[Update 09may05: ultimate AV has a commentary on this too]
[Update: HDTV Magazine has more reactions from content producers]

With all the talk of downrezzed channels and copy protection and all sorts of other measures designed to restrict a user’s rights on content they legally purchase, it’s good to hear that something is going the consumer’s way.

The broadcast flag is a flag broadcasters can put into their television program data stream to tell consumer electronics devices that this is copy-protected content and to restrict the consumer’s rights with said content. This can range from preventing the program from being recorded to downrezzing the signal to much less than the original HD signal if the consumer is using the analog output. Both of these applications of the technology are unfair encroachments on the consumer’s rights.

This is a good day for conumers. Their rights to record legally procured television programs and to view content as it’s supposed to be viewed have been maintained. However, it is likely that the groups like the MPAA will not let this die and bring it to Congress.

From Twice:

The U.S. Court of Appeals has rejected a Federal Communications Commission (FCC) order requiring digital television products and other devices capable of handling over-the-air digital broadcasts to be equipped with so-called “Broadcast Flag” circuitry to prevent unauthorized redistribution of digital broadcast content over the Internet.

And:

Commenting on the Court’s decision the CEA said: “Courts are right to be wary when government institutions seek to regulate the specific features and functions of safe, useful consumer technology. We look forward to studying the Court’s ruling in greater detail with a focus on continuing efforts to preserve the freedom to innovate while protecting the interests of patent and copyright owners.”

Link: Twice - Court Strikes Down Broadcast Flag
Link: Cape Cod Times - FCC Can’t Stop HDTV Taping
Link: CEA - CEA RESPONDS TO COURT RULING ON BROADCAST FLAG