FilmOn Countersues Fox Over Aerokiller

Says company is discouraging app clients; Fox says it is happy to put legal spotlight on business practices

By John Eggerton -- Broadcasting & Cable, 11/12/2012 3:50:01 PM

FilmOn, the online video service, has sued the Fox for allegedly trying to kill its app business.

Fox, which said it had not seen the suit at presstime, had a short answer that translated to: Bring it on, FilmOn.

"[W]e welcome the opportunity to let the court determine the legitimacy of [FilmOn founder and chairman Alki] David's business practices," said the company in a statement.

The FilmOn suit is not over the FilmOn service per se, which was blocked by a court from streaming TV station signals over the Internet without paying for them. Instead, according to a copy of the suit obtained by Deadline it is about what the company says is Fox's disparaging to potential clients of FilmOn second-screen apps used by its partner, Aereokiller, to provide online video subs access to TV stations via remote off-air antennas and DVRs. That service is aimed at competing with Barry Diller's Aereo TV, which a court refused to block when petitioned by broadcasters who said Diller was trying to retransmit their signals without compensation.

Fox sued Aereokiller back in August, and the other networks have reportedly followed suit.

Look for Fox lawyers, when addressing David's "business practices," to bring up allegations that FilmOn's online video service continues to deliver out-of-market TV station signals to its subscribers despite a court injunction and the reported settlement last August.

David had not returned requests for comment on the suit or the allegations of continuing to deliver out-of-market TV station signals.