RedLasso not shuttering despite nets' legal threats

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Video site RedLasso has refused to suspend its operations after receiving a cease-and-desist order from CBS, NBC and Fox.

Responding to last week's order from the networks to stop hosting unlicensed clips of their content, RedLasso instead suggested that a deal could be reached. To that end, RedLasso has recruited former CBS Corp. CEO Michael Jordan to join the company as a senior adviser.

RedLasso is an online broadcast content tools site that allows bloggers to edit content and make clips. The platform has been used on MySpace, Huffington Post, Perez Hilton and AOLFanhouse.

In a statement that was to be delivered to the legal counsel of the networks Thursday, RedLasso said it "will continue to make its site available for use by bloggers providing social commentary on newsworthy events as it continues to work toward cooperative, mutually beneficial arrangements with those and other content providers."

The networks, along with TV station owner Allbritton Communications Co., said the company has done "serious and irreparable harm" to their businesses and that it has broken state and federal laws. There was no immediate network response to RedLasso's offer for a deal.

RedLasso COO Al McGowan said the site is open to working with content providers.

"We would very much like the networks to join us in our goal to monetize the value created by the online blogging community and to work with us to structure a deal to capture an acceptable share of it," McGowan said. "Our goal was always, and continues to be, the development of a platform that would be beneficial both to the content providers and the blogging community. And we're hopeful for constructive negotiations with the content providers."

The hiring of Jordan could give RedLasso the right executive to secure an agreement with the broadcasters. Jordan is best known for transforming CBS in the wake of its acquisition by Westinghouse Electric in 1995.

RedLasso launched in November. In April, it said had it 24 million unique visits and 10 million video plays. (partialdiff)
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