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VMedia argued the channels were fair game because they were available for free over-the-air and VMedia was a licensed broadcaster. Bell countered that it only gave VMedia permission to broadcast the channels in a closed system, not using any Internet connection. The parties sued each other.

The judge agreed with Bell, noting the case hinged on the simple issue of whether VMedia’s service was a new media retransmitter. He ruled that VMedia’s service was indeed since it was delivered and accessed over the Internet. New media retransmitters are not permitted to broadcast over-the-air channels without consent.

VMedia is disappointed with the ruling, but will comply with the judge and remove CTV and CTV 2 from its package, VMedia’s George Burger said Tuesday. It will continue to offer the service but only with channels that have given express consent, such as the Weather Network, he said.

In his ruling, Justice Frederick Myers noted the court does not set broadcasting policy, but interprets existing laws.

“Then cable TV was invented… And Parliament said this was good,” he wrote in a brief discussion of over-the-air copyright laws for TV and new media. “Then the Internet was invented… And Parliament said this was bad.”

“If technology has overcome the existing laws and policies, it is open to interested parties to put the issues before the CRTC to try to revise the policies,” Myers wrote.