Aereo to Broadcasters: 'We're Entirely Legal'

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While Barry Diller was in Austin relishing a fight with broadcasters, his lawyers back in New York were busy filing a legal response to a lawsuit brought by broadcast network owners of New York's local TV stations against Aereo, an upstart pay TV service.

Diller is the lead investor in the service, which rents tiny TV antennas the size of a dime to pick up local TV stations in order to stream them on the Internet to its subscribers.

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