In a landmark tech decision, the Supreme Court has ruled that Aereo, a groundbreaking internet TV streaming start-up, violates copyright law, a ruling that could shut the company down.
Aereo has been sued by nearly every major broadcaster for its $8 per month streaming service, which took TV programs from the airwaves and allowed subscribers to watch them on smartphones, iPads and even TVs with a Roku or Apple TV streaming device.
The Supreme Court found that, to continue streaming the same content, Aereo would have to pay huge re-transmission fees to the broadcasters, the way cable and satellite companies do.
In his majority opinion, Justice Stephen Breyer said Aereo should be treated no different from a cable system.
"Aereo's system is, for all practical purposes, identical to a cable system," he said.
Aereo had contended that the individual antennas it gives its subscribers are comparable to those used by home TV viewers to watch over-the-air broadcasts for free.
Smaller cable companies, independent broadcasters and consumer groups backed Aereo, warning the court not to try to predict the future of television.
Justice Antonin Scalia, in a dissent, noted that the high court came within a vote of declaring videocassette recorders "contraband" when it ruled for Sony Corp. in a case over recordings of television programs 30 years ago.
It is unclear what will happen to Aereo, but CEO Chet Kanojia has said repeatedly there is no Plan B for the company.
Supporters of Aereo have said a ruling against the company would set a dangerous precedent for the cloud computing industry — which gives users access to a vast online computer network that stores and processes information — but the court disagreed.
"The Court does not believe its decision will discourage the emergence or use of different kinds of technologies," the decision says.
Aereo has raised $97 million in venture financing, including from Boston's Highland Capital. The company has 80 employees in the Seaport District, and among the broadcasters suing was WCVB (Ch. 5).
The service is available in New York, Boston, Houston and Atlanta among 11 metropolitan areas and uses thousands of dime-size antennas to capture television signals.
Associated Press contributed.
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