TL;DR
A years-long legal battle over whether smart TV owners have the right to modify their television's operating system software—potentially to block ads and tracking—is finally heading to trial. The case, which pits consumers against LG Electronics, could set a precedent for the entire smart TV industry and reshape who controls the software on millions of devices.
What Happened
On Wednesday, May 20, 2026, a federal judge denied LG Electronics' motion for summary judgment, clearing the way for a trial in the five-year-old class-action lawsuit over consumers' right to modify the WebOS software running on their smart TVs. The plaintiffs, led by security researcher David Buchanan, argue that LG's restrictive licensing and technical locks violate their rights under the Digital Millennium Copyright Act (DMCA) and consumer protection laws.
Key Facts
- The lawsuit was originally filed in 2021 by a group of LG smart TV owners led by security researcher David Buchanan.
- At issue is LG's WebOS operating system, which runs on over 100 million smart TVs sold worldwide since 2014.
- LG has used digital rights management (DRM) and software licensing agreements to prevent users from accessing or modifying the TV's source code.
- The plaintiffs claim LG's restrictions are designed primarily to preserve advertising revenue and user tracking capabilities, not to protect intellectual property.
- LG generated an estimated $1.2 billion in advertising and data revenue from its smart TV platform in 2025 alone, according to industry analysts.
- A key legal question is whether the DMCA's anti-circumvention provisions apply to smart TV software when the modification is for non-infringing purposes like blocking ads or improving privacy.
- The trial is expected to begin in October 2026 in the U.S. District Court for the Northern District of California.
Breaking It Down
The core of this case is not about piracy or hacking—it is about ownership. When a consumer buys a smart TV, they own the hardware but effectively rent the software. LG, like nearly every other TV manufacturer, locks down the operating system so that only the company can control what runs on it. This means users cannot install alternative launchers, remove pre-installed apps, or—critically—block the targeted advertising and behavioral tracking that has become the industry's second revenue stream after hardware sales.
LG's smart TV advertising business grew 35% year-over-year in 2025, generating $1.2 billion in revenue—nearly as much as the company's entire profit margin on TV hardware sales.
That figure explains why LG is fighting so aggressively to keep its software locked. The company has transformed its TV division from a hardware seller into a data and advertising platform. Every time a user watches a streaming service, the TV's software collects viewing habits, app usage, and even content preferences. This data is packaged and sold to advertisers, creating a lucrative recurring revenue stream that depends entirely on maintaining control over the software environment.
The DMCA argument is particularly interesting. Originally passed in 1998 to prevent DVD piracy, the law's anti-circumvention provisions have been used by manufacturers to block all manner of consumer modifications—from jailbreaking iPhones to modifying tractor software. The plaintiffs in this case are arguing that the DMCA was never intended to prevent consumers from modifying software on devices they own, especially when the modification is for privacy protection and ad blocking, not copyright infringement. If the court agrees, it could open the door for a wave of third-party smart TV operating systems and customization tools.
What Comes Next
The trial, set for October 2026, will be closely watched by the entire consumer electronics industry, but several concrete developments are already in motion:
-
Pre-trial discovery will begin in June 2026, during which LG must hand over internal documents about its WebOS security measures, advertising revenue models, and any communications with other TV manufacturers about software locking. These documents could reveal industry-wide coordination.
-
Amicus briefs are expected from groups including the Electronic Frontier Foundation (EFF), which supports the plaintiffs, and the Consumer Technology Association, which will likely side with LG. These briefs will be filed by August 2026.
-
A separate but related case in the European Union is proceeding simultaneously, where LG faces similar challenges under the EU's Right to Repair and Digital Markets Act. A ruling there could influence the U.S. trial.
-
LG's stock dropped 4.2% on the news of the trial proceeding, as investors weigh the potential loss of advertising revenue if consumers gain the right to modify WebOS.
The Bigger Picture
This case sits at the intersection of Right to Repair and Data Privacy movements that have been gaining momentum globally. The Right to Repair movement, which has already forced changes in the smartphone and automotive industries, argues that consumers should be able to modify, repair, and control the software on products they own. Simultaneously, growing public awareness of surveillance capitalism—where companies monetize user data through tracking and advertising—has fueled demand for devices that respect privacy.
The smart TV industry is particularly vulnerable to this shift because unlike smartphones, where users have some choice in operating systems, smart TVs offer no alternatives. If you buy an LG TV, you get WebOS. If you buy a Samsung TV, you get Tizen. There is no "install your own OS" option—yet. A ruling in favor of the plaintiffs could force manufacturers to provide unlockable bootloaders or at least documentation for modifying the software, fundamentally changing the economics of the smart TV market.
Key Takeaways
- [Trial Date]: The case heads to trial in October 2026 in the Northern District of California, with pre-trial discovery beginning June 2026.
- [Revenue at Stake]: LG's $1.2 billion smart TV advertising business depends on maintaining software control, making this a high-stakes fight for the company.
- [DMCA Precedent]: The case will test whether the DMCA's anti-circumvention provisions apply to smart TV software modifications for privacy and ad-blocking purposes.
- [Industry Impact]: A win for consumers could force all smart TV manufacturers to allow third-party software modifications, reshaping the $50 billion global smart TV market.
