CNN, CARTOON NETWORK Sue CABLEVISION Over DVR Plan

(From Reuters)

TIME WARNER INC. networks CNN and CARTOON NETWORK have sued CABLEVISION SYSTEMS CORPORATION in an attempt to block the cable operator's plans to roll out a network-based digital video recorder service.

The suit, which was filed last Friday, came just two days after four Hollywood studios and three major television networks filed a copyright suit seeking to prevent the new technology service launch.

The suits against the service, which Cablevision says it plans to trial next month, have been filed in U.S. District Court in Manhattan.

Cablevision said when it announced plans to launch the service that the service would do away with the need for personal DVR boxes such as made by the likes of TIVO INC.
or CISCO SYSTEMS INC. SCIENTIFIC ATLANTA.

But the networks say that because the proposed service allows subscribers to store television programs on the cable operator's own computer servers, it would be breaking copyright agreements by effectively re-transmitting the programs.

Another Time Warner unit, TIME WARNER CABLE, has been supportive of network DVRs in principle if proved legal.

Speaking at a conference in March, JOHN MARTIN, Chief Financial Officer at Time Warner Cable said, "If over time, this proves legal and if over time this proves to be something that consumers want to do, we have the ability to bring that to them and that's what I think is sort of exciting and important."

The lawsuit filed on Friday by CNN and Cartoon Network is the same as that filed by News Corp.'s 20TH CENTURTY FOX, General Electric Co.'s UNIVERSAL STUDIOS, Viacom Inc.'s PARAMOUNT PICTURES, THE WALT DISNEY COMPANY and networks, CBS CORPORATION, Disney-owned ABC and NBC, also a unit of GE.

Cablevision said in a statement on Tuesday that the suit by the two Time Warner networks is "without merit" and "reflects a fundamental misunderstanding" of how the network-based DVR will work.

Tom Blais, thanks for the post.