FilmOn Countersues Fox Over Aerokiller

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

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.