Broadcasters argue that Aereo is engaged in copyright infringement by retransmitting the signals without permission and payments.

WSJ: Exec threatens to pull Fox signal if Aereo goes on

In a split ruling, the court accepted Aereo's position that having individual antennas meant that Aereo wasn't retransmitting signals.

NPR: Exec Threatens To Pull Fox Signal If Aereo Goes On

Unlike the repeater towers that are sometimes used in western states (AKA translators), SFNs aren?t simply receiving the signal, error-correcting, and retransmitting on a different frequency.

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If the broadcasters allow Aereo to get its broadcasting programming for free, this may lead to other companies retransmitting signal (eg. the cable companies) to request that broadcast retransmission fees be eliminated or at least lowered drastically.

FORBES: Aereo: The future of TV is here today

But in a 2-1 ruling, the 2nd U.S. Circuit Court of Appeals in New York accepted Aereo's position that the individual antennas meant that Aereo wasn't retransmitting signals, but allowing its subscribers to do what they already could at home with their own antenna and video recorder.

WSJ: Exec threatens to pull Fox signal if Aereo goes on