Supreme Court rules Aereo is illegal

Written By Unknown on Rabu, 25 Juni 2014 | 22.26

In a landmark tech decision, the Supreme Court has ruled that Aereo, a groundbreaking internet TV streaming start-up, violates copyright law, a ruling that could shut the company down.

Aereo has been sued by nearly every major broadcaster for its $8 per month streaming service.

The Supreme Court said Aereo's transmissions, which are sent over the internet to consumers, are considered a public performance, which falls under copyright law.

To continue streaming the same content, Aereo would have to pay re-transmission fees to the broadcasters, the way cable companies do.

It is unclear what will happen to Aereo, but CEO Chet Kanojia has said repeatedly there is no plan B for the company.

Supporters of Aereo have said a ruling against the company would set a dangerous precedent for the cloud computing industry, but the court disagreed.

"The Court does not believe its decision will discourage the emergence or use of different kinds of technologies," the decision says.

Aereo has raised $97 million in venture financing, including from Boston's Highland Capital. The company has 80 employees in the Seaport District, and among the broadcasters suing was WCVB (Ch. 5).


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