TiVo breaks devices, then charges you $150 if you don't like the new deal

Earlier this month, TiVo owners discovered that a mandatory, non-optional "update" to their TiVos changed the built-in software so that broadcasters could flag certain shows for automatic deletion and for restriction from use with TiVoToGo.

David Zatz, a TiVo owner, decided to cancel his TiVo service. After all, he'd bought a device that could record all shows, not one that could record all shows save those that some paranoid Hollywood exec, overzealous broadcaster, or fumble-fingered technician gave him permission to record. TiVo had broken his device and he didn't want to keep using it.

But when he looked up canceling his TiVo, he found out that under the terms of his "agreement" with TiVo (e.g., the crap he clicked through when get got set up), he was obliged to pay a $150 "early cancellation" fee.

DRM ass-kissers talk a lot about how DRM is a "contract" — someone offers you content in exchange for you waiving your rights to record, or time-shift, or format shift, or archive, or use on your Mac, or whatever.

But it's a funny kind of contract that is renegotiated at the whim of one side, who can unilaterally change the deal whenever he feels like it, and which you can't get out of if you decide that the new deal isn't one that you like (of course, every iTunes user whose iTunes tracks have been downgraded by an iTunes patch knows this already — Apple won't give you back your $0.99 even when they decide to take away some of the value you paid for when you put your money down).

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(Thanks, David!)