This article printed from Broadband Week, located at www.broadbandweek.com.

SONICblue Pushes Forward Despite Lawsuit

By Susan Rush
from BroadbandWeek Direct - November 28, 2001

Despite major television networks and movie studios trying to flex their legal muscles with a lawsuit, SONICblue Inc. says it is undeterred and will begin shipping its ReplayTV 4000 this week.

Earlier this month, Walt Disney Co., Viacom Inc. and General Electric filed a suit in a U.S. District Court to prevent SONICblue from shipping its broadband-enabled ReplayTV 4000 digital video recorder. The entertainment companies allege that the DVR violates copyright laws and claim that the ReplayTV 4000's ability to enable users to automatically delete commercials and send digital copies of shows over the Internet to up to 15 other device users will hurt the entertainment companies' advertising and subscription fees revenue streams. 

The DVR also enables users to pause, replay and watch live television in slow motion.

"The ReplayTV 4000 is so good the networks don't want consumers to have it," comments Ken Potashner, CEO and chairman of SONICblue. "The lawsuits are another attempt by the entertainment industry to control the living room. SONICblue provides technology that gives consumers choices regarding how they enjoy television in their home. We believe consumers should have the power to make this choice, and we will work diligently to protect their interests," he says.

According to the company, the DVR device simply streamlines recorder technology and adds a broadband Internet connection. "People don't have an obligation to watch advertising," chief technology officer Andy Wolfe told Broadband Week when the lawsuit was first announced. "Obviously the networks don't like it if I go to the bathroom during a commercial, but I am still allowed to do it. And clearly they don't like it if I record a show on my VCR and then fast forward through the commercials, but the Supreme Court has said that is something I am allowed to do," he said. The company says the DVR complies with the 1984 Sony Betamax decision, in which the Supreme Court ruled that consumers should be allowed to record programs for time-shifting purposes.

It remains to be seen how the plaintiffs in the case will react to SONICblue's decision to forge ahead with shipments of the DVR in spite of the pending legal challenge. 

 


Published by Cahners Business Information © Copyright 2001. All rights reserved.