DOJ Urges US High Court Not To Hear Suit On Cablevision DVR
30 May 2009 - 5:52AM
Dow Jones News
The U.S. Justice Department on Friday urged the U.S. Supreme
Court not to consider a legal challenge by major television
networks and Hollywood studios to a next-generation digital-video
recorder, or DVR, planned by Cablevision Systems Corp. (CVC).
Cablevision's service would, for the first time, allow customers
to record and store television shows on central computer servers
maintained by Cablevision instead of having to record them on
expensive DVR cable boxes installed in their homes.
Cablevision won a key ruling from a federal appeals court in
Philadelphia last summer that gave the company the green light to
move forward with its technology.
The company says the system would allow it to provide DVR
services at lower costs, which could lead to a rise in new
subscribers to the technology.
DVR systems are popular with consumers because the technology
allows viewers to watch programs whenever they choose and to skip
commercials while they do so.
The networks and studios argue that Cablevision's service
violates federal copyright laws, and they want the Supreme Court to
hear the case and overturn the lower court ruling.
In January, the high court invited the U.S. solicitor general,
the federal government's lawyer at the Supreme Court, to weigh in
on whether the justices should hear the case.
In a legal brief filed Friday with the court, Solicitor General
Elena Kagan said the court shouldn't get involved in the
dispute.
"Network-based technologies for copying and replaying television
programming raise potentially significant questions, but this case
does not provide a suitable occasion for this court to address
them," Kagan wrote.
The Supreme Court doesn't always follow the solicitor general's
advice, but it is often persuaded by it.
Among those suing to block Cablevision's service are General
Electric Co.'s (GE) NBC; CBS Corp. (CBS); Walt Disney Co.'s (DIS)
ABC; and News Corp.'s (NWSA) Twentieth Century Fox.
News Corp. owns Dow Jones & Co., publisher of Dow Jones
Newswires and The Wall Street Journal.
It isn't clear when the Supreme Court will decide whether or not
to hear the case.
The case is Cable News Network Inc. v. CSC Holdings Inc.,
08-448.
-By Brent Kendall, Dow Jones Newswires; 202-862-9222;
brent.kendall@dowjones.com