Locast being sued

Locast/SFCNY already won one court battle when the judge refused to issue an injunction shutting them down while the case is pending. I would also note that Locast was operating for more than a year before AT&T donated to them last June. There has never been any evidence that Dish has donated anything more than including their app on the Hopper receivers. David Goodfriend has mentioned several times in interviews that he asked Dish's Charlie Ergen for a donation and was turned down. As long as the IRS agrees SFCNY is a legitimate 501(c)(3) non-profit, I think the networks will have a tough battle proving that the non-profit provisions of 17-USC-111(a)(5) don't apply.

(5)the secondary transmission is not made by a cable system but is made by a governmental body, or other nonprofit organization, without any purpose of direct or indirect commercial advantage, and without charge to the recipients of the secondary transmission other than assessments necessary to defray the actual and reasonable costs of maintaining and operating the secondary transmission service.

(Emphasis added)

17 U.S. Code §111.Limitations on exclusive rights: Secondary transmissions of broadcast programming by cable