The potential for a Supreme Court case between established broadcasters and a small Internet company over copyright infringement went up last week, and could shape current and future innovation, experts said.
The legal fight between major television broadcasters and Aereo, an Internet TV company that posts content from broadcast channels for its customers, took another step forward last week when Aereo told the U.S. Supreme Court the company does not oppose the broadcasters' petition for review.
While that does not ensure the court will take the case, Michael Carrier, a Rutgers University law professor who is an innovation law expert with Supreme Court experience, said the odds have significantly increased.
"Now that Aereo has said Supreme Court review is appropriate, now it's more likely," Carrier said. "Both parties want to get this over with."
"We are unwavering in our belief that Aereo's technology falls squarely within the law," Aereo CEO Chet Kanojia said in a statement.
If the court does take the case, the repercussions could extend beyond Aereo and affect other Internet technologies.
"There is a larger innovation issue here," Carrier said. "I think it could have an impact on innovation and the reason is because this is not just about broadcasting. You could view it more broadly about cloud computing in general."
In an interview in October, Kanojia told the Herald the legal argument made by broadcasters would affect nearly every Internet company.
"I don't know how you get there without destroying the entire cloud computing business," Kanojia said of the broadcasters' argument. "If you do it on a copyright basis, you've essentially indicted Google, Dropbox, Amazon, all of them."
If Aereo were to win a Supreme Court case, cloud computing companies could see a boom.
After the Second Circuit Court of Appeals ruled that Cablevision could host DVR-recorded content in the cloud, venture capital investment in cloud computing companies significantly increased, according to a report by Harvard Business School professor Josh Lerner.
"Our findings suggest that decisions around copyright scope can have significant impacts on investment and innovation," the report says.
Aereo, headquartered in New York, houses a majority of its employees in Boston's Innovation District, and works by digitally converting over-the-air signals. So far, courts in Boston and New York have refused to issue preliminary injunctions that would have shut Aereo down.
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