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Aereo Delays Chicago Launch, Citing Technical Issues

Internet TV startup is being sued by major broadcasters

Aereo, the Internet TV startup that is being sued for copyright infringement, said Friday it has postponed its launch in Chicago because of technical issues.

The company initiated a beta test in Chicago earlier this month, and “encountered issues” with it, the startup said in a blog post.

SEE ALSO: Why Aereo Didn’t Try to Exploit CBS-Time Warner Cable Fight

This week, Aereo announced it planned to expand into four more cities — Columbus, Cincinnati, Indianapolis and San Antonio — on top of the 22 markets it had already identified.

Broadcasters including CBS, ABC, NBC, Fox, Univision and Hearst Television are suing Aereo for copyright infringement. Aereo has so far successfully defended itself from legal challenges seeking to shut it down; the startup argues that its service is equivalent to renting out remotely operated antennas to users, who are entitled to receiving free over-the-air broadcast TV.

New York-based Aereo, which has just over 100 employees, has raised $63 million from investors including IAC, FirstMark Capital, First Round Capital, Highland Capital Partners and High Line Venture Partners.

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