American Broadcasting Companies, Inc. v. Aereo, Inc.
Issues
Does a company “publicly perform” a television program when it retransmits broadcasts of that program to thousands of paid subscribers over the Internet?
Aereo is a company that offers subscribers the ability to watch and record local broadcast television over the internet for a monthly fee. Aereo retransmits the programming without a license and without paying a fee to copyright holders. ABC and other television broadcasters sued Aereo for copyright infringement and moved for a preliminary injection. The district court and Second Circuit denied the plaintiffs’ motion because the plaintiffs failed to demonstrate a likelihood of prevailing on the merits in their infringement action. The Supreme Court will decide whether a company that retransmits programming to paid subscribers without obtaining the owner’s permission violates the Copyright Act. The Court’s decision could upend the traditional business model of broadcast television and will affect the relationship between technological innovation and content distribution.
Questions as Framed for the Court by the Parties
A copyright holder possesses the exclusive right “to perform the copyrighted work publicly.” 17 U.S.C. §106(4). In the Copyright Act of 1976, Congress defined the phrase “[t]o perform ... ‘publicly’” to include, among other things, “to transmit or otherwise communicate a performance or display of the work ... to the public, by means of any device or process, whether the members of the public capable of receiving the performance or display receive it in the same place or in separate places and at the same time or at different times.” Id. §101. Congress enacted that provision with the express intent to bring within the scope of the public-performance right services that retransmit over-the-air television broadcasts to the public. Respondent Aereo offers just such a service. Aereo captures over-the-air television broadcasts and, without obtaining authorization from or compensating anyone, retransmits that programming to tens of thousands of members of the public over the Internet for a profit. According to the Second Circuit, because Aereo sends each of its subscribers an individualized transmission of a performance from a unique copy of each copyrighted program, it is not transmitting performances “to the public,” but rather is engaged in tens of thousands of "private" performances to paying strangers.
The question presented is:
Whether a company “publicly performs” a copyrighted television program when it retransmits a broadcast of that program to thousands of paid subscribers over the Internet.
Facts
Respondent Aereo allows its subscribers to watch and record locally-broadcast television programs over the internet for a monthly fee. See WNET v. Aereo, Inc.,712 F.3d 676, 680. Aereo provides the functionality of a television, a Digital Video Recorder (“DVR”), and a slingbox.