CNN, Cartoon Network sue Cablevision over DVR plan

NEW YORK (Reuters) – Time Warner Inc. networks CNN and
Cartoon Network have sued Cablevision Systems Corp. 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 Century Fox,
General Electric Co.’s Universal Studios, Viacom Inc.’s
Paramount Pictures, the Walt Disney Co. and networks, CBS
Corp., 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.