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Technology Stocks : Netflix (NFLX) and the Streaming Wars
NFLX 106.21-3.4%2:07 PM EST
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To: Zen Dollar Round who wrote (953)1/12/2014 11:03:54 AM
From: ChrisGillette3 Recommendations

Recommended By
Jurgis Bekepuris
TimF
Zen Dollar Round

   of 2280
 
<<Ah, the live sports brings up an interesting question. All major U.S. sports that I'm aware of have words at the beginning of their broadcasts to the effect that rebroadcast or transmission of their content is illegal without express written consent. In other words, it has to be licensed. The major networks pay big bucks to broadcast live sports (the NFL being a prime example), so I could see where both the NFL and the networks carrying their games would want to sue Aereo.>>

Thus far, courts have ruled that Aereo neither rebroadcasts nor transmits. Rather, Aereo simply provides technology that enables consumers to privately record and consume content under Fair Use.

Who is doing the recording and playback is key. Courts have ruled that it is consumers, not Aereo.

Aereo's case relies heavily on a prior case involving Cablevision. Cablevision had these things called Remote Storage DVRs (think Cloud DVRs for simplicity). Instead of the DVR residing in the consumers home, the DVR is in the cloud and consumers can stream the content anywhere.

Cablevision won its case because the courts ruled that its DVRs were legally no different from DVRs residing in the consumers home (they just had a REALLY long cord). Consumers controlled what was recorded and played back, thus it was a private performance allowed under Fair Use.

Aereo basically used the Cablevision case as a template and applied it to antennas.

en.wikipedia.org.
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