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Sweeps,

I am sure his agreement stipulates he has the right to re-transmit the internet - or else, routers would be illegal like radar detectors in some states.

If he is transmitting, how can a company, Verizon or otherwise, impose a contractual obligation on the person on who can and who cannot receive it?

Answer: IMO, they can't.

It's an unreasonable clause and wouldn't hold up in court.

The only way possibly is that sometimes transmissions are declared the property of the entity broadcasting (the NFL) so a person re-broadcasting without permission can get in trouble.

But that's the transmissions themselves, not the medium (TV).

My neighbor cannot get in trouble if I receive his open transmissions and he is aware and consents to it.

If this is a problem then, they have to outlaw re-transmitting internet waves altogether and making wireless routers illegal.