[Commentary] To avoid being shut down, Aereo must persuade the Supreme Court that it has a legal home within these technologies and the elaborate regulatory rules that have sprung up around them.
One way Aereo will try to do that is by likening its legal position to cases involving the Sony Betamax, which let consumers record analog TV signals onto magnetic tape, and to Cablevision’s remote DVR service. Taken together, those cases, handed down 25 years apart, established that consumers have a “fair use” right to record shows, and that no “public performance” takes place when the consumer plays them back later on. Aereo says its tech does the same thing. As the company will tell the Court, it is Aereo’s subscribers -- not Aereo -- who determine when the recording starts and stops, and when the show will start playing back.
History may help Aereo too in rebutting the argument that Aereo, if it were operating legally, it would be paying signal retransmission fees like cable and satellite companies do. As Aereo points out in its brief, the retransmission fees (which now account for about 10 percent of broadcasters’ revenue) don’t flow from the Copyright Act, but from a separate law that Congress passed to promote competition in different sectors of the TV industry. The implication is that, if these fees should be extended further, it’s a job for Congress and not the Supreme Court.
Finally, Aereo will try to tell the court that the local over-the-air TV signals that its antennas detect are free, and always have been. In the history of TV, Aereo says, these local signals stand apart and are part of an historical bargain in the TV industry under which the big broadcasters get access to public spectrum in return for beaming information to the public.