This is an archived article that was published on sltrib.com in 2016, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
The Provo-based streaming site VidAngel Inc. is under fire from four Hollywood companies that claim in a federal lawsuit the company has failed to pay for movie and television rights.
The plaintiffs — Disney Enterprises, Inc., Lucasfilm Ltd. LLC, Twentieth Century Fox Film Corporation and Warner Bros. Entertainment Inc. — have filed a suit in U.S. District Court in California, accusing VidAngel of competing with other streaming sites, like Netflix, Hulu and iTunes, without getting permission from the plaintiffs to use their content, according to court documents.
Through VidAngel's site, users can "buy" a movie for $20, view it and then "sell" it back for $19 in VidAngel credit that same day.
VidAngel operators can allegedly offer the cheaper rate because they haven't paid the same fees as other streaming sites, which plaintiffs say "blatantly violates the Copyright Act and confers on itself unfair and unlawful advantages," court documents say.
The lawsuit contests claims by VidAngel that their actions are legal because VidAngel sells instead of rents programs to users.
VidAngel also attempts to justify their actions through the Family Movie Act, which allows companies to edit films — usually for so-called inappropriate content — but only with the permission of copyright holders, the lawsuit says.
The lawsuit asks for reparations from VidAngel, "its affiliates, agents, servants, employees, partners and all ... participants," including damages to the plaintiffs and profits from the defendant, injunctions prohibiting the distribution or public view of the plaintiff's copyrighted work, prejudgment interest and attorneys fees.
The plaintiffs also have requested a jury trial.
In 2006, U.S. District Judge Richard P. Matsch ruled against similar video-cutting companies — including Utah County-based Cleanflicks — in a copyright lawsuit filed by 16 Hollywood directors, forcing the firm to shut down operations.
VidAngel on Wednesday released a statement saying the company "empowers consumers by allowing them to filter certain content from movies or TV shows they own."
VidAngel CEO Neal Harmon said: "We created this company because — as parents and consumers — we understand deeply the surging demand for filtering content to suit the needs of families.
"We are confident in our case, and equally confident that the interests of consumers will prevail."
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