The FCC acknowledged the agency never had exercised the authority to impose regulations affecting television broadcasts after such programs are beamed into households, but it maintained that was permitted by Congress since lawmakers didn't explicitly outlaw it.

"We categorically reject that suggestion," the appeals panel said.

The appeals decision will launch an aggressive lobbying effort by entertainment companies in Washington to persuade lawmakers to require new technology to enforce copyright protections.

Friday's ruling was no real surprise. During courtroom arguments, U.S. Circuit Judge Harry T. Edwards told the FCC it had "crossed the line" by requiring the new anti-piracy technology for next-generation television devices and rhetorically asked the FCC whether it also intended to regulate household appliances.

"You've gone too far," Edwards told the FCC's lawyer. "Are washing machines next?"