Cablevision Remote DVR Stays Legal; Court Refuses Appeal

The Supreme Court refused to consider a final appeal by TV stations and film studios that argued Cablevision's remote DVRs violate copyright laws.

These DVRs, which could now be available later in 2009, record content on Cablevision servers instead of the hard drive of the user's settop box. The shows can then be streamed to the user's TV.

Cablevision says its system would provide a lower-cost DVR service, potentially leading to a rise in subscribers.

The networks and studios sued Cablevision alleging that "buffer" copies stored briefly on Cablevision's servers constituted copyright infringement. NBC, CBS, ABC and Twentieth Century Fox were among those that sued Cablevision.

A federal court sided with the TV stations and studios in March 2007, saying the remote DVRs are essentially "copying" content. The 2007 ruling said Cablevision's remote DVRs infringed in three ways:

1. The initial storing of the recorded content violates the Copyright Act
2. Cablevision's copying of the programs to its servers violates reproduction rights
3. Transmitting the data to the settop boxes infringes on the right of public performance

That ruling was overturned by the appeals court in August 2008. The Appeals Court found the initial storing does not constitute actually making a copy of the programming, and that its the user who makes the copy, not Cablevision.

Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA) applauded the decision.

"The ability to record television programming has become commonplace to millions of Americans which has benefited consumers and allowed the consumer technology and content industries to contribute billions of dollars to our economy and create millions of jobs.

"From a common-sense standpoint, the Court's decision was a slam-dunk. The Court has already ruled that consumers have the right to time-shift television shows. Whether the bits reside in a box under your TV or a box in the cable field office is not relevant."