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| Aereo wins battle with big networks over right to stream TV online | Aereo wins battle with big networks over right to stream TV online |
| (6 months later) | |
| 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. | 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. | 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, backed 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. | Aereo subscribers pay $12 month to stream live broadcasts of TV channels on mobile devices. The company, backed 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. | 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." | 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." | 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." | "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. | 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. |
| • This article was amended on Tuesday 2 April to clarify IAC's involvement with Aereo. We said Aereo was "owned" by IAC; in fact, it should have read "backed". This has now been changed. | • This article was amended on Tuesday 2 April to clarify IAC's involvement with Aereo. We said Aereo was "owned" by IAC; in fact, it should have read "backed". This has now been changed. |
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