Internet TV Service ivi Chief Vows to Appeal Judge’s ‘Wrong’ Ruling

A federal judge in New York has issued a preliminary injunction against internet TV service ivi, in a closely-watched case pitting an upstart web video service against some of the most powerful entertainment companies in the world.

In a phone interview with Wired.com after the ruling Tuesday, ivi founder and CEO Todd Weaver vowed to appeal the order.

“The judge has it wrong,” Weaver said flatly.

The injunction is a victory for the major TV networks and a setback for the nascent crop of online video distributors aiming to offer an alternative to the major cable and satellite companies. The case highlights the disharmony between copyright law and FCC regulatory policy at a time of rapid evolution and innovation in the online video space.

“Plaintiffs have demonstrated a likelihood of success on the merits of their copyright claim,” U.S. District Judge Naomi Reice Buchwald wrote in her decision. “They also have demonstrated irreparable harm, that the balance of hardships tip in their favor, and that the public interest will not be disserved by an injunction.”

“ivi streams signals to a nationwide audience, without copyright owners’ consent or compliance with the rules and regulations of the FCC,” the judge added.

Launched by Weaver, a Seattle-based entrepreneur, in September 2010, ivi (pronounced “ivy”) immediately drew the legal wrath of several major entertainment companies, including Disney, NBC Universal, Fox Television, and Major League Baseball.

That’s not altogether surprising, considering that the company’s business involves pulling down over-the-air TV signals from 55 stations in New York, Los Angleles and Chicago, and rebroadcasting them over the internet to its users, for $5 per month. Needless to say, ivi does not have the originating stations’ permission to rebroadcast the programming.