The city of Frisco is pursuing legal action against Netflix, Hulu and Disney to recover franchise fees that the city says haven’t been paid.
On Tuesday, the Frisco City Council authorized City Manager George Purefoy to execute a contract with McKool Smith, P.C., Ashcroft Sutton Reyes LLC, and Korein Tillery LLC for legal services that would aim to help the city in its efforts.
“The city requires legal counsel that specialize in complex litigation and are highly knowledgeable and experienced in the legal issues surrounding the non-payment of franchise fees by the (video service providers),” a resolution from the city states.
According to city documents, the city is looking to pursue claims for monetary damages, declaratory relief and other damages against the three streaming giants as well as other video service providers, for nonpayment of franchise fees as required by state law.
The documents add that the providers deliver video programming to customers using broadband internet through wireline facilities that are at least partially in the public right-of-way.
The city is looking to recover damages for failure to pay franchise fees and to get an order requiring that the video service providers pay the fees going forward, the resolution states.
Frisco is not the only city to pursue legal action against the video service providers. Plano and Dallas are seeking similar action.
The headline in this article has been corrected to reflect the correct spelling of 'pursue'.