The Supreme Court signaled on Tuesday that it was struggling with two conflicting impulses in considering a request from television broadcasters to shut down Aereo, an Internet start-up they say threatens the economic viability of their businesses.
On the one hand, most of the justices suggested that the service was too clever by half, with a business that relies on capturing broadcast signals and streaming them to subscribers for a fee.
“Your technological model,” Chief Justice John G. Roberts Jr. told Aereo’s lawyer, “is based solely on circumventing legal prohibitions that you don’t want to comply with.”
But the justices were also clearly concerned with the impact that a ruling against Aereo could have on future technological innovation.
“What disturbs me on the other side,” Justice Stephen G. Breyer said, “is I don’t understand what the decision for you or against you when I write it is going to do to all kinds of other technologies.”The Supreme Court heard oral arguments this morning in a case that will decide the fate of Aereo, a young New York-based company that streams local broadcast television to customers’ computers, phones and tablets for $8 dollars each month.
Aereo customers can view many of the same local television channels accessed for free by those who use more conventional “bunny-ear” antennas. The company’s technology also enables customers to record and store television programs.
The broadcast networks, which include ABC, NBC, Fox and CBS, accuse Aereo of unlawfully transmitting their copyrighted TV content without paying for licenses. Aereo argues that its service is the legal equivalent of selling customers an antenna and a DVR. The only difference: its service operates in the cloud and charges a monthly rental fee rather than a lump sales price.U.S. Supreme Court justices appeared skeptical on Tuesday about online TV service Aereo Inc's position in a copyright dispute with major broadcasters, but several raised concerns about how a ruling against the startup could affect cloud computing services.
The case is important to the future of television, for media companies and consumers alike, in part because a win for Aereo could spur innovation in the industry by paving the way to new, cheaper ways for consumers to watch shows. It could also threaten the estimated $3 billion in so-called retransmission fees that broadcasters get from cable and satellite TV systems.
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