Judge Christina Klineman of the Marion Commercial Court on Tuesday granted motions to dismiss Valparaiso's lawsuit filed by major streaming services and satellite TV providers. That outcome was all but inevitable after the Republican-controlled General Assembly in April 2023 tucked a provision in the sprawling House Enrolled Act 1454 that redefined the term "video service" in connection with the franchise fee to specifically exclude satellite television and video streaming services — retroactive to July 1, 2006. As a result, Klineman said Valparaiso, Indianapolis, Fishers and Evansville no longer have grounds to seek past, current and future franchise fees from Netflix, DirectTV, Dish Network, Disney+ and Hulu.
In her 19-page ruling, Klineman considered, but ultimately rejected, claims by the municipalities that the retroactive law tailored to benefit the video streaming services was unconstitutional. She found the Legislature was within its rights to revise the relevant statute to account for changes brought by the proliferation and consumption of internet-based content — "even if the resolution of the open question ultimately favors one party over the other." "Based on the plain language of this amendment, the court finds plaintiffs' Video Services Franchises Act claims must now fail under (Indiana trial rules) because the relief sought by plaintiffs cannot be obtained in light of the passage of HB 1454," Klineman said.
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