The U.S. Supreme Court is hearing broadcasters’ suit against Aereo, a case that is mired in controversy, partly because involves the new cloud computing industry.
On Tuesday several Supreme Court Justices appeared troubled about issuing a ruling that would hurt the growing cloud. A decision against Aereo could ripple across the Web to companies including Apple’s iCloud, Google Drive, Amazon’s Web services and Dropbox, according to David Frederick, counsel for Aereo.
Cloud Caution
“We’re confident, cautiously optimistic based on the way the hearing went today,” he said. “The court understood that when a person watching over-the-air broadcast television in his or her home is engaging in a private performance and not in a public performance that would implicate the copyright act.”
If the Supreme court rules in favor of Aereo, then Netflix, Amazon and others may start their own cloud retransmission businesses and stop paying the billions of dollars in licensing fees to broadcasters.
The loss of those fees would trickle down hurting TV show producers, actors, writers and many others. It may also cause broadcasters to cut off their free broadcast signals to consumers and create their own cloud subscription service.
The High Court is expected to issue a ruling by this summer.