Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: July 2, 2014
The Firm
201-896-4100 info@sh-law.comOn June 25th, the Court ruled 6-3 in favor of the networks against a TV startup called Aereo, saying that the company will need to pay the networks for the re-broadcasting of their content.
Aereo’s business model worked on the same principle that governs an antenna in your own home. Once you buy the antenna, the signals that it picks up from networks like ABC, CBS, Fox, NBC and PBS are free. Networks don’t charge for over-the-air broadcasts because most of their money comes from advertising anyway – the more people that watch their channels, the more money they make.
However, many people don’t like installing antennae in their homes because the signal is unreliable and most premium channels don’t broadcast for free. Aereo solved the first problem by lining a warehouse with tens of thousands of tiny antennae next to a machine that amps up the signal’s power. Users were allowed to rent one of these antennae for $8 per month, the signals from which were pumped back to them over the Internet, making Aereo one of the cheapest options in television.
This is all set to change now that the Supreme Court has ruled against Aereo. To their credit, the justices were careful to tread lightly in the face of the potentially massive and unpredictable ramifications such a ruling might have. Liberal justice Stephen Breyer, who led the majority that voted against Aereo, told the startup’s lawyer that he did not understand what a decision either for or against the company would do to other kinds of technologies.
In the end, the majority opined that Aereo was overwhelmingly similar to the cable companies that were specifically targeted by amendments that Congress made to the Copyright Act in 1976. Breyer acknowledged that Aereo has a key difference in that its system remains inert until a subscriber indicates that he or she wants to watch a program, but found that the difference was ultimately not critical.
“This difference means nothing to the subscriber,” he wrote. “It means nothing to the broadcaster. We do not see how this single difference, invisible to subscriber and broadcaster alike, could transform a system that is for all practical purposes – a traditional cable system into a copy shop that provides its patrons with a library card.'”
While Aereo was never a massive company – at least in part due to its limited range of content – the finding would have carried important ramifications either way. Finding for Aereo would have meant that the piece of copyright law that ensured that cable companies had to keep subsidizing networks would have been weakened, or potentially caused them to stop transmitting for free over the air. Find for the broadcasters, however, and there is the potential for damage to citizens’ rights to obtain free content.
In the end, the Supreme Court took an extremely narrow opinion and ruled that Aereo’s business model was illegal only in that it is extremely similar to old CATV systems. While the startup’s users are likely to be disappointed, this is probably the safest ruling the Court could have made for the long-term development of new technologies.
If you are interested to learn how this entire case began, check out Is Aereo Fight Headed to the U.S. Supreme Court? at www.businesslawnews.com.
If you have any questions about this post or would like to discuss your sports and entertainment matters , please contact one of your Sports and Entertainment attorneys.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

A Settled Regulatory Environment Enables Confident Capital Planning New Jersey’s new manufacturing incentive program, Next New Jersey Manufacturing Program, enters 2026 with something uncommon in economic development these days: policy stability. The statute is enacted, New Jersey Economic Development Authority’s (“NJEDA”) rules are adopted, and the application portal is open. With the election outcome settled, […]
Author: Michael J. Sheppeard

When done successfully, industry roll-up acquisitions can dramatically grow and strengthen your business. In this post, we break down what an industry roll-up is, why companies pursue it, and what makes it an effective (and sometimes risky) business strategy. What Is an Industry Roll-Up Acquisition? In an industry roll-up acquisition of companies, a buyer acquires multiple companies […]
Author: Dan Brecher

The federal government has launched one of the most ambitious scientific initiatives in decades, and it will redefine how companies develop technology, manage risk, and compete. The Genesis Mission, created by Executive Order and driven by the Department of Energy (“DOE”), is intended to accelerate scientific discovery through a national AI platform that links supercomputers, […]
Author: Michael J. Sheppeard

Stablecoins Leave the Grey Zone Stablecoins were supposed to be the “boring” part of crypto: digital dollars that just work. Yet for years they have lived in a regulatory no-man’s-land, classified one day as securities, the next as commodities, and sometimes as something regulators had not even named yet. That uncertainty is finally starting to […]
Author: Bryce S. Robins

If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Author: Dan Brecher

What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!