NY appeals court OKs Aereo live television service

NEW YORK — A divided New York federal appeals court has given the go-ahead to an Internet company offering inexpensive live television online.

The 2-to-1 ruling Monday cleared the way for Aereo's expansion of a service that had been limited to New York City until this year. The company has announced plans to expand to Boston, Chicago, Philadelphia, Washington and 18 other U.S. markets.

The 2nd U.S. Circuit Court of Appeals in Manhattan agreed with a lower-court judge. They say the service does not appear to violate copyright law because subscribers are assigned to their own tiny antennas at Aereo's Brooklyn data center.

Broadcasters had appealed the lower court ruling. In a dissent, Judge Denny Chin says Aereo violates the Copyright Act and calls the company's individual tiny antennas a "sham."

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