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NFT: Will the Supreme Court change the way we watch TV?

sphinx : 4/22/2014 11:23 am
Two years later in Sony v. Universal Studios, the Supreme Court rejected the idea that video recordings constituted copyright infringement. By 1986, videocassettes had become the motion picture industry's largest source of revenue.

Three decades later, the court is once again considering whether a new technology -- one that relies on cloud computing to store programming -- violates the Copyright Act. And as in decades past, there are parties on both sides warning of the huge economic consequences that could come from the court's ruling.

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Legally the case supports David  
WideRight : 4/22/2014 11:31 am : link
But Golaith seems to own this court...
The lower courts have sided with Aereo  
Stan from LA : 4/22/2014 11:37 am : link
In effect, 'your antenna' is not on the top of your house, but is some remote location. And you access your programing from that location rather than the DVR in your house. The networks are mad because they are not getting a slice of the pie. Aereo has simply built a better mousetrap (thanks Barry Diller). But the Surpremes usually side with larger companies over smaller ones so there's that.

It will be fun to see where this goes.
If Aereo wins  
Jim in Fairfax : 4/22/2014 11:52 am : link
The unfortunate resultant reaction will likely be the networks shutting down their broadcasts.
Jim, you are joking, yes?  
Randy in CT : 4/22/2014 11:53 am : link
There will still be tons of advertising dollars to be made. As much as before actually.
Interesting article  
Bramton1 : 4/22/2014 11:53 am : link
If seems like if the broadcasters lose, they'll bump a lot of popular shows onto affiliated cable channels, hurting local network affiliates and causing a percentage of them to go under.

But if the broadcasters win, it could have far-reaching implications on future cloud computing. As DVRs start processing toward the cloud, networks and producers could scream copyright protection and choose to bar their programs from cloud-based DVR services, or (much more likely) charge viewers a fee for the privilege of recording their show onto your cloud-based DVR. Not gonna be home in time for the start of your favorite show? Are you willing to pay $2 for the ability to record that episode? What if you're regularly watching the episodes on tape delay (maybe the kids' bedtime isn't until 9:15, but your show starts at 9)? Would you pay $20 for a season recording pass?

And I agree with WideRight. This court is gonna side with the broadcasters. Whoever has the chance to make the most money or exert the most influence with their money tends to be favored by this court.
RE: Jim, you are joking, yes?  
Jim in Fairfax : 4/22/2014 11:57 am : link
In comment 11632022 Randy in CT said:
Quote:
There will still be tons of advertising dollars to be made. As much as before actually.

No, I'm not joking. This is what they are threatening to do. They would cease broadcasting over the air. Their telecasts would only be available via cable and satellite.
Does any of this have to do with the fact  
mattnyg05 : 4/22/2014 11:58 am : link
that I pay about $128 bucks a month just so I can get a package from Optimum that has MSG, and I actually watch about $10 bucks worth every month?

Would a decision like this eventually lead to people choosing their channels without packages and paying what they want? Internet cable would be sa-weet.
If the broadcasters lose they're not going to do jack shit  
Ron from Ninerland : 4/22/2014 12:00 pm : link
In fact, they're moving in the other direction. many broadcast shows are available on their internet sites, albeit with advertising for free. The last time I looked ABC and Disney were on Apple TV
Well  
mrvax : 4/22/2014 12:01 pm : link
Quote:
And I agree with WideRight. This court is gonna side with the broadcasters. Whoever has the chance to make the most money or exert the most influence with their money tends to be favored by this court.


If they side with the broadcasters we just have to vote the Supreme Court out of office.


J/K

I think pirating will be rampant if the broadcasters win.
RE: Does any of this have to do with the fact  
Jim in Fairfax : 4/22/2014 12:01 pm : link
In comment 11632036 mattnyg05 said:
Quote:
that I pay about $128 bucks a month just so I can get a package from Optimum that has MSG, and I actually watch about $10 bucks worth every month?

Would a decision like this eventually lead to people choosing their channels without packages and paying what they want? Internet cable would be sa-weet.

No, this is only about stations which broadcast over-the-air, I.e.: CBS, NBC, ABC, FOX, etc.

I'll go out on a limb here and say SCOTUS will uphold the lower courts  
Ron from Ninerland : 4/22/2014 12:08 pm : link
Don't the Supremes tend to relax copyright laws rather then attempt to expand them when they get a case ? IMHO the broadcasters made a mistake trying to fight this in the courts. They would have had a lot better luck persuading the scum suckers in Congress restricting this kind of activity.
Aereo's Chromecast app comes out on 5/29  
Giants11737 : 4/22/2014 12:09 pm : link
Fingers crossed they win today.
RE: I'll go out on a limb here and say SCOTUS will uphold the lower courts  
Jim in Fairfax : 4/22/2014 12:17 pm : link
In comment 11632066 Ron from Ninerland said:
Quote:
Don't the Supremes tend to relax copyright laws rather then attempt to expand them when they get a case ? IMHO the broadcasters made a mistake trying to fight this in the courts. They would have had a lot better luck persuading the scum suckers in Congress restricting this kind of activity.

If they follow through on their threats to pull their broadcasts off the airwaves, the outcry to Congress could provoke legislation.
I  
AcidTest : 4/22/2014 1:02 pm : link
am an attorney, but will preface my comments with the admission that I am only now learning the facts of the case.

My understanding is that the Obama Administration, including the Justice Department and the U.S. Copyright Office, have sided with the broadcasters.

As a general matter, courts typically defer to the interpretation of a statute by the agency which Congress has given the authority to implement its provisions. That is a basic rule under the Administrative Procedure Act. The rationale is that the courts should defer to the right of the legislative branch to make policy, including the allocation of that right to executive branch agencies. The agencies are also more knowledgeable than the courts about the subject matter of the statute in question.

This is important because the legality of what Aereo is doing depends on an interpretation of the copyright act, namely whether their retransmission is a "public" or "private" use. My understanding is that public uses require payment, and private uses do not.

The copyright office has said that this is a public use. The Supreme Court could simply uphold that interpretation as a reasonable construction of the statute, without actually deciding if it is correct. They may not be looking to decide the issue in the abstract, but simply whether the interpretation of the copyright office is reasonable. If it is, and it certainly seems defensible, then they might just defer to their judgment according to the aforementioned rule.

That of course would end Aereo unless Congress amended the copyright act. And the broadcasters presumably have more than enough sway in Congress to prevent that from happening.

Again, I'm not saying this will happen, but based on the limited amount I know, it could be a possible way of deciding the case.
The bottom line is  
Knineteen : 4/22/2014 1:05 pm : link
someone's going to rip you off, this is simply going to decide who.
LA Times article  
Stan from LA : 4/22/2014 1:25 pm : link
Talks with the founder.
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RE: Legally the case supports David  
njm : 4/22/2014 1:31 pm : link
In comment 11631961 WideRight said:
Quote:
But Golaith seems to own this court...


Interesting. And I guess you can even say that holds for the Kelo case where Kennedy, Ginsburg, Breyer, Stevens and Souter ruled for Goliath.
If the Obama administration is supporting the broadcasters  
Ron from Ninerland : 4/22/2014 2:14 pm : link
then you've already guaranteed that a minimum of 4 justices will vote against the broadcasters. Would you like me to name them ;) ?
Right  
njm : 4/22/2014 2:19 pm : link
The holding that the ACA was unconstitutional proves that point.
interesting case  
giantfanboy : 4/22/2014 2:27 pm : link
basically areo's justification is this company is renting an antenna/dvr to you every month
no different than if a guy came over to your apartment installed and leased you an over the air antenna ..and a dvr

it could go either way

but if aereo wins - you will see ALL network programing move to cable
this includes football

the only thing on broadcast tv will be news ,infomercials and an occasional rerun from their cable networks show

it will truly be a wasteland
Chief Justice Slams Aereo At Supreme Court Hearing  
sphinx : 4/22/2014 2:29 pm : link
If you thought that the legal dispute between Aereo and the broadcasters was combative, it paled compared with today’s one-hour hearing at the Supreme Court. In oral arguments before the nine Justices, both sides took some heavy blows, but the Barry Diller-backed streaming service definitely took one to the jaw from Chief Justice John Roberts. “Your technological model is solely based on circumventing” the law, Roberts told Aereo attorney David Frederick during the presentation before a packed chamber. “There’s no reason for you to have 10,000 dime-sized antennas except to get around the Copyright Act,” he said. Added Justice Ruth Bader Ginsburg: ”You are the only player so far that pays no royalties whatsoever.” Coming after arguments from the broadcasters by former Solicitor General Paul Clement and current Deputy Solicitor General Malcolm Stewart, Frederick started off his presentation by saying “this is a reproduction rights issue masquerading as a copyright issue.

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RE: Does any of this have to do with the fact  
Enoch : 4/22/2014 2:38 pm : link
In comment 11632036 mattnyg05 said:
Quote:
that I pay about $128 bucks a month just so I can get a package from Optimum that has MSG, and I actually watch about $10 bucks worth every month?

Would a decision like this eventually lead to people choosing their channels without packages and paying what they want? Internet cable would be sa-weet.


The problem is that you've already proven to the cable company that you'll pay them $128 to watch MSG. Why should they price it any lower than that if they go a la carte?
Do I have this right?  
njm : 4/22/2014 2:39 pm : link
Roberts and Ginsburg appear to be in agreement?
RE: Do I have this right?  
sphinx : 4/22/2014 3:04 pm : link
In comment 11632514 njm said:
Quote:
Roberts and Ginsburg appear to be in agreement?

From those two sound bites, it seems to be.

This case is not ideological  
WideRight : 4/22/2014 3:10 pm : link
Probably why its so interesting.

Regardless of the ruling, technological advances are going to render this decision meaningless. Slingbox for broadcast signals anyone?
Reuters  
sphinx : 4/22/2014 3:26 pm : link
(Reuters) - U.S. Supreme Court justices on Tuesday appeared skeptical over online TV startup Aereo Inc's position in a copyright fight with major media companies, but several raised concerns about how a ruling in favor of broadcasters could affect increasingly popular cloud computing services.

[...]

During a one-hour-long oral argument on Tuesday, several justices appeared troubled about a ruling that would deal a blow to increasingly popular cloud computing services in which personal files - including TV shows and music - are stored remotely on the Internet on servers from companies such as Google Inc, Microsoft Corp, DropBox Inc and Box Inc.

Justice Stephen Breyer told the networks' lawyer, Paul Clement, that his legal argument "makes me nervous about taking your preferred route."

Justices Anthony Kennedy and Samuel Alito were among others who raised similar concerns.

A number of justices also seemed skeptical about Aereo's business model. Chief Justice John Roberts questioned whether the technology used by the company had any purpose other than skirting copyright law.


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RE: If Aereo wins  
BigBlueDownTheShore : 4/22/2014 3:27 pm : link
In comment 11632017 Jim in Fairfax said:
Quote:
The unfortunate resultant reaction will likely be the networks shutting down their broadcasts.


The new McCane law will force the broadcasters to continue the broadcasting of the over the air signals. Not will allow them not to back out and yank it from the airwaves especially since the right to watch via antenna has always been protected by law.
We need something like this to break the monopoly of cable companies  
BeerFridge : 4/22/2014 3:28 pm : link
.
You can read  
sphinx : 4/22/2014 3:32 pm : link
the transcript of today's oral arguments here ...
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it is interesting that Aereo pushes for this to settle it once and for  
BeerFridge : 4/22/2014 3:32 pm : link
all.

And while it is a valid argument that their technology is set up to allow their business model to remain legal, well, that's what everyone does.
Good point  
WideRight : 4/22/2014 3:49 pm : link
Shows why Roberts is such a corporate bitch. Technolgy has to be legal by definition. It has to provide value to be successful. Roberts twists it around.
So what would you call Ginzburg?  
njm : 4/22/2014 3:55 pm : link
.
RE: RE: Does any of this have to do with the fact  
Jim in Fairfax : 4/22/2014 3:55 pm : link
In comment 11632510 Enoch said:
Quote:
In comment 11632036 mattnyg05 said:


Quote:


that I pay about $128 bucks a month just so I can get a package from Optimum that has MSG, and I actually watch about $10 bucks worth every month?

Would a decision like this eventually lead to people choosing their channels without packages and paying what they want? Internet cable would be sa-weet.

The problem is that you've already proven to the cable company that you'll pay them $128 to watch MSG. Why should they price it any lower than that if they go a la carte?


That's not exactly reflective of how cable is priced. Though your bill doesn't show it transparently, you're paying for 2 things: Content (TV channels), and the cable infrastructure to deliver it. In an ala carte system, you would see the costs for these transparently. Probably half your bill goes to paying for infrastructure -- the cables, the dishes and antennas, the servers, and all the personnel who support them. The rest is content.

Content fees are not set by the cable company, but by the cable channels themselves. MSG as an example, charges the cable company around $5 for each subscriber they have. The cable company is just passing that cost along.

In an ala carte system. Mattnyg05 could just pay a flat infrastructre fee, plus subscribe to the channels he was interested in. But each channel would cost much more. MSG for example is only watched by about 25% of cable subscribers, so they would have to charge at least $20 to receive the same revenue. But many subscribers would likely not be willing to pay that, so the price would likely be much higher.
It goes to about how it is all done  
Stan from LA : 4/22/2014 5:16 pm : link
If Aereo were taping EVERY show broadcast itself and you, at the end of the day, went to a screen and called up the shows from that day (or the days before that)that you wanted to see that's retransmission

If, however, you have to program/select each and every show BEFORE it airs and simply use their service as a means of capturing & storing it to view at your convenience(like one does now with a DVR) that another thing all together. You're simply renting an antenna and a DVR in a new way.

IMO, the lower courts have got it right so far(in ruling for Aereo) and if the broadcast companies are so mad, scramble the free signals and make everyone buy a decoder.
Yeah, broadcasters might shift programming from over-the-air to cable.  
81_Great_Dane : 4/22/2014 5:16 pm : link
But it would be against their long-term interests. They like to argue that over-the-air, free broadcasts provide an essential public service, and that's why they deserve to continue to control swaths of extremely valuable spectrum, spectrum which is public property under U.S. law and which Internet providers and others would love to pay for in their stead.

So my reaction to their threats to end over-the-air because one company is doing them a favor and finding a way for people to watch their shows (and ads) on mobile devices: "I call bullshit."
Broadcasters have ALREADY shifted to cable  
Jim in Fairfax : 4/22/2014 5:44 pm : link
And are raking in billions in retransmission fees, which is making up for the ad revenue declines. Overwhelming majority of consumers watch network TV on satellite and cable. Most over-the- air viewers are either low income or live in rural areas that don't have cable systems.
The broadcasting industry defines cable as the enemy.  
81_Great_Dane : 4/22/2014 5:48 pm : link
If you go back and look at coverage of the National Assn. of Broadcasters opening keynote from earlier this month, you'll find plenty of complaints from the NAB people about cable and pay TV. However, they are a little less bitter now that they collect retransmission fees from pay TV providers.
Its going to be a moot point in a few years  
Pork and Beans : 4/22/2014 5:55 pm : link
If I am the NFL why would I go through an intermediary like CBS and FOX, when I could just stream the product myself, and take all the ad money.
SCOTUSblog  
sphinx : 4/22/2014 6:08 pm : link
But most of the dapper lawyers filling the bar section this morning appear to be here for the second case, American Broadcasting Cos. Inc. v. Aereo Inc., about the legality of the upstart Aereo’s plan of taking broadcast signals using tiny antennas and offering its customers live TV signals over the Internet without paying re-transmission fees to broadcasters

These well-dressed members of the telecommunications bar will be tapping their Gucci loafers a little longer than they expected before getting to that case. Such an anticipated case might normally be argued first in the day. But when a member of the Court has recused himself or herself, that case is often scheduled as the second argument, allowing the Justice in question to take the bench for the first case, then relatively inconspicuously slip out during the brief break between the first and second cases.

That may explain why the Aereo case was scheduled second today, because Justice Samuel A. Alito Jr. was originally recused. (The Justices typically don’t publicly explain why they are removing themselves.) Last week, however, the Court announced that Justice Alito would be participating in the Aereo case after all. Presumably he sold his stock in one or more of the corporate parties in the case, and thus no longer had a conflict, but there was no confirmation of that.
'Argument analysis: Slipping down the digital slope'  
sphinx : 4/23/2014 8:46 am : link
From that analysis:

In the digital age, perhaps only someone as old as Justice Stephen G. Breyer (or older) would fret about what might happen to a store that sells “phonograph records.” [...]

One lawyer sought to persuade the Court that the cloud is falling, so to speak, while another said not to worry about it, and a third said it means nothing legally if it is only used with “a gimmick.” All three of those positions can’t be true, but the Court left little doubt that it will have to spend some time and effort exploring which one of them — if any — can be believed.

The legal issue before the Court is misleadingly simple: is Aereo violating copyright law with its system of renting out thousands of tiny antennas to a growing throng of customers so they can pick and choose the TV programs they want to watch, pulling them from “the cloud” whenever the mood stirs them to do so?

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