Does cricket machinima infringe copyright?

Cricinfo 3D is a service that converts narrative descriptions of cricket matches into 3D animations, where you can pick the camera angles and so on. It's basically machinima cricket. Sky, which holds the exclusive right to broadcast cricket matches, believes that this might be copyright infringement, though it's a dubious claim:

"It seems to me that if they have technologies, a software application which literally captures the broadcast and tracks it and converts it into an animated form then I think it is pretty hard to argue that is not copying the broadcast and therefore an infringement of copyright," said Walker.

"If, on the other hand, what they are doing is some guy is manually looking at the television screen and using his own efforts to create a new animated version of what is going on in the field of play over in the Caribbean, then that may not be an infringement of copyright because the cricinfo.com guy may be creating his own copyright work, albeit based on what he knows through the broadcast is going on on the field of play."

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(Thanks, Phil!)