Optus has won a copyright infringement case leveled at the telco by the AFL, NFL and Telstra which may have ramifications for future broadcast rights negotiations.
Justice Steven Rares of the Federal Court dismissed a case brought forward by the Australian Football League, the National Football League and Telstra which alleged Optus violated copyright through its TV Now service.
Justice Rares said in his judgement Optus had not violated copyright as its TV Now service functioned as a time-shifting device and was no different to other recording devices such as digital video recorders.
He said: “The legislative materials do not support the rightholders' argument that, in effect, the user could only utilise technology or equipment with which he or she had some greater connection than the “record” button on the TV Now electronic program guide.
“The Parliament intended that an individual should be able to time-shift by making a copy of a broadcast that he or she could watch or listen to at a more convenient time. The TV Now service provides the user with a means for him or her to make a film of a broadcast.”
Justice Rares added since making a copy of the content can only be initiated by the customer pressing the “record” button and not Optus, the telco did not commit any copyright infringements.
Optus launched TV Now in July 2011, which allows customers to schedule, record and playback free-to-air TV programs from 3G mobile devices and PCs. The service raised flags for the AFL and Telstra which had recently inked a reported $155 million deal for the exclusive online broadcast rights to its matches.
The NRL was also involved in the legal proceedings which began in September 2011. The NRL broadcast rights are up for negotiations this year.
Optus general manager corporate and government affairs, Clare Gill, said: “Optus is extremely pleased with the decision handed down today. We were confident that the Optus TV Now product was well within the intention and the spirit of the Copyright Act and this was confirmed by today's decision.
“Optus is committed to delivering choice and convenience to Australians and the result of the TV Now court proceedings is a major win for consumers, innovation and the law. Convergence is upon us and we need to ensure that Australians have the choice, convenience and flexibility to access content when and where they want.”
A statement from Telstra said: "This judgement seriously undermines the value of online content. This ruling is out of step with the reality of the market. However, if this ruling is ultimately confirmed, we will adapt our content sourcing strategy accordingly."
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