While judges seemed sympathetic to the legal questions raised concerning the FCC's right to mandate a "broadcast flag," the one big stumbling block was that the judges were not convinced that the groups who were suing (librarians, academics, computer hobbyists) had any standing in the case. That is, it was not clear that there was direct harm as a result of the flag. These groups went back to the drawing table and worked up a brief outlining the potential harm the broadcast flag would do. If the judges find the brief compelling, then they may tell the FCC it has no right to impose a broadcast flag on technologies. This would be a big win in allowing firms to innovate without first having to ask for permission from the entertainment industry.
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