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In a setback for ABC and other broadcasters, a federal judge declined to enjoin a service that streams broadcast channels over the Internet for a monthly fee. District Judge Alison Nathan of the U.S. District Court of the Southern District of New York refused to grant the preliminary injunction sought by the networks against Aereo, a start-up funded by media mogul Barry Diller.
District Judge Nathan said she was constrained by the U.S. Court of Appeals for the Second Circuit's decision in Cartoon Network v. CSC Holdings, 536 F.3d 121 (2d Cir. 2008) (http://bit.ly/SQmizP), known as the Cablevision case. In Cablevision, the Second Circuit rejected claims of TV and film producers in holding that Cablevision's remote storage digital recording system did not violate the Copyright Act.
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The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
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