Rugby League looks set to reap the benefits of a big broadcasting deal following the federal court's decision to ban Optus customers from recording matches.
Rugby league's hopes for a lucrative broadcast deal are back on track after the federal court banned Optus customers from recording and watching football matches on delay.
A full bench of the Federal Court on Friday upheld an appeal from the AFL, NRL and Telstra against an earlier ruling that allowed Optus customers to use the TV Now service to record matches and view them on their PCs, phones and other devices.
Justices Paul Finn, Arthur Emmett and Annabelle Bennett overturned an earlier Federal Court ruling that Optus had not breached the Copyright Act with its TV Now service.
While AFL chief executive Andrew Demetriou said it was a common sense decision, the Australian Rugby League Commission look set to reap the most benefit as they continue negotiations for the broadcast deal.
ARLC chief executive David Gallop said the timing of the decision is significant, with the code reportedly currently seeking a new broadcasting deal worth upwards of $1.2 billion.
"We have partners who are working with us to develop innovative new ways of experiencing the game and they are doing so in ways that benefit the fans, the players and the sport in general," Gallop said in a statement.
"It is important that we all share in the opportunities that new technology provides but this can't be at the expense of our basic commercial rights and this is an area that government needs to continue to address."
Gallop said the decision recognised the rights of sports.
"We have always believed there was a clear principle in play here: that the sports are entitled to control who shows their events and who profits from those events," he said.
"Companies should not be able to profit from our content without investing in the sport itself."
Demetriou said the decision vindicated the strong stance taken by the leagues and said it protected the $153 million rights deal Telstra has with the AFL.
"It is a relief for not just AFL but for all sporting codes who rely heavily on these rights and the revenue from these rights," he told reporters.
"Today's decision is a win for all sports in this country.
"I thought Optus' behaviour was unethical and inappropriate. It will be a long time before we speak with Optus."
He warned Optus about challenging the decision.
"They have to think very carefully about that. The three Federal court judges were unanimous. Any appeal would be costly and take time," he said.
Justice Finn told the Federal Court that Optus was the maker of recordings, and that meant the company was in contravention of copyright laws.
The February ruling found TV Now did not breach copyright laws as its customers were responsible for the recordings, similar to a person using a video or digital recorder.
But justices Finn, Emmett and Bennett ruled TV Now recordings were "not made by the subscriber alone".
"It was made either by Optus alone or by Optus and the subscriber," they said in the judgment.
Telstra also welcomed the ruling.
"This judgment is a great result for everyone who cares about the financial health of Australian sport," a spokesman said.
"It ensures that sports bodies, and Australian content owners more generally, are able to receive a fair return from their property."
Optus have said they are reviewing the judgment and their options.
