By Don Jeffrey –
2012-05-30T14:22:27Z
Broadcasters told a federal judge
that the online television service Aereo Inc., which is backed
by Barry Diller, violates copyrights by allowing subscribers to
view programs on computers and smartphones and should be shut.
Aereo said consumers have the right to watch TV shows using
an antenna without infringing copyrights. Both sides are
presenting opening statements today in Manhattan before U.S.
District Judge Alison Nathan, who must decide whether to issue
an injunction to ban Aereo.
Networks including Walt Disney Co. (DIS)’s ABC sued Long Island
City, New York-based Aereo in March, saying that it hadn’t paid
for the right to offer their programming through an Internet
service set to begin that month. New York City subscribers can
access TV stations’ broadcasts with a remote antenna and a
digital video recorder for $12 a month.
“Although other distributors, including cable and
satellite operators and telephone companies, pay to retransmit
the same programming, Aereo’s business is based on circumventing
the carefully balanced distribution system mandated by
Congress,” the networks said in their complaint.
In a statement, Aereo spokesman Mike Schroeder said,
“Consumers are legally entitled to access broadcast television
via an antenna and they are entitled to record television
content for their personal use.”
Diller’s digital media company IAC/InterActive Corp. led a
$20.5 million round of financing for Aereo, it was announced in
February. Diller, who is on Aereo’s board, once ran News Corp. (NWSA)’s
Fox Broadcasting Co.
Chet Kanojia is the founder and chief executive officer of
Aereo. He is also chairman of Navic Systems Inc., a provider of
computer-programming services based in Waltham, Massachusetts.
The cases are American Broadcasting Cos. v. Aereo, 12-1540,
and WNET v. Aereo, 12-1543, U.S. District Court, Southern
District of New York (Manhattan).
To contact the reporter on this story:
Don Jeffrey in New York at
[email protected]
To contact the editor responsible for this story:
Michael Hytha at
[email protected]
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