October 4, 2011

The ECJ today ruled in favour of a pub landlady in a case which could change the way that sports broadcasting rights are sold. Karen Murphy, landlady of the Red, White & Blue pub, had been prosecuted for using a Greek satellite decoder to show football matches in her pub, instead of using a more expensive Sky decoder. BSkyB has been licensed by the FA Premier League to broadcast its matches within the UK on an exclusive basis and both Sky and the Premier League had been keen to protect that exclusivity and had sought to prosecute Ms Murphy for ‘illicit use’ of a foreign decoder. But the ECJ has now ruled that “national legislation which prohibits the import, sale or use of foreign decoder cards is contrary to the freedom to provide services” under European law.

The case could have huge implications for rights holders such as the Premier League, whose large incomes from broadcasting deals rely on the rights holder being able to award rights exclusively on a territory by territory basis.