VidAngel, a Utah-based video editing company, filed for Chapter 11 bankruptcy following a drawn-out legal battle with Disney, Warner Brothers, and 20th Century Fox over streaming and editing rights.
The CEO of the company told subscribers and shareholders that chapter 11 bankruptcy is a good thing, placing a pause on the current lawsuits in California and focus on their lawsuits in Utah to claim that the service is legal. VidAngel’s official blog
VidAngel’s service started as a video streaming service that filtered content from the film on-demand for viewers. Later editions of the service were a subscription-based filtering add-on to popular streaming services like Netflix.
The Argument that VidAngel took in its lawsuits was that the Family Movie Act of 2005 allowed family to edit content on copies of films that they own. This includes editing the film themselves all the way down to the right to skip and fast-forward through scenes in your home.
The Argument from movie producers is that Vid Angel had no right to sell their edited films for profit and that the profits from Vid Angel cut into the potential profits for the studio as well as streaming without permission. The lawsuits against Vid Angel started in 2016 and have continued with VidAngel regularly stating that they will fight all the way to the Supreme Court.