Internet TV Startup Launches Pre-Emptive Lawsuit Against Networks

Barely a week after launch, a Seattle-based streaming TV startup filed suit against major broadcast networks, hoping that a court will approve of it’s attempt to retransmit live television broadcasts over the Web.

Unlike streaming video-on-demand services like Hulu and Netflix, the plucky ivi, Inc. says it will give viewers access to more than 20 live TV streams from networks such as ABC, NBC, CBS, Fox for the low price of $4.99 a month. Only one problem: Nobody ever told the networks.

Because it’s “retransmitting” TV streams online, ivi claims that it does not have to pay the pesky FCC mandated retransmission fees like a cable company would, but it does pay content royalties to broadcasters through the copyright office, and releases viewership data to Nielsen so networks can factor it into their advertising calculations.