This was not written by me. See ARS Technia for more info. Here is what they are saying:

According to The Hollywood Reporter Esq. (subscription) MLB is upset that fans can watch out-of-market games via the Slingbox, calling the device illegal.

 

"Of course, what they are doing is not legal," MLB general counsel Michael Mellis told The Hollywood Reporter Esq.
"We and other leagues have formed a group to study the issue and plan our response. A lot depends on ongoing discussions. Plus, there's no guarantee that Slingbox will be around next year. It's a startup.

"MLB is of the opinion that the Slingbox violates contracts it has signed with cable and satellite TV companies and that Slingbox owners are redistributing content without MLB's express written consent whenever they place shift.

The fact that Slingbox owners are watching content—encrypted to hinder piracy—that they paid for (or free, over-the-air transmissions in many cases) is irrelevant to the major leagues. Since the launch of the Slingbox, the media industry has looked on the place-shifting device with anything ranging from suspicion to hostility. HBO has stated that Sling Media is guilty of copyright infringement by its "rebroadcasting" of HBO's content, a view shared by many others in the industry.

Sling Media has taken steps to curtail the criticizm by introducing encryption. The EULA is clear that the device is for personal use only. Btw, So far, none of the Slingbox's critics has been upset enough about the technology to challenge its use in court.

MLB has been down this road before with Sling Media. At last year's Digital Media Summit, MLB VP George Kliavkoff said that a San Francisco Giants fan visiting Chicago and watching a Giants game via his Slingbox is "stealing" from whatever Chicago cable operator has the rights to carry the game. Basically they are saying streaming it to your hotel room while on the road is illegal.

The fact that pro sports leagues keep a close eye on their content is well known. In fact, MLB could argue that Slingbox costs MLB.TV potential customers.

The latest criticism from MLB may be nothing more than bringing their contempt to light, or it could be the prelude to a legal assault on the Slingbox. If nothing else, Mellis' comments highlight the tightrope manufacturers or innovative products must walk.

Now for my opinion.

Since you are watching your own TV, that you paid for, are not recording or distributing the games, then it's it not Illegal.
You are just basically using a longer wire to see your TV than most people have.

Regarding the "Start-Up" comment. I think they are just trying to scare folks. Sling Media and Sling'ing abilty is here to stay!

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