Already been settled in the US, way back in 1979
http://en.wikipedia.org/wiki/Time_shifting
In 1979, Universal sued Sony, claiming its timed recording capability amounted to "copyright infringement". However, a district court found that noncommercial home use recording was considered fair use and ruled in favor of Sony. In appeals, the United States Court of Appeals reversed this decision in 1981 giving the edge to Universal, but the Supreme Court of the United States reversed it yet again in 1984, and found in favor of Sony 5-4. The majority decision held that time shifting was a fair use, represented no substantial harm to the copyright holder, and would not contribute to a diminished marketplace for its product. Today, this is widely referred to as the "Betamax case" or "Betamax decision".