Friday night at 9, millions of Americans will sit in front of their televisions and watch the tropical police drama
On that day 30 years ago, a divided Supreme Court overruled the U.S. 9th Circuit Court of Appeals and declared that
Justice John Paul Stevens' majority opinion in Sony Corp. of America vs. Universal laid down at least two important principles for future innovators. First, even if people copied an entire show, it wasn't an infringement if they were doing so to watch the program later. And second, if a product had a substantial legitimate use (such as time-shifting shows that are broadcast free over the air), it could be sold even if some buyers put it to illegitimate use (such as making copies of shows to rent or sell). But just as important, Stevens declined to expand copyright law to restrict new capabilities Congress hadn't contemplated when it wrote the copyright statute.
Betamax eventually lost the format war to VHS recorders, but its courtroom triumph helped all such devices proliferate. Recorders soon became the foundation for the home video business, which turned into Hollywood's largest cash cow. Meanwhile, the ruling opened the door for TiVo and other digital gadgetry in the home, then helped defend an assortment of Web-based services with both infringing and non-infringing uses, such as YouTube and other user-generated content sites and Dropbox and other online storage services.