(AP)—A New York federal appeals panel has found weaknesses with a startup company's arguments it can legally send live TV programming to iPhones and other mobile devices.
Three judges of the 2nd U.S. Circuit Court of Appeals seemed poised Friday to reverse a lower court judge who in July reluctantly gave a thumbs-up to the company, Aereo (EHR'-ee-oh).
The appeals judges appeared to belittle the company's business model during an hour of arguments.
An Aereo Inc. lawyer told the court the business model allows the company to comply with federal copyright laws.
Aereo lets customers capture over-the-air broadcasts for viewing on iPhones, iPads and computers for $12 a month.
A copyright infringement lawsuit was filed by Fox, ABC, CBS, NBC and others, accusing Aereo of copying and retransmitting their programming over the Internet unlawfully.
Explore further: CEO: Lawuit could kill Internet TV startup