Friday night at 9, millions of Americans will sit in front of their televisions and watch the tropical police drama "Hawaii Five-0" on their local CBS station. And over the next week, roughly 3 million more will watch the show on their own schedule. That's an unremarkable statistic today, considering that half of American homes have a digital video recorder. But until Jan. 17, 1984, it was an open question whether consumer electronics companies would even be allowed to sell such devices.
On that day 30 years ago, a divided Supreme Court overruled the U.S. 9th Circuit Court of Appeals and declared that Sony could continue to sell its Betamax videocassette recorder despite the objections of two large Hollywood studios, Universal and Disney. It's an anniversary worth celebrating by consumers and copyright owners alike, because it helped clear the way for a multitude of new technologies that have increased the demand for creative works. Yet it hardly ended the decades-long fight between the entertainment and tech industries.
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.