Thursday, June 15, 2006

Replacing TiVo?

Cablevision System Corp. ("Cablevision") has postponed its plans to unveil a subscription-based cable programming recording service, pending resolution of a copyright infringement lawsuit brought by several movie studios and television networks. The service utilizes a remote storage digital video recorder ("RS-DVR") and allows subscribers to record up to 45 hours of programming. Cablevision claims that the system has the same capabilities as a normal digital video recorder ("DVR"), such as simultaneously recording and watching shows without the purchase of additional equipment.

The studios and networks complain that RS-DVR technology offered by Cablevision would violate copyright laws because Cablevision does not have a license to provide the content to subscribers. The complaint equated RS-DVR technology with video-on-demand because the provider records content then dispenses the content at the request of the subscriber. Current agreements allow cable providers to provide video-on-demand for their subscribers; however, cable providers must negotiate an additional license from the content producer to provide the service to subscribers.

Cablevision has filed a counter-suit claiming that its technology is protected under the 1984 case of Sony Corp v. Universal City Studios, where the Supreme Court held that subscribers may record television programs for later personal use. Cablevision argued that the change from VCR to RS-DVR is the next step in technology and is similar to the change from Betamax to VCR. Cablevision also asserts that RS-DVR is analogous to current DVR technology because recorded content is only available in the subscriber's home.

The case was brought in the U.S. District Court for the Southern District of New York and both parties have agreed to an expedited schedule, with a hearing tentatively scheduled for October 30, 2006.

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