Aereo’s Failed Auction Blamed on Broadcasters in N.Y. Suit
by Erik Larson
Bloomberg News
8:45 AM CDT
March 10, 2015
http://www.bloomberg.com/news/articles/2015-03-10/aereo-accuses-broadcasters-in-lawsuit-of-stifling-auction
(Bloomberg) -- Aereo Inc., the online-TV service brought down by a U.S.
Supreme Court copyright ruling, accused Walt Disney Co.’s ABC and other
broadcasters of derailing the company’s bankruptcy auction in a bid to
stifle competition.
Aereo on Feb. 24 sold its patents, hardware and other assets piecemeal
for less than $2 million -- a fraction of what it sought -- after a key
bidder backed out, the company said in a lawsuit Monday in Manhattan
bankruptcy court.
The potential buyer, which Aereo didn’t name, was scared off by a
suggestion by Disney and other broadcasters that it may be liable for
Aereo’s past copyright violations, for which the group is seeking almost
$95 million in damages.
The broadcasters knew their actions “would discourage or prevent many
potential purchasers from buying the Aereo technology,” Aereo said. The
group “specifically intended this result, and the intended result was
achieved.”
Aereo said a successful sale of the assets to a single buyer would have
led to greater competition for the broadcasters in the way programming
is delivered to customers.
TiVo Inc., which makes digital video recorders, was the winning bidder
for Aereo’s trademarks, domain names and customer lists, while RPX
Corp., a patent risk-management company, bought the patent portfolio.
Information-technology consultant Alliance Technologies acquired some
equipment.
New York-based Aereo had said it expected bidding of $4 million to $31.2
million at the auction. A hearing to approve the sale is scheduled for
Wednesday.
Aereo used tiny antennas to capture over-the-air television signals and
stream programming to subscribers for $8 a month. The company didn’t get
permission from the broadcast networks, which sued. The dispute went to
the U.S. Supreme Court, where Aereo lost last year. The company filed
for bankruptcy in November.
The case is In re Aereo Inc., 14-bk-13200, U.S. Bankruptcy Court,
Southern District of New York (Manhattan).
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