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<title>Techdirt. Stories about &quot;aereo&quot;</title>
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<link>http://www.techdirt.com/</link>
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<image><title>Techdirt. Stories about &quot;aereo&quot;</title><url>http://www.techdirt.com/images/td-88x31.gif</url><link>http://www.techdirt.com/</link></image>
<item>
<pubDate>Thu, 30 May 2013 15:05:00 PDT</pubDate>
<title>CBS Tells Court: No One Could Possibly Read Our Statements 'We Will Sue Aereo' To Mean We Will Sue Aereo</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130530/02434723251/cbs-tells-court-that-when-it-announced-it-would-sue-aereo-it-didnt-mean-it-would-actually-sue-aereo.shtml</link>
<guid>http://www.techdirt.com/articles/20130530/02434723251/cbs-tells-court-that-when-it-announced-it-would-sue-aereo-it-didnt-mean-it-would-actually-sue-aereo.shtml</guid>
<description><![CDATA[ You may recall that back in April we wrote about CBS <a href="http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml">threatening to sue Aereo</a> if it launched in Boston, as announced.  We quoted CBS's Dana McClintock, exec VP of communications, who said on Twitter:
<blockquote><i>
We will sue, and stealing our signal will be found to be illegal in Boston, just as it will be everywhere else.
</i></blockquote>
Seems like a pretty clear and definitive statement.  CBS CEO Les Moonves said something similar in a conference call:
<blockquote><i>
If they put up another signal, we'll sue them again.
</i></blockquote>
Aereo then did exactly what it should: <a href="http://www.hollywoodreporter.com/thr-esq/aereo-brings-new-lawsuit-cbs-484494" target="-blank">it sued first</a>, seeking a declaratory judgment that its service was legal and that it could launch in other markets without fear of expensive lawsuits from CBS.  This is what the whole declaratory judgment setup is for.  Exactly cases like this where one party threatens another in an effort to scare them off by the threat of expensive court battles.
<br /><br />
However, CBS now, hilariously, is trying to claim that when it made those statements, <a href="http://www.hollywoodreporter.com/thr-esq/cbs-asks-new-york-court-559934" target="_blank">it didn't really mean it would sue Aereo</a>, so there's no controversy and the case should be dismissed.  Let me just repeat this one for you.  CBS is claiming that when two of its top execs said "We will sue" and "we'll sue them again," it didn't actually mean that it would sue.  Wow.  That's a special sort of chutzpah.
<br /><br />
Instead, CBS claims that Aereo should sit pretty and <b>wait to be sued</b>:
<blockquote><i>
"If the threat of litigation is as imminent as Aereo claims, it will have every opportunity to defend its actions if and when it launches in other cities and if it is sued in those jurisdictions."
</i></blockquote>
Um, that's the whole freaking point of declaratory judgment actions, to avoid having to sit and wait to be sued, so that a company can get on with its business.  CBS seems to be admitting here that it's threatening Aereo just to mess with its business plans.  How nice.
<br /><br />
How about the direct statements from the execs?  Eh, what's a little public threat of lawsuits between execs and the press?  Certainly not a serious threat, right?  Concerning the McClintock statement, they claim that his statement was only referencing Boston, so it's not like it really matters.
<blockquote><i>
Mr. McClintock's "threat" clearly is contained to Boston; his only reference to other locations is the vague assertion that Aereo &#8220;will be found to be illegal" "everywhere else" &#8211; hardly a concrete promise that any of the named defendants intends to sue Aereo in some other location.
</i></blockquote>
Er, actually, yes, read the quote again.  It's a pretty clear statement that Aereo will be sued "everywhere."  How about the Moonves quote?
<blockquote><i>
One simply cannot read what Mr. Moonves actually said and say with any certainty &#8211; much less with the level of concreteness necessary to sustain a declaratory judgment action &#8211; that CBS announced an intention to sue Aereo in any city other than Boston.
</i></blockquote>
Um, again, Moonves's quote is pretty clear that they will sue anywhere Aereo shows up.  He said "if they put up another signal, we'll sue them again."
<br /><br />
I guess you can give CBS's lawyers creativity points for trying.<br /><br /><a href="http://www.techdirt.com/articles/20130530/02434723251/cbs-tells-court-that-when-it-announced-it-would-sue-aereo-it-didnt-mean-it-would-actually-sue-aereo.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130530/02434723251/cbs-tells-court-that-when-it-announced-it-would-sue-aereo-it-didnt-mean-it-would-actually-sue-aereo.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130530/02434723251/cbs-tells-court-that-when-it-announced-it-would-sue-aereo-it-didnt-mean-it-would-actually-sue-aereo.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>uh,-nice-try</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130530/02434723251</wfw:commentRss>
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<pubDate>Wed, 29 May 2013 15:32:00 PDT</pubDate>
<title>TV Broadcasters Sue Alki David's TV Streaming Service Once Again, To Establish More Bad Precedents</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130529/01484723236/tv-broadcasters-sue-alki-davids-tv-streaming-service-once-again-to-establish-more-bad-precedents.shtml</link>
<guid>http://www.techdirt.com/articles/20130529/01484723236/tv-broadcasters-sue-alki-davids-tv-streaming-service-once-again-to-establish-more-bad-precedents.shtml</guid>
<description><![CDATA[ For many years we've pointed out that  the self-promoting Alki David seems to get engaged in a variety of <a href="http://www.techdirt.com/articles/20110504/12543914144/silly-lawsuit-filed-against-cbs-because-subsidiary-cnet-offered-limewire-download.shtml">ridiculous lawsuits</a> partly as a publicity stunt to build up his own brand.  Nearly everything he does seems to be focused on the publicity value of it -- such as renaming his online TV streaming service from FilmOn, as it was known, to AereoKiller and BarryDriller to mock Barry Diller's Aereo.  And, unfortunately, in this case those stupid publicity stunts may lead to some really bad case law.  As many people know, despite David claiming that his service (whatever name you want to call it) was no different than Aereo, it <b>is</b> different.  Aereo carefully followed various court rulings that indicated how to set up such a service that doesn't infringe -- and so far it's <a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml">won</a> the lawsuits filed against it by the TV networks.
<br /><br />
"AereoKiller," on the other hand, has been losing badly, such that the service is currently barred in most of the western US.  Now the networks figure they might as well go in for the kill and have <a href="http://www.hollywoodreporter.com/thr-esq/tv-broadcasters-launch-aereokiller-lawsuit-558278" target="_blank">sued David's AereoKiller yet again</a>, this time in the DC Circuit, to try to get a similar ruling on the east coast.  The networks could have sued Aereo itself -- as they've <a href="http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml">been threatening</a> -- but it seems clear they realize that the case against David is much stronger (perhaps, in part, because David himself seems like a goofball who doesn't take any of this seriously, but also because of the company's own actions).
<br /><br />
But, of course, bad cases make bad law, and the AereoKiller case is a bad case.  There are a bunch of issues related to the whole thing, and it seems quite likely David will lose -- but that precedent will now be available to be used against Aereo itself (and a variety of other innovative services).  The end result could be a disaster, and the TV broadcasters know it, because that's exactly what they want.<br /><br /><a href="http://www.techdirt.com/articles/20130529/01484723236/tv-broadcasters-sue-alki-davids-tv-streaming-service-once-again-to-establish-more-bad-precedents.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130529/01484723236/tv-broadcasters-sue-alki-davids-tv-streaming-service-once-again-to-establish-more-bad-precedents.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130529/01484723236/tv-broadcasters-sue-alki-davids-tv-streaming-service-once-again-to-establish-more-bad-precedents.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ugh</slash:department>
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<pubDate>Wed, 15 May 2013 11:43:00 PDT</pubDate>
<title>The McCain Cable Bill Can Only Do So Much; Real Change Is Market-Driven</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130513/21331623075/cable-a-la-carte.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130513/21331623075/cable-a-la-carte.shtml</guid>
<description><![CDATA[ <p>
There's a lot of buzz about Sen. John McCain's proposed <a href="https://s3.amazonaws.com/s3.documentcloud.org/documents/700540/tv-consumerfreedomact2013.pdf" target="_blank">Television Consumer Freedom Act</a> (pdf and embedded below), a bill designed to <a href="http://business.time.com/2013/05/10/john-mccain-wants-to-lower-your-cable-bill/" target="_blank">encourage cable companies to unbundle the TV stations they offer</a>, and <em>force</em> the networks to do the same. It also takes away the weak bargaining chip that some networks have attempted to <a href="http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml">play</a> against Aereo, in which they threaten to pull their broadcasts from the open air, by making them sacrifice broadcast licenses in order to do so.
</p>
<p>
Everyone on the consumer side agrees that they'd <em>like</em> to have <em>&agrave; la carte</em> choices from cable companies, but beyond that there's no shortage of debate as to how effective the bill is likely to be and whether the end result would actually be any better for those consumers. The television market is badly distorted at all levels by monopoly interests and those whiffs of not-quite-collusion by groups of companies with a shared interest in maintaining the status quo, but is this bill capable of overcoming that? And is the practice of bundling really at the heart of the problem, or just a good public face for the deeper issues?
</p>
<p>
This is hardly the first attempt to stop the practice at either the network or cable provider level. Some courts have <a href="http://www.techdirt.com/articles/20120403/02585818343/appeals-court-bundling-cable-channels-together-isnt-anticompetitive.shtml">already found</a> bundling by cable providers to be legal and not anticompetitive; meanwhile Cablevision is currently pursuing an antitrust suit <a href="http://www.techdirt.com/articles/20130226/15114522124/cablevision-files-antitrust-suit-against-viacom-forced-bundling-crappy-tv-channels.shtml">against Viacom</a> for the network's bundling of stations that it sells to providers. Most of the details of the latter are under seal, but one notable point is Viacom's claim that it already offers channels individually, they just cost way more. If that's true of all Viacom's content, then it wouldn't be affected by McCain's bill anyway, which still permits bundling as long as there is an <em>&agrave; la carte</em> option.
</p>
<p>
And even if it's not true, it just underlines the core problem of this approach: the bill doesn't give networks any reason to make individual channels affordable or desirable. They either already offer an expensive <em>&agrave; la carte</em> menu that nobody orders from, or they could easily do so. Moreover, it's not as though the justification for bundling offered by the networks is completely falsified: they can spend more money on niche channels and programs by subsidizing them with the revenue from more broadly popular fare. Of course, it's not as though that justification isn't exaggerated and twisted to suit their needs either, nor is it true that the same fundamental idea couldn't exist without bundling. Networks get more value from niche programs than just transmission fees: they care about audience reach, brand-building, competing with other forms of content, accumulating accolades for prestige shows and even, believe it or not, making good television. There's no reason their businesses could not be structured to continue subsidizing niche programming with popular programming in a slightly less direct manner.
</p>
<p>
So the final solution, as always, needs to be found in the market &mdash; and that's already happening. Basically every single noticeable trend in media consumption habits, not just in television but in music and publishing and every format, points towards a more <em>&agrave; la carte</em> world. It's not news that the networks and cable providers have dragged their heels on this in the hope of milking their incumbent position a bit longer, nor is it news that they are privately a lot more freaked out by the cord-cutting movement than their public statements admit. Ultimately, it will be <em>consumers making choices</em> that force these companies to either adapt or perish.
</p>
<p>
But for that to happen, innovators do need to be able to actually give the consumers those choices. If the market has become so badly distorted that innovators are being locked out, then legal action and new laws <em>are</em> needed. And that's why the aspect of the bill that is likely to be the most effective (not to mention the most interesting) is the way it all seems to come back to Aereo.
</p>
<p>
The fight that Aereo started sits at the core of almost everything in the bill. Network owners don't like Aereo because they don't want to lose their retransmission fees from cable providers. Cable providers don't like Aereo because they don't want to lose the appeal of the major networks which, despite the ascendence of cable channels, still sit at the core of their service bundles &mdash; and because, generally, they don't want cord-cutters to have more options. McCain's bill basically says: Aereo or no Aereo, consumers need choices, and they're going to get them, whether you like it or not.
</p>
<p>
Is it a worthwhile step? Yes &mdash; or, at least, it's hard to see how it could do any harm, even if it does prove ineffectual. Is it the best approach? No. It almost feels like a bet on Aereo's failure. If Aereo were permitted to innovate, rather than being forced to jump through endless technological hoops and still spend more time in court than in the workshop or the boardroom, then the market would already be giving consumers what they want and pushing the networks and cable providers to become more competitive. If there is to be legal reform, it shouldn't be another layer of conditions and caveats on broadcast licenses and the retransmission fee structure that attempts to force the hand of the networks and cable companies, it should be a clarification (and probably a relaxation) of the rules, removing the legal and regulatory uncertainty that holds disruptive startups back. Television doesn't need a <em>Consumer</em> Freedom Act &mdash; consumers already have lots of freedom, they just don't have many choices in how they exercise it. The heart of McCain's bill is in the right place, but a Television <em>Innovator</em> Freedom Act is what we really need.
</p><br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130513/21331623075/cable-a-la-carte.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130513/21331623075/cable-a-la-carte.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130513/21331623075/cable-a-la-carte.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>it's-innovators-who-need-freedom</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130513/21331623075</wfw:commentRss>
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<pubDate>Fri, 3 May 2013 10:46:00 PDT</pubDate>
<title>Why The Networks Are Really Afraid Of Aereo: Time Warner Cable Says It Might Offer Aereo-Like Service</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml</link>
<guid>http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml</guid>
<description><![CDATA[ The TV networks' fight <a href="http://www.techdirt.com/blog/?company=aereo">against Aereo</a>, including their recent hilarious <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml">threats</a> to pull their networks off the air and put them on cable always seemed really exaggerated.  Aereo is a tiny startup, with a questionable business model and not that many customers.  It does some nice things, but how many people were really going to sign up?  Of course, the truth is that the networks aren't that scared of Aereo itself, but if what they're doing is shown to be legal, others might follow.  Others like... the big cable companies.  Like Time Warner Cable.
<br /><br />
Time Warner Cable's CEO, Glenn Britt, just <a href="http://www.washingtonpost.com/business/technology/2013/05/02/f6b43b84-b27b-11e2-baf7-5bc2a9dc6f44_story.html" target="_blank">admitted that they're watching the Aereo case closely</a>, and might offer an Aereo-like service themselves, if Aereo continues to win its lawsuit.
<blockquote><i>
&#8220;What Aereo is doing to bring broadcast signals to its customers is interesting,&#8221; Time Warner Cable chief executive Glenn Britt said in an interview with The Washington Post. &#8220;If it is found legal, we could conceivably use similar technology.&#8221;
</i></blockquote>
There's a lot more behind the scenes here.  Britt is posturing, in part, because every few months or so we see yet another flare up between the networks and various cable providers over how much the cable guys <a href="http://www.techdirt.com/articles/20101018/02335511463/fox-extends-cablevision-blackout-to-hulu-temporarily.shtml">need to pay</a> to retransmit the networks over their wires.  If you have a TV service, you've probably lived through one of these fights, where you're told you might lose (and sometimes actually do) a popular channel for a while if the company doesn't come to its senses.  Those fees have gone up and up and up and are a big part of why cable bills are so ridiculously high these days.
<br /><br />
What Britt is now saying is that if Aereo is found to be legal, TWC would seriously consider offering their customers a similar service and then they could tell the networks to get lost the next time they demand a crazy amount to be included.  This is why the networks are so freaked out about Aereo.  They're not so concerned about that one company, but that the cable companies will finally realize they've been paying ridiculous sums of money to rebroadcast those channels, when they might be able to deliver the same content, legally, online for free.<br /><br /><a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130502/16064822930/why-networks-are-really-afraid-aereo-time-warner-cable-says-it-might-offer-aereo-like-service.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>getting-around-their-transmission-fees</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130502/16064822930</wfw:commentRss>
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<pubDate>Thu, 2 May 2013 16:27:00 PDT</pubDate>
<title>CBS Says It Could Move To Cable In A 'Few Days' If Aereo Wins; Receives Several Offers To Help Pack Its Bags</title>
<dc:creator>Tim Cushing</dc:creator>
<link>http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml</link>
<guid>http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml</guid>
<description><![CDATA[ CBS has officially joined the chorus of <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml" target="_blank">angsty executive voices</a> expressing their displeasure with Aereo by threatening to take their ball and go cable. <a href="http://www.theverge.com/2013/4/30/4287878/cbs-ceo-moonves-says-he-could-take-network-cable-only-in-a-few-days" target="_blank">Only this time, Moonves <i>really</i> means it</a>.
<blockquote>
<i>CBS CEO Les Moonves has said before that he&rsquo;s talked with New York cable operators about taking his network cable-only if Aereo is allowed to keep streaming what it broadcasts on the internet, but now he&rsquo;s saying that he could make the switch in as little as a few days "if we are forced to."</i></blockquote>
"Forced to?" What a small-minded, self-serving, overly dramatic "threat." I'll join Mike and a majority of our readers in inviting Moonves to go do <i>exactly that</i> ASAP. Stop arsing about in court and just take that shiny ball of yours and cram it into the overcrowded cable market and see exactly who notices your departure or arrival.
<blockquote>
<i>By taking free CBS broadcasts off the airwaves, Moonves says, "about 10 percent of America will not get our signal and I don&rsquo;t think they will like that."</i></blockquote>
And when people out there in flyover country (or wherever Moonves imagines this 10% lives) find themselves short a free TV signal, do you <i>really</i> think they're going to be pissed off at an antenna manufacturer whose only sin was its cord was "too long?"
<br /><br />
In case Moonves might feel such a question purely rhetorical, allow me to point out the obvious: they will blame the station that went "off the air" for reasons even the courts are having trouble understanding. CBS will be the villain, along with FOX and whoever else decides the only way to compete in a market is to exit it.
<br /><br />
And, yes, CBS is still claiming the courts will find "stealing" its precious signal "illegal." So far, this doesn't seem to be happening. If CBS really wants to play chicken with Aereo, I can only suggest it's not doing it nearly <i>fast</i> enough. Go ahead and give up the free airwave access and the enviable spot as a big fish in a rather limited pond and become just another number out of hundreds, distinguishable only by the number of executives suddenly grumpy they're running a cable channel rather than a network.
<br /><br />
Even if Aereo cuts these channels out of retransmission fees from cable operators, who cares? This was the networks' short-sighted decision, one based on wringing money out of something they give away for free to anyone <i>without</i> cable. If Aereo is the cord-cutter's best friend, what does jumping to cable accomplish? If that's the scenario, CBS is better off losing the retransmission fees and staying on open airwaves where it takes nothing more than an antenna to access its programming, rather than exiling itself to a service people seem more and more willing to abandon.
<br /><br />
If CBS thinks threatening to move to cable is going to turn the public against upstarts like Hopper or Aereo, it really has no idea what the public actually wants. It will simply turn itself into a lumbering villain at best and gone-but-barely-remembered also-ran at worst.<br /><br /><a href="http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130501/19380322911/cbs-says-it-could-move-to-cable-few-days-if-aereo-wins-receives-several-offers-to-help-pack-its-bags.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-forwarding-address-really-won't-be-necessary</slash:department>
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<pubDate>Wed, 1 May 2013 13:14:00 PDT</pubDate>
<title>How Key Decisions In Copyright Cases Can Impact The Pace Of Technological Innovation</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20130428/06331122862/how-key-decisions-copyright-cases-can-impact-pace-technological-innovation.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20130428/06331122862/how-key-decisions-copyright-cases-can-impact-pace-technological-innovation.shtml</guid>
<description><![CDATA[ Next month, I have a law review article coming out, specifically focused on how much innovation is held back and hindered when courts rule against new and innovative technologies based on the claim that they are infringing copyrights.  This goes well beyond just the technology on trial itself, but many follow-on innovators who are held back or hindered in either designing their innovations or receiving investments for those same innovations.  Markham Erickson, a telecom and internet lawyer, has written up a blog post that highlights this same point in looking at the <a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml">recent ruling</a> in the Aereo caes and how <a href="http://www.steptoecyberblog.com/2013/04/25/technological-designs-create-legal-significance-part-i/" target="_blank">important the Cablevision case was in driving the innovation</a> that led to Aereo, and to a variety of other investments in online services, and cloud computing in particular.  First, Erickson notes that both the Cablevision and Aereo rulings helped create legal symmetry such that the length of a cable should not impact whether a technology is legal or not (i.e., a remote device is treated the same as a device in or on your home), and then he talks about the wider impact of that clarity:
<blockquote><i>
In reaching this conclusion, the court placed utmost importance on certain technological designs such as the use of an individual antennae and copies unique to the individual. The court also made clear that Cablevision&#8217;s holding was not confined to particular, pre-approved technologies: &#8220;[W]e see no support in Cablevision or in this court&#8217;s subsequent decisions for the Plaintiff&#8217;s argument that Cablevision&#8217;s interpretation of the Transmit clause is confined to technologies similar to the VCR.&#8221; Aereo, 2013 WL at *11.
<br /><br />
This rejection of a technology-specific reading of Cablevision should be heartening to cloud service providers. The reliance of cloud service providers on Cablevision is hard to overstate. After the Cablevision decision, the average quarterly investment in cloud computing in the United States increased by 41 percent. By one estimate, the certainty provided by Cablevision led to an additional incremental investment in US cloud computing firms of anywhere between $728 million and $1.3 billion in the 2 and 1/2 years following the decision. As the Second Circuit observed in Aereo, &#8220;many media and technology companies have relied onCablevision as an authoritative interpretation of the Transmit Clause. One example is cloud media services, which have proliferated in recent years.&#8221;
</i></blockquote>
And yet, he notes, this clarity and ability to invest and to innovate may be at risk.  As we noted at the time, the stunning dissent in the Aereo case actually indicated that designing a system to be within the clear boundaries of the law as explained in the earlier case should be seen as intent to infringe.  That's a rather incredible interpretation when you think about it.  Following the explicit nature of the law should be seen as trying to subvert it?  Talk about a way to chill innovation.  If that became the law, the chilling effects on innovation would be tremendous.  Not only would innovators be fearful of creating new services that might be sued for infringement, they wouldn't even know how to make sure their technologies were considered legal, due to a court system that explicitly argued that any attempt to obey the law may be seen as an attempt to subvert it!
<br /><br />
Meanwhile, other courts seem to be attacking these basic principles, which may result in more stifling of significant innovation and investment.  We've avoided covering what's now called either the "AereoKiller" or "BarryDriller" cases, because the service, which used to be known as FilmOn, seems much more focused on doing stupid promotional stunts, rather than something serious.  His <a href="http://www.techdirt.com/articles/20110706/13114714988/silly-promotional-stunt-lawsuit-against-cbs-profiting-piracy-dropped.shtml">lawsuit against CBS</a>, as well as changing the name of FilmOn to AereoKiller/BarryDriller, highlights the sort of focus that David seems to have.  And, unfortunately, when you have someone more focused on publicity stunts and acting like a clown, rather than mounting a serious legal defense, you get bad rulings.  AereoKiller is a somewhat similar service to Aereo, but may actually end up killing Aereo and a ton of other important innovations, not because it's better/more innovative, but because it's mounting a <a href="http://upstart.bizjournals.com/news/wire/2013/04/09/how-aereokiller-could-kill-aereo.html" target="_blank">horrible defense</a> on a similar issue, and has already lost at the district court.  The impact on innovation could be huge.  With a split decision and concerns about Aereo's future success, investment in key innovations, including various cloud services, may be held back, while other countries continue to invest in such companies.
<br /><br />
It's incredible that we have a legal process, and a tool in today's copyright law, that is being actively used to scare off key investment in new innovations at a time that we should be much more focused on innovation.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20130428/06331122862/how-key-decisions-copyright-cases-can-impact-pace-technological-innovation.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130428/06331122862/how-key-decisions-copyright-cases-can-impact-pace-technological-innovation.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20130428/06331122862/how-key-decisions-copyright-cases-can-impact-pace-technological-innovation.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>don't-underestimate-the-importance</slash:department>
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<pubDate>Thu, 25 Apr 2013 11:55:00 PDT</pubDate>
<title>CBS Will Sue Aereo In Boston, Preferably In The Alternate Reality Where CBS Is Winning</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml</link>
<guid>http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml</guid>
<description><![CDATA[ <p>
<a href="http://www.techdirt.com/user/churchhatestucker">ChurchHatesTucker</a> points us to the latest news about Aereo, the service that has been facing endless opposition and jumping through countless legal hoops just to be able to offer a simple service that lets people watch public TV broadcasts online. Undaunted, Aereo recently announced plans to launch in Boston, which <a href="http://www.theverge.com/2013/4/23/4257652/cbs-threatens-to-sue-aereo-again-this-time-in-boston" target="_blank">spurred an analyst to ask CBS (which is engaged in a lawsuit against Aereo in New York) how it would respond:</a>
</p>
<center><a href="http://imgur.com/rB3RgfX"><img src="http://i.imgur.com/rB3RgfX.png" title="Hosted by imgur.com" /></a></center>
<p>
McClintock (CBS' exec VP of communications) sure doesn't mince words, but he does mince reality. The broadcasters are <a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml">not</a> faring <a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml">well</a> against Aereo, with the courts all apparently recognizing that the company has carefully followed the letter of the law established in the Cablevision ruling. It's bizarre that he would try to characterize the situation as an obvious win for CBS when the exact opposite is true &mdash; especially in a conversation with tech analysts and journalists. Still, points for confidence, I guess.
</p>
<p>
It didn't end there, either:
</p>
<blockquote><em>After [Verge editor Ben] Popper noted that CBS' signals were not being stolen and that the public owned the airwaves, <a href="https://twitter.com/Dana_McClintock/status/326726592309121025" target="_blank">McClintock responded</a>: "Yet it's ok for Aereo to profit from the same public. Hmmm..."
<br /><br />
Greenfield got in a zinger by noting the similarities between Aereo and Amazon's services. "Amazon 'makes money'" Greenfield <a href="https://twitter.com/RichBTIG/status/326729472881590273" target="_blank">wrote on Twitter</a>, "on selling antennas to watch broadcast TV, and they ship to Boston."</em></blockquote>
<p>
The question of "profiting from the public" is a red herring, and not a smart one for CBS to bring up. After all, the networks profit from their public broadcasts, too. Do they plan to give back all the money they have made from selling ads on the <em>publicly-owned airwaves</em> for which they paid no access fee?
</p>
<p>
The fact that the airwaves are owned by the public only means what it sounds like. It means the ability to <em>broadcast</em> on the airwaves is permitted by the public &mdash; it does not have anything to do with how the public accesses those airwaves, or whether or not someone is making a profit. As Greenfield points out, by McClintock's logic, it would be wrong to charge money for a TV antenna.
</p>
<p>
The Twitter exchange perfectly highlights a key issue here: thanks to the vagaries of copyright law, the whole fight over Aereo (and over remote DVR) is basically a fight about the length of a wire. Selling a home TV antenna? Legal. Renting a home TV antenna to someone? Yup. Selling someone a setup that hooks their antenna into a computer and then into their network, so they can watch it on any of their devices? No problem. Renting that same setup to them? Sure thing.
</p>
<p>
But doing any of that <em>from slightly further away?</em> 'Illegal!' cry the networks.
</p>
<p>
Luckily, despite the networks' facade of confidence and <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml">silly threats</a> to pull their broadcasts, the courts seem to be well aware of the ridiculousness of their argument. Given the recent rulings, it seems unlikely that a new lawsuit in Boston would gain much traction &mdash; but, of course, just the fact that the lawsuits keep on coming serves as a roadblock to Aereo's innovation. The <a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml">broken analogies</a> enforced by copyright law have resulted in an <a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">insane situation</a> with online streaming (among other things), and the fact that the fight with Aereo has even gone this far (and shows no signs of stopping) just underscores the severity of the problem.
</p><br /><br /><a href="http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130424/00002122819/cbs-threatens-to-sue-aereo-again.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>keep-angry,-carry-on</slash:department>
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<item>
<pubDate>Tue, 23 Apr 2013 07:28:00 PDT</pubDate>
<title>The Copyright Lobotomy: How Intellectual Property Makes Us Pretend To Be Stupid</title>
<dc:creator>Leigh Beadon</dc:creator>
<link>http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml</link>
<guid>http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml</guid>
<description><![CDATA[ <p>
Here are two words that have no business hanging out together: "used MP3s." If you know anything about how computers work, that concept is intellectually offensive. Same goes for "ebook lending", "digital rental" and a host of other terms that have emerged from the content industries' desperate scramble to do the impossible: adapt without changing.
</p>
<p>
These concepts are all completely imaginary, and yet we treat them as if they are real, and have serious discussions about every last detail of how they function &#8212; like a debate about the best mutant superpower, but with multimillion dollar lawsuits. Copyright necessitates that we all pretend we don't know any better. It makes us act stupid.
</p>
<p>
Take "used MP3s" for example. The idea is instantly nonsensical, and proposing it seems on par with asking how all those people fit inside the television. A "used MP3" is indistinguishable from a "new" one, and on the internet there's no such thing as an individual, discrete copy of an MP3 that gets "moved" from one person to another anyway. Speaking even more broadly, a "file" is not a "thing" at all &mdash; it's a concept that we use to help organize and visualize the even more abstract concept of "information" in many different places and states, whether magnetically inscribed on a hard disk platter or being transmitted via radio waves (not to mention the internal operation of a computer, where pieces of the information are shunted around between multiple different components and caches).
</p>
<p>
A "file" is an <em>analogy</em>, and like all analogies, it's incomplete. It breaks down when taken too far, and then it must be discarded, because analogies only exist for our convenience. "Moving" a file is also an analogy &mdash; in reality, we are copying it and then deleting the original. Even deleting a file is usually an analogy &mdash; the data is still recoverable, the computer has just been instructed to pretend it's not there anymore.
</p>
<p>
The purpose of these analogies is <em>not</em> to impose limitations on reality. We don't give up the ability to copy a file because we simulated the ability to move it. We don't have to pretend information degrades like physical objects just because we chose to conceptualize it that way. If we want to describe something as "the size of 10 football fields", we don't demand there be gridiron lines painted on it. There's a reason that stubbornly sticking with analogies is referred to as <em>torture</em>, and every discussion about "used files" or the difference between moving and copying is another turn of the screw.
</p>
<p>
Because of copyright, we are constantly asked to pretend that these analogies are binding. When we "lend" a Kindle ebook, we must pretend that we gave a <em>thing</em> away and don't have it for a while, when in fact our device is just refusing to let us access it. When a library wants to lend out ebooks, they must pretend they have a "limited number of copies available." When we buy software with an activation code, we must pretend that we "only bought one" and thus can only have it in one place at a time. When we rent a digital movie, we must pretend that we "have to give it back". We have to pretend we're stupid and that our devices have limitations which don't actually exist.
</p>
<p>
But here's the real kicker: the moment there might be any benefit to the consumer, the content companies toss the analogy out the window, and suddenly want to talk about reality. Thus you get things like ReDigi, the would-be used MP3 market that recently <a href=&#8221;http://www.techdirt.com/articles/20130401/11341622538/redigi-loses-selling-used-mp3s-online-infringes-first-sale-doesnt-apply-to-digital-transfers.shtml&#8221;>lost</a> in court. ReDigi attempted to make MP3s simulate discrete items by <em>enforcing</em> the analogy of "moving a file" using a monitoring system, such that when you sold an MP3 to someone, it would make sure you deleted your own copy. Though we always suspected it was <a href="http://www.techdirt.com/articles/20120208/04324417700/judge-denies-injunction-against-mp3-reseller-due-to-lack-irreparable-harm-says-emis-arguments-compelling.shtml">doomed</a>, it was at least rather fascinating from a legal and policy perspective, potentially creating a clash between copyright and first sale rights. After all, if we are expected to treat digital files like physical property, we should at least be getting the rights that come with that.
</p>
<p>
But this time the record labels wanted to focus on the fact that there's no such thing as moving a file, and pointed out that ReDigi involved making copies whether or not it also involved deleting other copies &mdash; and the judge agreed. This is actually <em>correct</em>, technically and realistically &mdash; just don't tell them that next time, when it doesn't benefit them and they're back to calling infringement theft. As if to underline their masterful doublethink when it comes to the nature of property, the labels are all about having their cake and eating it too.
</p>
<p>
ReDigi is hardly the only example. We've written before about the <a href="https://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">insane situation</a> with TV and movie streaming, where companies do things like set up a warehouse full of separate DVD players that stream from individual discs, or install a separate TV antenna on the same rooftop for every customer who wants an online stream. They are forced to willfully ignore technological capabilities, engineering principles and simple common sense just to conform to all these broken analogies &mdash; and they still face massive opposition from content owners and broadcasters every step of the way.
</p>
<p>
The real issue, when you get down to it, is that copyright itself is imaginary. A "song" or a "novel" is just as analogical as a "file". Originally, copyright law was very concerned with separating the expression of an idea from the idea itself, and in theory that's still the case, but in practice the line has proven almost impossible to draw. So first we conceptualize an abstract thing like "content" as discrete pieces, then we conceptualize all the abstract rights associated with those pieces, and then we conceptualize the discrete units of distribution and ownership within those rights.
</p>
<p>
These are all imaginary concepts, built on top of other imaginary concepts, built on top of <em>still more</em> imaginary concepts. It's turtles all the way down.
</p>
<p>
This does <em>not</em> necessarily mean that there's no place for copyright in the world. But in order for it to function, we have to remember that it's an analogy &mdash; it's something chosen and used to achieve a purpose, not something that binds and shapes reality, or that we must conform to at the expense of our better judgement. Originally, copyright was just that: a <em>choice</em> by society to employ the analogies of ownership and property in limited, specially-tailored ways in order to achieve a desired result &mdash; a flourishing intellectual and artistic economy. Today, copyright is worlds away from what it was then, and it does more to hinder that goal than help it... but many people seem to have forgotten that it's a just a tool, and we can always put it down.
</p>
<p>
In all the discussion about the various reasons people give for violating copyright, I think there's one that goes unmentioned: a lot of people just refuse to pretend to be stupid.
</p><br /><br /><a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130410/12051322665/copyright-lobotomy-how-intellectual-property-makes-us-pretend-to-be-stupid.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>or:-how-to-build-an-intellectual-cage</slash:department>
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<pubDate>Mon, 8 Apr 2013 13:52:41 PDT</pubDate>
<title>Hilarious And Ridiculous: Networks Threaten To Pull Channels Off The Air If Aereo &amp; Dish Win Lawsuits</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml</link>
<guid>http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml</guid>
<description><![CDATA[ The entertainment industry has a long, long history of claiming that if copyright law doesn't go their way, they'll all go out of business.  It's the adult version of "if you don't do it my way, I'm taking my ball and going home."  If court cases don't go their way, or if the law isn't changed, we've been told over and over and over again for the last century (and more frequently in the last two decades) that the industry will take its ball and go home, because they won't create under such awful circumstances (even if those circumstances really aren't particularly different than they've operated under for years).  The latest?  First, Fox's COO, Chase Carey, claims that if they lose the <a href="http://www.techdirt.com/blog/?company=aereo">Aereo case</a>, they might shut down Fox, the network TV channel, and <a href="http://allthingsd.com/20130408/news-corp-threatens-to-pull-fox-off-the-airwaves-if-aereo-wins/" target="_blank">move all its content to cable TV channels</a>.
<blockquote><i>
&#8220;If we can&#8217;t have our rights properly protected through legal and governmental solutions, we will pursue business solution. One solution would be to take the network and make it a subscription service. We&#8217;re not going to sit idly by and let people steal our content.&#8221;
</i></blockquote>
That came out about the same time as another quote from a TV exec, Garth Ancier, who has worked at Fox, NBC and WB, basically saying the same thing, arguing that an unnamed "two" of the four major networks <a href="http://www.forbes.com/sites/jeffbercovici/2013/04/08/holy-cow-two-of-the-big-four-tv-networks-are-considering-going-off-the-air/" target="_blank">are considering shutting down</a> if the Aereo case (and possibly the Dish <a href="http://www.techdirt.com/blog/?tag=auto+hopper">Auto Hopper</a> case) goes against them.
<blockquote><i>
&#8220;I know two that are talking about it,&#8221; he says, leaving open the possibility that the others might be as well. He declines to specify which, saying he&#8217;d heard it in a &#8220;talking over coffee&#8221; setting and didn&#8217;t want to betray a confidence....
<br /><br />
&#8220;To say it&#8217;s serious is probably an overstatement,&#8221; Ancier says. Rather, it&#8217;s a contingency plan the networks in question are keeping in their back pockets in case they can&#8217;t prevail over Aereo and Dish in court or find some other way to stave off the threat they represent.
</i></blockquote>
Let's be the first to call bullshit on this.  No networks are stupid enough to shut down over this, and if they are, good riddance.  Put that spectrum to better use.  First of all, network TV shows get a <i>lot</i> more viewers.  By a wide margin.  Yes, there's an occasional cable show (<i>Game of Thrones</i>) that sneaks in to the top ratings, but it's pretty rare.  The cable shows that get the most viewers are still viewed a lot less often than most network shows.  If you look at Nielsen's latest rankings for last week, the top 10 network shows all scored <a href="http://www.nielsen.com/us/en/top10s.html" target="_blank">higher ratings</a> than the top cable show (Walking Dead).  And by the time you're at the 4th most popular cable show, you're talking about a show that's getting just around <i>half</i> of the tenth most popular network show.
<br /><br />
No network with any business sense at all is going to give up that prime position for getting viewers, and shunt themselves off into the hinterlands of cable TV.  And, seriously, if they <i>do</i> want to cede that position, I'm sure there are plenty of smart folks willing to take over that position.  And, of course, nothing that Aereo or Dish Hopper is trying to do does anything to threaten the traditional business model of network TV in the first place: ads.  In fact, both serve to <i>increase</i> viewers.  The real issue is that the networks have gotten fat and happy off of the money they get from cable and satellite companies for carrying the networks, and they don't want that gravy train to go away.  So, an artificial situation came up that let them get lots of money, and now that it might go away (and reality is that it won't go away for a long long time) they're threatening to take their ball and go home?
<br /><br />
This is clearly bullshit whining from the networks hoping that lawmakers will protect their revenues from cable and satellite providers.  It has nothing to do with "stealing content" as Carey claims.  Policy makers would be well served to call the networks' bluff.  Let the cases play out and let's see (1) if the networks really give up their prime real estate and (2) if others don't rush in to make use of it.<br /><br /><a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130408/12161722625/hilarious-ridiculous-networks-threaten-to-pull-channels-off-air-if-aereo-dish-win-lawsuits.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>call-their-bluff</slash:department>
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<pubDate>Mon, 1 Apr 2013 10:56:31 PDT</pubDate>
<title>Aereo Wins Again: Appeals Court Says Its System Is Not Infringing</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml</link>
<guid>http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml</guid>
<description><![CDATA[ As you may recall, Aereo has been in an ongoing <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml">legal dispute</a> with the TV networks, who seem to be arguing that anything that disrupts their coveted business model simply <a href="http://www.techdirt.com/articles/20120531/10124119152/tv-network-exec-argues-that-anything-that-causes-cable-subscribers-to-cut-cord-is-illegal.shtml">must be illegal</a>.  While they've won against others, Aereo actually <a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml">won</a> the first round at the district court level, blocking an attempted injunction.  The networks quickly appealed.  On appeal, it seemed clear that the judges realized just how <a href="http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml">insane</a> the situation is.  If you don't recall, Aereo sets up a separate individual antenna for each customer, and then streams TV broadcasts to that customer over the internet.  This setup <a href="https://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">makes no technological sense</a> whatsoever.  It's inefficient and stupid.  But because of the wacky way copyright is interpreted, it's believed to be necessary to avoid being guilty of infringement for doing the same damn thing much more efficiently.
<br /><br />
Today, on appeal, <a href="http://www.ca2.uscourts.gov/decisions/isysquery/2a55b1d7-8f1b-46df-9a0d-82d36c31ed06/1/doc/12-2786_12-2807_complete_opn.pdf#xml=http://www.ca2.uscourts.gov/decisions/isysquery/2a55b1d7-8f1b-46df-9a0d-82d36c31ed06/1/hilite/" target="_blank">the appeals court affirmed the district court ruling</a>, once again blowing a big hole in the networks' arguments.  The full ruling (linked above and embedded below) is well worth a read, as it's nice to see the court really try to do its best to truly understand the technology at play, rather than resorting to simplistic and inaccurate analogies, as copyright maximalists often desire.  The key to the networks' argument here is that those individual antennas that Aereo sets up are a myth.  They claim that it's really one giant antenna.  The court disagrees.  This issue plays into the big question of whether or not Aereo's service is functionally the same as the (legal) Cablevision remote DVR system, or if it goes too far and is a tool for infringement.  The distinguishing factor in that Cablevision case was that Cablevision made a unique copy for every user who requested it (again, stupid and inefficient from a technological standpoint, but this is the life we lead under bad copyright laws).  Bizarrely, even Cablevision argued <a href="http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml">against</a> Aereo here, trying to distinguish its own case (perhaps to handicap a potential competitor).
<br /><br />
The court, thankfully, doesn't buy Cablevision's own wacky interpretation, but rather relies on what the court in is case actually said, mainly, that having a unique copy means that it's not doing a "public performance" of the work.
<blockquote><i>
As discussed above, Cablevision&#8217;s holding that Cablevision&#8217;s transmissions of programs recorded with its RS-DVR system were not public performances rested on two essential facts.  First, the RS-DVR system created unique copies of every program a Cablevision customer wished to record.  Second, the RS-DVR&#8217;s transmission of the recorded program
 to a particular customer was generated from that unique copy; no other customer could view a
 transmission created by that copy.  Given these two features, the potential audience of every RS-DVR transmission was only a single Cablevision subscriber, namely the subscriber who created the copy. And because the potential audience of the transmission was only one
 Cablevision subscriber, the transmission was not made &#8220;to the public.&#8221;
<br /><br />
The same two features are present in Aereo&#8217;s system. When an Aereo customer elects to
 watch or record a program using either the &#8220;Watch&#8221; or &#8220;Record&#8221; features, Aereo&#8217;s system
 creates a unique copy of that program on a portion of a hard drive assigned only to that Aereo
 user. And when an Aereo user chooses to watch the recorded program, whether (nearly) live or
 days after the program has aired, the transmission sent by Aereo and received by that user is
 generated from that unique copy. No other Aereo user can ever receive a transmission from that
 copy. Thus, just as in Cablevision, the potential audience of each Aereo transmission is the
 single user who requested that a program be recorded.
</i></blockquote>
The court rejects the networks' argument that Cablevision was different because Cablevision had a license for its initial transmission, noting that the case has nothing to do with transmission, but is solely based on the question of whether or not this is a public performance under the Copyright Act.  As it notes, if there is no public performance, the license question is moot, as Aereo only needs such a license for the public performance.
<br /><br />
The court also responds nicely to the bizarre argument of the networks that <i>because</i> Aereo specifically designed its system to be legal within the confines of the Cablevision ruling, that proves it's infringing.  As we noted <a href="http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml">at the time</a>, this argument doesn't help the networks at all.  After all, the courts found Cablevision legal, so it makes sense that Aereo would design with that in mind <i>for the purpose of staying on the right side of the law</i>.  The networks' basic argument is, directly, that if you try hard to stay within the law, you must be breaking the law.  That's crazy, and the court, rightly, rejects it:
<blockquote><i>
Plaintiffs also make much of the undisputed fact that Aereo&#8217;s system was designed around the Cablevision holding, because it creates essentially identical copies of the same program for every user who wishes to watch it in order to avoid copyright liability,
instead of using a perhaps more efficient design employing shared copies. However, that Aereo was able to design a system based on Cablevision&#8217;s holding to provide its users with nearly live television over the internet is an argument that Cablevision was wrongly decided; it does not provide a basis for distinguishing Cablevision. Moreover, Aereo is not the first to design systems to avoid copyright liability. The same is likely true of Cablevision, which created separate user
associated copies of each recorded program for its RS-DVR system instead of using more efficient shared copies because transmissions generated from the latter would likely be found to infringe copyright holders&#8217; public performance right under the rationale of Redd Horne.... Nor is Aereo alone in designing its system around Cablevision, as many cloud computing services, such as internet music lockers, discussed further below, appear to have done the same...
</i></blockquote>
In other words, no, designing your system in accordance with the law doesn't mean you're trying to violate the law.  As the court later notes, it appears that the networks really want to <b>overrule</b> Cablevision, which is made clear by their claims that Aereo designing within the confines of Cablevision must be infringing.  The court notes that even if that's what the networks want, barring a Supreme Court decision in the alternative, they <i>can't</i> change their earlier ruling.
<blockquote><i>
Though presented as efforts to distinguish Cablevision, many of Plaintiffs&#8217; arguments really urge us to overrule Cablevision. One panel of this Court, however, &#8220;cannot overrule a prior decision of another panel.&#8221; ... We are &#8220;bound by the decisions of prior panels until such time as they are overruled either by an en banc panel of our Court or by the Supreme Court.&#8221; ... There is an exception when an intervening Supreme Court decision &#8220;casts doubt on our controlling precedent,&#8221; ... but we are unaware of any such decisions that implicate Cablevision.
</i></blockquote>
There is a dissent from Judge Denny Chin, who argues that <i>because</i> Aereo had to go through the technologically inefficient process it does, that shows why it's infringing. 
<blockquote><i>
Aereo's "technology platform" is, however, a sham.
The system employs thousands of individual dime-sized
antennas, but there is no technologically sound reason to
use a multitude of tiny individual antennas rather than one
central antenna; indeed, the system is a Rube Goldberg-like
contrivance, over-engineered in an attempt to avoid the
reach of the Copyright Act and to take advantage of a
perceived loophole in the law.
</i></blockquote>
That argument is really troubling, and it's good that the majority overruled it.  If that were true, any inefficient or convoluted process required <b>by the law</b> to remain consistent with copyright law would be seen as evidence of infringement.  And that's just wacky.  You'd effectively create veto power for any new innovation that way.
<br /><br />
Anyway, the case is far from over, but so far Aereo is 2 for 2 and the networks have come up empty.  Let's hope that trend continues.<br /><br /><a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130401/09080722534/aereo-wins-again-appeals-court-says-its-system-is-not-infringing.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>a-good-win</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130401/09080722534</wfw:commentRss>
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<pubDate>Fri, 25 Jan 2013 13:26:00 PST</pubDate>
<title>CNET: You Can't Trust Our Reviews, But You Can Trust Our News! Honestly!</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20130125/08230821788/cnet-you-cant-trust-our-reviews-you-can-trust-our-news-honestly.shtml</link>
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<description><![CDATA[ The fallout from CBS's ridiculously short-sighted <a href="http://www.techdirt.com/articles/20130111/00145421637/just-how-dumb-is-it-cbs-to-block-cnet-giving-dish-award.shtml">interference</a> with CNET's editorial process, concerning staffers awarding Dish's new DVR "best of show" at CES, continues to cause problems.  Whle one of CNET's best reporters <a href="http://www.techdirt.com/articles/20130114/10270121658/cnet-reporter-resigns-over-cbs-interference-dish-ces-award.shtml">quit</a> in protest, and Dish has turned the whole thing into a <a href="http://www.techdirt.com/articles/20130121/16123721746/dish-turns-cbs-actions-against-it-touts-its-revoked-best-show-status-with-damning-footnote.shtml">marketing opportunity</a>, now any news article about any company that CBS is in a legal fight with has become suspect.
<br /><br />
Note this recent article about <a href="http://news.cnet.com/8301-1023_3-57565762-93/updated-aereo-app-adds-improved-live-tv-streaming-to-roku/" target="_blank">the updated Aereo app</a>.  While it kicks off by saying that Aereo "just became a much more potent alternative to traditional cable TV" stuck right smack in the middle of the article is a big "disclosure":
<blockquote><i>
<b>Disclosure:</b> CBS, the parent corporation of CNET, is currently in active litigation with Aereo as to the legality of its service. As a result of that conflict of interest, CNET cannot review that service going forward.
</i></blockquote>
In other words, "HEY EVERY BODY, YOU CAN'T TRUST US TO REPORT FAIRLY ON THIS BECAUSE OUR CORPORATE OVERLORDS INTERFERE WITH EDITORIAL!"  The whole thing is a joke.  As Rob Pegoraro correctly noted, CNET's claims that "news" reporting won't be impacted because these bans just apply to "reviews" is simply <a href="http://www.project-disco.org/competition/011513-cbs-cnet-and-how-to-kill-tech-journalism-through-big-media-denial/" target="_blank">wrong, wrong, wrong</a>.
<blockquote><i>
<p> To say that there&#8217;s &#8220;actual news&#8221; and then reviews devoid of news value shows a basic misunderstanding of how journalism works.</p>
<p>Hard-news stories (<a href="http://searchengineland.com/regulating-the-new-york-times-46521" target="_blank">like search-engine results!</a>) are never entirely objective; people made value judgments in assigning them, choosing sources to quote, and giving those pieces their spot on the page or in the paper. Reviews are never entirely subjective and ought to cite objective defects such as slow performance, poor battery life, privacy risks or missing features.</p>
<p>And in the evolving and sometimes fumbling tech industry, assessing the hardware, software and services it serves up is an especially important part of the work of journalism. We need to suffer through these products ourselves&#8211;unless you&#8217;d prefer that we waited to see you find their problems, then reported the controversy.</p>
<p>Readers, in turn, don&#8217;t view news and reviews as distinct entities. If they start seeing one part of a site&#8217;s work subject to a corporate overlord&#8217;s remote control, they will read everything there skeptically. If they stick around at all.</p>
</i></blockquote>
Indeed.  All that disclaimer does is remind people that CNET's coverage of any such topic is not to be trusted at all.
<br /><br />
<b>Update</b>: And... things are apparently going downhill.  According to reports and internal notes, reporters at CNET <a href="http://jimromenesko.com/2013/01/25/at-cnet-morale-is-plummeting-and-people-are-pissed-off/" target="_blank">are pissed off and morale is falling</a>.  There was a meeting where some believed CBS was going to go back on its position, but the company did not.  Reporters have been pushing back, but to no avail.  The Romenesko link here includes an email from CNET reporter Declan McCullagh ticking off example after example of publications associated with other companies suing Aereo giving perfectly normal reviews of the product:
<blockquote><i>
<p>The Wall Street Journal&#8217;s Katie Boehret (who reviews products along with Walt Mossberg, as I&#8217;m sure you know) <a href="http://online.wsj.com/article/SB10001424052702303612804577533070691481182.html">reviewed Aereo</a> three months after the litigation began. Boehret concluded: &#8220;It has a thoughtful, clean user interface that works well on the iPad, where I tested it most.. If you&#8217;re a fan of TV and want a better way to watch it on the go, Aereo is a pleasure.&#8221;  The WSJ is owned by News Corp., which is in active litigation with Aereo.</p>
<p>ABCNews.com published a review of Aereo this month. It said: &#8220;I&#8217;ve been trying out Aereo since September to record and watch all sorts of programs on Aereo &#8212; both highbrow shows such as &#8216;Downton Abbey&#8217; and guilty-pleasure ones such as &#8216;Revenge&#8230;&#8217; It makes cutting cable service tempting.&#8221; ABC News is owned by Walt Disney, which is in active litigation with Aereo.</p>
<p>The Chicago Tribune published a syndicated review of streaming services including Aereo, which said &#8220;the most exciting development might be a scrappy start-up called Aereo that lets you watch TV on any Web-connected device with a screen via a network of miniaturized antennas.&#8221; The newspaper is owned by the Tribune Company, which is in active litigation with Aereo.</p>
<p>It&#8217;s true that CBS has the right to set the editorial policies that CNET journalists must abide by. And it&#8217;s also true that this policy is prominently disclosed to our readers. But I&#8217;m not aware of other media companies that have enacted a similar policy.</p>
</i></blockquote>
This has the makings of quite the business school and journalism school case study...<br /><br /><a href="http://www.techdirt.com/articles/20130125/08230821788/cnet-you-cant-trust-our-reviews-you-can-trust-our-news-honestly.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20130125/08230821788/cnet-you-cant-trust-our-reviews-you-can-trust-our-news-honestly.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20130125/08230821788/cnet-you-cant-trust-our-reviews-you-can-trust-our-news-honestly.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>uh,-yeah</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20130125/08230821788</wfw:commentRss>
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<pubDate>Mon, 3 Dec 2012 14:01:00 PST</pubDate>
<title>Judges Realize Aereo's Setup Is Insane Technologically... But May Get The Wrong Message Out Of It</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml</link>
<guid>http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml</guid>
<description><![CDATA[ A few months ago, we <a href="https://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">wrote about</a> law professor James Grimmelmann's awesome article about how copyright law for media streaming was <a href="http://arstechnica.com/tech-policy/2012/08/why-johnny-cant-stream-how-video-copyright-went-insane/">completely insane</a> from a technological standpoint:
<blockquote><i>
Suppose I could offer you a choice of two technologies for watching TV online. Behind Door Number One sits a free-to-watch service that uses off-the-shelf technology and that buffers just enough of each show to put the live stream on the Internet. Behind Door Number Two lies a subscription service that requires custom-designed hardware and makes dozens of copies of each show. Which sounds easier to build&#8212;and to use? More importantly, which is more likely to be legal?
<br /><br />
If you went with Door Number One, then you are a sane person, untainted by the depravity of modern copyright law. But you are also wrong. The company behind Door Number One, iCraveTV, was enjoined out of existence a decade ago. The company behind Door Number Two, Aereo, just survived its first round in court and is still going strong. 
</i></blockquote>
The issue, of course, is a series of lawsuits that have really only displayed how copyright law written for legacy technologies has no idea how to deal with streaming media.  After each one, companies try to figure out <i>how to make a legal service</i>, which seems like a noble goal.  However, because of all the ridiculous specifics in rulings where judges contort themselves to come up with a way to fit a ruling into their preconceived notions of what's legal and what's not, the end result is that if you want to design a legal service, you have to set up a truly twisted and confusing setup... like Aereo's.
<br /><br />
That issue has come up in <a href="http://www.hollywoodreporter.com/thr-esq/tv-broadcasters-tell-appeals-court-395858" target="_blank">the appeal on the district court Aereo decision</a>.  The TV networks are trying to convince the appeals court that the lower court was wrong.  There was a lot of focus on trying to distinguish Aereo from the same court's <a href="http://www.techdirt.com/articles/20080804/1218551884.shtml">ruling</a> in the Cablevision case four years ago, which said that a remote DVR offered by Cablevision was legal.  However, apparently there was an interesting exchange in which the judges seemed to realize that Aereo's setup was <i>technologically insane</i>:
<blockquote><i>
The judges also questioned Hosp on why Aereo needed to have all those antennas. "Why not one? Is there a technological reason? Any legitimate business reason?"
</i></blockquote>
Aereo's lawyer, David Hosp, admitted that the reasons were legal.  This is the point at which people <i>should</i> realize that this demonstrates one of the many ways that copyright law is broken, because it forces companies to go through all sorts of convoluted technological decisions to deliver the <i>same experience</i> that could be delivered much more easily and efficiently otherwise.  Instead, the judges seemed concerned in <i>the other direction</i>, that if the decisions were done for a legal reason it was somehow a sign of ill-intent:
<blockquote><i>
One judge also observed, "You say your model is built around Cablevision. Isn't that like organizing your business affairs to avoid taxes?"
</i></blockquote>
That, of course, is a ridiculous analogy -- and thankfully Hosp responded correctly: following what the court said was legal in earlier cases isn't about "avoiding" anything, it's about <i>following the court's instructions on how to stay legal!</i>
<blockquote><i>
"The plaintiffs say it is a bad thing to follow the law," he said. "I believe the 2nd Circuit got it right in attempting to strike the right balance between public and private performances that lawmakers wanted."
</i></blockquote>
Anyway, it wouldn't be surprising to see the court overturn the district court ruling, no matter how ridiculous a result that would be.  It really feels like a lot of these cases are judged based on a judge deciding what he "feels" should be legal, and then trying to work in a justification later.<br /><br /><a href="http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121130/11383021186/judges-realize-aereos-setup-is-insane-technologically-may-get-wrong-message-out-it.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>that's-unfortunate</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121130/11383021186</wfw:commentRss>
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<item>
<pubDate>Tue, 23 Oct 2012 13:38:13 PDT</pubDate>
<title>Aereo: Has No One Noticed It's Insane That We're Being Accused Of Infringing BECAUSE We Carefully Followed The Cablevision Precedent?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml</link>
<guid>http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml</guid>
<description><![CDATA[ The <a href="http://www.techdirt.com/search.php?q=aereo">Aereo copyright fight</a> continues.  As you may recall, Aereo is a startup that is trying to let people stream free over-the-air broadcasting over the internet.  To stay within the framework of copyright law, they've set up the most <a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">inefficient system</a> possible, in which each subscriber gets his or her own antenna, connected to a streaming device.  From a technical standpoint, this is insane.  But, from the legal standpoint, it's required.  Aereo won the first round, as the district court refused to grant an injunction.  That fight quickly jumped to the appeals court, where Aereo <a href="http://www.rapidtvnews.com/index.php/24634/in-latest-legal-move-aereo-says-it-complies-with-cablevision-settlement.html" target="_blank">has filed its main brief</a>, which basically says "Cablevison, Cablevision, Cablevision, Cablevision, Cablevision, Cablevision, Cablevision..."  
<br /><br />
If you don't follow this stuff closely, a few years back, there was a ruling in the same appeals court, that found that Cablevision's remote DVR system was basically <a href="http://www.techdirt.com/articles/20080804/1218551884.shtml">legal</a>.  As we noted at the time, it was the right decision, though for ridiculously convoluted reasons, which really showed just how ill-prepared copyright law is for modern technology and innovation.  That ruling, however, is a key one that Aereo is relying on to argue that its remote streaming system is legal.  So its 90+ page filing is basically page after page of Aereo trying to explain why it's <i>just</i> like Cablevision.
<br /><br />
For the most part, I find its arguments compelling -- as they also clearly highlight how the broadcasters are basically looking to have a veto on innovations they don't like, and why that doesn't serve the public interest.   They highlight that the broadcasters argument seems to be that copyright law is designed to protect them, rather than the public interest.  Aereo points out that they're mistaken in this claim.
<blockquote><i>
While Appellants imply that the sole purpose of the Copyright Act is to protect content owners, the Act was instead intended to strike the proper balance between copyright owners, on the one hand, and public access to information on the other.... Congress expressly and deliberately exempted &#8220;private&#8221; performances from copyright protection. Further, consumers have a right of access to local over-the-air broadcast television. There is no basis in law to confine that use to a home-based antenna or equipment, to fully time-shifted copies (whether on VCR, DVR, or RS-DVR), or to only non-Internet related deployment. Indeed, contrary to what may be the view of certain Appellants and amici, copyright laws were never intended to be used to confine consumers to outdated technology. The reality is that the networks fought VCRs, and they fought remote DVRs, and they lost in both cases. This is simply another attempt to preserve the status quo as a business matter without regard to fundamental copyright principles.
</i></blockquote>
There is, also, a somewhat amusing response to the claims made by the broadcasters that Aereo should be found guilty for doing everything possible to avail itself of the specifics in the Cablevision case.  They argue -- as we've seen some commenters on our posts argue -- that Aereo's specific technical decisions show that it was somehow intending to avoid the spirit of the law... by complying with the letter of it.  Basically, they're complaining that Aereo may be jumping through a legal loophole they hadn't noticed.  However, as Aereo points out, this argument really should work in Aereo's own favor, as the networks are basically admitting, flat out, that Aereo was doing everything it possibly could to live <i>within</i> the confines of the law:
<blockquote><i>
Finally, both Appellants and amici argue that the Aereo technology is an &#8220;artifice&#8221; or some clever attempt to get around copyright law. Essentially, Appellants are arguing that Aereo carefully designed its system to comply with Cablevision. There is considerable irony in Appellants&#8217; suggestion that Aereo is somehow culpable because it carefully designed its system to comply with copyright law.
</i></blockquote>
Of course, it's interesting to note that one of the amici briefs <i>on the other side</i> came from Cablevision itself.  This is a pretty cynical and obnoxious move from Cablevision.  Having already won its legal fight that made the remote DVR legal, it knows that Aereo is actually potentially competitive.  So rather than cheering another innovator on, following down the road it paved, Cablevision cynically jumps in to protect its turf and pretend that the ruling it fought so hard for doesn't apply to Aereo.  I've included Cablevision's ridiculous brief below as well, in which it argues that it has a "direct interest in the proper interpretation" of the decision in its own case.  That's hogwash.  Cablevision's position here is solely to abuse copyright law and an important decision on its own behalf to now crush a competitor.
<br /><br />
Oh, and in checking in on the docket on the case, I should mention that the silly amicus brief we talked about from former Register of Copyrights, Ralph Oman, in which he argued that new technologies should <a href="http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml">be illegal</a> until Congress gives explicit approval, was amusingly rejected by the court for failing to comply with filing requirements.  The court noted that it had given Oman "due notice" and he had not fixed the problems with his filing.  However, after this rejection, he was able to refile yesterday...
<br /><br />
Either way, this case really seems to be bringing out the crazy, crazy anti-innovation, anti-competition arguments from the pro-copyright crowd.<br /><br /><a href="http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20121023/02391420798/aereo-has-no-one-noticed-its-insane-that-were-being-accused-infringing-because-we-carefully-followed-cablevision-precedent.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>ridiculous-copyright-fights</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20121023/02391420798</wfw:commentRss>
</item>
<item>
<pubDate>Thu, 27 Sep 2012 10:12:03 PDT</pubDate>
<title>Former Copyright Boss: New Technology Should Be Presumed Illegal Until Congress Says Otherwise</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml</guid>
<description><![CDATA[ One of the reasons why we live in such an innovative society is that we've (for the most part) enabled a permissionless innovation society -- one in which innovators no longer have to go through gatekeepers in order to bring innovation to market.  This is a hugely valuable thing, and it's why we get concerned about laws that further extend <a href="http://www.techdirt.com/articles/20120727/14251019859/dear-permission-culture-this-is-why-no-one-wants-to-ask-your-ok.shtml">permission culture</a>.  However, according to the former Register of Copyrights, Ralph Oman, under copyright law, any new technology <b>should have to apply to Congress for approval</b> and a review to make sure they don't upset the apple cart of copyright, before they're allowed to exist.  I'm not joking.  Mr. Oman, who was the Register of Copyright from 1985 to 1993 and was heavily involved in a variety of copyright issues, has <a href="http://jstyre.com/misc/Oman_Amicus_20120921.pdf" target="_blank">filed an amicus brief in the Aereo case</a> (pdf).
<br /><br />
As you hopefully recall, Aereo is the online TV service, backed by Barry Diller, that sets you up with your very own physical TV antenna on a rooftop in Brooklyn, connected to a device that will then stream to you online what that antenna picks up.  This <a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">ridiculously convoluted setup</a> is an attempt to route around the ridiculous setup of today's copyright law -- something that Oman was intimately involved in creating with the 1976 Copyright Act.  The TV networks <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml">sued</a> Aereo, but were <a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml">unable</a> to get an injunction blocking the service.  Oman's amicus brief seeks to have that ruling overturned, and argues that an injunction is proper.
<br /><br />
But he goes much further than that in his argument, even to the point of claiming that with the 1976 Copyright Act, Congress specifically intended new technologies to first apply to Congress for permission, before releasing new products on the market that might upset existing business models:
<blockquote><i>
Whenever possible, when the law is ambiguous or
silent on the issue at bar, the courts should let those who want to market new
technologies carry the burden of persuasion that a new exception to the
broad rights enacted by Congress should be established. That is especially
so if that technology poses grave dangers to the exclusive rights that
Congress has given copyright owners.  <b>Commercial exploiters of new
technologies should be required to convince Congress to sanction a new
delivery system and/or exempt it from copyright liability. That is what
Congress intended.</b>
</i></blockquote>
This is, to put it mildly, crazy talk.  He is arguing that anything even remotely disruptive and innovative, must first go through the ridiculous process of convincing Congress that it should be allowed, rather than <i>relying on what the law says</i> and letting the courts sort out any issues.  In other words, in cases of disruptive innovation, <i>assume that new technologies are illegal</i> until proven otherwise.  That's a recipe for killing innovation.
<br /><br />
Under those rules, it's unlikely that we would have radio, cable TV, VCRs, DVRs, mp3 players, YouTube and much, much more.  That's not how innovation or the law works.  You don't assume everything innovative is illegal just because it upsets some obsolete business models.  But that appears to be how Oman thinks the world should act.  Stunningly, he even seems to admit that he'd be fine with none of the above being able to come to market without Congressional approval, because he <i>approvingly</i> cites <i>the dissent</i> in the Betamax case (which made clear that the VCR was legal), which argues that the VCR should only be deemed legal with an act of Congress to modify the Copyright Act.  You would think that the success of the VCR in revitalizing the movie industry would show just how ridiculous that is... but in Oman's copyright-centric world, the rules are "first, do not allow any innovation that upsets my friends."
<br /><br />
Elsewhere, he argues -- quite correctly -- that Aereo's design was clearly done with the help of lawyers to stay on the legal side of the line, but he gets the exact wrong lesson out of that:
<blockquote><i>
The Aereo system was not designed for the purpose of speed,
convenience and efficiency. With its thousands of dime-sized antennae and
its electronic loop-the-loops, it appears to have been designed by a copyright
lawyer peering over the shoulder of an engineer to exploit what appeared to
Aereo to be a loophole in the law and shoehorn the Aereo business model
into the Cablevision decision.
</i></blockquote>
In other words, he's admitting that the system was designed carefully to remain on the right side of the law... but he's somehow upset that this is possible.  In his incredible worldview, you should not be able to design around the contours and exceptions to copyright law -- because anything that upsets Hollywood is, by default, illegal.
<br /><br />
Perhaps we've learned who put the clause in the '76 Act that explicitly says that the law should be used to <a href="http://www.techdirt.com/blog/innovation/articles/20120913/23530420381/copyright-act-explicitly-says-disruptive-innovation-should-be-blocked.shtml">stop disruptive innovation</a> if it gets in the way of the status quo.
<br /><br />
Either way, he goes on at length, claiming that his efforts in helping to put together the '76 Act and his other work on copyright were continually focused on benefiting the copyright holder.  He never mentions that this is not the purpose of copyright law.  It is the means.  But the intent is to benefit the public.  Oman does not <i>ever</i> seem to take that into consideration.
<blockquote><i>
Indisputably, Congress drafted the Copyright Act to prevent the
creative efforts of authors from being usurped by new technologies. That
core principle is at the heart of the Copyright Act. Congressional intent
would be undercut by any decision that would sanction the use of
technologies which could be used indirectly to undermine its goals.
Congress enacted a forward-looking statute that would protect those who
create precisely so they have incentives to create.
</i></blockquote>
Actually, that's quite disputable.  The Copyright Act can <i>only</i> be designed to benefit the public.  The <i>means</i> of doing so is by creating the ability of copyright holders to exclude, but that is hardly the only incentive to create.  Allowing new technologies that disrupt old business models does not necessarily remove the incentive to create.  Instead, as we've shown over and over again, the incentive to create appears to have increased greatly, even as respect for copyright has weakened tremendously over the past decade.  So I fail to see how Congress' "intent" could possibly be undermined by new disruptive technologies coming along -- without permission -- and creating new and expansive markets that both help the public <i>and</i> provide new opportunities for content creators.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120927/00320920527/former-copyright-boss-new-technology-should-be-presumed-illegal-until-congress-says-otherwise.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>wtf</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120927/00320920527</wfw:commentRss>
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<item>
<pubDate>Fri, 31 Aug 2012 10:01:19 PDT</pubDate>
<title>How Copyright Has Driven Online Streaming Innovators Insane</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml</link>
<guid>http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml</guid>
<description><![CDATA[ A little over four years ago, we wrote about the Second Circuit appeals court's <a href="http://www.techdirt.com/articles/20080804/1218551884.shtml">ruling</a> in the case over the legality of Cablevision's remote DVR.  As we said at the time, the court came to the right result -- the remote DVR was perfectly legal -- but had to twist itself into all sorts of crazy contortions to make that argument fit within the confines of copyright law.  That's because of the nature of copyright law itself, which is almost always <i>reactive</i> to technological changes and, because of that, always gets twisted up when important, useful and disruptive innovations come along.  As we noted four years ago, copyright law "is simply not set up" to handle something like a remote DVR.  Even though a home DVR is clearly legal, and the only real difference between one at home and one in the cloud is the length of the cord between the DVR and the TV, the legal arguments to make them both legal are quite twisted.
<br /><br />
Since then, we've seen a whole bunch of startups try to offer variations of streaming video online -- often relying on that quite twisted ruling in Cablevision.  Each time we write about them -- companies like <a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml">ivi</a>, <a href="http://www.techdirt.com/articles/20110317/03194613525/if-remote-dvrs-are-legal-what-about-remote-dvd-players.shtml">Zediva</a> and <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml">Aereo</a> -- we tend to note that all of them are doing incredibly inefficient and convoluted things on the back-end to try to stay within the confines of the law, as established by the Cablevision ruling.  But to any objective observer considering what makes the most sense for a company and its users, all of the Rube Goldbergian designs of these companies seem entirely pointless.  The goal is the same: to reasonably offer streaming services that match what people can do at home with a DVR or a DVD player -- but it has to be twisted to make that work within the whacked out language of the law.
<br /><br />
And that's because the law is never written with innovation in mind.  Quite the opposite.  The history of copyright law is that every time something new comes along, Congress duct tapes on some new "right" to make it work.  The 1909 Copyright Act was driven by the scary, scary invention of the player piano, which was going to wipe out the sheet music business or something.  But the internet mucks with all of that -- in part by bringing together different roles that had previously been separate.  The end result is that different aspects of copyright law may or may not apply, depending on where you sit.
<br /><br />
Law professor James Grimmelmann has picked up on this and written an absolutely brilliant piece over at Ars Technica, where he dives into the nitty gritty details of all of this to explain <a href="http://arstechnica.com/tech-policy/2012/08/why-johnny-cant-stream-how-video-copyright-went-insane/" target="_blank">how copyright law for streaming went insane</a>.  Here's the opening:
<blockquote><i>
Suppose I could offer you a choice of two technologies for watching TV online. Behind Door Number One sits a free-to-watch service that uses off-the-shelf technology and that buffers just enough of each show to put the live stream on the Internet. Behind Door Number Two lies a subscription service that requires custom-designed hardware and makes dozens of copies of each show. Which sounds easier to build&#8212;and to use? More importantly, which is more likely to be legal?
<br /><br />
If you went with Door Number One, then you are a sane person, untainted by the depravity of modern copyright law. But you are also wrong. The company behind Door Number One, <a href="http://en.wikipedia.org/wiki/ICraveTV">iCraveTV</a>, was <a href="http://euro.ecom.cmu.edu/program/law/08-732/Jurisdiction/icravetvinjunction.pdf">enjoined out of existence</a> a decade ago. The company behind Door Number Two, <a href="https://aereo.com/home">Aereo</a>, just survived its <a href="https://www.eff.org/sites/default/files/filenode/Denial%20of%20PI.pdf">first round in court</a> and is still going strong.
</i></blockquote>
The whole piece is totally worth reading.  But it keeps going back to the same thing.  Thanks to a combination of ridiculously antiquated copyright law and the 2nd Circuit's right result-but-for-odd-reasons ruling in the Cablevision case, we have a ridiculous setup where no one ever seems to take into account just what's happening for the end user, but rather focuses on the back-end to either jump through silly hoops (if you believe these services are legal) or to find questionable loopholes (if you're a copyright maximalist) to try to show that your service is legal.  The end result is not only very bizarre, convoluted and inefficient systems that make no sense, and which no sane person would <i>choose</i> to set up as a business, but also one where we just see an ongoing stream of wasteful legal battles.
<br /><br />
In talking about Zediva -- the company that set up individual DVD players in a data center which could stream only a single copy of an actual DVD playing at a time to a single user -- Grimmelmann again notes that none of this makes any sense:
<blockquote><i>
And once again, it's a business model that would not exist in a world with copyright policy that was not demonstrably insane. Rapidly spinning optical discs make sense as a distribution technology because they're compact and durable. But they're a hassle and a half for playback, because they scratch, skip, and make random access a pain. If you're going to use the Internet for distribution, better to take the DVDs out of the picture and use them as coasters. But since Cablevision had opened up what seemed like a gap in copyright law, Zediva poured shiny lacquered discs into the breach.
</i></blockquote>
Is there a way out of this that doesn't necessarily require a total dismantling of copyright law?  Grimmelmann suggests that the more common sense (i.e., not insane) approach would be to actually look at <i>what the end-user experience is</i>:
<blockquote><i>
Perhaps we can think about the problem of copyright on the Internet another way. Instead of asking which back-end technologies are legal, it might make more sense to ask what it is legal for users to do with computers on the front end. This approach would let people spend less time worrying about the exact definitions of "reproduction" and "performance" and more time thinking about users' rights, especially under fair use.
<br /><br />
Cablevision itself illustrates what might have been. The whole point of the RS-DVR was that it was a perfect substitute for a home DVR. Reasoning by analogy, then, we might say that the two ought to either both be legal or both be illegal. And since home DVRs seem here to stay, it ought to be permissible for Cablevision to offer its customers exactly the same service they could have gotten by buying a gizmo. Call it "noninfringing personal fair use" and we can all go home.
</i></blockquote>
Unfortunately, he notes that such a result wasn't possible in the Cablevision case, because <i>Cablevision itself chose not to litigate the fair use issue</i> in its case.  End result?  More insanity.
<br /><br />
Of course, even Grimmelmann's solution potentially leads to some other issues, as well.  For example, we've long argued that an embedded video on a website isn't infringing because it's no different than a link -- and that if there's infringement, it's from the uploader or hosting provider, rather than the intermediary who posted the embed code.  But under Grimmelmann's "end user" analysis, then anyone who embeds could be liable as well, as to the end user, it wouldn't appear any different than a site that hosted the content.  That raises some difficult questions as well.
<br /><br />
But there's a reason for that: because these laws were designed for a very different era and very different technology.  The concept of an open internet, and even something like an "embed code" is completely foreign to copyright law, meaning that it's legality is very much in the eye of the beholder.  And really, that just serves to highlight the real problem here: copyright law isn't built for modern technology, and that's creating all sorts of problems for innovative services.
<br /><br />
Either way, Grimmelmann's whole article is absolutely worth reading, so go <a href="http://arstechnica.com/tech-policy/2012/08/why-johnny-cant-stream-how-video-copyright-went-insane/" target="_blank">check it out</a>, even if it may make you bang your head repeatedly at the pure insanity of the situation we're in today.<br /><br /><a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml">Permalink</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/blog/innovation/articles/20120830/13260820222/how-copyright-has-driven-online-streaming-innovators-insane.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>insanity-defense</slash:department>
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<pubDate>Thu, 12 Jul 2012 11:01:00 PDT</pubDate>
<title>Aereo Wins Round One Against Broadcasters; Judge Rejects Injunction &amp; Allows Service To Live</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml</link>
<guid>http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml</guid>
<description><![CDATA[ We've been covering the ridiculous <a href="http://www.techdirt.com/search.php?cx=partner-pub-4050006937094082%3Acx0qff-dnm1&cof=FORID%3A9&ie=ISO-8859-1&q=aereo">legal fight</a> over Aereo for a few months now.  If you don't remember, Aereo is a company that offers -- for a fee -- to let people watch over-the-air broadcast TV (not cable, so just the small number of broadcast stations) online.  Basically, what they do is set up antennas in a building in Brooklyn -- with one antenna per customer -- and then connect that antenna to the internet so the person can watch.  The TV broadcasters flipped out <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml">and sued</a>. 
<br /><br />
As we've noted, in essence, this is another lawsuit that asks the question: do the copyright rules change depending on the length of your cable.  That is, we know that it's legal to put up an antenna yourself and watch what you get.  That's how broadcast TV works.  We also know that it's almost certainly legal (it hasn't directly been tested) to take the legal TV you are accessing and then place-shift it so you can watch it over the internet (like with a Slingbox).  So, if you combine those two things, why would it suddenly be illegal?  The only real difference is that the antenna and the place shifting device sit in Aereo's building rather than in your own home.  So, it's just that the "cable" length between the users and the devices is longer.  Why should the length of the cable determine whether something is infringing or not?  In a few related legal cases, the rulings have been mixed.
<br /><br />
There was the <a href="http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml">ivi</a> case, where the company offered a very similar service, but went with a different legal theory (relying on compulsory licensing rules)... which has so far been shot down in court.  Then there was <a href="http://www.techdirt.com/articles/20110317/03194613525/if-remote-dvrs-are-legal-what-about-remote-dvd-players.shtml">the Zediva</a> case which relied on a very similar theory, but with DVDs (i.e., the company had a separate DVD player for each customer and let you watch movies streamed from that individual player).  In that case, the court issued <a href="http://www.techdirt.com/articles/20111031/04020316568/mpaa-kills-more-innovation-zediva-shut-down-permanently.shtml">an injunction</a> and the company shut down.  Finally, there's the  <a href="http://www.techdirt.com/articles/20090520/0255534947.shtml">Cablevision ruling</a> in which the TV guys went after Cablevision for offering a remote DVR feature.  In a somewhat convoluted, but important, ruling, it was found that a remote DVR could be legal and non-infringing.
<br /><br />
While the networks seriously argued that anything that caused anyone to think about cancelling their cable subscriptions could be <a href="http://www.techdirt.com/articles/20120531/10124119152/tv-network-exec-argues-that-anything-that-causes-cable-subscribers-to-cut-cord-is-illegal.shtml">illegal</a>, the judge in the Aereo case, Alison Nathan, has <b>refused to grant a preliminary injunction</b> (basically doing the opposite of what happened in the Zediva ruling).  Zediva was in a different court (and only reached the district court level anyway) so that ruling had little direct influence here.  The Cablevision ruling, however, was pretty clearly instrumental in saving Aereo from being shut down.
<br /><br />
Much of the ruling focused on what seems like a relatively tangential question: whether Aereo is really creating an individual antenna for each customer, or if it's just building a giant single antenna.  More or less, it's a question of whether or not each individual antenna works with the others to better capture the signal.  This is also known as a totally stupid debate.  I mean, if you were to step back and just look at this from a <i>common sense</i> standpoint, you'd say the fact that Aereo has to set up a different antenna for each customer is pretty stupid.  There's no technical reason to do so, only a legal one.  It is an expense that serves only to satisfy a legal demand, which is by definition an inefficiency introduced into the market for no reason other than to keep lawyers happy.
<br /><br />
But, here, the judge ruled that the individual antenna theory applies, and thanks almost entirely to the Cablevision ruling, there's no reason to issue a preliminary injunction.  The networks tried some bizarre theories about why Cablevision didn't apply, but the judge saw through all of the attempts at misdirection:
<blockquote><i>
Despite this creative attempt to escape from the express holding of Cablevision, for the
reasons discussed below this Court finds itself constrained to reject the approach Plaintiffs urge.
Contrary to Plaintiffs' arguments, the copies Aereo's system creates are not materially
distinguishable from those in Cablevision, which found that the transmission was made from
those copies rather than from the incoming signal. Moreover, Plaintiffs' attempt to distinguish
Cablevision based on time-shifting fails when confronted with the reasoning of that case,
particularly considering that the Second Circuit's analysis was directly focused on the
significance of Cablevision' s copies but did not say one word to suggest that time-shifting played
any part in its holding.
</i></blockquote>
From there, the ruling goes into a wonderfully thorough debunking of the networks' attempt to ignore the ruling in Cablevision and a detailed explanation for why Aereo is quite similar to Cablevision.  In the end, the judge also bars the preliminary injunction due to the lack of irreparable harm if the service keeps going for the duration of the trial.  The court actually says that it can see how there is a clear case that the networks could suffer irreperable harm, in the form of losing viewers and advertisers -- but that since that "harm" is a longterm one, there's little reason to issue an injunction right now.  Separately, the court recognizes that an injunction would almost certainly be "irreparable harm" for Aereo, as it would effectively be a death sentence (as was the case with Zediva).   Either way, however, the level of detail the court uses in laying out why Aereo is so similar Cablevision does not bode well for the networks' overall case.
<br /><br />
This case is far from over, but in round one, the networks' key argument appears to have taken quite a beating.<br /><br /><a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120711/22343219668/aereo-wins-round-one-against-broadcasters-judge-rejects-injunction-allows-service-to-live.shtml?op=sharethis">Email This Story</a><br />
 ]]></description>
<slash:department>how-do-you-define-your-antenna</slash:department>
<wfw:commentRss>http://www.techdirt.com/comment_rss.php?sid=20120711/22343219668</wfw:commentRss>
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<pubDate>Fri, 2 Mar 2012 10:39:34 PST</pubDate>
<title>TV Networks Gang Up To Sue Aereo; Do Copyright Rules Change Based On The Length Of A Cable?</title>
<dc:creator>Mike Masnick</dc:creator>
<link>http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml</link>
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<description><![CDATA[ Well, this was no surprise.  As plenty of people <a href="http://paidcontent.org/article/419-why-the-diller-backed-aereo-will-need-some-fancy-lawyers/" target="_blank">predicted</a>, the Barry Diller-backed startup Aereo <a href="http://paidcontent.org/article/419-broadcasters-sue-to-stop-12-streaming-service-aereo/" target="_blank">has been sued by the TV networks</a> in two separate lawsuits (one from Fox, Univision and PBS -- when have Fox and PBS ever worked together on anything? -- and one from ABC).  If you haven't followed it, Aereo is a system to let people access broadcast over the air television (i.e., no cable/satellite channels -- just yours basics) via their computers, with some additional DVR-features.  The way it <i>works</i> (as we explained last year when Aereo went <a href="http://www.techdirt.com/articles/20110531/02133314472/yet-another-company-rigs-up-silly-technical-setup-to-let-you-watch-broadcast-tv-your-mobile-device.shtml">by the name Bamboom</a>) is that Aereo, for a subscription fee, sets up an antenna just for you to capture the over-the-air signals, connects it to a DVR-like device that you can then log into over the internet.  Makes some amount of sense, though it's really yet another example of how kludgey companies have to be to provide what should be readily available already.
<br /><br />
The TV networks hate, hate, <i>hate</i> this because they've been raking in oodles of cash from carriage fees from the cable and satellite guys.  That's how much cable and satellite has to pay to "retransmit" the local broadcast channels, and it's become a <i>huge</i>, multi-billion dollar business that the TV guys have no interest in giving up in any way, shape or form.  It's the reason why you probably hear stories on a regular basis about some cable or satellite network will no longer carry a certain broadcast channel... leading to a lot of posturing and such before one side eventually backs down (often after a short blackout period).
<br /><br />
If this whole thing sounds familiar, that's because Aereo has a lot of similarities to a variety of other attempts to offer video online.  There are three key cases that Aereo clearly resembles in one form or another -- but since the rulings aren't entirely consistent (yay) who knows where things will end up.  I will say that, as with previous cases, this one <i>really</i> comes down to whether or not the length of a cable changes the copyright status of a piece of video content.  I find that, when you reduce it to that level, the whole legal question automatically becomes a preposterous one.  Tragically, however, courts seem to want to contort themselves into a variety of knots to stop things that they don't like.  Anyway, the similar stories:
<ul>
<li>First up, we've got <a href="http://www.techdirt.com/articles/20100921/11173011095/company-claims-legal-right-to-stream-broadcast-tv-online-broadcasters-disagree.shtml">the ivi case</a>, which may seem like the most similar in terms of offerings, but may actually be the least similar in terms of legal issues.  ivi also offered (for a subscription fee) access to over the air broadcast channels via the internet.  However, the method and legal arguments were somewhat different.  ivi tried to mainly rely on <a href="http://www.copyright.gov/licensing/sec_111.html" target="_blank">Section 111</a> of Copyright law, which was what established a compulsory licensing system for cable systems to retransmit network television.  Thus, it tried to argue that it was the equivalent of a cable system, and could get by with the compulsory rates.  
<br /><br />
So far, it <a href="http://www.techdirt.com/articles/20110222/11395313211/court-not-impressed-with-ivis-legal-loopholes-shoots-online-tv-broadcaster-down.shtml">hasn't fared well</a> in court.  While the products are similar to the end consumer here, the method and legal arguments are pretty different.  For what it's worth, the lawsuit against Aereo was filed in the same court as the one against ivi.</li>
<br /><br />
<li>The second case is the Zediva case.  This one is actually much closer legally to Aereo, even if the products are somewhat different.  Zediva worked by having a bunch of <a href="http://www.techdirt.com/articles/20110317/03194613525/if-remote-dvrs-are-legal-what-about-remote-dvd-players.shtml">network-enabled DVD players</a> in a data center.  If you wanted to "rent a movie" online, you could do so, and a physical DVD would be put into a physical DVD player and streamed to you online.  Zediva legally purchased the DVDs and argued that this was really no different than having a DVD player next to the TV.  It's just that the cable is much longer.  The similarities to Aereo are pretty obvious.  Both involve a separate physical device at a central location being assigned to an end-user, and then content streaming from that device.  
<br /><br />
Unfortunately for Aereo, Zediva has also <a href="http://www.techdirt.com/articles/20111031/04020316568/mpaa-kills-more-innovation-zediva-shut-down-permanently.shtml">not fared well</a> in court -- a ruling that does not bode well at all for Aereo.  The most troubling part of the Zediva ruling was that watching a DVD in your own private home, even if it was solely being streamed to you direct from a DVD player that only you could access for the duration of the movie, was <a href="http://www.techdirt.com/articles/20110802/02374615353/court-shuts-down-zediva-apparently-length-cable-determines-if-something-is-infringing.shtml">considered a public performance</a>.  This seems like a pretty ridiculous reading of the law to some of us, but if the court in the Aereo case reads the law the same way, Aereo is sunk.  The only slight ray of hope here may be that the Zediva case was in the Central District of California, rather than the Southern District of NY where the Aereo case is (and the ivi case was as well).</li>
<br /><br />
<li>The other "ray of hope" comes from the <a href="http://www.techdirt.com/articles/20090520/0255534947.shtml">Cablevision ruling</a>, which noted that a hosted DVR device could be legal and non-infringing, though it involved a <a href="http://www.techdirt.com/articles/20080804/1218551884.shtml">horribly convoluted</a> legal argument for the court to reach the conclusion it wanted, focusing on the legality of fleeting buffer copies.  This is a ruling that the industry would <a href="http://www.techdirt.com/articles/20120203/02333517646/real-goal-regulating-buffer-copies-so-hollywood-can-put-tollbooth-innovation.shtml">love to kill off</a> if it could.  The good news here, beyond the nature of the ruling, is that this ruling came in the 2nd Circuit appeals court, which is precedent setting for the Southern District of NY where the Aereo case is taking place.  It's not a direct comparison, but this ruling <i>could</i> conceivably help in at least one key part of the case.</li>
</ul>
On the whole, I'd say that Aereo's chances of prevailing are pretty slim no matter what.  So far, it seems like the courts tend to use more of a "does this <i>feel</i> different enough to break the law" type of approach.. and then work out ways to make the ruling agree with that.  However, if they do prevail here, it will set up an interesting split with the Zediva ruling -- though, it won't be that meaningful, because Zediva more or less ran out of money and <a href="http://www.techdirt.com/articles/20111031/04020316568/mpaa-kills-more-innovation-zediva-shut-down-permanently.shtml">gave up on its lawsuit</a> before it reached the appeals court level.
<br /><br />
However, as I've noted with all of these services, all they really seem to do is highlight how ridiculous copyright law is both in the contortions it forces companies to go through to try to stay within the letter of the law, and the equally ridiculous contortions that the courts then have to go through to move those lines to claim that these things are infringing in some manner.  I still really don't see <i>the point</i> of either ivi or Aereo, but I'm troubled that they're not even allowed to exist.  The thing is, if this content was just made available online in an easy, open and convenient manner -- as it is over the airwaves -- then there wouldn't be any issue here at all.  But it's not, and thus we get these companies that have to do all kinds of acrobatics to try to legally offer a service... only to see them get sued out of existence for daring to try to stay within the letter of the law, rather than just saying "to heck with it" and setting up a site offshore that provides unauthorized streams in the most efficient manner.
<br /><br />
<b>Fundamentally</b>, what this comes down to is the simple question of whether or not copyright law is different if the cord between your TV and the device that brings content to your TV is a matter of feet or a matter of miles.  It's clearly legal to watch and record over-the-air TV in your own home with your own antenna (or to watch a movie on a DVD player).  The only real difference here is that, rather than a cable running a few short feet from your TV to an antenna or a DVD player next to it, the TV is hooked up to the internet, and the "cable" in question is miles long to a data center... where it connects to a nearly identical antenna or DVD player.  To me, it makes no sense at all to say that those two scenarios have different legal outcomes.  And, indeed, that appears to be <a href="http://blog.aereo.com/2012/03/our-response/" target="_blank">the argument that Aereo is making</a>:
<blockquote><i>
Aereo does not believe that the broadcasters&#8217; position has any merit and it very much looks forward to a full and fair airing of the issues.
<br /><br />
<b>Consumers are legally entitled to access broadcast television via an antenna and they are entitled to record television content for their personal use. </b>  Innovations in technology over time, from digital signals to Digital Video Recorders (&#8220;DVRs&#8221;), have made access to television easier and better for consumers.   Aereo provides technology that enables consumers to use their cloud DVR and their remote antenna to record and watch the broadcast television signal to which they are entitled anywhere they are, whether on a phone, a tablet, a television or a laptop.
</i></blockquote>
Now they just have to convince a court of that.<br /><br /><a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml">Permalink</a> | <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml#comments">Comments</a> | <a href="http://www.techdirt.com/articles/20120302/00190517940/tv-networks-gang-up-to-sue-aereo-do-copyright-rules-change-based-length-cable.shtml?op=sharethis">Email This Story</a><br />
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