The U.S. Supreme Court is worried about the cloud — cloud computing, that is. The justices heard arguments on April 22 on the upstart tech company Aereo Inc., which uses cloud-like technology to transmit over-the-air TV to Internet customers, without paying fees to broadcast networks. Aereo’s business model violates copyright law and “no one should shed a tear” if the court rules against it and puts it out of business, said Paul Clement of Bancroft, representing ABC and other broadcasters. But Justice Stephen Breyer and other justices worried that squelching Aereo would harm the growing cloud industry.
The hourlong argument in ABC v. Aereo followed its buildup as a life-or-death struggle between major networks whose lifeblood is license fees for their programming, and a new model that delivers programs to viewers without paying those fees. Media executives and lawyers filled the courtroom.
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