Nov 21, 2014 1 min read

NEW YORK (AP) – Online streaming service Aereo said it filed for Chapter 11 bankruptcy protection, saying an unfavorable ruling by the U.S. Supreme Court was too difficult to overcome.

In June, the Supreme Court ruled Aereo operates much like a cable TV company. As a result, the court said the service violates copyright law unless Aereo pays broadcasters licensing fees for offering TV station programs to customers’ tablets, phones and other gadgets.

Three days after the court ruling, Aereo, which is backed by Barry Diller, announced it was temporarily closing down its operation.

CEO Chet Kanojia said in a statement Friday on the company’s website the Supreme Court decision “effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty.”

Kanojia said the Chapter 11 filing will allow Aereo Inc. to maximize the value of its business while avoiding the cost and distraction of litigation.

Aereo also named Lawton Bloom as its chief restructuring officer.