A court decision ordering FilmOn X to stop streaming local TV broadcast signals over the Internet could have drastic implications for rival Aereo, which is being sued by Hearst-owned WCVB-TV for copyright infringement, and it could also set the stage for a Supreme Court case pitting established industry giants against innovators, one expert said.
A federal judge in Washington, D.C., last week issued an injunction blocking FilmOn X from operating, prompting WCVB-TV to ask a judge to rule the injunction should also apply to New York City-based Aereo, which has an office in Boston and launched its service here last year.
Rutgers University law professor Michael Carrier said there is no difference between Aereo and FilmOn. Both use over-the-air antennae to capture TV broadcasts, and relay the signals over the Internet. The services have been gaining traction as a cheaper alternative to cable TV.
"It's similar in just about every relevant way," said Carrier.
Aereo has already won one legal battle against broadcasters, and unless FilmOn's appeal is successful, Carrier predicts the issue will end up before the Supreme Court because of the contradictory rulings — setting the stage for a showdown between traditional companies and industry innovators.
The most recent ruling also could mean a change in Aereo's plan to expand to 22 cities, including Washington, D.C., he said.
Aereo declined to comment other than to say it has no plans to modify its expansion plans. A Hearst spokesman deferred comment to the court filing.
"I think D.C. would be the one place Aereo would be most likely to cut back on," Carrier said.
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