Mobile TV faces legal hitch over ad rights

Mark Sweney
Wednesday August 9, 2006
MediaGuardian.co.uk

Mobile TV: broadcasters may need to clear rights separately to show TV ads

The broadcasting of TV shows over mobile phones has hit a legal grey area over advertising rights that may hamper the roll-out of several new services in the fledgling, but potentially lucrative, market.

Legal problems could temporarily affect ITV1's new simulcast channel deal with mobile company 3 and Virgin's roll-out of a mobile TV service backed by broadcasters.

At the heart of the problem is the question of whether broadcasters need to clear the rights separately to show TV ads over digital channels.

Channel 4, which last month pulled ads from its simulcast broadband TV service over this issue, has maintained that broadcasting online is simply "an extension of its TV activities".

However, the Institute of Practitioners in Advertising has raised the potential issue of actors and musicians suing agencies over copyright infringement.

ITV is launching its service, which will simulcast ITV1 content such as Coronation Street on 3's network, in the autumn.

The broadcaster is to enter discussions with the IPA and other key parties about securing mobile rights, but it may be necessary initially to launch the ITV mobile TV service with no advertising.

Virgin, which is yet to announce broadcast partners, is also planning an autumn launch for a mobile TV offering.

The IPA has been planning to tackle the issue once and for all with a large-scale meeting of all the parties involved, but this is not thought to be likely to occur until next month.

Because the mobile TV market is in its infancy, the issue does not have the same urgency as resolving the rights clearance issue for ads in the increasingly popular broadband TV market.

Channel 4 is yet to resume running ads on its broadband service.

It is also thought that mobile TV will be simpler to resolve because geographically the services will be available only within the UK.

Broadband TV services could be accessible internationally, creating a much larger headache when it comes to the main sticking point of music rights.

Last month, Australia changed its laws to bring live webcasts within the remit of broadcast content regulation, following the internet streaming of an alleged sexual assault during Big Brother.

The law change was prompted after Network Ten in Australia was able to avoid prosecution over the incident because in a legal loophole, the internet fell outside existing TV regulation.

The UK broadcasting industry regulator, Ofcom, has taken the position that, wherever possible, it actively wants to avoid regulating the internet.

Ofcom - in line with the government - has made clear its opposition to the European commission's proposal to extend the scope of broadcasting regulation to include new media platforms such as the internet.