HRRC Marks 20th Anniversary of Supreme Court "Betamax" Opinion

[Gregg Lengling]

Arlington, Virginia 1/15/2004

This coming Saturday will mark the 20-year anniversary of the U.S. Supreme Court's "Betamax" decision, in which the Court decided by a 5-4 vote that it is legal to sell video recording devices to consumers. The Court held that product is legal to sell if it has significant non-infringing uses.
"The significance of the Supreme Court's decision, twenty years ago, cannot be overstated," said Home Recording Rights Coalition (HRRC) Chairman Gary Shapiro. "For consumer electronics and consumer freedom, it is the Magna Carta and the Declaration of Independence rolled into one. But increasingly, major entertainment interests are arguing that the Betamax doctrine does not apply in the digital age. Without this doctrine's protection, the big motion picture studios and others would exercise a veto over every new function of every new product."

The Supreme Court held on January 17, 1984 that a product cannot be banned simply because some, or even most, of its uses would result in copyright infringement. Rather, manufacturers and retailers have a right to sell a product if it is capable of any commercially significant non-infringing uses. On only this basis, the Supreme Court allowed the consumer VCR to remain in stores. The Court said (464 U.S. 417, 442):

"[T]he sale of copying equipment, like the sale of other articles of commerce, does not constitute contributory infringement if the product is widely used for legitimate, unobjectionable purposes. Indeed, it need merely be capable of substantial noninfringing uses."

The court identified the new practice of "time shift recording" to be one such "fair use" of a VCR. It also observed that some broadcasters, notably the late Fred Rogers, did not object to home recording of their shows - a further example of an "unobjectionable purpose."

"As we celebrate the 20th anniversary of the Betamax decision, which confirmed the fundamental right of innovators to develop and consumers to use new technology, we are reminded that these fundamental freedoms continue to be threatened by content owners wedded to old business models," said Representative Rick Boucher (D-VA). "To ensure that the next generation of devices will be available for society to enjoy, we should work collectively to strengthen fair use through the enactment of legislation that codifies the Betamax decision."

The debate about the validity and usefulness of the home VCR to all interests has long been over. But the debate about the Betamax holding, which made the home VCR possible, is not. With every new digital feature, and every advance in home networking and digital distribution, the legal pleas and pleadings increase for the Betamax doctrine not to apply to digital, home-networked products. Such a holding today would be just as disastrous for consumers, and for new product introductions, as it would have been if applied to the VCR in 1984.

The recent 2004 International CES was the stage for hundreds of product introductions that would be illegal if copyright interest were to prevail over the fair use rights of consumers that the Betamax case recognized.

"This year's International CES showcased a variety of consumer electronics products and technologies that bring to reality the promise of the digital entertainment revolution," noted Shapiro. "Throughout the show floor were a wide range of products that allow consumers to record and transfer digital video, audio and other content throughout the home and from one device to another. These products are a critical component of the future of our industry and provide consumers with an unprecedented and powerful opportunity to enjoy and share content where, when and how they desire.

"Within this context, and on this historic anniversary, we reiterate our commitment to defending consumers' home recording and fair use rights. These rights are a critical part of the digital entertainment experience. We strongly believe that intellectual property and copyrights must be respected. But we also believe in the sanctity of consumers' rights to fair use. These rights must be respected and protected to preserve consumers' freedoms and the creative spirit and continued advancement in the digital age."

For updates on the Betamax doctrine, FCC proceedings, and HRRC's other concerns and activities, please visit the updated HRRC website at //www.HRRC.org.