Supreme Court Decision Cloudy At Best

Last week the US Supreme Court heard arguments in a case that will decide if Aereo is allowed to continue operation in a dozen or so communities throughout the United States, including the Cincinnati area.  The fledgling internet based service allows subscribers to watch live local broadcast TV channels on a variety of digital devices like smart phones, tablets and lap tops, and yes, even TVs. It also offers a cloud-based DVR, allowing the subscriber to record programs for later streaming.

As the oral arguments and comments played out in the court room, it became apparent that the ruling might have far reaching and revolutionary implications, not only for how we receive television, but for the future of the multi-billion dollar cloud computing industry.

The issue being adjudicated is whether Aereo should be required to pay TV stations for the right to retransmit their programs.  Traditional cable and satellite services pay billions of dollars each year to local stations.  Aereo counters that they are not a cable system but rather just an agent of each subscriber providing an antenna and virtual DVR for a monthly fee. They note that individuals may watch and record in their home any program transmitted on public airwaves with no fee.  They insist that Aereo is just making this easier.

Much better legal minds will need to ascertain if Aereo is cleverly exploiting a loophole in the copyright laws or standing up for the little guy.  A review of the discussion during the court’s hearing shows that the Justices were quick to realize that their ruling could have great impact on other cloud-based services.

For several years we have all heard about the “cloud” and how it is revolutionizing the way we use our digital devices. Simply put the cloud services make use of large centrally located computer storage arrays and servers to provide to subscribers many services that once resided on our individual computers.  Because most of these cloud services allow subscribers to store and remotely access most any file or program for certain they are storing and playing out movies, music, pictures that are copyright protected.  The amount of illegal content stored on Dropbox or Google Cloud most likely is much greater than Aereo and a ruling against Aereo might well have a stifling effect on these cloud services.

We will need to all stay tuned to see if our highest court in the land can come up with a King Solomon ruling.  The Court is expected to rule in late June.