Another Key Supreme Court Hearing

Grokster and web-based digital file sharing was yesterday and the "Brand X" case joins it in decisions that will substantially impact the media business. "Brand X" involves the regulatory determination of cable modems as an "information" or "telecommunications' service. The key issue: as an information service, modems are freed of many regulations requiring third-party access which apply if rules to be a telecommunications service.

For cable companies which have invested billions in capital and marketing expenses to push modems and broadband access as part of their offer to subscribers, this decision will decide if they have to allow access to third-party internet access providers at regulated costs. Cable wants to deny such access if it chooses to and this case will decide (unless, of course, it sends the case back to lower courts for further fact finding and deliberation) how modems are classified under applicable law.