Netflix, Hulu Add NJ Victory to List of Franchise-Fee Court Wins

Netflix Inc. and Hulu LLC notched another win against local franchise fees Thursday when a federal appeals court ruled that New Jersey localities can’t charge them for using public rights of way.

The New Jersey Cable Television Act gives the state public utilities board full authority to enforce the franchise fees that cable companies owe municipalities, the US Court of Appeals for the Third Circuit ruled. The act “does not imply a right of action for municipalities to enforce the fee provision,” Judge Jane R. Roth wrote for the court.

“If every municipality had an implied right to sue ...