Appeals court denies bid to shut down Web TV service Aereo

A federal appeals court rejected a bid by TV networks to shut down Internet video service Aereo.

The 2-1 decision upheld a lower court's ruling from July not to issue an injunction against the company, which is backed by billionaire Barry Diller. But the lawsuit, which claims that Aereo infringes on the broadcasters' copyrighted material, will continue as the company expands into new cities. The U.S. Court of Appeals for the 2nd Circuit ruled that that Aereo's transmissions do not constitute a "public performance" under copyright law, and that the stations are not entitled to temporarily shut the company down as their lawsuit is pending.