& cplSiteName &

Is This Aereo's Back-Up Plan?

Mari Silbey
7/9/2014
50%
50%

If something looks like a duck and quacks like a duck, then you have to treat it like a duck.

That's the essential argument Aereo is making in the wake of the US Supreme Court's ruling in favor of broadcasters two weeks ago. In a 6-3 decision, the Supreme Court held that Aereo "is for all practical purposes a traditional cable system." Given that pronouncement, Aereo now says it's entitled to a copyright statutory license just like its cable company fellows. A license would enable Aereo to negotiate retransmission fees with broadcasters in the same way that other cable operators do today. (See Supreme Court Halts Aereo's Flight.)

Not surprisingly, broadcasters aren't buying Aereo's argument, which was made in a letter filed with the lower court handling the broadcast companies' injunction request. They point out that in the Supreme Court case, Aereo was adamant about not being classified as a cable operator. However, the streaming company now says the situation has changed.

"Under the Second Circuit's precedents, Aereo was a provider of technology and equipment with respect to the near-live transmission at issue in the preliminary injunction appeal. After the Supreme Court's decision, Aereo is a cable system with respect to those transmissions."

Aereo's lawyers also have another argument in their arsenal. In the filing with the lower court, the lawyers say that even if Aereo isn't granted a statutory license, any injunction against the company should still be limited. They claim that because the Supreme Court only objected to Aereo's system of "near simultaneous" streaming of broadcast TV programs, the company should still be allowed to deliver time-shifted content.

Whether or not Aereo ultimately succeeds on any legal grounds, the company's business is still in jeopardy. As a cable company, Aereo would be subject to the same rising retransmission fees that have threatened the profits of so many other operators. In addition, any negotiations with broadcasters would likely suffer from the bad blood generated through years of legal battles.

Even prominent Aereo investor Barry Diller appeared to throw in the towel after the Supreme Court decision saying, "We did try, but it's over now." (See Aereo Presses Pause… for Good?.)

Aereo CEO Chet Kanojia has remained optimistic, however. He told consumers in a public letter recently that "our journey is far from done."

As the latest court filing shows, the company isn't ready to close its doors yet.

— Mari Silbey, special to Light Reading

(7)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
7/11/2014 | 12:10:16 PM
Re: Where can I buy Aereo's dime-sized antennas?
That $100 million will help lower the tax bill for IAC. The company's portfolio is filled with initiatives that are likely to have short shelf lives, as you suggest.
MikeP688
50%
50%
MikeP688,
User Rank: Light Sabre
7/11/2014 | 5:24:02 AM
Re: Where can I buy Aereo's dime-sized antennas?
..and if I may humbly add, trying to save $ 100 Million that IAC has sunk into this will force some rather creative moves to save the franchise.   This is as some other components of IAC seems to be faced with potential challenges.    
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
7/10/2014 | 1:44:42 PM
Re: Where can I buy Aereo's dime-sized antennas?
nasimson, the Supreme Court ruling on Aereo is ambiguously specific and narrow to Aereo.... The Supreme Court didn't make Slingboxes illegal. It introduced a strange concept of "if it looks like a duck.." legal bar that equated Aereo with a cable broadcaster... So presumably, if you don't ACT like a cable video service, you're not crossing into an infringing business. (but it's not 100% clear, and the "looks like a duck" legal concept will have to be challenged in courts in order for anyone to really predict anything.)
mendyk
50%
50%
mendyk,
User Rank: Light Sabre
7/10/2014 | 12:11:30 PM
This show is OVER
If Aereo is insane enough to pursue this course, it's another couple of years in legal challenges and lawyer fees, this time without Barry Diller's money.
DOShea
50%
50%
DOShea,
User Rank: Blogger
7/10/2014 | 9:34:32 AM
Re: Where can I buy Aereo's dime-sized antennas?
Can't blame them for trying to make a new argument, but also seems more like the predictable move of trying to parse the legal language to find a loophole, and less like a new business plan.
nasimson
50%
50%
nasimson,
User Rank: Light Sabre
7/10/2014 | 7:29:20 AM
Re: Where can I buy Aereo's dime-sized antennas?
@mhh If supreme Court has termed Aeros service illegal, how can the product be legal?
mhhf1ve
50%
50%
mhhf1ve,
User Rank: Light Sabre
7/10/2014 | 1:24:32 AM
Where can I buy Aereo's dime-sized antennas?
I would like to see Aereo start to sell its equipment to consumers directly -- and offer a more fully functional version of simple.tv hardware. I don't think Aereo is dead, but its ROI for investors might be a bit different as it pivots to a totally new business model.
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Wednesday, September 14, 1:00PM EDT
What Is Agile?
Kent J. McDonald, Product Owner, Agile Alliance
UPCOMING COURSE SCHEDULE
Friday, September 16, 1:00PM EDT
How to Implement Agile
Alan Bateman, Director, Agile Transformation
Wednesday, September 21, 1:00PM EDT
What Is DevOps?
Colin Kincaid, CTO, Service Provider, Cisco
Friday, September 23, 1:00PM EDT
How to Implement DevOps
,
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
Between the CEOs
CEO Chat: UXP's Gemini Waghmare

8|26|16   |     |   (0) comments


Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
LRTV Custom TV
F5 Virtual Network Function Integrations With Partner Orchestration Platform

8|24|16   |   6:38   |   (0) comments


F5's Kishore Patnam, product manager for F5's service provider solutions, discusses why service providers are moving towards virtualization and how his clients are utilizing F5's solutions.
Between the CEOs
CEO Chat: Intel's Alexis Black Bjorlin

8|17|16   |   06:23   |   (0) comments


Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Telecom Innovators Video Showcase
Accelerating Telecom Digital Transformation With Nominum DNS

8|1|16   |   12:04   |   (0) comments


Light Reading's Steve Saunders gets an update from Nominum CEO Gary Messiana on how his company is helping carriers on the digital transformation journey.
LRTV Custom TV
Reinventing Operations for a Virtual, Software-Defined World

7|28|16   |   5:23   |   (0) comments


Heavy Reading Senior Analyst Jim Hodges speaks with Accenture's Larry Socher and Matt Anderson about what service providers must do to transform their business to get the benefits of SDN and NFV including: leveraging DevOps, introducing real-time OSS and implementing analytics.
Women in Comms Introduction Videos
Fujitsu Sales Leader Shares Lessons Learned

7|27|16   |   5:12   |   (1) comment


As Fujitsu's only female sales leader, Annie Bogue knows the importance of asking for what you want, being flexible (she's been relocated five times), keeping a meticulous calendar, 'leaning in,' working harder than everyone else around you, being aware and more.
Telecom Innovators Video Showcase
VeEX Test & Measurement Solutions

7|25|16   |   08:57   |   (0) comments


Cyrille Morelle, president and CEO of VeEX Inc., talks test and measurement with Light Reading's Steve Saunders at BCE 2016. This includes innovative products such as VeSion Cloud-Based platform for network monitoring; MTTplus Modular Test platform for Access, Business, Carrier Ethernet, Transport and Core services; and OPX-BOX+ for Fiber Optics.
LRTV Custom TV
VeEX: Live From BCE 2016

7|25|16   |   03:20   |   (0) comments


VeEX's Senior Director of Business Development, Perry Romano, explains how VeEX provides tools to help install, maintain, monitor and manage network infrastructure efficiently and effectively. The portfolio of products on display include the RXT-6000, MTTplus and TX300s.
LRTV Custom TV
Real-Time Telemetry & Analytics for Intelligent SDN Orchestration

7|25|16   |   03:09   |   (0) comments


Packet Design CEO Scott Sherwood discusses how real-time network telemetry and analytics are enabling a new breed of SDN orchestration applications.
From the Founder
The Russo Report: Driving Disruption

7|25|16   |   07:44   |   (2) comments


In the first episode of a four-part series, Light Reading Founder and CEO Steve Saunders and Calix President and CEO Carl Russo drive around town discussing the disruptive mega-changes in the communications industry and where hope lies for service providers to meet the escalating demands of the cloud.
LRTV Custom TV
NetScout: Maximizing Enterprise Cloud for Digital Transformation

7|20|16   |   04:53   |   (0) comments


Light Reading Editor Mitch Wagner talks to NetScout CMO Jim McNiel about maximizing the benefits of enterprise cloud and digital transformation while minimizing potential pitfalls with a proper monitoring and instrumentation strategy.
Women in Comms Introduction Videos
Ciena's VP Offers a Career Crash Course

7|20|16   |   4:14   |   (2) comments


How did Ciena's Vice President of Sales, Angela Finn, carve out her career path? Simple, she tells WiC. She stayed true to her company, customers and principles. She shares her advice for women on how to be authentic and credible, as well as for companies that want to make a real change to their culture and practices.
Upcoming Live Events
September 13-14, 2016, The Curtis Hotel, Denver, CO
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Google Fiber Can't Be Called a Failure
Carol Wilson, Editor-at-large, 8/26/2016
FirstNet: A Billion-Dollar Boondoggle?
Dan Jones, Mobile Editor, 8/26/2016
WiCipedia: Should Men Be Included? & Olympians Face Discrimination
Eryn Leavens, Special Features & Copy Editor, 8/26/2016
Is There No Stopping Huawei?
Iain Morris, News Editor, 8/26/2016
Google Fiber Downsizing Not Confirmed
Mari Silbey, Senior Editor, Cable/Video, 8/25/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
Live Digital Audio

Bridging the tech skills gap is a major challenge for service providers and suppliers alike today – and the challenge is two-fold when it comes to increasing the number of women in the comms space. Level 3 Communications has made it a priority to overcome both challenges by implementing several unique programs focused on building the right candidates from within – in addition to filling the funnel by supporting STEM and other education programs. During this radio show, you’ll learn about these programs from Mary Beth McGrath, SVP of Global Talent Management at Level 3, and the best ways to bridge your own skills gap so that you are motivated and equipped for change. Plus you’ll have the chance to ask Mary Beth your questions live on the air.