When copyright rules lead to wasted innovation

Aereo is undoubtedly innovative. But it's a waste of effort nonetheless.

An interesting court ruling came out of America yesterday, as the Second Circuit court of appeals ruled that Aereo, an internet TV company, does not violate copyright by streaming TV programmes to users without the networks' consent. PaidContent's Jeff John Roberts reports:

Aereo captures over-the-air TV signals by means of tiny antennas and streams them to subscribers who watch and record shows on their mobile devices or computer browsers. Aereo’s antennas are not just a marvel of technology (see photos here) — they’re also the key to a legal strategy that helps the company avoid copyright infringement.

The trick that Aereo is using relies on the fact that, under American copyright law, it is legal to "shift" copyrighted material in a number of ways. So you can "time shift" (record it to watch later), "format shift" (rip a CD onto your computer), and "location shift" (use a service like Slingbox to watch your cable TV on the move), and, provided you do it only for your own consumption, no copyright infringement has occurred. Aereo, which has great banks of 5p-coin-sized antennas in a building in Brooklyn, is legally just providing the third of those services; except instead of plugging something in to your cable box at home, it basically moves your entire TV into its building, and broadcasts the whole thing back to you.

There's certainly some impressive technology being used. Aereo gets the antennas so small by only listening in on a tiny section of the TV spectrum with each one, and changing which part that is depending on what the viewer wants to watch. And the company is also using "major advances in transcoding technology and cloud storage" to make it affordable to stream the live TV, and let people pause, rewind, and record what they're watching.

But while it's fun to cheer Aereo's technological advances – and certainly a good thing for the US media economy to actually experience some competition for the first time in a while – they aren't, in themselves, a good thing.

All of this innovation – the tiny antennas, better transcoding technology, and office placed with line-of-sight to the Empire State Building for perfect reception – isn't being focused towards making life better for customers, or even just making money for Aereo. Instead, it's just being used to get around the law.

The government could render all that effort useless overnight by just allowing Aereo to stream signal from one aerial to all its users at once. That would let Aereo offer lower prices, or enable competitors who don't have access to the technology or location to set up too.

It's as though we lived in a world where the Government required all bikes to only have one wheel, and were praising a company which had made the easiest-to-ride unicycle ever. It would be a mean feat of technological innovation; but it would also be a largely pointless one.

An Aereo antenna. Photograph: Aereo

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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The problems with ending encryption to fight terrorism

Forcing tech firms to create a "backdoor" to access messages would be a gift to cyber-hackers.

The UK has endured its worst terrorist atrocity since 7 July 2005 and the threat level has been raised to "critical" for the first time in a decade. Though election campaigning has been suspended, the debate over potential new powers has already begun.

Today's Sun reports that the Conservatives will seek to force technology companies to hand over encrypted messages to the police and security services. The new Technical Capability Notices were proposed by Amber Rudd following the Westminster terrorist attack and a month-long consultation closed last week. A Tory minister told the Sun: "We will do this as soon as we can after the election, as long as we get back in. The level of threat clearly proves there is no more time to waste now. The social media companies have been laughing in our faces for too long."

Put that way, the plan sounds reasonable (orders would be approved by the home secretary and a senior judge). But there are irrefutable problems. Encryption means tech firms such as WhatsApp and Apple can't simply "hand over" suspect messages - they can't access them at all. The technology is designed precisely so that conversations are genuinely private (unless a suspect's device is obtained or hacked into). Were companies to create an encryption "backdoor", as the government proposes, they would also create new opportunities for criminals and cyberhackers (as in the case of the recent NHS attack).

Ian Levy, the technical director of the National Cyber Security, told the New Statesman's Will Dunn earlier this year: "Nobody in this organisation or our parent organisation will ever ask for a 'back door' in a large-scale encryption system, because it's dumb."

But there is a more profound problem: once created, a technology cannot be uninvented. Should large tech firms end encryption, terrorists will merely turn to other, lesser-known platforms. The only means of barring UK citizens from using the service would be a Chinese-style "great firewall", cutting Britain off from the rest of the internet. In 2015, before entering the cabinet, Brexit Secretary David Davis warned of ending encryption: "Such a move would have had devastating consequences for all financial transactions and online commerce, not to mention the security of all personal data. Its consequences for the City do not bear thinking about."

Labour's manifesto pledged to "provide our security agencies with the resources and the powers they need to protect our country and keep us all safe." But added: "We will also ensure that such powers do not weaken our individual rights or civil liberties". The Liberal Democrats have vowed to "oppose Conservative attempts to undermine encryption."

But with a large Conservative majority inevitable, according to polls, ministers will be confident of winning parliamentary support for the plan. Only a rebellion led by Davis-esque liberals is likely to stop them.

George Eaton is political editor of the New Statesman.

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