Per techfaster.com: PlayLater functions like your normal DVR with your online subscription services being the “channels”. The kicker, which makes PlayLater legal is the fact that you have to have an account with whatever service you want to record. For instance you can’t download and record something on NetFlix if you don’t have a subscription to Netflix. A little gray area which says if you have a license for the service you can watch it anytime is the loophole that makes PlayLater totally legit.
From techhive.com: But what about PlayLater? Doesn't it violate copyright laws? Here's what a spokesperson wrote to me: "Just like the broadcast DVR and the VCR before it, PlayLater is designed for personal use and convenience. The Supreme Court declared the VCR to be legal, because it is considered "Fair Use" for consumers to make their own copies of content for the purposes of time-shifting. The same Fair-Use doctrine also applies to the DVR, as well as to PlayLater."
