somewhat overtly touting its OTT device and DVRs as pay TV replacements. Combining Locast with with recent AVOD integrations of Pluto TV and Tubi into streaming service TiVo+, will render a very cable-like programming experience. 

“With TiVo+, and through Locast in available markets on TiVo Stream 4K, Pluto On Demand and Tubi on TiVo Stream 4K, and Pluto TV on TiVo Stream 4K and TiVo DVRs (Linux), you already have over 140 channels with tens of thousands of hours of free entertainment to choose from,” the company said in a blog posting. 

Locast announced Wednesday its expansion into Detroit, bringing free streaming of 66 local broadcast channels to nine counties in Michigan. 

The nonprofit service now covers the Detroit DMA, including the counties of Lapeer, Livingston, Macomb, Monroe, Oakland, Sanilac, St. Clair, Washtenaw and Wayne.

Locast is a non-profit, app-based OTT service that now streams local broadcast channels in 23 designated marketing areas. It was founded by David Goodfriend, a former deputy staff secretary to President Bill Clinton, an ex Dish Network attorney, and previously an advisor to FCC Commissioner Susan Ness.

Also Read: Locast: Everything You Need to Know

Locast said it is able to provide local channels for free because of the Copyright Act of 1976, which allows for the rebroadcast of local stations without a copyright license. Not surprisingly, Locast is currently being challenged by the major broadcasting companies in federal court. 

With the addition of its 23rd DMA, Locast said it can now reach more than 145 million viewers, or 43% of the U.S. population. To date, Locast reports it has more than 1.5 million users.

Also read: Locast Founder David Goodfriend: On the Five Spot (Q&A)

Locast is available on connected TV platforms including Roku, Amazon Fire TV, Apple TV and Android TV, as well as iOS and Android mobile devices. Within the pay TV realm, the app is supported by Dish Hopper/Wally receivers, select DirecTV receivers and TiVo DVRs.

Nonprofit streaming service Locast said today that its service has expanded to the Miami-Dade/Ft. Lauderdale and West Palm Beach/Ft. Pierce designated marketing areas.

The expansion, the company said, ups Locast’s number of U.S. TV markets to 21, reaching 134 million viewers, 41% of the U.S. population. 

Locast said it now has 1.4 million users. 

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

“For the first time, Floridians located within the Miami and West Palm Beach DMAs will be able to watch their local TV stations on their phones, tablets, laptops or streaming media devices,” said Locast founder and chairman, David Goodfriend, in a statement. “Local TV news is critical for broadcasting alerts about hurricanes, elections and coronavirus-related restrictions, making Locast an important lifeline for South Florida residents and for those who can’t get local TV channels from an off-air antenna or cannot afford a pay-TV subscription.” 

Locast delivers more than 40 local TV channels in the Miami-Ft. Lauderdale DMA, including ABC 10, NBC 6, CBS 4, FOX 7, PBS, PBS Kids, Estrella TV, Movies!, The CW, CourtTV, Univision, Telemundo and more.  Counties served by the Miami/Ft. Lauderdale DMA include Broward, Miami-Dade and Monroe, including the Florida Keys

West Palm Beach viewers will have access to 28 channels including ABC 25, NBC 5, CBS 12, FOX 29, PBS, and PBS Kids, Azteca America, Mystery, ION, Grit, Justice Network and more. Counties served within the West Palm Beach/Ft. Pierce DMA include Martin, St. Lucie, Okeechobee, Palm Beach North and South, and Indian River.

Founded two years ago by Goodfriend, an attorney and a former Dish Network executive, Locast is a live TV streaming service operated by nonprofit advocacy group the Sports Fan Coalition NY. 

Locast provides local broadcast signals over the internet in various cities through an app that’s playable on Roku, Amazon Fire TV, Apple TV, Android TV and TiVo devices, as well as iOS and Android smart phones and tablets. With Locast, you can stream programming on the Big Four broadcast networks (ABC, CBS, NBC and Fox), among other outlets.

Locast operates under a law written into the Copyright Act of 1976 (17 U.S.C. 111(a)(5) that allows nonprofit translator services to rebroadcast local stations without receiving a copyright license from the broadcaster, and even collect a fee to cover the cost of operations. Locast streams signals from local TV stations, all positioned to comply with FCC exclusivity rules. Locast claims it doesn’t have to negotiate retransmission fees from broadcasters, and is exempt from copyright restrictions, unless it’s turning a profit. 

In July 2019, ABC, CBS, FOX and NBC filed suit against Locast, comparing it to Aereo and alleging that the streaming service violates their copyrights by retransmitting their programming without permission and compensation. The lawsuit also accuses Locast of allowing its service to be used as a pawn in broadcast retransmission negotiations with Dish and AT&T, operators of the Dish and DirecTV satellite TV companies, respectively. 

Locast has launched in Tampa, its 19th market.

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

Locast is the TV station streaming service that employs an exemption from copyright law for noncommercial translators to deliver those local signals without asking broadcasters permission or paying a carriage fee. Broadcast networks have sued, saying it does not warrant the exemption.

Also Read: Locast Founder David Goodfriend: On the Five Spot (Q&A)

The service, which is free but requests donations to cover operating expenses, claims more than one million users.

As Aereo’s backers found out nearly a decade ago, an entrepreneur is in for the fight of their life when seeking to stream seemingly free over-the-air broadcast signals to consumers. But David Goodfriend, a former deputy staff secretary to President Bill Clinton, an ex-Dish Network attorney and previously an adviser to FCC commissioner Susan Ness, has been girding for this battle seemingly his entire career.

The lawyer’s nonprofit over-the-top service, Locast, is now in 18 U.S. markets, streaming broadcast stations to more than 42 million U.S. homes, covering 37% of the country. Predictably, The Walt Disney Co., NBCUniversal, Fox and ViacomCBS are trying to stop Locast from doing this. Facing the same combatants, Aereo was famously struck down by the U.S. Supreme Court in 2012. Goodfriend recently told B+C senior content producer, technology Daniel Frankel why that’s not going to happen to Locast. 

Also Read: Locast: Everything You Need to Know

How did you get the idea for Locast? I didn’t. Lots of other people had the idea before I founded Locast. I talked about it while teaching my telecommunications law class, but finally, around late 2016, I just thought it was time for me to do something public-spirited and help people who couldn’t receive broadcast signals or afford cable. So I took the law at its word and launched a service under 17 USC 111(a)(5).

What technology is Locast built on? Everything is off-the-shelf, open-source technology. We haven’t patented anything or created any trade secrets. Our technology vendor did a great job of keeping the user interface simple and intuitive, with fast load time and crisp picture quality.

What makes Locast different from the enterprise it’s often compared to, Aereo? The legal basis and consumer offer are totally different. We are relying on a statute that plainly says on its face that a nonprofit may retransmit a broadcast signal. Period. Aereo relied on an interpretation of the performance right that required some complicated engineering. We offer our service for free but ask for a voluntary contribution. Aereo charged a fee. There’s another big difference: Aereo’s founder [Chet Kanojia] was a wealthy entrepreneur and raised millions of dollars from Barry Diller, who was even wealthier. I haven’t made a dime from this project and rely overwhelmingly on small, individual donors.

What makes you confident you’ll prevail in court against the media giants? Two things: First, the law clearly is on our side. We meticulously designed Locast to fit within the letter and spirit of the statute. The fact that plaintiffs waited a year and half before taking action, and even then did not try to get an injunction, speaks volumes about the uphill battle they know they face in court. Second, the public-interest benefit of Locast, especially during the COVID-19 crisis, is crystal clear. Don’t take my word for it. Thousands of Americans have offered personal testimonials about how they couldn’t get critical local news and emergency information without Locast, either because they can’t receive over-the-air signals or can’t afford ever-increasing pay TV fees. Finally, when the Electronic Frontier Foundation offered to represent Locast along with our excellent litigation team, I knew we were on the right side of history.

Are $5 donations going to pay for all of this as it scales? Yes, in fact they already are doing so. User donations are covering the cost of operations and helping us to pay down debt and accounts payable. Even though they represent a tiny fraction of the over 1.3 million people who signed up with Locast, the users who contribute $5 each month cover all of our expenses. Our finances will only improve as we add more users, donors, and markets, enabling us to reinvest in operations.

BONUS FIVE

What are you binge-watching? Money Heist, The Plot Against America, Ozark, Hunters. Even catching old episodes of M*A*S*H* on Locast!

What streaming services do you subscribe to? Netflix, Amazon Prime, Sling, Locast (yes, I’m a monthly donor).

Do you still have a pay TV subscription? Not for long. What a ripoff. Same price, no sports? Thievery.

Favorite podcast? The Daily.

Bucket list destination? Vietnam. I want to bike down the length of the country with my wife someday.

As Aereo’s backers found out nearly a decade ago, an entrepreneur is in the fight of their lives when they seek to perform the fairly obvious function of streaming seemingly free over-the-air broadcast signals to consumers. 

But David Goodfriend, a former deputy staff secretary to President Bill Clinton, an ex Dish Network attorney, and previously an advisor to FCC Commissioner Susan Ness, has been girding for this battle seemingly his entire career. 

The lawyer’s non-profit OTT service, Locast, is now in 18 U.S. markets, streaming signals from local broadcast stations to more than 42 million American homes, covering 37% of the country. Predictably, Disney, NBCUniversal, FOX and ViacomCBS are trying to stop Locast from doing this. 

Facing the same combatants, Aereo, of course, was famously struck down by the U.S. Supreme Court in 2012. Here’s why Goodfriend thinks that’s not going to happen to Locast. 

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

How did you get the idea for Locast?
I didn’t. Lots of other people had the idea before I founded Locast. I talked about it while teaching my telecommunications law class, but finally, around late 2016, I just thought it was time for me to do something public-spirted and help people who couldn’t receive broadcast signals or afford cable. So I took the law at its word and launched a service under 17 USC 111(a)(5).

What technology is Locast built on?
Everything is off-the-shelf, open-source technology. We haven’t patented anything or created any trade secrets. Our technology vendor did a great job of keeping the user interface simple and intuitive, with fast load time and crisp picture quality.

What makes Locast different from the enterprise it’s often compared to, Aereo?
The legal basis and consumer offer are totally different. We are relying on a statute that plainly says on its face that a non-profit may retransmit a broadcast signal. Period. Aereo relied on an interpretation of the performance right that required some complicated engineering. We offer our service for free but ask for a voluntary contribution. Aereo charged a fee. There’s another big difference: Aereo’s founder [Chet Kanojia] was a wealthy entrepreneur and raised millions of dollars from Barry Diller, who was even wealthier. I haven’t made a dime from this project and rely overwhelmingly on small, individual donors.

What makes you confident you’ll prevail in court against the media giants?
Two things: First, the law clearly is on our side. We meticulously designed Locast to fit within the letter and spirit of the statute. The fact that plaintiffs waited a year and half before taking action, and even then, did not try to get an injunction, speaks volumes about the uphill battle they know they face in court. Second, the public interest benefit of Locast, especially during the COVID-19 crisis, is crystal clear. Don’t take my word for it. Thousands of Americans have offered personal testimonials about how they couldn’t get critical local news and emergency information without Locast, either because they can’t receive over-the-air signals or can’t afford ever-increasing pay-TV fees. Finally, when the Electronic Frontier Foundation offered to represent Locast along with our excellent litigation team, I knew we were on the right side of history.

Are $5 donations going to pay for all of this as it scales?
Yes, in fact they already are doing so. User donations are covering the cost of operations and helping us to pay down debt and accounts payable. Even though they represent a tiny fraction of the over 1.3 million people who signed up with Locast, the users who voluntarily contribute $5 each month cover all of our expenses. Our finances will only improve as we add more users, donors, and markets, enabling us to reinvest in operations.

BONUS FIVE 

What are you binge-watching?
Money Heist, The Plot Against America, Ozark, Hunters. Even catching old episodes of M*A*S*H* on Locast!

What streaming services do you subscribe to? 
Netflix, Amazon Prime, Sling, Locast (yes, I’m a monthly donor)

Do you still have a pay TV subscription?
Not for long.  What a ripoff. Same price, no sports? Thievery.

Favorite podcast? 
The Daily.  

Bucket list destination?
Vietnam. I want to bike down the length of the country with my wife some day.

Locast founder and chairman David Goodfriend says he’s now “very optimistic” that his broadcast signal streaming platform won’t go down in court the same way Aereo did eight years ago. 

“We’re very likely to prevail in our court case,” the former FCC legal adviser and Dish Network attorney said today during his Virtual NYC TV Week Spring keynote, an event produced by Next TV’s parent company, Future Media. 

Goodfriend, opening a session of the Virtual Next TV Summit, specifically noted the announcement in late March by international digital rights nonprofit Electronic Frontier Foundation (EFF) that it would join legal forces with Locast to fight a copyright suit filed against the streaming service by Disney, Fox, Comcast and ViacomCBS, the media companies behind the Big Four broadcast networks. 

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2

Locast is now serving the top 10 U.S. designated marketing areas (DMAs) and reaching 40% of U.S. TV homes, offering “free” streaming of local broadcast stations with what Goodfriend calls an “NPR model”—the service requests at regular 15-minute viewing intervals that users make voluntary $5 monthly donations. 

Goodfriend didn’t specify how much in the way of voluntary donations Locast has received to date. But he said the contributions have been ample enough to sustain the service. 

Goodfriend used his keynote to once again hammer home Locast’s mission: to provide a service that is now more essential than ever during the pandemic, delivering vital broadcast information to citizens who either can’t receive over-the-air broadcast signals, or can’t afford to receive them due to rising costs of pay TV services. 

With the pandemic, he said, “Suddenly, Locast has taken on a need that’s even more profound than when we started.” 

Streaming services that take local over-the-air signals and stream them over the open internet have been struck down in court before. Most notably, entrepreneur Chet Kanojia’s Aereo was obliterated by the U.S. Supreme Court in 2012. 

During his keynote, Goodfriend took time to explain what he feels is Locast’s key differentiating legal high ground—it’s a nonprofit, with solid footing on a carveout created by Congress in the 1976 Copyright Act. 

“We have put the profit motive above all else,” Goodfriend said. “We put the profit motive above in healthcare, and we’ve put the profit motive avow in entertainment and media. And it’s gotten out of hand.”

Goodfrient a letter from he said he recently received from a user, who describe Locast as an essential lifeline to vital broadcast TV services the writer could not otherwise afford. The letter was attached to a $5 contribution. 

“When the court hears our story, and it hears it directly from the American people, I’m confident we’re going to win,” he said. 

Nonprofit TV station streaming service Locast told customers Wednesday (March 18) that it will suspend the periodic interruptions of their service requesting a contribution.

“If you currently do not contribute to Locast, need the uninterrupted service, and cannot afford to contribute $5 per month, send us an email at and we'll give you interruption-free service for 30 days,” said Locast founder and chairman David Goodfriend in announcing the change.

Also Read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

Currently, non-payers have their live stream periodically suspended while Locast asks for a contribution, then can re-load the site and continue, though having missed whatever was going on during that time.

Locast is a nonprofit and has to stay that way to qualify for a copyright exemption from having to negotiate permission and payment for the carriage of TV station signals. But it can solicit contributions to cover the cost of operation, and does.
Broadcasters have sued arguing it should not qualify for the exemption.

Gigi Sohn, former advisor to FCC chair Tom Wheeler and before that head of fair use advocates Public Knowledge, has joined Locast's board of directors. 

Locast streams TV station signals online, using a copyright carveout to do so without having to seek permission from the station or pay a license fee, which Locast argues is essentially a "fair use" of the signals under the law, though the TV networks see it differently and last July sued to block the service. Locast has countersued. 

Also read: Locast: Everything You Need to Know About the Streaming Platform Some Are Calling ‘Aereo 2’

Sohn is currently a distinguished fellow at Georgetown Law Institute for Technology, Law & Policy. 

“I’m honored to join the Locast board,” said Sohn in a statement. “I’m inspired by small nonprofits like Locast overcoming enormous challenges to give consumers greater choice in how they watch their local TV channels.” 

Locast said its "nonprofit public service" is now available in 17 cities and reaches more than 41 million viewers.  

Locast Seeks Help with Legal Fees

The service does not charge a fee, but asks for donations. 

Locast has been relying on Title 17, Chapter 1, section 111 a)5 of the Copyright Act, which for those without a copy handy covers exemptions from exclusive rights to broadcast transmissions. That grants that exemption if "the secondary transmission is not made by a cable system but is made by a governmental body, or other nonprofit organization, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service." 

The service is geofenced, which means it is not available outside the relevant DMAs and thus does not run into contractual exclusivity issues. 

With broadcasters finally spurred to legal action by the expansion of the service and its use as an alternative during recent retrans disputes, Locast will have to demonstrate that it is truly a nonprofit, that it gets no direct commercial advantage from the retransmissions, and that the statute indeed allows for retransmissions over the top in addition to over the air. 

Sohn's 'enormous experience and knowledge of broadband policies will help guide Locast as we pursue our nonprofit mission," said Locast founder David Goodfriend.

Locast said it will be adding its first market outside the contiguous 48.

The free TV station signal streaming service says it will be streaming a dozen of local TV channels in Puerto Rico later this year.

That comes a day before FCC Commissioner Geoffrey Starks is holding a field hearing on network resiliency at the University of Puerto Rico in San Juan, a point Locast made in announcing those plans. It also follows a congressional delegation visit to the U.S. territory to survey the damage from recent earthquakes, a point Locast also made.

Also Read: Locast: Everything You Need to Know

“Given that Puerto Rico has recently faced life-shattering earthquakes and hurricanes, we wholeheartedly support serious discussions about how to ensure communication networks are always available, especially for public safety,” said Locast founder and chairman David Goodfriend, which pitches his streaming operation as a public service.

Locast streams TV station signals without negotiating for payment or asking permission, due to a copyright carveout for nonprofit retransmission by translator services.

Broadcasters have sued Locast, arguing it does not merit the exemption.

In an email release sent today, TV station streaming platform Locast is telling consumers to "stream the big game" for free in 17 cities."

While Locast has been pitched as an over-the-top option for watching TV stations during retrans blackouts, the service had not previously promoted access to the Super Bowl as a value-add. Instead, it said whether consumers are fans that had cut the cord, or were simply looking for a way to watch the big game outside the home, the Locast app is "an affordable alternative to rising cable and satellite TV prices."

Locast, which was launched by the Sports Fans Coalition NY a year ago and now claims over a million sign-ups, relies on a copyright law carveout to offer the channels without having to ask permission from or negotiating with local TV stations for carriage. However, it is in a legal battle with the networks over whether it qualifies for that exemption from negotiation.

Locast is also available on Dish Hopper/Wally receivers, some DirecTV receivers, TiVo, AT&T’s U-Verse, and via streaming platforms including Apple TV, Android TV, Amazon Fire TV and Roku.

Viewers in Sioux City can now get free broadband access to 20 local TV channels--though Locast solicits contributions to cover expenses.

The channels, which include both primary and digital secondary channels, are KCAU ABC 9, KTIV NBC 4, and KPTH FOX 44/KMEG CBS; KUSD PBS, ION, LAFF, BOUNCE, DABL, Stadium, TBD., Comet, MeTV, The CW, Charge!, Court TV Mystery, Escape, PBS Kids, PBS World, and PBS Create.

Related: Locast Stations Engage in Multifront Legal Fight

Locast, which was launched by the Sports Fans Coalition NY in January 2018 and now claims over a million sign-ups, relies on a copyright law carveout to offer the channels without having to ask permission from or negotiating with local TV stations for carriage, though it is in a legal battle with the networks over whether it qualifies for that exemption from negotiation.

Locast operates under the law written into the Copyright Act of 1976 (17 U.S.C. 111(a)(5)) that allows nonprofit translator services to rebroadcast local stations without receiving a copyright license from the broadcaster.

It is available on DISH Hopper/Wally receivers, some DIRECTV receivers, TiVo, AT&T’s U-Verse, and at streaming sites Google Play, Apple TV, Android TV, Amazon, and ROKU.

Locast launched a GoFundMe page earlier this month to raise money for its legal fees. So far, it has collected a little over $12,600 toward a goal of $500,000.

ABC, CBS, NBC and Fox sued the creators of Locast in July, claiming that the non-profit streaming service was helping AT&T’s DirecTV and Dish network by providing access to programming during retransmission consent fee disputes and blackouts. Locast countersued.

The effort by TV signal streamer Locast to raise money to fight a lawsuit filed by the broadcast networks has so far raised only a fraction of its goal.

A gofundme.com page was launched Dec. 18 with the aim of raising $500,000 for a legal defense fund. Locast, which launched two years ago, streams TV station signals over the internet for free, but does not negotiate that carriage with network affiliates or pay them, as for-profit MVPDs must do.

Also Read: Locast Adds Tivo App

It is relying on a provision of the Copyright Act of 1976 (17 U.S.C. 111(a)(5)) that allows nonprofit translator services to rebroadcast local stations without receiving a copyright license from the broadcaster. That copyright carveout even allows it to collect a fee for its service so long as it only goes to cover the cost of operations.

At press time, and almost a month in, the gofundme page has only raised $10,948, and only about $1,000 in the past 10 days. Locast says it needs money if it is to continue to wage an expensive legal battle, with any surplus from the legal fund applied to Locast operating expenses.

Also Read: Locast: Everything You Need to Know

The broadcast networks say Locast is not like a translator service and should have to negotiate and pay for carriage. ABC, CBS, NBC and Fox sued the creators of Locast in July, claiming that the non-profit streaming service was helping AT&T’s DirecTV and Dish network by providing access to programming during retransmission consent fee disputes and blackouts. It was being billed as an alternative to DirecTV subs by AT&T. 

Locast responded by filing its own countersuit.

Locast founder David Goodfriend accentuates the positive and points out that the page is just one part of their fund-raising efforts.

"Locast is pleased that, with little outreach, we’ve raised thousands of dollars from viewers who want to protect their access to local TV channels through the internet," he told NextTV.

"The Locast GoFundMe page serves several purposes: to alert subscribers to our legal fight with the giant media conglomerates of NBC, CBS, FOX and Disney-owned ABC and to open the door for donations from non-subscribers and other enterprise sponsors who are frustrated by these greedy big networks that collect billions in fees for distributing local channels that are supposed to be free. The site has also surprisingly generated comments from viewers that reveal their frustrations with securing over-the-air signals and their disdain for being forced to purchase expensive cable and satellite TV bundles just to watch their local channels."

He points out that its viewer contributions can also go toward the legal fund. "The GoFundMe page is but one part of our fundraising efforts," he says.

Free TV station signal streamer Locast is looking for some financial help from the public whose interest it has pledged to serve via those streams.

The nonprofit service has launched a GoFundMe page to raise money to defend itself against a lawsuit filed by broadcasters (see below). Locast has also countersued broadcasters, charging the networks with colluding to try to smother its business.

At press time Locast had raised a little under $10,000 toward its goal of $500,000.

“The good news is that we’re winning," said Locast founder David Goodfriend in a statement, by which he meant a court is allowing Locast to continue to stream the shows while it decides whether the service does or does not violate copyright law.  “We’ve since launched three new markets – Atlanta, Phoenix, and Seattle – with more markets on the way," he said. But he suggested it would need funds to continue the court fight.

Locast operates under the law written into the Copyright Act of 1976 (17 U.S.C. 111(a)(5)) that allows nonprofit translator services to rebroadcast local stations without receiving a copyright license from the broadcaster and even collect a fee to cover the cost of operations.

Locast.com was launched by the Sports Fans Coalition to provide free streams of TV station signals using a carve-out from copyright law for nonprofit retransmissions.

It claims more than 1 million sign-ups since its launch two years ago. It is available in 16 markets reaching 35% of U.S. TV households.

Viewers don't pay, but are asked for donations, which can be used to cover operating expenses.

ABC, CBS, NBC and Fox sued the creators of Locast in July, claiming that the non-profit streaming service was helping AT&T’s DirecTV and Dish network by providing access to programming during retransmission consent fee disputes and blackouts.

The legal fight over the free streaming of TV-station signals over the internet is heating up as the networks and Locast prepare for their latest court battle and as previously quiet broadcasters have been making lots of noise — particularly after pay TV providers started recommending the online Locast platform as an alternative in retransmission disputes.

When Locast, a website that retransmits local broadcast TV signals, first launched in New York in January 2018, station owners were surprisingly reticent. That was not the case in 2012 when Barry Diller launched Aereo, a similar site that claimed simply to be using the web to provide access to subscribers' individual over-the-air antennas housed on its premises. Because of those individual antennas, Aereo argued, it did not have to negotiate carriage deals with TV stations. Broadcasters fought back immediately, won in court, and Aereo’s service went belly up.

Locast, too, did not ask for permission to retransmit New York stations or pay for carriage. As a nonprofit, Locast argued, it was using a copyright-law carveout also used by broadcasters to retransmit their primary signals to hard-to-reach locations.

Broadcasters were initially mum about Locast, possibly because some affiliates were OK with the extra online eyeballs. Networks were starting to strike online deals for their content that did not include local advertising; Locast’s streams included those ads.

But multichannel video programming distributors (MVPDs) began to point their customers toward Locast as a way to view TV stations that had blacked out their traditional services during retransmission disputes, reducing broadcasters’ leverage.

Charter Communications, for example, started talking up Locast during its retrans fight with Tribune Broadcasting stations. DirecTV owner AT&T also invested half a million dollars in the service to help make sure it continued to provide that online option.

According to one source familiar with Locast operations, it is approaching 1 million signups.

The Sports Fans Coalition, which launched Locast, has long argued that blackouts and escalating ticket prices and rights fees are consumer unfriendly and require some kind of redress that wasn’t forthcoming from either government or the private sector. That was part of the impetus behind Locast.

The networks were taking plenty of time getting their legal ducks in a row, since there is clearly a copyright carveout for nonprofits. But broadcasters did ultimately sue collectively in July of this year. They said Locast was “nothing like the local booster services contemplated by Congress” when it created the translator exemption.

The legal battle had begun in earnest. The network filing was followed by a Locast counterclaim alleging anti-competitive collusion, saying the broadcasters had gotten together to try and shut down the service or bury it in needless and costly litigation in order to “protect their market dominance in the retransmission-consent market.”

That was followed by the networks’ request that the court reject that claim, followed by a conference between the parties and the court on Nov. 1. Those legal balls remain in the air, with no resolution at press time on the network request to quash the counterclaim. “Just lawyers working on scheduling,” Locast founder David Goodfriend said.

Free, but Donations Sought

While Locast said its service is free, one user who reached out to Multichannel News disputes that. He said that after a grace period, streamers periodically lose the TV station signal they are watching and the service sends them to a home screen, asking for a donation. If they do not donate, they can still watch Locast by reloading the channel, having missed some of the program since it is all live. But the site does not make it clear that will be the case if they don't pony up.

Goodfriend conceded that after the grace period of uninterrupted viewing viewers are periodically asked (every 15 minutes, in fact) to donate, and have to reload the channel. But that doesn't mean it is not free, he said.

“The majority of Locast users are not donors,” Goodfriend said, “so the majority are getting something out of this that they like and enjoy and are not paying for it. If that isn’t free, I don’t know what is.” He pointed out that folks seem to have figured out the interruption issue and continue to tune in.

Even if Locast charged for the service, though, its lawyers are likely to argue that as long as that charge only covers expenses, it still qualifies as a nonprofit under the Copyright Law carveout.

In any event, the days of Locast flying under the radar are definitely over.

Locast, the free TV station streaming service, is now available in 16 markets with its launch in Seattle today (Oct. 30), according to the Sports Fans Coalition New York, which launched the service. 

“November tends to be the rainiest month of the year in Seattle, so local weather reports mean more to commuters, families, and business travelers right now. Here’s a forecast for our friends in Seattle: expect more rain, but better access to your local news, weather, and other critical information on Locast,” said founder David Goodfriend. 

The addition comes less than two weeks after Locast announced it had added Atlanta and Phoenix. 

Broadcasters have sued Locast over the service, which relies on an exception for nonprofits in copyright law to stream the stations without asking their permission or negotiating a fee for carriage.

Locast was launched by the Sports Fans Coalition in part as a way to give viewers access to sports programming during retrans blackouts.

Locast does not charge, but does seek a donation from users.

Alternative ways for MVPDs to get stations that don’t involve going to the local bar or switching to an antenna reduces broadcasters’ leverage in retrans negotiations. for example, AT&T during its recent impasse with Sinclair, suggested Locast as an alternative to stations blacked out by Sinclair.

In their suit, network lawyers said Locast is nothing like the TV translators it purported to resemble. “Locast is not a public service devoted to viewers whose reception is affected by tall building[s] … Instead, Locast’s founding, funding and operations reveal its decidedly commercial purposes,” they said.

Locast had two weeks ago it would be adding more markets before the end of the year, and if it can raise enough via donations, eventually all 210 markets.

Locast, the free TV station streaming service, has added two more markets, Atlanta and Phoenix, bringing its total to 15 markets where broadband users can watch local TV station signals over-the-top for free, though Locast asks for a donation.

Broadcasters have sued Locast over the service, which relies on an exception for nonprofits in copyright law to stream the stations without asking their permission or negotiating a fee for carriage.

Locast was launched by the Sports Fans Coalition in part as a way to give viewers access to sports programming during retrans blackouts — via a copyright exemption for nonprofits that retransmit TV-station signals, like the translators that extend TV station signals to hard-to-reach areas.

Obviously, alternative ways for MVPDs to get stations that don’t involve going to the local bar or switching to an antenna reduces broadcasters’ leverage in retrans negotiations. for example, AT&T during its recent impasse with Sinclair, suggested Locast as an alternative to stations blacked out by Sinclair.

In their suit, network lawyers say Locast is nothing like the TV translators it purported to resemble. “Locast is not a public service devoted to viewers whose reception is affected by tall building[s] … Instead, Locast’s founding, funding and operations reveal its decidedly commercial purposes,” they said.

Locast said it will add more markets before the end of the year, and if it can raise enough via donations, all 210 markets eventually.

Accused of  being a front for the satellite services, Locast has countersued the big broadcasters charging the networks are colluding to try to smother its business.

ABC, CBS, NBC and Fox sued the creators of Locast in July, claiming that the non-profit streaming service was helping AT&T’s DirecTV and Dish network by providing access to programming during retransmission consent fee disputes and blackouts.

Locast streams local TV station programming in some markets and is able to get around copyright regulations because of its non-profit status, which allows it to act as a signal booster.

In its lawsuit, as reported by the New York Times, Locast claims the broadcasters have gotten together and threatened “business retaliation” against entities that are considering working with Locast.

According to the complaint, Google executives alerted Locast in April that the networks had warned the tech company not to allow YouTubeTV to provide access to Locast. If it did, according to the complaint, Google would be “punished by the big four broadcasters,” the Times reported.

In response to the countersuit, Gerson Zwiefach of Williams & Collolly, representing the networks, said “Locast’s filing today only confirms that it has no answer for its industrial scale violations of the law. Sixteen million households receive broadcast television free over the air, which represents a nearly 50% increase in the last eight years.

"Locast does nothing for those households; it serves the interests of its pay-TV patrons, who have provided Locast and its founder with hundreds of thousands of dollars in lobbying fees, donations and nationwide distribution on certain pay-TV platforms," Zwiefach said. We trust the courts to see right through this façade and recognize Locast for what it is – not a public service organization, but a creature of certain pay-TV interests with an entirely commercial agenda.”

The network's suit seeks to enjoin Locast and collect damages to be determined.

Named as defendants in the suit are former Dish Network executive David R. Goodfriend and Sports Fans Coalition NY, which Goodfriend founded.

In their suit, the networks charged that Locast was designed to undermine broadcasters in retransmission negotiations.

AT&T donated $500,000 to Locast and integrated the streaming service into DirecTV boxes. That enabled AT&T subscribers to watch CBS programming without an antenna during a blackout earlier this year

“Locast provides these two major distributors with commercial benefits that include the ability to avoid obtaining retransmission consent from local stations to include local stations in their pay-TV offerings by integrating the Locast app into their customers’ set-top boxes; to gain leverage in negotiations with broadcast stations over retransmission consent rights to offer their subscribers access to broadcast channels; and for Dish, to promote a version of its Sling TV internet television service,” the broadcasters said in their lawsuit.

The networks suit seeks to enjoin Locast and collect damages to be determined.

Locast has added TiVo to the list of platforms for which there is already a Locast app for that. Those include Apple iOS, AppleTV, Android, AndroidTV, Roku, Amazon Firestick, Hopper, DirecTV, and "multiple web browser platforms.”

Locast is the over-the-top (OTT) service that streams TV stations without having to negotiate with the station for carriage or pay a license fee. It uses a provision of copyright law that allows nonprofits to re-broadcast local stations.

“Access to local broadcast TV is important,” said David Goodfriend, chairman of the Sports Fans Coalition of New York, the nonprofit running Locast. “As proven by the local weather and emergency information disseminated during Hurricane Dorian, Americans rely on their local broadcast TV stations and their mobile wireless devices to receive valuable safety and public information. With Locast, critical information on broadcast TV is available anytime, anywhere to the public on numerous platforms, now including TIVO.”

Locast launched on Jan. 11, 2018. It is currently delivering most local TV stations to online viewers in New York City, Los Angeles, Chicago, Philadelphia, San Francisco, Houston, Dallas, Boston, Washington, D.C., Denver, Baltimore, Sioux Falls, S.D, and Rapid City, S.D.

After remaining relatively quiet about the service, the Big Four broadcast nets filed suit against Locast in July, saying it was a commercial service in noncom's clothing. 

It apparently took some major retransmission-consent blackouts — CBS-DirecTV, Nexstar Media Group-DirecTV — combined with the looming STELAR reauthorization to persuade broadcasters to go after free TV-streaming service Locast.

The Locast service, which has been operating since January of 2018, has recently been billed as an option in retrans blackouts.

The Big Four broadcast networks’ owners and other broadcast companies have filed suit in U.S. District Court for the Southern District of New York, charging copyright violations.

Locast was launched by the Sports Fans Coalition in part as a way to give viewers access to sports programming during such blackouts — via a copyright exemption for nonprofits that retransmit TV-station signals, like the translators that extend TV station signals to hard-to-reach areas. Locast exploited that exception to offer the stations without asking permission or negotiating a fee.

Until now, broadcasters had kept their powder dry, declining to comment or act on Locast even as it expanded to more major markets and stations and grew as a potential tool for multichannel video programming distributors in retransmission disputes.

That broadcast inaction had been in stark contrast to the past response to for-profit services Aereo and FilmOn, which found themselves in court (and Aereo in bankruptcy) after trying to stream TV signals without first negotiating for carriage.

AT&T added the Locast app to its arsenal and promoted it as an option for CBS viewers to get TV stations over the top during a recently-ended blackout, pointing out that football season was fast approaching and referring to the new Locast app on DirecTV Genie and U-verse TV internet-connected receivers.

AT&T also recently donated $500,000 to Locast, which asks for contributions to cover operating expenses.

Obviously, alternative ways for MVPDs to get stations that don’t involve going to the local bar or switching to an antenna reduces broadcasters’ leverage in retrans negotiations.

One theory as to why TV stations weren’t previously rushing to court had to do with networks charging stations for reverse compensation while also striking deals to put their programming on streaming services, arguably reducing network content’s value to TV stations counting on the ads they place in their versions of the programming. Some stations are OK with getting the extra eyeballs via Locast, which includes their local ads.

But the networks also are powerful members of the National Association of Broadcasters, which said it is squarely behind the suit.

In their suit, network lawyers now say Locast is nothing like the TV translators it purported to resemble. “Locast is not a public service devoted to viewers whose reception is affected by tall building[s] … Instead, Locast’s founding, funding and operations reveal its decidedly commercial purposes,” they said.

Given that the copyright carveout for translators says they must be nonprofit and have no direct or indirect commercial purpose, DirecTV parent AT&T’s $500,000 donation — combined with Locast founder David Goodfriend’s lobbying history with Dish Network, another MVPD — might have given those broadcast lawyers the ammunition they sought. A source familiar with the strategy said it was understood the networks have been actively working on the suit, waiting for the right arguments and deciding where to file.

Veteran attorney Andy Schwartzman of the Benton Foundation, who said broadcasters have abused their free licenses to “coerce” cable operators into overpaying for carriage, believes Locast can make that public-service argument.

“Locast has taken advantage of a provision in the law to give viewers a better and easier way to watch those stations on their TVs, computers, phones and tablets,” Schwartzman said.

Legal issues aside, Adonis Hoffman, chairman of Business in the Public Interest, whose clients have included broadcasters, said that to the degree that Locast does reduce retrans leverage, it could hurt smaller and minority broadcasters more than larger ones. Smaller station groups are more dependent on retransmission dollars than larger, more diversified broadcasters.

It will now be up to a federal judge in New York — and perhaps appeals courts down the line, judging by the years-long Aereo fight — to decide if Locast can keep taking broadcast TV over the top.

The Big Four broadcast networks have sued the creators of Locast, the non-profit TV station streaming service, claiming that Locast is helping satellite operators during retransmission consent disputes.

Locast streams local TV stations in some markets and is able to get around copyright regulations because it is a non-profit.

AT&T, which donated $500,000 to Locast, has integrated the streaming service into its DirecTV boxes so that subscribers can watch CBS stations without antennas despite the expiration of AT&T’s retransmission agreement with CBS.

Related: Locast Launches in L.A., San Francisco

In the lawsuit, filed in Federal court in the Southern District in New York,  the broadcasters claim that Locast said it was created to extend the reach of local broadcast signals in places where they are difficult to receive for no charge.

But the suit said “Locast is nothing like the local booster services contemplated by Congress in creating this narrow exemption. Locast is not a public service devoted to viewers whose reception is affected by tall building[s]… instead, Locast’s founding, funding and operations reveal its decidedly commercial purposes.”

The suit noted that Locast was founded by a former executive of Dish Network, which is also in the midst of blackouts with broadcasters including Meredith and is airing Fox's broadcast and sports networks on a temporary extension of an expired retransmission agreement. 

The suit also noted AT&T’s donation.

Related: Fox Regional Sports Nets Blacked Out on Dish

“Locast provides these two major distributors with commercial benefits that include the ability to avoid obtaining retransmission consent from local stations to include local stations in their pay-TV offerings by integrating the Locast app into their customers’ set-top boxes; to gain leverage in negotiations with broadcast stations over retransmission consent rights to offer their subscribers access to broadcast channels; and for Dish, to promote a version of its Sling TV internet television service.”

The suit seeks to enjoin Locast and collect damages to be determined.

Named as defendants in the suit are former Dish Network executive David R. Goodfriend and Sports Fans Coalition NY, which Goodfriend founded.

The National Association of Broadcasters applauded the suit.

"NAB wholeheartedly backs today’s lawsuit against Locast. This firm is thinly disguised as a not-for-profit entity that mirrors failed predecessors Aereo and FilmOn in its bid to legitimize the theft of local TV broadcast signals,” said NAB executive VP of communications Dennis Wharton.

"Indeed, Locast is all about gaining a commercial advantage for its backers and others in violation of U.S. copyright law to the detriment of local broadcast TV viewers. The enterprise has benefitted from a $500,000 donation from AT&T along with contributions from other pay-TV providers, as well as Locast’s remarkably close relationship with pay-TV giant Dish Network,” Wharton said.

"We’re confident the courts will see through the AT&T/Dish/Locast ruse and uphold the integrity of U.S. copyright laws that sustain the economic viability of local broadcasting."

Locast has been relying on Title 17, Chapter 1, section 111 a)5 of the Copyright Act, which for those without a copy handy covers exemptions from exclusive rights to broadcast transmissions. That grants that exemption if "the secondary transmission is not made by a cable system but is made by a governmental body, or other nonprofit organization, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service."

That is the same provision under which TV translators already boost broadcast signals. Locast has said it is a nonprofit taking a broadcast signal and retransmitting it, period.

The service is geofenced, which means it is not available outside the relevant DMAs and thus does not run into contractual exclusivity issues.

With broadcasters finally spurred to legal action by the expansion of the service and its use as an alternative during recent retrans disputes, Locast will have to demonstrate that it is truly a nonprofit and gets no direct commercial advantage from the retransmissions, and that the statute indeed allows for retransmissions over the top in addition to over the air.

David Hosp, Locast’s outside counsel, reiterated that point in the wake of the suit. 

“Locast is an independent, non-profit organization that provides a public service retransmitting free over-the-air broadcasts," he said. "Its activities are expressly permitted under the Copyright Act. The fact that no broadcasters have previously filed suit for more than a year and a half suggests that they recognize this. We look forward to defending the claims—and the public’s right to receive transmissions broadcast over the airwaves—in the litigation.”

A Dish spokesperson said: “Dish has no more links to Locast than we do with over-the-air antennas, but we continue to believe consumers deserve a choice when it comes to how they receive their local broadcast channels, whether through satellite retransmission, over-the-air antennas or through other legal means.”

And AT&T said in a statement that "Locast offers consumers an innovative new way to access free over-the-air signals. We support technologies that give consumers more choices and better access to this local content."

"Broadcasters have abused their free access to public airwaves to take coerce pay-TV companies to pay excessive 'retransmission fees," said Andrew Jay Schwartzman, senior counselor, Benton Foundation. "Understandably, they have passed on those fees to viewers like you and me...The broadcast industry is now attempting to shut down Locast with what will be an expensive and time-consuming lawsuit. Their legal argument is flawed, and the case should be promptly dismissed."

The Sports Fans Coalition has long argued that blackouts and escalating ticket prices and rights fees are sports-consumer unfriendly and needed some kind of redress. That was part of the impetus behind Locast.

Locast.org started in New York and has been growing steadily, adding top 20 markets as well as the most recent rural expansion, without heretofore any push back from broadcasters usually fiercely defensive about rights to their signals.  

One theory is that with networks charging reverse comp while also striking deals to put their network programming on streaming services, arguably reducing its value to TV stations counting on the ads they place in their versions of the programming, some stations are OK with getting the extra eyeballs via Locast, which includes their local advertising. 

Another theory is that broadcast lawyers recognize that Locast is on solid legal footing with the carveout so long as it remains a nonprofit. If so, a legal challenge would only be spending money on lawyers to get a court to declare the service is legal. Clearly, the networks aren't subscribing to that latter theory. 

Locast has had no comment on whether and what size bump its service got from either the Nexstar or CBS blackouts on DirecTV.

John Eggerton contributed to this report.

Locast, the free TV station streaming service, has gotten a big financial boost from AT&T, which said Thursday (June 27) it was contributing a half a million dollars to the service's nonprofit parent, the Sports Fans Coalition New York.

Locast streams local TV stations signals--geofenced to comply with FCC exclusivity rules--but does not have to negotiate carriage and/or payment from broadcasters due to a copyright exemption for retransmissions so long as the retransmitter doesn't turn a profit.

Locast has been rolling out in major and some smaller markets while seeking donations from users so it can pay for operating expenses. The more money it gets, the more markets it can add to its roster of free TV station streaming. Locast has said it wants to go nationwide ASAP but that depends on private donations.

It has been asking for help $10 bucks at a time, so the $500,000 is a big boost. 

Describing Locast as a "public service" app, AT&T said it was contributing "to make free broadcast content available to consumers and offer them more choice."

The easier it is to get that free broadcast content during retrans blackouts--streaming it rather than using an antenna--the less leverage broadcasters have over MVPDs.

Locast is now available to over 32 million users in 13 cities. It started in New York in January 2018--B&C broke the story--and has been moving west ever since, most recently adding L.A. and San Francisco. AT&T added the Locast app to its DirecTV and U-verse receivers in May. 

Backing Locast gives viewers another option--other than an antenna--to get their broadcast signals during retrans impasses, which could relieve some of the political pressure on MVPDs and broadcasters to reach retans deals, at least when broadband deployment is universal. 

Locast takes advantage of a provision in copyright law that allows for the nonprofit retransmission of TV station signals without permission from the stations or the copyright holders of the content. It is the same provision that allows for translators to boost broadcast signals in hard-to-reach areas.

Broadcasters and studios have remained mum on the service, either trying to figure out what their legal strategy should be, given that copyright carve-out for the same translators used to extend TV stations’ reach and advertising eyeballs, or, as various sources have also suggested, due to a split between network-owned and non-network-owned stations.

That split could be because networks have been striking deals to deliver their programming over-the-top over various online platforms without the local ad avails that broadcasters get to place in that network programming.

Getting those extra Locast eyeballs for their broadcasts might not be such a bad thing.

Jon Lafayette contributed to this story

Locast.com has launched in two major, make that "majorist" West Coast markets--Los Angeles and San Francisco. 

That comes only days after it announced it had launched in two smaller, midwest markets--Sioux Falls and Rapid City, both South Dakota. 

Locast is the free, nonprofit, online TV station streaming service that uses a legal carveout for nonprofit retransmissions to avoid having to pay a copyright fee or get permission from broadcasters, though some are apparently glad to get the extra eyeballs.  

"We’ve been marching westward, and we couldn’t be more excited that we’ve hit the Pacific,” said David Goodfriend, founder of Locast. 

Locast will stream more than 80 stations between the two markets.  

"With the professional football pre-season around the corner," said Goodfriend, who is also founder of the Sports Fans Coalition, "football fans in California now can watch their local teams on a laptop, smartphone, smart TV, or other connected device without fear of blackouts, poor over-the-air reception, or outrageously priced sports packages." 

The coalition had long argued that blackouts and escalating ticket prices and rights fees are sports-consumer unfriendly and needed some kind of redress. That was part of the impetus behind Locast. 

Locast.org started in New York and has been growing steadily, adding top 20 markets as well as the most recent rural expansion, without any push back from broadcasters usually fiercely defensive about rights to their signals. Currently, the stats according to Locast are that it is available in 13 cities representing 31% of the U.S. market and almost 35 million homes. 

One theory is that with networks charging reverse comp while also striking deals to put their network programming on streaming services, arguably reducing its value to TV stations counting on the ads they place in their versions of the programming, some stations are OK with getting the extra eyeballs via Locast, which includes their local advertising. Another theory is that broadcast lawyers recognize that Locast is on solid legal footing with the carveout so long as it remains a nonprofit.  If so, a legal challenge would only be spending money on lawyers to get a court to declare the service is legal. 

Locast.org, the free online TV station streaming service, has added Sioux Falls and Rapid City, both South Dakota, to its growing lineup of markets.

Rural broadband access is a big issue in Washington, but Locast.org suggests the deployment gap is broadcasting as well. "Serving Rural America has always been a goal of ours,” said David Goodfriend, chairman of Sports Fans Coalition New York and founder of Locast.org. “Like much of rural America, many households in South Dakota cannot receive an over-the-air signal and in some cases are more likely to have access to broadband than to broadcast."

Related: AT&T Adds Locast App

Locast.org uses a copyright carveout for nonprofit TV station signal retransmitters to stream the signals without having to get permission from the stations or pay them. But the service can't make a profit to continue to fall under the exemption, though Locast asks for a donation to help cover the costs (a suggested $5 per month).

Goodfriend said the addition of the two South Dakota markets are thanks to "generous contributions from local businesses and residents."

Locast.org started in New York nad has been growing steadily, adding top 20 markets as well as the most recent rural expansion, without any pushback from broadcasters usually fiercely defensive about rights to their signals. currently, the stats according to Locast.org are that it is available in 11 cities representing 24% of the U.S. market and almost 27 million homes. 

One theory is that with networks charging reverse comp while also striking deals to put their network programming on streaming services, arguably reducing its value to TV stations counting on the ads they place in their versions of the programming, some stations are OK with getting the extra eyeballs via Locast.org, which includes their local advertising. Another theory is that broadcast lawyers recognize that Locast.org is on solid legal footing with the carveout so long as it remains a nonprofit. 

AT&T said it will add Locast’s interactive app on its DirecTV and Uverse platforms beginning May 31.

Locast is a free public service application that allows broadband-connected receivers to access local broadcast stations and is currently available to 27 million users in New York, Chicago, Philadelphia, Dallas, Washington, Houston, Boston, Denver and Baltimore.

“AT&T continues to offer consumers new ways to access the video content they want. We believe Locast’s public service offering will make sense for many of them,” AT&T said in a press release.

AT&T also will continue to offer its complimentary Local Channel Connector service when a local station is otherwise unavailable. The Local Channel Connector captures stations’ over-the-air digital signals via a free digital broadcast antenna and enables customers to select channels using the program guide. AT&T said it provided more than 10,000 free Local Channel Connectors to Salt Lake City customers who went without the local NBC affiliate KSL- TV for about eight months because of a retransmission consent dispute. That dispute was resolved in April.

Locast, the free over-the-air broadcast TV streaming service said it has added iPad, Apple TV and Android TV to the devices/platforms on which it is now available.

That is in addition to Apple iOS, Android, Roku and Hopper, as well as various browser platforms.

Locast, which launched last year, does not have to get a TV station's permission.

Also Read: Locast Yet to Draw Legal Fire

To stream the TV signals without payment or permission, Locast.org (a contraction of “local” and “broadcast”) is relying on Title 17, Chapter 1, section 111 a)5 of the Copyright Act — which, for those without a copy handy, covers exemptions from exclusive rights to broadcast transmissions. It grants that exemption if “the secondary transmission is not made by a cable system, but is made by a governmental body, or other nonprofit organization, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.”

While it must remain nonprofit to continue to be exempt from having to negotiate a copyright license, it also needs money to keep expanding.

Also Read: Locast Launching in Houston

“In 2019, we hope to launch Locast.org in many other top-20 markets,” said founder David Goodfriend. “However, our biggest obstacle is funding. This is why we’re asking users to contribute just five dollars per month.” Goodfriend added. “If everyone gave just five dollars each month, Locast would be fully sustainable and could eventually reach all 210 markets.”

The service is currently available in New York, Chicago, Houston. Dallas, Denver, Boston, Philadelphia, Baltimore and Washington, D.C.

Also Read: Locast: Everything You Need to Know

Broadcasters and studios have yet to push back on the service as they have on other TV station streaming services like Aereo and FilmOn X. 

Locast, the local TV station streaming service, is adding its third market, Houston, as of Aug. 20, according to the Sports Fans Coalition New York, the nonprofit behind the service.

Locast launched Jan. 11 in New York without the knowledge or consent of, or compensation to, the 13 TV stations, including stations owned by the Big Four networks, whose signals it is delivering free to fixed and mobile broadband devices. It is relying on copyright law that allows a nonprofit to retransmit local TV station signals without getting a copyright license.

The service expanded to Dallas on Aug. 2, with a promise of more markets soon.

Locast can charge a fee, but only to cover costs. It is asking for donations to do just that.

“Houston, we have liftoff,” said coalition chair David Goodfriend. “This great American city famous for rockets and energy is a perfect fit for Locast. Now residents of Houston, even those who cannot receive an over-the-air signal, can watch their local broadcast stations on any Internet-enabled device.”

The plan is to add at least two more markets in the coming weeks.

Goodfriend says the services in New York and Dallas now have "tens of thousands" of users.

For more of this story, visit broadcastingcable.com.