AFL boss warns Optus over rights deal

3 Feb 2012, 10:30 am   -   Source: AAP
0 Comments
Share This
+ Comment
0
Demetriou said Telstra had indicated it would honour its five-year agreement. Telstra, however, could not confirm its commitment. (File AAP)

Demetriou said Telstra had indicated it would honour its five-year agreement. Telstra, however, could not confirm its commitment. (File AAP)

Sporting bodies are facing a legal and potentially lengthy parliamentary battle to protect exclusive internet broadcast deals.

RELATED

The AFL has vowed to take every legal avenue available to protect its multi-million dollar broadcast rights deal with Telstra, but its fight might take up to two years.

AFL chief executive Andrew Demetriou has warned Telstra's rival Optus that its victory in the Federal Court allowing it to broadcast recorded matches on mobile platforms would be shortlived.

The AFL, NRL and Telstra will appeal the judgement which blurs the AFL's $153 million deal with the telco and throws the NRL's ongoing negotiations into jeopardy.

"We will have our day yet again. We will go through the proper legal processes and exploit all of our avenues through appeal," Demetriou said.

"They can crow all that they like today, but this has a long way to play out."

Demetriou said Telstra had indicated it would honour its five-year agreement. Telstra, however, could not confirm its commitment.

Copyright lawyer David Brennan believes even if the leagues and Telstra successfully appeal, Optus would then take it to the High Court which could restore the original judgment.

The ultimate action for the sporting codes and Telstra is for federal parliament to change the out-of-date legislation to keep up with technology and tighten up the exclusivity of broadcast deals.

But Mr Brennan says any change to the Copyright Act could take as long as two years to get through parliament, but the lobbying will begin immediately.

Although Telstra holds exclusive internet broadcast rights for the AFL and NRL, Justice Steven Rares ruled on Wednesday that Optus customers can record any free-to-air TV program and play it on mobile devices at a later time, even as soon as two minutes after the program begins.

Brennan said many issues in Justice Rares' ruling were contestable.

"Until there's an appeal, I don't think anyone can be really confident as to what the law of the land is," he said.

"If I was Optus I wouldn't be building my house entirely on the strength of this judgement. Everyone involved would be prudent to wait until that is settled."

Optus chief executive Paul O'Sullivan said the decision was about consumers' rights.

"Yesterday's decision continues to allow millions of Australians to record and play back free to air TV at their convenience - just as they have done since the VCR arrived in Australia and continue to do so today via emerging digital services like TiVo, Play TV and Foxtel IQ," O'Sullivan said.

But Demetriou was adamant Optus was breaching copyright and jeopardising sports which rely on millions of dollars from broadcast rights.

"We are absolutely entitled to protect our content and exploit our content," Demetriou told ABC radio on Thursday.

"What we do as a not-for-profit organisation is if we derive returns, we reinvest it into our code.

"We will do everything in our power, everything, to make sure that we protect our content, because that's what it is, it's ours.

"When you have a situation where Optus seek to try and use our content without ever undertaking one discussion with the AFL, that is where we say we think it's a breach of our copyright."

The NRL's 2013-2017 agreement will be finalised this year, but the league is concerned the ruling will impact on cash strapped clubs desperately waiting for a windfall from a new deal.

Cricket Australia, which has a deal with Vodafone, said it will assess the ruling.

The Coalition of Major Professional and Participation Sports (COMPPS), a lobby group which represents the AFL, NRL, ARU, Cricket Australia, FFA, Tennis Australia and Netball Australia, said changing legislation was the most likely solution.

"Certainly key ministers are aware of the situation and the problems it creates for sport," COMPPS executive director Malcolm Speed said.

Speed said coalition members have discussed the issue and will work out their response in addition to the appeal from the AFL, NRL and Telstra which is likely to be lodged within a week.

  • Follow us: 
  • Follow us on Facebook
  • Follow us on Twitter
  • Follow us on Youtube

Join the Discussion

Name
City / Suburb E.g. Artarmon, Sydney
Title
Comment
You have characters remaining.
Validation
What's this?
This is a captcha-picture. It is used to prevent mass-access by robots.
All submitted comments become the property of SBS. They are moderated, so we reserve the right to edit comments and remove HTML tags. Not all submitted comments will be published. Publication does not mean we endorse the opinions expressed. Please read our terms and conditions for more information.