8th Circuit Affirms Dismissal of Streaming Franchise Fees Claim

That Arkansas' Video Service Act doesn't expressly bar municipalities from bringing claims doesn't mean it confers a right for municipalities to do so, an 8th U.S. Circuit Court of Appeals panel said Tuesday, upholding a lower court's dismissal of the city of Ashdown's suit seeking video service provider franchise fees from Netflix and Hulu. Judges Steven Colloton, Roger Wollman and David Stras, in a docket 21-3435 opinion inked by Wollman, said it's the state Public Service Commission's right and duty under the VSA to bring a claim. Read as a whole, the VSA's aim is establishing and regulating a statewide franchising system, and recognizing Ashdown's right of action would circumvent that intent, the judges said. Oral argument was in September (see 2209200046).