> The lower court found the Betamax maker liable because the tape recorder was “not suitable for any substantial noninfringing use” and infringement “was either the most conspicuous use or the major use of the Betamax product.”

I don't know anyone who sold television recordings, it was always for personal use. How could the lower court get this so wrong? Was this just one uninformed judge? Or was this actually less certain at the time?

The Ninth Circuit court of appeals understood correctly what the primary use of Betamax would be, but they believed that personal home recording was not fair use, and was thus copyright infringement. They interpreted the law as only allowing libraries to record TV or radio broadcasts.

The Supreme Court ruling for this case found that time-shifting was fair use, but only by a narrow 5-4 margin. Fair use could have gone in a completely different direction over the last 40 years if just one judge had voted differently on Betamax.

In the late 80s and early 90s there was a great deal of blatantly pirated SF, Fantasy, and Anime videotapes for sale at conventions, typically recorded from OTA, satellite, or cable for Western stuff. Anime was typically better quality, copied from Japanese originals with fan dubs added. Some of it was "at cost" where you were paying other fans for the their time, equipment, and the tape. Others were more obviously for-profit, with higher prices and sometimes better quality.

To be clear, this was the only way to get most of the stuff being traded and sold. TV shows or films with no VHS release, or anime with no official dub or American format release.

I had a relative who setup a kinda "blockbuster" type service recording things and offering them out for rental. It really took off for VHS when he got HBO and recorded movies and then rented those. It wasnt a very lucrative hustle but it was an instance of what they didnt want to have happen

I suppose that selling is not necessary, distribution is. Record a movie off cable TV, share with your friends, and lo and behold, they're not going to buy the licensed VHS tape! And maybe even not going to subscribe to cable TV! Losses, losses everywhere.

Given that that judgement was made in 1981, it's possible that the judges (who were likely a bunch of depression era old dudes) had zero knowledge or exposure, and had never even thought much about, personal video recording before a bunch of lawyers tried to explain it to them during the case.

We have see this happen repeatedly with modern tech cases.

> I don't know anyone who sold television recordings, it was always for personal use.

The claim was that recording for personal use was still copyright infringement

> How could the lower court get this so wrong?

There are no standards for lower court judges. They frequently do things that are grossly illegal.

Here's a US lower court judge who spontaneously ordered that a child's name be changed because of the judge's religious beliefs: https://volokh.com/2013/08/12/judge-orders-that-childs-name-...