News

Supreme Court rules against online TV company Aereo

Supreme Court rules against online TV company Aereo

AEREO TV:Chet Kanojia, the founder and CEO of Aereo, speaks during an interview. Photo: Associated Press

By Lawrence Hurley

WASHINGTON (Reuters) – The U.S. Supreme Court on Wednesday ruled that online TV service Aereo Inc, backed by media mogul Barry Diller, violates copyright law by using tiny antennas to provide subscribers with broadcast network content via the Internet.

On a 6-3 vote, the court handed a victory to the four major TV broadcasters and cast Aereo’s immediate future into doubt.

The court said the service constitutes a public performance of copyrighted content. For the networks, the victory protects the estimated $3 billion in so-called retransmission fees that broadcasters get from cable and satellite TV systems.

Justice Stephen Breyer said in the majority opinion that the ruling should not spell trouble for cloud-based content services in which personal files – including TV shows and music – are stored remotely on the Internet on servers from companies such as Google Inc, Microsoft Corp, DropBox Inc and Box Inc.

Aereo had argued that cloud services use the Internet in the same way as it does to store and transfer copyrighted content.

The case came before the court when Walt Disney Co’s ABC network, CBS Corp, Comcast Corp’s NBCUniversal and Twenty-First Century Fox Inc appealed a decision by the 2nd U.S. Circuit Court of Appeals in April 2013 that denied their request to shut Aereo down while litigation moves forward.

Aereo, backed by Barry Diller’s IAC/InterActiveCorp, charges users a low monthly fee to watch live or recorded broadcast TV channels on computers or mobile devices. Aereo does not pay the broadcasters.

(Reporting by Lawrence Hurley; Editing by Howard Goller and WIll DUNham)

Recent Headlines

12 hours ago in Entertainment

‘Oregon Trail,’ ‘Sonic’ join World Video Game Hall of Fame

videogamehall2016AP

Last year, "Super Mario Bros." and "Pong" were among the first inductees to the World Video Game Hall of Fame. The class of 2016 is just as strong.

15 hours ago in Entertainment

Seth MacFarlane returning to Fox with new sci-fi series

sethmacfarlane536713938826

The "Family Guy" star is producing a new series set 300 years in the future.

17 hours ago in Music

Alabama, Sam Moore land Nashville honors

alabama234908545138

Country stars Alabama and soul singer Sam Moore are set to receive stars on the Music City Walk of Fame in Nashville, Tennessee.

18 hours ago in Music

Randy Houser is a married man

randyhouser442778222921

The couple exchanged vows at the Homestead Manor in Franklin, Tennessee on Wednesday in front of 120 guests.

18 hours ago in Music

Gwen Stefani calls Blake Shelton a ‘facelift’

20-overlay-4

The No Doubt hitmaker credits her relationship with the country star for keeping her looking young.