Panasonic Gets Digital Cable-Ready TV Deal

Panasonic Technologies has struck a deal with the cable industry that will enable the company to build cable-ready digital TV sets, starting as early as next year. The agreement, which gives Panasonic a license to the industry’s security technology, is the first to be signed by a television manufacturer.

Consumer electronics companies have been pressing federal regulators to order more lenient licensing terms than originally proposed, saying that the cable operators were requiring costly extra features, demanding to approve products before they hit the market, and threatening consumers’ ability to record programs. Paul Liao, president of Panasonic, gave no details of the agreement, but said, “Those were all important issues, and we have found a way to address them ... to the satisfaction of both parties.”

Liao said the agreement was “not inconsistent with the major thrust of the consumer-electronics industry.” Negotiators for set manufacturers and cable operators are continuing to discuss an industry-wide compromise that could clear the way for more cable-ready digital TV sets.