… Well it isn’t now! When a football competition is not protected by competition law

A recent court decision on a matter of copyright and competition law concerning the broadcast of Premier League football matches may have radical repercussions for the way football and other sports are funded.

Following a ruling from the Court of Justice of the EU (CJEU) in October, the High Court recently quashed a conviction against pub landlady Karen Murphy for showing English Premier League football matches using a foreign decoder. The decoder and card were bought from Greece, rather than the card and decoder supplied by Sky® television, who own the broadcasting rights for Premiership football in the United Kingdom. The cost of showing the Premiership matches through her Greek decoder and the Greek TV station Nova was 800 pounds per year, rather than the 700 pounds through Sky.

It is a Court case that has rumbled on for six years following a prosecution for showing live football at the Red White and Blue in Portsmouth, when Mrs Murphy had been fined over 8000 pounds.

There were questions raised regarding both copyright law and competition law. In a previous judgement in October 2011, the CJEU ruled that having a system that permitted exclusive broadcasting rights in one country was “contrary to EU law”. The Premier league would therefore have to try to rely on copyright law to protect their rights.

The CJEU ruling continued: “National legislation which prohibits the import, sale or use of foreign decoder cards is contrary to the freedom to provide services and cannot be justified either in light of the objective of protecting intellectual property rights or by the objective of encouraging the public to attend football stadiums.”

The result was not an outright win for Mrs Murphy, as copyright law could still be used to protect the football matches. According to the CJEU, the opening video sequence, the Premier League anthem, and pre-recorded clips showing highlights of recent Premier League matches and various graphics could be protected by copyright.

“By contrast, the matches themselves are not works enjoying such protection,” says the ruling. Despite this, the Premier League, understandably, decided to focus on one aspect of the ruling, saying “Should Mrs Murphy, or any other publican, use European Economic Area foreign satellite systems to show Premier League football on their premises without our authority and outside the scope of our authorisation, they make themselves liable for us to take action against them in both the civil and criminal courts.

The Premier League raises vast sums of money from Sky subscribers. Indeed, it is Sky money that is often credited with the rise of the Premier League and the overwhelming success of British teams in European football competitions, and their ability to sign world class footballing talent. Premier League teams are reliant on the money they receive from broadcasting rights. Arguably, this ruling could introduce competition into the field, which may benefit consumers in terms of the price they pay to watch football, but may have a significant impact in terms of how football – and other sports – is funded.

The wider legality of screening football matches is yet to be decided, and a lot of interested parties are keeping a very close eye. However, one way in which broadcasters may be able to strengthen their position is by ensuring broadcasts are “watermarked”. By this, we mean that certain copyright materials, for example information in the background where a match is being played or some form of continual on-screen translucent logo presence, can be incorporated into the broadcast. Similarly, breaks between match play and replays can be separated by a short video sequence that attracts copyright. This way, even if competition law cannot be used to prevent unauthorised broadcasts, copyright law may be of assistance as removal of the watermarks is impractical.

Is Apple’s recent victory in a Munich court a hollow victory?

A great deal of attention has been given in the tech/legal media to the Apple patent known as the “slide to unlock” patent. It was recently litigated in Germany.

Those familiar with Apple products will know that it is possible to lock some iPods and iPhones to prevent unauthorised use. To unlock the device, a user has to slide a so-called “slider” across a portion of the device’s screen. This is sometimes accompanied by a request to enter a pin code.

Apple claimed that the patent was infringed by an unlock feature used by two of Motorola Mobility’s (MM’s) smartphone products that run Google’s android operating system. The mention of Google’s operating system is bit of a red herring, because the exact implementation of the unlock feature is a manufacturer matter as opposed to something mandated by Google’s Android operating system. Google is, though, in the process of acquiring MM, which does make things interesting.

A court in Munich has now announced a decision in Apple’s favour, but this does not extend to MM’s Xoom product. However, in a recent statement, a spokesperson for Motorola Mobility stated that this decision will not affect current supply or future sales. Nevertheless, we understand that MM has decided to change the unlocking feature.

It’s not clear whether MM will nevertheless appeal the decision, but what is clear and almost completely ignored by most of the media is that this is not the whole story. In Germany, patent validity is handled by a different court to patent infringement. You therefore have a two-track system. This means that although one court may find a patent is infringed, the other court may find the patent invalid in which case the fact that the patent is infringed is all very interesting, but doesn’t really get you anywhere because you never had any valid patent rights in the first place.

Typically, a court handling the infringement case refrains from making a decision before there has been a pronouncement on the validity of the patent in question. This was also the case for the Apple patent. However, it seems that Apple managed to persuade the court that MM’s attack on the validity of their patent was unlikely to succeed.

Whether this is how things will play out in the court is an entirely different matter. All we will say is that one poster on a news website recently observed that the front gate outside his house had a slide to unlock feature! The matter of validity may therefore not yet be in the bag for Apple. Indeed, a Dutch court has, in the past, declared invalid a corresponding Dutch patent for the same invention.

As the song, album title and saying goes: it ain’t over ’til it’s over!