Aereo wins battle with big networks over right to stream TV online

http://www.guardian.co.uk/media/2013/apr/01/aereo-battle-networks-tv-online 

Judge in New York rules that Aereo, which airs shows online without paying
fees to media firms, does not breach copyright
• Dominic Rushe in New York
• guardian.co.uk, Monday 1 April 2013 20.57 BST

Aereo, which is backed by Barry Diller (above), was launched in March 2012
in the New York area at a cost to subscribers of $12 a month. Photograph:
Karen Bleier/AFP/Getty Images

The media mogul turned internet baron Barry Diller won a significant battle
with broadcasters on Monday over his plans to deliver TV over the web.

By a vote of two to one, a federal appeals court rejected a request from big
media companies including Disney, CBS and News Corporation to halt Aereo, a
startup backed by Diller, from airing their shows over the internet.

Aereo subscribers pay $12 month to stream live broadcasts of TV channels on
mobile devices. The company, owned by Diller's IAC, does not pay fees to the
media companies whose programmes it redistributes. Aereo, which launched in
March 2012 in the New York area and plans to expand to 22 US cities, says
that because it assigns small antennae to each customer it is not in breach
of the law.

The company's critics were seeking an injunction, arguing that the service
is illegal. "This case is not about stifling new video distribution
technologies, but about stopping a company from violating our copyrights and
redistributing our television programming without permission or
compensation," the media firms said in a statement last year.

But the media owners have now lost on two separate occasions. On Monday the
court of appeals for the second circuit in New York ruled Monday that the
redistribution did not constitute "public performances," and copyright
lawsuits against the service were "not likely to prevail on the merits."

The court cited the case of Cablevision, which won the right to create a
cloud-based digital video recorder for its customers in 2008. But one
dissenting judge, Denny Chin, called Aereo's technology "a sham". Chin wrote
that the company was using a multitude of antennas in order to take
advantage of "a perceived loophole in the law."

"Today's decision from the second circuit court of appeals again validates
that Aereo's technology falls squarely within the law – and that's a great
thing for consumers, who want more choice and flexibility in how, when and
where they can watch television," said Chet Kanojia, Aereo CEO and founder
in a statement. "We may be a small start-up, but we've always believe in
standing up and fighting for our consumers."

The case is unlikely to stop here. Broadcasters including Fox and PBS said
they were considering their options. "The court has ruled that it is OK to
steal copyrighted material and retransmit it without compensation. While we
are disappointed with this decision, we have, and are, considering our
options to protect our programming," the group said in a statement.



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