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.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.