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VidAngel Keeps Streaming Videos, Defying Movie Studios and a US Judge (deseretnews.com) 163

The Deseret News reports that Hollywood studios "aren't happy with VidAngel, saying in a statement Wednesday that the Utah-based streaming service 'continues to illegally stream our content without a license and is expanding its infringement by adding new titles' despite a judge's recent injunction." Or, as VidAngel explains on their blog, "We say we're legal. Disney says we're pirates." Long-time Slashdot reader goombah99 writes: VidAngel...will edit any major movie of objectionable content exactly as you request (and no more than you request), then stream it to you for $1. Such bowdlerizing and DVD streaming services are expressly written into section 110 of Title 17, the copyright act (paragraph 11 added in the 2005 Family Viewing act). Therefore both aspects that the studios are suing over, the streaming of a DVD and the editing of it by a third party, is plainly legal... There's a petition to save this act from encroachment [signed by more than 30,000 families].
In just five days in October, VidAngel raised $10.1 million in a "mini-IPO" -- reportedly the fastest one ever -- to fund their ongoing fight against the movie studios. VidAngel CEO Neal Harmon says "We'll take this all the way to the Supreme Court if necessary. We're happy to pay more. We're happy to rent more. We're happy to pay the prices the studios want us to pay. Just give us filtering."
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VidAngel Keeps Streaming Videos, Defying Movie Studios and a US Judge

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  • by ls671 ( 1122017 ) on Monday December 26, 2016 @04:38AM (#53554769) Homepage

    Dear VidAngel,

    I have the following video I would like you to edit, then stream to me. Could you please cut off the dialog parts?

    https://en.wikipedia.org/wiki/... [wikipedia.org]

    • by kuzb ( 724081 )
      Best post 2016
  • More info needed (Score:3, Informative)

    by Anonymous Coward on Monday December 26, 2016 @04:51AM (#53554791)

    Had to research:

    VidAngel buys a bunch of DVDs.
    VidAngel sells you the DVD stream for 20 bucks (this can't be legal but ok).
    You then watch the stream and sell it back to VidStream for 19 bucks (or less, based on a ticking clock)

    Again, I don't see how buying one physical disk allows you to stream that movie to an infinite amount of people, but here we are. They have no shot of winning in court.

    • Re:More info needed (Score:5, Interesting)

      by phantomfive ( 622387 ) on Monday December 26, 2016 @05:12AM (#53554819) Journal

      Again, I don't see how buying one physical disk allows you to stream that movie to an infinite amount of people,

      They don't. It's an attempt to streamline the (older) Netflix model. They buy multiple DVDs, and send them out. When you are done, you send them back.

      Except, they realize a lot of people (basically, everyone) don't want the physical DVD, so they also offer the option to stream the video for you, and keep the physical copy in a 'vault' until you want it. As an added service, they also ship you an EDL file of your choosing, which the user can apply at their home in their personal player (I believe they do this automatically if desired as well, but it's a standard feature: mplayer supports EDL, for example).

      So basically all the parts of their plan, selling DVDs, re-buying, ripping for personal use, personally using an EDL, etc are all legal. No one has ever combined them together, though.

      From a moral standpoint, I don't think people should be forced to watch things they don't want. From a practical standpoint, the movie studios are more than happy to offer censored movies to airlines. It's not about 'censorship', it's about money.

      • Except, they realize a lot of people (basically, everyone) don't want the physical DVD, so they also offer the option to stream the video for you

        This part may be in legal grey area as it's format shifting (not sure what US law had to say about that but it's certainly been discussed a lot), especially if they never physically ship the DVD to the renter/buyer where plaintiff may argue it's effectively just a streaming service, and that vidangel doesn't have the license to stream the content - even if it's to just one customer per physically available DVD at the same time.

      • Re:More info needed (Score:4, Interesting)

        by transporter_ii ( 986545 ) on Monday December 26, 2016 @10:41AM (#53555433) Homepage

        MP3.com tried this with audio CDs. Aerio also tried it, in a slightly different way. They will lose this in court. MP3.com had a ton of lawyers go over their plan and said it was legal. When they lost everything in court, MP3.com ended up suing the law firm that told them it would hold up in court. I never heard the outcome of that lawsuit. These things that are sort of legal for you to do, they don't hold up when a third party tries to make a business out of them. Not going to work.

        • Ok, Aerio.

          The difference is that Aero was format shifting licenced broadcast TV that viewers never "owned".
          When you own a DVD you have the right to format shift it, which is not "distribution" because it is for your own use.
          Here there are actual DVDs "sold" by studios, and the stream count is limited to # of legit DVDs.

          This isn't different than if a VHS rental store in the 80s had a VCR/TV in their store monitored by a CCTV that piped it to your house.
          The fact modern technology allows to do this che
          • BTW, the rationa counter move by studios would be stop "selling" DVDs entirely. Get ride of the idea of consumer owning any rights except those the studio expressly wishes. Shift it all to streaming and they don't have these pesky issues of people trying to use what they own without permission.
      • ripping for personal use

        As much as I hate it, ripping for personal use is illegal under the DMCA (anti-circumvention). Ripping for the content editing I think is explicitly separately allowed, but I'm not sure if that's what makes it legal for them. They may be playing the physical disc with an EDL - I don't actually know.

        • As much as I hate it, ripping for personal use is illegal under the DMCA (anti-circumvention). Ripping for the content editing I think is explicitly separately allowed, but I'm not sure if that's what makes it legal for them. They may be playing the physical disc with an EDL - I don't actually know.

          As much as I hate to say it, you are correct [arstechnica.com] (at least as of October of 2015). The legal wrangling came to the conclusion that because CDs were never encrypted, consumers can format-shift. But DVDs and Bly rays? Not so much. However, it seems to me that given the vast number of people that do this "under the radar" it can't be long before an "exemption" is granted to bring this in line with Fair Use.

          • Yes. I have 200+ DVD and Blu-Ray movies and I knowingly circumvented and format shifted to network storage. The whole idea of anti-circumvention as a way of preventing fair use is a terribly exploited loophole for studios.

            • by Rakarra ( 112805 )

              Yes. I have 200+ DVD and Blu-Ray movies and I knowingly circumvented and format shifted to network storage

              But that's legal as long as you still have the DVD/Blu-Ray. What is not legal is someone else doing it for you and sending you the copy. It is expressly legal for you to do this yourself, but of course there's a catch -- it's not usually legal to sell tools for the purpose of circumventing access controls. So no one can legally help you.. but you can do it yourself.

              • Not in the US, it's not. You cannot decrypt DVDs for personal use without violating the anti-circumvention clause of the DMCA.

                The law explicitly has exceptions for what these people are doing, and the LoC has made exceptions for criticism/commentary. Personal, fair use decrypting is still prohibited under the DMCA.

        • by tlhIngan ( 30335 )

          As much as I hate it, ripping for personal use is illegal under the DMCA (anti-circumvention). Ripping for the content editing I think is explicitly separately allowed, but I'm not sure if that's what makes it legal for them. They may be playing the physical disc with an EDL - I don't actually know.

          That's what they claim happens. You buy one of their DVDs for $20, and when you want to watch it, you have them put your disc in their DVD player and the output of which is streamed to you. The objectionable par

  • Hate to say, they will not win. Once that 10 mil is gone to paychecks and lawyers, there will be some people looking for work...

  • by raymorris ( 2726007 ) on Monday December 26, 2016 @05:11AM (#53554817) Journal

    Their legal argument is better than I expected it to be. However, there are two big problems with their argument:

    As another commenter pointed out, they claim to sell the video for $20, then immediately buy it back for $19, they also stream it the customer (bandwidth costs) and edit it (server farm / cpu costs). It's quite obvious they're charging $1 to stream it to you, the "sell it for $20 and buy it back for $19" is a gimmick, it's bullshit. Nobody is buying movies from them, they're paying $1 to stream it.

    Their fair use argument regarding DMCA is bogus. They claim that bleeping some words is "transformative", but the relevant portion of the fair use test is if they transform it to a different type of work that DOES NOT COMPETE with the protected work. For example, one may make a sculpture from CDs, or use book pages as wallpaper - nobody is going to buy your wallpaper *instead of* the original book. People WILL choose to stream from Vidangel *instead of* an authorized source such as Netflix or Amazon.

    Lastly, the transformative aspect is only *one* part of the four-prong test for fair use. Other considerations include "is it commercial?" They are indeed selling the streaming, doing it commercially, so on that basis it's unlikely to be fair use. It's not educational, etc. It really doesn't match the definition of fair use well.

    • by Solandri ( 704621 ) on Monday December 26, 2016 @05:56AM (#53554901)
      I'm not saying their legal argument will hold up, but:

      As another commenter pointed out, they claim to sell the video for $20, then immediately buy it back for $19, they also stream it the customer (bandwidth costs) and edit it (server farm / cpu costs). It's quite obvious they're charging $1 to stream it to you, the "sell it for $20 and buy it back for $19" is a gimmick, it's bullshit. Nobody is buying movies from them, they're paying $1 to stream it.

      This is exactly how the videotape rental market worked. A store would buy the videotape of the movie, you'd borrow it from them, give them a deposit for $20, take it home, and watch the movie. Then you'd return it to the store and get your deposit back, minus a $1 rental fee. The dollar amounts are different, but the concept is the same. (Deposits were later moved to a hold against your credit card if you signed up for membership at the store.)

      The studios sued the first video rental stores about this too. They claimed it was going to destroy their income stream, but within a decade something like half their movie income was coming from rentals. The compromise which got them to drop the lawsuits was that the rental stores had to buy "special" rental videotapes. These were identical to the movie videotapes you'd find for sale at a retail store, but typically cost 3-5x more. That was their way of getting a bigger slice of the rental market pie. (This was also why if you lost a tape, the fine was substantially more than the cost of a new tape or DVD at a retail store. The store wasn't overcharging you as many people believed; they were charging you exactly how much the tape cost them.)

      Where I see them running into problems is that buying a DVD doesn't give you streaming rights. I think the distinction between the two is BS (probably why they're doing this), but copyright law as it currently stands gives distribution rights to the copyright holder. So a physical copy sent to your home is different from a software copy streamed to your home; even though they both result in sending the exact same bits to your home.

      Also, wasn't there a Supreme Court case where a company offered to censor your movies if (say) you wanted all the swearing bleeped out? The studios sued saying they hadn't authorized this alteration of their copyrighted work, and the SCotUS agreed.

      • by phantomfive ( 622387 ) on Monday December 26, 2016 @06:55AM (#53554991) Journal

        Also, wasn't there a Supreme Court case where a company offered to censor your movies if (say) you wanted all the swearing bleeped out? The studios sued saying they hadn't authorized this alteration of their copyrighted work, and the SCotUS agreed.

        The primary difference here is that VidAngel is not editing anything. They send you an EDL, and you fast-forward automatically through the parts you don't want. VidAngel still sends all the bits to you.

        Where I see them running into problems is that buying a DVD doesn't give you streaming rights.

        Buying a DVD does give you rights to format-shift from DVD to something else. So VidAngel is selling the DVD to people, and format-shifting it to digital for people, and then delivering it to them. The end-user has the option to take physical delivery of the DVD, have VidAngel store it forever, or sell it back as a 'used' copy for slightly cheaper.

        That's their way of attempting to get around the legal problems. Presumably if they lose this case, they (or someone else) will try to find yet more loopholes in the law until they finally find something that gets through a court. Maybe a supreme court stacked by Trump will be more amenable to censorship? I don't know.

        • by wvmarle ( 1070040 ) on Monday December 26, 2016 @09:03AM (#53555217)

          \

          Buying a DVD does give you rights to format-shift from DVD to something else. So VidAngel is selling the DVD to people, and format-shifting it to digital for people, and then delivering it to them.

          This is exactly where I see this may go wrong for VidAngel. It's not you (the DVD owner) doing the format shifting, but someone else. Probably no-where in the law is written explicitly that this is OK so there may be room for legal argument, especially as the physical original never gets shipped to the new owner. Gotta be interesting to see what happens, even more so if they start to ignore national borders and go worldwide (why wouldn't they be allowed to sell a US original disk to me living in Hong Kong?).

          • by link-error ( 143838 ) on Monday December 26, 2016 @09:37AM (#53555261)
            Aerio lost the supreme court hearing where they had a seperate HD atenna for each user and claimed to just restream the content.. http://mobile.nytimes.com/2014... [nytimes.com]
            • In that case, Congress, for better or for worse, specified that cable redistribution required a negotiated payment and that cable companies couldn't use the "we're just a fancy antenna" argument, which otherwise would work. Congress granted broadcast networks a slice of the cable dollars. (Back in the day, they were the only real content aside from reruns and movies, covered by premium movie channels.)

              I don't know any such thing exists here. If you ask me, as soon as the initial $20 was sold, they owed Di

        • Buying a DVD does give you rights to format-shift from DVD to something else. So VidAngel is selling the DVD to people, and format-shifting it to digital for people, and then delivering it to them. The end-user has the option to take physical delivery of the DVD, have VidAngel store it forever, or sell it back as a 'used' copy for slightly cheaper.

          Not according to this [arstechnica.com]. Granted, it's just a year-old article on a tech site, but according to them, the DMCA forbids consumers from decrypting discs to format shift. Stupid? I think so, but unless the courts change their mind, VidAngel is headed for a world of hurt.

      • This is exactly how the videotape rental market worked.

        Not exactly...the videotape could only be rented to one person at a time. That's the key thing here, I believe. The DVD data can be streamed to as many customers as needed. There's no limit unlike with a physical tape.

        Although I think what VideoAngel has done is creative (and probably useful) I'm not sure they'll win in court. I kind of hope they do, even though I think what they're doing does violate copyright. There are a number of arguments why what they're doing could be legal, but also more than a few

        • by lgw ( 121541 )

          Their model seems to be to limit the number of concurrent streams of a title to the number of DVDs they have. Whether they cheat is a different question.

    • Re: (Score:2, Interesting)

      by Anonymous Coward

      If state sales tax is actually paid on the $20 then it is not BS.
      They could then re-credit on the 2nd stream of $19 and pay 10 cents odd state tax on that.

      Either way the state gets a chunk of change, not pretend money the movie studios do not pay.
      Holding the physical property and remotely serving it is no different than SaaS cloud services.

      • by Imrik ( 148191 )

        Unless the provider is in the same state, they are not required to collect the sales tax. The buyer is required to report it on their annual tax return.

        For the return, if the provider is not in a state with sales tax, there would be no tax on the return.

    • It's quite obvious they're charging $1 to stream it to you, the "sell it for $20 and buy it back for $19" is a gimmick, it's bullshit

      Legal reasoning doesn't have place for gimmick or bullshit. Only for how the letter of the law can apply in a specific case. If it wasn't then we wouldn't need lawyers arguing at all.

      • Those lawyers you mentioned have been arguing about what is and isn't a "bonafide sale" since at least the 1800s. Why? Because it matters. This looks a heck lot more like paying $1 to stream than a bonafide sale.

        In general, judges tend to not like smartasses who try to make claims like this that they know, and everybody knows, are bullshit.

        • It's really hard to guess how this court case will go. Copyright law is vague enough that it could go any way.
          • by Agripa ( 139780 )

            It's really hard to guess how this court case will go. Copyright law is vague enough that it could go any way.

            God is on the side with the largest legal budget.

        • A judge who doesn't like someone making a comment should be disrobed. They are there to rule on matters of law and not on smartarsery or bullshit. If something is bullshit but legal then the former doesn't matter.

          You said it yourself arguments have been made since the 1800s. Why? Because the law isn't clear enough in this matter, and the fact that this is still up for debate and wasn't thrown out with prejudice shows it isn't clearly decided one way or the other.

    • Everyone should brush up on the story of MP3.com:

      http://www.npr.org/sections/th... [npr.org]

      They will lose badly in court.

    • I live in Utah (raised in Hawaii) and have been LDS my entire life. I never used VidAngel because I thought this lawsuit was coming. I see a better legal argument for ClearPlay [clearplay.com]; they send you a patch file to apply to their proprietary player. You need the physical disc to watch the edited version. This has allowed ClearPlay to exist since the 1990s.

      Their legal argument is better than I expected it to be. However, there are two big problems with their argument:

      As another commenter pointed out, they claim to sell the video for $20, then immediately buy it back for $19, they also stream it the customer (bandwidth costs) and edit it (server farm / cpu costs). It's quite obvious they're charging $1 to stream it to you, the "sell it for $20 and buy it back for $19" is a gimmick, it's bullshit. Nobody is buying movies from them, they're paying $1 to stream it.

      It is a way to try skirt copyright / broadcast rights on a technicality. Customers do think of it as $1 to stream the movie, and VidAngel highlights this net cos

  • Legal reference (Score:5, Informative)

    by bradley13 ( 1118935 ) on Monday December 26, 2016 @07:20AM (#53555037) Homepage

    Since most commenters have not read the legal reference, here is what it says:

    "...the following are not infringements of copyright: (11) the making imperceptible, by or at the direction of a member of a private household, of limited portions of audio or video content of a motion picture, during a performance in or transmitted to that household for private home viewing, from an authorized copy of the motion picture, or the creation or provision of a computer program or other technology that enables such making imperceptible and that is designed and marketed to be used, at the direction of a member of a private household, for such making imperceptible, if no fixed copy of the altered version of the motion picture is created by such computer program or other technology."

    That's pretty clear. They are allowed to make temporary changes to audio or video content during transmission for private home viewing, provided only that they are modifying an authorized copy.

    It sounds to me (IANAL) like they have a very strong case.

    Of course, their record keeping needs to be spotless, guaranteeing that they never sell more copies than they have in stock, and that any specific streaming instance can be traced to a specific authorized copy.

    • by Kjella ( 173770 )

      That's pretty clear. They are allowed to make temporary changes to audio or video content during transmission for private home viewing, provided only that they are modifying an authorized copy. It sounds to me (IANAL) like they have a very strong case.

      Among the three exclusive rights of copyright holders are reproduction, distribution and creating derivative works. This modifies the last right, but not the two previous ones. Those who create the DVD have a license under the reproduction right, as a buyer you have none. Obviously they can't buy a DVD and set up a TV broadcast of it. So the argument is that VidAngel is not doing distribution from them to the user, it's the user watching their own copy under fair use. That argument has been tried many ways

  • by hyades1 ( 1149581 ) <hyades1@hotmail.com> on Monday December 26, 2016 @08:19AM (#53555129)

    So assuming their legal argument is sound (and it's certainly better than I expected), if I were to request that they edit out just a few irrelevant seconds, and maybe that annoying copyright notice, we're good to go?

    Sweet!

    • by turp182 ( 1020263 ) on Monday December 26, 2016 @09:32AM (#53555255) Journal

      Being a non-believer, I edit out at least one instance of Blashpemy (G*d), most movies on VidAngel have such references. One or more filters is required for viewing (not the case a few months ago).

      I would not recommend removing video content, I've had problems with audio/video synch when I tried that.

      I donated about $10 to their legal effort (they made it easy, integrated into the purchasing process).

      • Thanks for that. Obviously I can't give you mod points, but I'd have given you "Informative", if it were possible.

      • I'm curious why you bother removing blasphemy if you're an non-believer?
        • Non-believers can be superstitious or respectful.

        • by nathana ( 2525 ) *

          I'm not trying to speak for turp182, and (s)he can correct me if I'm wrong, but I read the post this way:

          I generally have no reason or desire to have filters apply to the movies I watch, but I support VidAngel's right to do what they are doing and I respect them for taking the stand that they have. Therefore, to demonstrate my solidarity, I threw a few bucks their way and rented a movie. When you rent a movie, you are also given the option of donating to their defense fund, and I did that as well. It use

        • Irony (for myself).

          I find it the most comical thing to filter, and a filter is required.

          I really don't give two shits what I filter (as long as it is audio), I just find the category comical.

  • Others are charging a lot more than $1 to stream a movie. Sounds like if I define the "objectionable" parts as the end credits that contain no video scenes or even the very objectionable commercials for other movies before the movie starts, (but the nudity and violence and cussing isn't objectionable), then I could get a movie streamed for a buck. Am I missing something here?
    • by dgatwood ( 11270 )
      Yeah. It only applies to content that has been released on DVD, and there are limited numbers of copies available, so the movie you want to stream is less likely to be available than it would through a traditional streaming service.
      • Personally, I don't see your stated "problem" affecting me. I do my streaming in (very) non-peak hours and any pretend limit on the number of DVDs would be freed up in time to not impact others. And editing requirements could be kept extremely simple such as "remove the music credits", so the DVD wouldn't be tied up very long. Sounds like I'm never paying more than a buck to stream a movie again.
  • Streisand effect (Score:5, Insightful)

    by OneHundredAndTen ( 1523865 ) on Monday December 26, 2016 @10:54AM (#53555483)
    I am sure that, like me, many had never heard of VidAngel. We will be checking it out. Thank you, content owners, for your continuing stupidity.
    • by amiga3D ( 567632 )

      You can always just torrent the movie you want to see and run it through final cut and edit it yourself. It's ridiculously easy. I don't know how many movies I've seen that are fine for kids to view if you just remove the 60 to 90 seconds of "adult" content they slapped in to get an R rating.

  • by MobyDisk ( 75490 ) on Monday December 26, 2016 @11:14AM (#53555587) Homepage

    I was about to post how every prior company that did this died, but apparently not. There are a few still around! OMG! I am buying one, because there's loads of movies I want my kids to see, with a few slight alterations.

    https://en.wikipedia.org/wiki/CleanFlicks [slashdot.org] and ClearPlay [wikipedia.org]
    Here is a Slashdot article about ClearPlay and CleanFlicks [slashdot.org]. The zdnet article link is dead, so use the wayback machine. [archive.org]
    Here is another Slashdot article about ClearPlay [slashdot.org]
    Trilogy Studios Movie Mask looks like it never actually came out. [slashdot.org]

    However, everyone who tries to stream DVD or live TV content gets shut down. Here's a few:
    Slashdot on Kaleidescape [slashdot.org]
    Slashdot on Aereo [slashdot.org]

  • A friend of mine told me about VidAngel a few weeks ago, and my feeling is that they're trying to do a tightrope walk, blindfolded, while wearing ice skates.

    Their business model hinges on the sell/resell gimmick that solely exists on a balance sheet. It's shaky ground to stand on.

    CleanFlicks lost out because they altered the movies, which either fell under "derivative work" or "CSS decryption", either way not a good idea. They lost in court.
    RealNetworks (still a thing, apparently) tried having a product that allowed movies to be ripped to one's own computer, but included more DRM than the original DVD. They lost in court.
    Aereo distance-shifted OTA broadcasts, limited to one viewing per antenna, and one antenna per user. They lost in court.
    Zediva bought DVD players and DVDs, paired them 1:1, and allowed one user to stream a movie from an available DVD player. They lost in court.

    Vidangel is walking a trail blazed by dead bodies, forged by lawyers who have no intention of providing a compromise that reflects reality. Once they get big enough, the MPAA will come after them as well. They might win against Miramax and MAYBE Universal, but once the sleeping Mouse is awakened by their family-friendly edit of Rogue One, I wouldn't bet a counterfeit wooden nickel on them willing that court case - Disney will win on attrition alone.

    After all, it is power, not money, that perpetuates this behavior.

    • Still wondering why so many such companies insist on setting up shop in the US, instead of other (more copyright-friendly) parts of the world. Thanks to the Internet they can serve the rest of the world (including USA) just fine.

      And if it's to do with payments, well, time to release the stranglehold by that one country over the rest of the world as well.

  • In reading a Forbes article on VidAngel, they make reference to the 2005 "Family Movie Act" (FMA) that vidangel is using as it's primary defense. The fact that the FMA exists at all is horrible. According to Forbes [forbes.com]:

    The FMA, as it relates to filtering technology, provides an exemption from copyright infringement for the use of technology in the home that can edit a DVD or an “on-demand’ streaming film on the fly, resulting in a temporary “censored” version of the film. From a copyright standpoint, this simply means that the companies offering the technologies are not required to obtain a license to create the “derivative” censored version of the film.

    The frustrating part about this law is that Americans ALREADY had the right to do that. I bought the DVD, I have a license to it, and I can create all the derivative works I want SO LONG AS I DON'T DISTRIBUTE THEM. I am sick of laws saying "You can do X with copyrighted content" because it im

I have hardly ever known a mathematician who was capable of reasoning. -- Plato

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