Earlier quoted context omitted.
The ruling argued that collecting funds to expand more throughout the US was not valid for their non-profit status for some reason that made no sense. The law granting them the exception from copyright law that would have allowed them to stream in the first place strictly limited the way funds could be raised and spent by entities claiming the non-profit exemption. The law is several decades old, and predates the int…
Edit: Not a lawyer, and what follows is intended to be more of outlining my understanding and trying to ask clarification on what I'm clearly missing. Sorry if it sounds a bit defensive. Just a very strange lawsuit, specifically in how the service was forced to shutdown instead of being allowed to continue to operate. Isn't that a valid use of the non-profit status? That as long as the funding from donations was goin…
1) No, it's not a valid use of the money under the restrictions of the non-profit exemption from copyright for re-transmission. The law is quite clear on this point: revenues derived from the violating service must not exceed the actual costs of providing that service. Expansion costs are not related to the costs of providing existing service, therefore they are not permitted under the exemption.
3) PBS is not even remotely the same thing, because it's not the non-profit status that is at issue. PBS owns and/or licenses the content they broadcast and stream, so it does not need an exemption from copyright laws. Locast does not own or license the content it streams, so it does need the exemption, and it violated the explicit requirements for the exemption it needed.
4) But Locast attempted to resolve that and remove the interruptions entirely, but was still required to completely shutdown and was given 0 chance to adjust Historically, using someone's IP without their permission resulted in statutory damages, and Locast should consider themselves lucky they're not on the hook for those, as statutory damages for copyright law can be as much as $150,000 per violation* for willful violations of copyright law. * Tech was able to get away with the ask for forgiveness business model for 3 decades, but generally the law does not operate on "ask for forgiveness" basis. It's irrelevant that they got "0 chance" to adjust since the onus was on them to plan their activities in a way that complied with the law.