Digital_MediaTV & Media

TV & Media

Supreme Court Sides Strikes Down Aereo But Open the Door to Other OTT Providers



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Report Summary:

Though the U.S. Supreme Court put an abrupt halt to Aereo’s aspirations, as currently configured, it simultaneously opened a path for OTT TV services to legally provide broadcast network programming to subscribers without first having to negotiate retransmission consent agreements. By referring to Aereo as “substantially similar to those of the CATV companies” in the majority opinion the U.S. Supreme Court provided OTT TV service providers with a legal justification for retransmitting distant broadcast signals without securing permission from the copyright owner while requiring the service providers pay royalty fees to a central royalty fund based on a percentage of their gross revenues. While this will likely lead to the broadcast networks filing suit to prevent this from occurring the odds of a successful suit are lower since this strategy has already been previously litigated (Capital Cities Cable Inc. vs. Crisp, 467 U.S. 691, 709 (1984)) and the media companies lost.

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