VMedia Inc., a Toronto-based startup that offers Internet and IPTV (Internet protocol television) services by buying wholesale access to established players’ broadband networks, launched a new app last month providing a cheap subscription to a basic set of live TV channels available online through the Roku streaming box.
But in a letter last week, Bell Media, a division of BCE Inc., argues VMedia has “no legal right” to rebroadcast its CTV networks this way, and is considering a court challenge. In response, VMedia filed a pre-emptive motion with the Ontario Superior Court of Justice on Monday, asking the court to affirm that its service is lawful.
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But VMedia doesn’t believe that restriction applies to over-the-air channels, which TV distributors can retransmit for free under the Copyright Act. “Accordingly, a copyright owner such as Bell has no right to prohibit the simultaneous retransmission of the work,” the company argues in its court filing. “This is strictly an attempt to protect the turf,” Mr. Burger said of Bell threatening legal action. “As long as [the largest cable companies] do this, it makes it extremely difficult for anybody to compete with them, because they have the wires.”