Aereo Must Shut Down In Utah And Colorado, Court Rules

Aereo, the startup company that utilizes broadcast signals to provide users with TV over the Internet, has had a lot of success in its short run, though not without ample backlash. That stint of luck seems to be running out of steam, however, with a U.S. District Court in Utah ruling that it must stop operating in Utah and Colorado.

The ruling is a preliminary injunction that was sought by broadcasting companies, which will be battling it out with the startup before the Supreme Court this spring. Beyond the ruling, the companies are also asking the court to overturn the Court of Appeals' ruling concerning Aereo.

The complaint in Utah was filed by Fox, the Sinclair Broadcast Group, and Nexstar back in October, with the complaint covering the Denver market as well. At the heart of the matter lies the issue of whether Aereo is infringing on copyrights by offering its service without paying the broadcasters.

Said Judge Dale Kimball on his ruling, "Based on the plain language of the 1976 Copyright Act and the clear intent of Congress, this court concludes that Aereo is engaging in copyright infringement of Plaintiffs' programs. Despite its attempt to design a device or process outside the scope of the 1976 Copyright Act, Aereo's device or process transmits Plaintiffs' copyrighted programs to the public."

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SOURCE: LA Times