Aereo, an Internet television service, violated the copyright law

US Supreme Court ruling latest in a copyright, so that the traditional television broadcasters and cable networks sigh of relief.

The U.S. Supreme Court ruled that Aereo, an Internet television service, uses tiny antennas to collect broadcast television signals to broadcast programs to paying subscribers over the Internet in violation of copyright laws.

This disappointed some consumers who wanted to watch the show over the network rather than from the traditional cable operators but was a win for the four major U.S. traditional broadcasters as plaintiffs. They claim that Aereo, which does not pay license fees to sell programs on the Internet, jeopardizes the foundations of the traditional radio and television industry.

Equipment providers or content providers?

Judge Stephen Breyer announced that the Supreme Court upheld Aereo's infringement by 6: 3. The plaintiffs that won the lawsuit include CBS, NBC, Disney's ABC, and Fox Fox, a 21st Century Fox television network. The ruling also made it more difficult for alternative alternatives to traditional television companies' Internet competitors to question the future of Aereo.

After the verdict was announced, the stock prices of the above broadcasters were broad based, and CBS prices rose 6%.

Roger Entetner, a telecommunications analyst at market research firm Recon Analytics, said: "Despite the convenience and fun for consumers, (online TV service) the opposite ruling will completely change the Hollywood movie and television industry's business model. "

IAC / InterActiveCorp, an e-commerce company by American media tycoon Barry Diller, provided Aereo with a substantial portion of its $ 97 million in financing. With Aereo's service, which usually costs $ 8 to $ 12 a month, users can watch or download radio and TV programs on their mobile devices. This is about one-tenth of the average U.S. cable bill, but Aereo did not pay broadcasters the broadcast fee. Currently, the service is available in 11 U.S. cities and does not provide user data.

Judge Breyer wrote that Aereo "is not a mere equipment supplier" and has a great deal of similarities with cable companies. According to the Copyright Act of 1976, the eligibility of radio and television programs should be restricted.

The disagreement in the judgment does not lie in the type of service Aereo provides, but mainly in the technical way it provides services, which constitutes a "public performance" whose content is protected by copyright law. If it belongs to the "public performance", whether it needs permission from the copyright owner, and pay a fee.

According to Article 101 of the U.S. Copyright Act, public performance refers to the performance that is transmitted to the public through technical equipment to enable the public to receive the work at the same time or at different times, in different places or remotely.

Court rude new technology?

At the same time, some analysts believe that the ruling may lead to other technologies such as cloud computing and other concerns, the identification of content infringement can easily stifle innovative technology. However, the Supreme Court played down the issue and said it would wait for a lawsuit specifically targeting these technologies.

Aereo, a judge who does not consider Aereo infringing, seeks to be compared to "a replica store offering patrons cards to their patrons," and allowing them to decide on their own.

Scales, a minority judge involved in the ruling, said he also shares the same feelings as other judges who believe Aereo infringes. Aereo's conduct "should not be allowed." At the same time, however, he said that the majority judges have distorted copyright laws and should have Congress set a settlement bill, which is better than the "rude" answer of the Supreme Court.

Breyer said he and the federal government reached a consensus that it is too early to say that the ruling will curb cloud-based services.

Consumer loss?

For the radio and television companies, this victory has saved the so-called televised fee of about 3 billion U.S. dollars. Before the verdict came out, all networks indicated that online streaming services could jeopardize their survival. Some broadcasters have threatened to cut off free signals or set up their own low-cost web services.

The ruling also made the League of Professional Sports satisfied. Major League Players such as Major League Baseball and the National Rugby League have signed lucrative contract licensing contracts with broadcasters who say Aereo will win all their matches to cable if they win.

Chere Canoga, chief executive of Aereo, described the ruling as "a huge setback" for U.S. consumers, but no longer calls this the end of the service. Before the final ruling, Canoga said he would "finish" Aereo if he loses the lawsuit.

"Free-to-air television should not only be enjoyed by those who pay for cable or satellite subscriptions," Carnoga said in a statement. "We were disappointed with the results, but our work was not over."

In a emailed statement, Canoga also said that with regard to the Supreme Court's ruling on Aereo, "This is not our huge loss, but I am sure that blocking this technology is a huge loss to consumers."