A US bankruptcy judge has ruled that TV streaming company Aereo will be able to auction its technology following recently struck deals with broadcasters over the sale process, reported The Wall Street Journal.
On 24 December, Judge Sean Lane of the US Bankruptcy Court in Manhattan approved the rules governing Aereo's auction after the company and broadcasters agreed to how and when the company can scrub its servers and how much time broadcasters will have to oppose any sale that may infringe their copyrights. Under the terms of the new auction rules, Aereo will also provide weekly updates about the status of the sale process and will allow the broadcasters to attend the auction.
Until June, Aereo offered customers the ability to watch and record broadcast television via the internet and on mobile devices. After a US Supreme Court found that Aereo violated copyright laws, the company was forced into bankruptcy.
The litigation with broadcasters has landed back in a lower court, which will determine how much money Aereo owes in damages, a number that could be in the tens of millions of dollars. The legal fight was one of the main issues with the auction of Aereo's assets. The broadcasters, which include CBS, Walt Disney's ABC, Comcast's NBC and 21st Century Fox's Fox, want to be allowed to scrutinise Aereo's customers' activities before the company deletes its servers.
Despite ongoing litigation, broadcasters are still interested in Aereo's technology. The company's bankruptcy lawyer, William Baldiga, told the court last week that the company is in talks with seventeen prospective bidders. Bids are due 20 February. If multiple bids are received, an acution will be held on 24 February at the New York office of Brown Rudnick, the law firm handling Aereo's Chapter 11 case. A hearing to approve the sale will take place 11 March.
