National Subscription Television v. Formula International, Inc.

*311 Opinion

Defendant Formula International, Inc. (Formula) appeals from a denial of a motion to set aside the preliminary injunction obtained by the plaintiff, National Subscription Television (National).

Procedural and Factual Summary

National operates a subscription television business marketed under the name “ON-TV” (ON). National broadcasts its programming in Southern California during evening hours over KBSC, channel 52.

KBSC uses a scrambled signal to broadcast ON programming, so that ordinary television sets tuned to channel 52 receive unintelligible video. Subscribers to the ON programming are furnished decoders which unscramble the signals to provide intelligible reception.

National charges subscribers an installation fee plus a monthly fee of $22 to cover programming and rental of the decoder device.

Formula is a retail distributor of electronic parts in Southern California. Formula began selling its customers kits which include a parts list, a circuit board and all the instructions and components necessary to assemble a decoder which can unscramble the ON signals.

National brought suit against Formula, seeking to enjoin Formula from selling any device, kit or…