The U.S. Court of Appeals for the District of Columbia ruled against the Federal Communications Commission on Friday stating that the FCC has no regulation to prevent users from sending copies of digital TV programs over the Internet.

The ruling came as a relief to various consumer electronics (CE) manufacturers who would’ve had to redesign their products, so entertainment companies could place a broadcast flag on the content and prevent it from being copied over the World Wide Web.

Along with CE manufacturers, numerous consumer groups also posed their relief after the decision made by a panel of three judges. The groups, including the American Library Association, the Association of Research Libraries and many others, counter-argued stating that FCC’s appeal violates the fair use of copyrighted material.

The Motion Picture Association of America, or MPAA, however had the exact opposite feeling about the court’s ruling. According to them, the association loses approximately $3 billion to piracy every year, which excludes entertainment content distribution over the Internet. The MPAA said that by not placing broadcasting flags on the content would only add to the decline of the entertainment industry.

The panel of three judges in the court made the following concluding statement before adjourning the case: "In this case, all relevant materials concerning the FCC's jurisdiction … confirm that the FCC has no authority to regulate consumer electronic devices that can be used for receipt of wire or radio communication when those devices are not engaged in the process of radio or wire transmission."