A New York-based federal appeals court on Monday upheld startup Aereo's legal right to provide broadcast antenna service by streaming the signals in local markets. Judges decided that the broadcasters' claims that Aereo's service infringes their copyrights "are not likely to prevail on the merits." Aereo is also reported to have held talks with DISH Network and AT&T -- among other Internet service providers and pay-TV distributors -- to enter a partnership to help the company expand beyond its current New York base. Aereo's legal problems were thought to be an obstacle in the discussions.

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