American Broadcasting Companies, Inc. v. Aereo, Inc.

“Technology cannot be used to bypass copyright obligations.”

SHORT DESCRIPTION

American Broadcasting Companies, Inc. v. Aereo, Inc. is a landmark decision on the application of copyright law to modern broadcasting technology. The case examined whether a technology-driven business model that retransmitted television broadcasts over the internet without authorisation could escape liability by relying on technical distinctions. The U.S. Supreme Court’s ruling reaffirmed that copyright law adapts to technological change and protects the economic rights of content creators.

FACTS OF THE CASE

Aereo, Inc. operated an internet-based service that allowed subscribers to watch live television broadcasts on their devices. To achieve this, Aereo used thousands of small individual antennas, each assigned to a particular user, to capture free over-the-air broadcast signals. The captured content was then streamed to users over the internet.

Major broadcasting companies, including American Broadcasting Companies (ABC), sued Aereo, alleging that the service violated their exclusive right to publicly perform copyrighted works. Aereo argued that its system merely enabled private performances for individual users and therefore did not amount to a public performance.

ISSUES INVOLVED

The central issue before the Supreme Court was whether Aereo’s method of transmitting broadcast television constituted a “public performance” under U.S. copyright law, even though each transmission was technically made to an individual user.

COURT’S FINDINGS AND OBSERVATIONS

The Supreme Court rejected Aereo’s technical arguments and held that the substance of the service mattered more than its design. The Court observed that Aereo’s operations were functionally similar to a cable television system, which requires licensing to retransmit broadcast content.

The Court emphasized that allowing Aereo’s model would undermine the copyright framework and deprive broadcasters of fair compensation. It clarified that businesses cannot avoid copyright liability merely by structuring their technology in a novel or fragmented manner.

SUGGESTION / PRACTICAL TAKEAWAY

This judgment is crucial for technology companies operating in the media and streaming sector. It highlights that innovative delivery mechanisms must still comply with copyright law. Content distribution platforms should secure appropriate licences before retransmitting copyrighted works, regardless of the technical architecture used.

JUDGMENT

Year: 2014

The U.S. Supreme Court ruled in favour of American Broadcasting Companies, holding that Aereo’s service amounted to an unauthorised public performance and infringed copyright.