In a setback for ABC and other broadcasters, a federal judge has declined to enjoin a service that streams broadcast channels over the Internet for a monthly fee.

Southern District Judge Alison Nathan (See Profile) refused to grant the preliminary injunction sought by the networks against Aereo, a start-up funded by media mogul Barry Diller. Nathan said she was constrained by the U.S. Court of Appeals for the Second Circuit’s decision in Cartoon Network v. CSC Holdings, 536 F.3d 121 (2d Cir. 2008), known as the Cablevision case.

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