Video Pipeline, offers off-line and on-line previews of videos. For many years, its off-line preview tapes have been sold to video stores for viewing by customers. The company then began selling a service to on-line video sellers, allowing them to link to on-line clips hosted by Video Pipeline.
Video Pipeline argued that it should not need a copyright owner’s permission before showing promotional clips on the internet. Disney-owned Buena Vista disagreed. It argued that, although Video Pipeline has permission to sell video clips to brick-and-mortar retailers, it is not allowed to disseminate that same content on-line.
Judge Simandle indicated that he tended to agree with the movie companies, rejecting Video Pipeline’s arguments of fair use under copyright law, of freedom of speech, and its allegations that Buena Vista’s conduct was anti-competitive.