A federal judge in New York on July 11 denied a preliminary injunction against TV streaming service Aereo sought by major media companies like NBC Universal and Disney, paving the way for the start-up to continue operations.
Aereo, backed by media mogul Barry Diller’s InterActive Corp., lets users watch or record live TV from major networks and local stations which broadcast over the air. It currently operates in the New York area.
The media companies, which also include News Corp., CBS and ABC, among others, sued Aereo in March, alleging that the service illegally captures broadcast TV signals and then broadcasts them over the Internet to subscribers.
The preliminary injunction turned down Wednesday would have asserted that Aereo was liable for copyright infringement.
Judge Alison Nathan of U.S. District Court for the Southern District of New York ruled July 11 that the Aereo service could result in irreparable harm to the broadcasters because of fees paid by cable companies and advertising rates set by ratings. But she did not believe such harm was imminent during the current litigation and paved the way for the case to head to trial.
Aereo’s legal argument contends that its service essentially allows users to rent a remote antenna, DVR or Slingbox-like device to access content they could receive for free in the same manner by installed the equipment at home.
Launchsquad is Aereo’s PR agency. The company in April hired Rubenstein Communications senior VP Virginia Lam as VP of communications and government relations.
In a statement, Aereo CEO Chet Kanokia pitched the legal victory as a small company battling media giants. “Today’s decision shows that when you are on the right side of the law, you can stand up, fight the Goliath and win,” he said. “This isn’t just a win for Aereo, it’s also a significant win for consumers who are demanding more choice and flexibility in the way they watch television.”
The media companies will continue the legal battle.
“The judge has denied our request for preliminary relief – ruling that it is ok to misappropriate copyrighted material and retransmit it without compensation,” said a group including FOX, PBS, WNET, Univision and Tribune. “While we are disappointed, we will continue to fight to protect our copyrights and expect to prevail on appeal.”
Cable providers who pay the broadcast networks were not exactly sympathetic to the court setback. "I don't know if it's legal or not," Time Warner Cable CEO Glenn Britt said in the Wall Street Journal. "But if it is we should do it too."