Video service RedLasso folds under legal pressure from networks

RedLasso, a digital video re-syndication service, has closed its controversial site after threats of copyright lawsuits from NBC Universal and Fox.

The service digitized live audio and video content, which users could edit and re-arrange into embeddable clips.

In May, Fox, CBS, and NBC delivered a cease-and-desist order to the service which threatened a lawsuit if it didn't conform to copyright law. The networks propounded that the content RedLasso broadcasted was not its to distribute, and said the company had never received permission to do so.

Ken Hayward, CEO of RedLasso said "We believe we have always acted within the law and have been respectful of the networks' rights. Unfortunately, they have forced our hand and are denying the blogging community access to the Redlasso platform that beneficially tracks the usage of newsworthy clips across the Web."

In the brief eight months the service existed, RedLasso saw rapid growth among bloggers who used the site to supplement their news, sports, and gossip content. But the growth never led to any content deals with the networks it broadcasted.

RedLasso issued a statement today announcing that it "has no alternative but to suspend blogger access" to the service. Radio to Web, the company's online platform providing the same service for radio stations, will remain open to its clients, which include Greater Media and XM Radio.