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June 25, 2014

U.S. Supreme Court rules against Aereo

The U.S. Supreme Court ruled 6-3 that Aereo's system for retransmitting broadcast television over the internet infringed broadcasters' public-performance rights.

Historical context

Startups were testing whether cloud computing, remote DVRs and individualized streams could deliver traditional television without the retransmission fees paid by cable and satellite operators. Broadcasters saw Aereo as a threat not only to copyright control but also to the retransmission-consent revenue underpinning the U.S. television system.

What happened

Aereo assigned users tiny remote antennas and streamed over-the-air television to their devices, arguing that its architecture made the transmissions private rather than public performances. The Supreme Court rejected that position and held that Aereo operated sufficiently like a cable system for its transmissions to fall under copyright law.

Consequences

The decision destroyed Aereo's core business model and reinforced broadcasters' ability to control internet retransmission of their signals. It also became an important legal boundary for cloud-based media services, while the dissent warned that an imprecise resemblance-to-cable standard could create uncertainty for new technologies.

Related people

Sources

  1. Aereo ruled illegal by US supreme court as broadcasters win copyright battleThe Guardian
  2. Aereo loses as Supreme Court sides with broadcastersThe New York Times / San Antonio Express-News