Federal court in NY won't review online TV ruling

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NEW YORK (AP) — A federal appeals court has refused to reconsider a ruling that lets a startup company offer live television broadcasts over the Internet without paying fees to broadcasters.

The 2nd Circuit Court of Appeals refused Tuesday to review the decision made by a court panel that favored Aereo Inc.

But in a blistering dissent, Judge Denny Chin said the 2nd Circuit "eviscerates the Copyright Act" by letting the Barry Diller-backed company stream over-the-air broadcasts to Internet subscribers at low cost. He called Aereo's system a "sham."

Chin noted the share price of major media companies dropped when the 2nd Circuit panel ruled April 1, and said the ruling posed a threat to their major source of revenue.

Broadcasters say they are considering further appeals. Aereo was pleased with the court decision.

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