Skip to main content Scraps Online VCR

In a setback for some companies that stream video via the Internet, said it agreed to not implement
its 'online VCR' product through a settlement it reached with the Motion Picture
Association of America.

The MPAA and 12 motion-picture companies sued last summer. Under
the settlement, the company agreed to pay the plaintiffs $50,000 to cover legal
fees. was selling a service that would allow users to record
television shows and retrieve them through high-speed connections to the
Internet. The MPAA and the studios had sought $150,000 in damages for each
television show recorded.

'This settlement should make it clear that one cannot create a Web site that
does not respect copyright law,' MPAA CEO Jack Valenti said in a prepared
statement. CEO David Simon said in a prepared statement that the company
always wanted to work with the MPAA.

'I am hopeful that one day, the right balance between copyright protection,
security and consumer access will be achieved such that software-based Internet
VCRs will become a regular part of everyday life,' Simon said.

Internet users who surfed to the company's site Tuesday
read a message that said the 'site is currently down while we complete a
redesign.' The company also posted news of the settlement on the site.