Slingbox could spark new lawsuits

Days after the Supreme Court weighed in on digital copyright infringement issues in the MGM v. Grokster case, select consumer electronics chains began stocking a product some predict could spark the entertainment industry's next showdown over intellectual property rights.

New to the shelves of Best Buy and CompUSA this month is Slingbox, a brick-sized device that enables viewers to route the live television signal coming into their homes to a portable device anywhere on the globe via broadband connection. Slingbox costs $250 and has no subsequent subscription fee; several stores sold out on the first day.

Created by San Mateo, Calif.-based company Sling Media, Slingbox is the most prominent example of a handful of new ventures trying to repeat what TiVo achieved through time-shifting with technology capable of what loosely is referred to as place-shifting. Leading place-shifting firms even have drawn interest from cable operators interested in potential partnerships.

"I'll bet there will be a Supreme Court ruling sometime in the next decade specifically addressing this issue: Does the consumer have the right to place-shift as they do time-shift their content?" said Ted Shelton, chief operating officer of Orb Networks, a competitor to Sling Media that offers its own place-shifting software online free of charge.

Place-shifting is problematic to many copyright holders because it sidesteps what is known in legalese as proximity control, which restricts the distribution of content to specific regions and times. It's a standard contractual stipulation for the MPAA, whose member studios license distribution rights to movies for distinct territories; the NFL, which considers geographic limits the linchpin of lucrative television deals, including its Sunday Ticket pact with DirecTV; and local television stations, which pony up millions of dollars for exclusive territorial rights to all kinds of programming.

Read the article: www.hollywoodreporter.com