3ReDigi can appeal from a final judgment. Whether ReDigi will be able to withstand apotentially substantial damages verdict and post an appeal bond remains to be seen. If it cannot,this novel issue of law may not reach the Second Circuit in this case. The absence of a federalcircuit court decision will leave a significant degree of uncertainty as to whether the first-saledoctrine applies to digital works.
WNET v. Aereo
. The second copyright case with a Massachusetts connection is
WNET,Thirteen v. Aereo, Inc.
, 712 F. 3d 676 (2d Cir. 2013). Although this case was decided for Aereoby the Second Circuit, Aereo has been sued on the same grounds in federal court in Boston,requiring that the same legal issues be decided by the district court, and likely the First Circuit.Aereo’s service allows subscribers to watch network TV on Internet-enabled devices,such as laptop and tablet computers, while paying no fees to the networks. Because the networks(such as CBS and NBC) receive billions of dollars in “retransmission fees” from the cablecompanies, this has the potential to reduce carrier fees and accelerate the trend toward Internet-based TV.Aereo’s system takes advantage of a copyright loophole created by the Second Circuitdecision in
Cartoon Network LP v. CSC Holdings, Inc.
, 536 F.3d 121 (2d Cir. 2008)(“
”). Aereo uses thousands of mini-antennas arranged on antenna boards to receiveover-the-air TV broadcast signals, which it retransmits to its subscribers at low cost over theInternet. A subscriber who is watching a show has one antenna assigned to him. If the userwants to watch a show without saving it the show is converted to an Internet-friendly format,saved to an Aereo hard drive, transmitted to the subscriber and almost immediately deleted fromthe Aereo drive. If the user chooses to save the show it is received on the second mini-antennaand saved on an Aereo hard drive in a directory assigned to that user alone.