Round 1 to Diller as Aereo Injunction Denied

Judge rules against broadcasters, but they will appeal

Score Round 1 to Barry Diller. A federal judge in New York Wednesday denied broadcasters' request for a preliminary injunction against Aereo, a new pay TV service backed by the famed media mogul.

Backed by Diller's IAC, Aereo—which delivers broadcast TV stations via the Internet—launched March 14 in New York and currently has 3,500 users. The service uses an array of tiny antenna the size of a dime to pick up local TV station signals and deliver them over the Internet to consumer devices.

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