Folks are bringing up all sorts of things (e.g. fee vs. donation, insertion of donation appeals in the video stream, etc.) which, as far as I know, the judge didn't comment on in his ruling. Now, who knows, those things might be problems too but the judge just didn't bother dealing with them because he found one issue that disqualified Locast's non-profit status and then stopped there.
The specific thing the judge found is that, as a non-profit, Locast could only spend the money they collected on retransmission of TV signals in a given area but Locast was instead using some of that money to expand operations to new areas.
Now, who knows, if it hadn't been that issue, maybe he would have gotten into the question of whether the repeated interruption asking for $5 constituted a request for a donation or amounted to a requirement for a subscription fee. Although I don't know why the latter would necessarily mean that Locast wouldn't be a non-profit. Seems to me like it would be OK for them to completely cut viewers off after 15 minutes if they hadn't paid their share of the operational costs Locast incurs to deliver service, so long as the total fees taken in an area were roughly equal to the ongoing operational costs there, and none of the fees were taken out of the organization or used for anything other than running the service in that area.
But the bigger questions involve copyright issues -- does the law that Locast was relying on allow for the unauthorized retransmission of OTA TV signals over the internet? The internet didn't exist when that law was drafted and passed. Prior to Locast, it had only been used to cover nonprofit repeater TV stations that extend another station's signal further out into rural areas that would otherwise be unserved. This was always the big question about the legality of Locast, which hopefully gets answered in a future appeal.
Some excellent questions and observations.
1. I think in a round about way the Judge did consider the break for donations. He used the term "charges" and they can't be used for expansion. What he is saying is if they are non profit they can not charge and make their business bigger in the process. They can get donation only to cover the cost of providing the service.
Many in the business do agree with Locast this is an extremely narrow view of expanding the business, however that they stop the broadcast to get money is where is use the term "Charges." If they only relied on donations without it stopping the broadcast I think the Locast position would be stronger.
2. I don't read in the law about
how the programs are transmitted. I see they can "retransmit". But I have not read the whole complete document.
3. Good point, the Judge did not nor need to address everything that could be a problem.
4. It's going to be very tricky in how they get the donations. Lets say they do give you an hour, perhaps per day if no donation. That's fine. As soon as you give the donation to watch longer that I would say is a fee. Can they charge a fee, with no money going anywhere but to cover the direct costs of providing the service from where the donation comes from and remain a Non Profit? Maybe.
What Scott proposed would work if they ask for the donation first then give you the programming. As I pointed out however they can't withhold the programming till the donation so how many will give?
Is their interruptions allowed? I'm going to say we just don't know.. Remember they would have the copyright exemption which is where the no changes rule comes in. (Remember DISH won on that because the Judge said the process used for Auto Hop did not change what was given to DISH if it did Auto Hop would have been ruled illegal) But we don't know if a strict reading of the law would say they can retransmit and that means what they are given.
5. None of it may matter if Locast has no money for never ending court appearances, appeals etc. even if they could get past this Judge ruling.