A startup which captures over-the-air television for Internet viewing violates copyright laws, the US Supreme Court ruled Wednesday, in a landmark case affecting the tech sector and TV industries.
The court ruled 6-3 that Aereo illegally retransmits broadcast signals, despite the claim that its tiny personalised antennas merely allow customers to watch or record what would be free TV programs.
Justice Stephen Breyer wrote in the majority opinion that Aereo effectively operates like a cable company and must therefore pay for broadcast rights.
The decision hands a major victory to the broadcast and cable industries, which said that Aereo was threatening their business models. Breyer said the case "makes clear that Aereo is not simply an equipment provider" but that its "activities are substantially similar to those of the (cable) companies."
"Aereo sells a service that allows subscribers to watch television programs, many of which are copyrighted, almost as they are being broadcast," he wrote in the opinion. The top US court reversed a lower court decision that had been in favour of Aereo, and sent the case back for further proceedings, which could determine if any penalties are to be imposed.
At stake are billions of dollars in fees paid by cable and satellite firms, which Aereo circumvents, in what could be the most significant copyright case in decades.
Aereo, which is backed by media mogul Barry Diller, launched in early 2012 in the New York area and was immediately sued by the major broadcast networks - ABC, NBC, CBS and Fox - for copyright infringement.
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