Wikipedia:School and university projects/Open Source Culture/Sony

SONY CORP. OF AMER. v. UNIVERSAL CITY STUDIOS, INC., 464 U.S. 417 (1984)

Also known as the Betamax case. Sony was sued by Universal Studios and Disney for manufacturing Betamax (a video tape recorder) on the theory that selling the Betamax machine infringed Universal's rights under the Copyright Act. The lower court found for Sony on the grounds that non-commercial home use was fair use, that the machine was a "staple article of commerce" and that it served first amendment public interest by allowing the public access to information. The appeals court reversed and held Sony liable for Contributory Infringement.

In this 5-4 decision, the Supreme Court held that Sony was not vicariously liable for copyright infringement if selling hardware that could be used to “make unauthorized copies of copyrighted material” if the item is substantially used for non-infringing activities. Time shifting was also found to be a fair use under the Copyright Law.