Television streaming service Aereo Inc filed for bankruptcy protection after a US supreme court ruled in June that the company’s business model violated copyright laws.
Aereo, in which Barry Diller’s IAC/InterActiveCorp has a 23.30% stake, said in a Chapter 11 filing late on Thursday said it would sell its assets or reorganize.
The court said Aereo had infringed copyrights of broadcasters by capturing live and recorded programs through antennas and transmitting them to subscribers for $8-$12 a month.
The ruling was a victory for broadcasters such as CBS , NBC, ABC and Fox.
In a statement, the company said: “Given the uncertain regulatory and legal climate after the U.S. Supreme Court’s June reversal of a lower appellate court ruling in the company’s favor, Aereo’s CEO and Board of Directors have determined that Chapter 11 reorganization is the next logical step to ensure that the company’s core value is preserved while the company restructures. Chapter 11 will permit Aereo to maximize the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts.”