Internet TV streaming service Aereo temporarily shut down its service yesterday, three days after a devastating U.S. Supreme Court ruling.
The company, which is headquartered in New York but has 80 of its roughly 115 employees in Boston, will "pause our operations temporarily as we consult with the court and map out our next steps," Aereo CEO Chet Kanojia said in a letter to customers. Around 11:40 yesterday morning, the service stopped working. Kanojia said customers will be refunded for the last month.
"Aereo could see the writing on the wall," said Rutgers University law professor Michael Carrier.
The Supreme Court ruled Wednesday that Aereo violated copyright law by rebroadcasting over-the-air channels to its subscribers without paying retransmission fees to broadcasters as cable companies do.
The Supreme Court could not order Aereo to shut down, instead leaving it up to a lower court to issue a preliminary injunction, as requested by broadcasters.
Instead, Aereo decided to stop operations for now, but insists the company is not shutting down.
"The spectrum that the broadcasters use to transmit over-the-air programming belongs to the American public and we believe you should have the right to access that live programming whether your antenna sits on the roof of your home, on top of your television or in the cloud," Kanojia wrote in the letter.
Aereo could end up licensing its technology, or could be acquired by a company looking to expand its cloud options, said David Shlansky, an intellectual property lawyer.
"They can probably salvage something pretty valuable," he said.
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