eighth Circ. Denies Municipality’s Class Motion Towards Netflix, Hulu Underneath State Franchising Legislation

The U.S. Court docket of Appeals for the Eighth Circuit affirmed a district courtroom’s dismissal of a category motion declare introduced by the town of Ashdown, Arkansas, towards Netflix and Hulu searching for compliance with the state’s 2013 Video Service Act, which established a statewide franchising scheme for video service suppliers.

According to the Nov. 8 opinion, the VSA permits suppliers to both negotiate franchises with particular person political subdivisions in Arkansas, or to acquire a certificates of franchise authority from the secretary of state, which might cowl a number of subdivisions. Suppliers holding a certificates can be licensed to make use of the general public right-of-way to ship video service for a price paid to the subdivision.