Cablevision Files nDVR Counterclaim vs. Film Studios, Nets

Sean Mota

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Cablevision Files nDVR Counterclaim vs. Film Studios, Nets

[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]

[FONT=Arial, Helvetica, sans-serif]JUNE 07, 2006 -

[/FONT][FONT=Arial, Helvetica, sans-serif]Cablevision has filed a counterclaim against the film studios and television networks that are trying to legally block the MSO's plans to introduce network-based digital video recorder service, claiming its nDVR is protected by fair use.

In an 18-page rebuttal filed today in the U.S. District Court for the Southern District of New York, Cablevision defended itself against a lawsuit filed in May by Twentieth Century Fox Film Corp., Universal Studios, Paramount Pictures, Disney, CBS, ABC and NBC that claimed the MSO's nDVR would violate copyright law.

Arguing that nDVR adheres to fair use precedent, Cablevision cited the 1984 Supreme Court ruling in the case of Sony Corporation of America v. Universal City Studios (aka, "the Betamax case"), noting, "As with the transition from the Betamax to VCRs, the transition from VCRs to DVRs altered the specific technology of in-home television recording; however, the DVR, like the VCR and the Betamax before it, remains a time-shifting device that facilitates fair use."

The fair use precedent established by the Betamax case gives consumers limited use of copyrighted material, allowing people to make copies of purchased music or movies for their own personal use, without having to gain permission from the original rights holders.

Cablevision argued that storing copyrighted content at its head-end servers––as is the case in an nDVR scenario––is materially no different than allowing a subscriber to store content on a standalone DVR. "Like the Betamax, the VCR and the traditional set-top storage DVR before it, [nDVR] enables consumers to do nothing more than record television programming for later personal viewing, it does not infringe copyrights," the filing read.

All parties are scheduled to meet at the courthouse in lower Manhattan later this afternoon to establish a timetable for sharing discovery evidence before the trial begins. At present, no date has been established for a trial.

In the penultimate page of the filing, Cablevision petitioned the court to find that its nDVR service will not subject it to liability for copyright infringement. The company also asked that its attorneys’ fees be absorbed by the studios and networks that brought the original suit on May 24.

Although Time Warner properties Cartoon Network and CNN also joined the suit against Cablevision, Time Warner Cable chief financial officer John Martin has said that his cable systems would probably follow Cablevision’s nDVR lead provided the legality of the service can be established.

Cablevision did not name either Cartoon net or CNN in its counterclaim.
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Cablevision Delays nDVR Launch, Pending Court Order

[FONT=Arial, Helvetica, sans-serif]Anthony Crupi[/FONT]

[FONT=Arial, Helvetica, sans-serif]JUNE 08, 2006 -

[/FONT][FONT=Arial, Helvetica, sans-serif]Cablevision on Thursday confirmed that it will delay the launch of its proposed network digital video recorder service until this fall, as part of an arrangement that will accelerate the discovery phase of a pending copyright lawsuit brought against the MSO by a number of broadcasters and studios.

In a court filing released today, the cable operator agreed that it will not launch its nDVR service “pending resolution by the Court of the question of liability in this action.”

Cablevision also agreed to drop its initial line of defense. Per the court filing, the MSO “will not be asserting a fair use defense for claims against claims for direct infringement.”

A Cablevision spokesman said that in electing to hold off on the nDVR launch, which had been scheduled for this quarter, attorneys on both sides agreed to speed up pre-trial actions that could have otherwise eaten up months and years of time.

According to the case schedule filed late Wednesday by U.S. District Court for the Southern District of New York Judge Denny Chin, discovery must be completed by July 31 and all briefs will have to be submitted by September 28. A hearing before Judge Chin will begin on October 30 or 31.

The original lawsuit, filed on May 24 by 20th Century Fox Film Corp., Universal City Studios, Paramount Pictures, Disney, CBS Corp., ABC and NBC, sought an injunction blocking the launch of the nDVR service on grounds that storage of copyrighted material at Cablevision’s head-end presented a threat to the owners of those copyrights. Turner Broadcasting Systems’ Cartoon Network and CNN were added to the suit a few days after the first suit was filed.

Yesterday, Cablevision filed a counterclaim, saying that the nDVR service is protected by fair use precedents established in the 1984 Supreme Court ruling in the case of Sony Corporation of America v. Universal City Studios (aka, “the Betamax case”).
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Thanks for these updates.

This is a very interesting case.

Have they said if they will be able to provide hi-def with this service? If cable can't, I bet fiber can.

I might expect the media owners to be in favor of this thing. Might make it easier to move to a system that block commercial skipping (or to a system that charges extra to watch commercial free).

I wonder if the original beta case could ever be thrown out. Technology has changed a lot since then.
 
David_Levin said:
Have they said if they will be able to provide hi-def with this service? If cable can't, I bet fiber can.
[/Quote=David_Levin]

Cablevision is all fiber in the streets, they just dont have fiber to the home, the last 100ft or so.