The TV networks have finally lost patience and have filed a lawsuit against the controversial online video clipping service RedLasso, accusing it of copyright infringement. The suit, filed by NBC Universal (NYSE: GE), Fox News Network and Fox Television Stations in the U.S. District Court in Manhattan, alleges RedLasso hasn't been licensed or authorized by the networks to reproduce copies of their news and entertainment programming, reports WSJ.

In May, CBS (NYSE: CBS), NBC and Fox demanded that the company stop making their content embeddable without their permission. RedLasso's response then: It would continue to make its site available for use by bloggers, even as was working toward a mutual agreement with the networks..its defense: fair use. For that purpose, it also hired Michael Jordan, former Westinghouse Corporation and CBS CEO as a senior advisor, to serve as a liaison in these negotiation. Seems like that didn't work. The startup had raised about $6.5 million in funding previously from Anthem Capital, Osage Ventures, the Guggenheim Opportunity Fund and others. Read the full article