Cable Companies May Be Illegally Tying Set-top Boxes to Premium Cable

Update April 2011:  The cable set top box litigation continues to expand.  Western District of Kentucky Judge Joseph McKinley refused to dismiss a case against Insight Communications, alleging that the company required customers to rent a set top box in order to receive certain premium channels that r

In two recent cases, federal judges have refused to dismiss claims alleging that cable TV providers have illegally tied the rental of set top boxes to the purchase of television programing.   E.D. Louisiana Judge Martin Feldman denied a motion to dismiss by Charter Communications, holding that the plaintiff properly alleged that the defendant had tied the rental of a set-top box to the purchase of premium cable TV.  The court held that the plaintiff had properly alleged a relevant market in which the defendant possessed market power.  The plaintiff also alleged that the rental rate quickly added up to more than the cost of the box.

In a Southern District of Mississippi case, Judge Halil Ozerden refused to dismiss a similar claim.  In that case, the plaintiff also alleged that the cable company, Cable One, failed to support the minimum programing package required by federal law.

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