• by Wayne Friedman , Staff Writer, April 2, 2013

Early yesterday, reports said that over-the-top TV service Aereo and TV distribution service companies -- cable, satellite and telco -- were talking. About what?  A possible collaboration or otherwise.

TV networks, in legal battle with Aereo for copyright infringement, were probably not too pleased.  But that report turned out to be the good news.

Later in the day, an appellate court sided with Aereo against the TV networks. They had sued Aereo because they believed it furtively acted like a cable network without paying the networks carriage/retransmission fees for their programming like other distributors of traditional TV.

One key statement from the court said, "As much as Aereo’s service may resemble [emphasis added] a cable system, it also generates transmissions that closely resemble the private transmissions from these devices."

In other words, Aereo was sending an "individual" copy of a TV show to customers who want it. And because of that, it not a "public performance." That's good news for Aereo.

Aereo’s argument has been that it is just helping consumers get TV the old-fashioned way -- with an "antenna"-- glomming on the seemingly fading idea of free over-the-air TV where people put an antenna on their house, buy a TV set, and turn it on. (Admittedly, a tiny number of U.S. TV homes still get their signals this way). In essence, that's what Aereo says its business is about: creating individual "digital" antennas.

The majority opinion in the appeals court case said that "unanticipated [emphasis added] technological developments have created tension between Congress’s view that retransmissions of network programs by cable television systems should be deemed public performances and its intent that some transmissions be classified as private."

All kinds of new technology is making headway -- but many would say this technology has a certain intention. Aereo co-founder/investor Barry Diller said in a statement, "We always thought our Aereo platform was permissible and I’m glad the court has denied the injunction – now, we’ll build out the rest of the U.S."

Sounds like Aereo is here to stay -- for the moment. Will TV networks change their formula? Aereo was already talking with AT&T and Dish Network about a possible partnership in extending its markets, according to The Wall Street Journal.

Maybe TV distributors won't be the only ones planning to talk with Aereo.