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SINGAPORE: An internet start-up is suing Singapore's largest broadcaster, MediaCorp, for millions of dollars in a case that places web-based recording services under the spotlight.
MediaCorp in turn claims RecordTV is infringing the copyright laws in its programmes and broadcasts by allowing users to record programmes shown on Channel 5, 8 and Channel NewsAsia.
At the crux of the matter is whether a company can offer recording services of free-to-air TV programmes to internet users who want to view them online. Is the company infringing copyright laws by doing so?
MediaCorp, represented by Senior Counsel Davinder Singh, alleges that RecordTV makes unauthorised copies of MediaCorp's programmes. RecordTV users, who have to be based in Singapore, then have up to 15 days to view the programmes.
RecordTV has been operating the internet-based service since July 2007. RecordTV's CEO, Carlos Fernandes said the service is just like having a video recorder at home.
The company is suing MediaCorp for groundless threats of copyright infringement. It said the copies of MediaCorp's programmes are simply made by the consumers and are for private use.
Day One of the trial on Monday saw Mr Singh alleging that RecordTV was out to make money from the service. Although free for now, Mr Singh said the company had a projected revenue of S$12.3 million from the time it started till now.
Streams of potential revenue included subscription, advertising and licensing fees.
Mr Fernandes agreed during cross-examination that RecordTV's business model does have the potential to "grow exponentially" and if taken to its fullest potential, the company could be worth more than S$30 million.
The company is seeking damages for loss of value or business potential amounting to S$23 million and a loss of S$7.5 million in funding among other things.
The defendants also challenged Mr Fernandes' credibility pointing to information he had sent to potential investors. Mr Fernandes agreed that some of these were "exaggerated and stretched" to "show the potential" of his company.
Mr Fernandes had claimed in emails to investors that RecordTV had 100,000 registered users. But it was found that these users were, in fact, not based in Singapore and were inherited from a US-based company that sold off its assets.
On RecordTV's accusation that MediaCorp is making a groundless threat to "stifle innovation and the growth of a new industry", Mr Singh said Mr Fernandes had in fact taken "false credit for the work of someone else" as the idea for a web-based recording service had been around in the US since the year 2000.
Mr Singh added: "These are serious allegations made of the defendant who is a national broadcaster, we are entitled to challenge and debunk them."
Record TV's website is currently temporarily unavailable. The trial continues on Tuesday. - CNA/vm
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