U.S. Supreme Court rules against Aereo

The U.S. Supreme Court ruled Wednesday that New York-based company Aereo is violating broadcasters' copyrights. The outcome could promote the growth of a Cedar Rapids startup.

In a 6-3 decision, the court said the law forbids companies from transmitting copyrighted shows to the public - a victory for TV broadcasters who depend on the licensing revenues Aereo was bypassing.

Aereo streams live television to various devices by intercepting signals with small antennas and then redistributes them to customers who pay for subscriptions to the services. With this method, the company avoids redistribution fees.

The company unsuccessfully argued that it was providing people with programming they could see for free, likening it to the use of antenna or rabbit ears on TVs.

The ruling relieves Syncbak, a local company, of one of its competitors.

Syncbak also allows viewers on connected devices to stream personalized TV via the Internet, but the technology is placed at a television station and operates with the station's permission.

The five-year-old company was dragged into the case when Aereo issued a subpoena for Syncbak documents regarding a CBS investment into the company, saying the information was critical to the Supreme Court case.

Syncbak lawyers requested the judges dismiss the subpoena in August 2013, claiming it would cause 'significant competitive injury” to Syncbak, and a judge later denied Aereo's request.

The National Association of Broadcasters released a statement following the ruling, saying it was 'pleased” with the decision.

'Television broadcasters will always welcome partnerships with companies who respect copyright law,” NAB President and CEO Gordon Smith said in the statement. 'Today's decision sends an unmistakable message that businesses built on the theft of copyrighted material will not be tolerated.”