Court Strikes Down TV Anti-Piracy Rules
By TED BRIDIS, AP Technology Writer 37 minutes ago
WASHINGTON - People buying the next generation of digital
televisions will be able to record and then watch their favorite
shows without any interference from Hollywood. A federal appeals
court on Friday threw out government rules requiring built-in,
anti-piracy technology to let broadcasters and studios prevent
digital shows from being copied and being shown on other TVs,
computers and video players.
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The three-judge panel for the
U.S. Circuit Court of Appeals for the District of Columbia said
the
Federal Communications Commission had exceeded its authority in
requiring such technology in digital televisions and consumer
devices sold after July 1.
"This opens up the future for consumers to have more wide-ranging
video experiences," said Art Brodsky, a spokesman for
Washington-based Public Knowledge, a consumers group. "They will be
able to take advantage of new products and features that won't be
dictated to them by the entertainment industry."
Congress may get the last word. The appeals court panel said
lawmakers could change the law to require the anti-copying
technology on new products. An aggressive lobbying effort by
entertainment companies is already anticipated.
"People will cry to Congress," said Gary Shapiro, head of the
Consumer Electronics Association, the trade group for
device-makers.
The court's decision illustrates the complexity of applying
copyright laws to forthcoming technology. The ruling narrowly
hinged on whether the
FCC under a 1934 law could regulate new digital TV and
video-playback devices once the programs they receive are already
in the home.
The court said the FCC's arguments that it had such authority were
"strained and implausible."
Consumer groups and library associations challenged the new rules
after they were announced in 2003. Their lawyers complained that
the FCC requirement would drive up prices of digital television
devices and prevent consumers from recording and viewing programs
in ways permitted under copyright laws.
The appeals court panel said there is a "substantial probability"
the anti-copying technology would interfere with libraries legally
transmitting clips of television broadcasts over the Internet for
educational purposes.
The technology, known as the broadcast flag, would have been
required after July 1 for televisions equipped to receive new
digital signals, many personal computers and VCR-type recording
devices. It would permit entertainment companies to designate, or
flag, programs to prevent viewers from copying shows or
distributing them online.
Most digital TV sets and recording devices already accommodate the
anti-copying technology, so the court's decision will have little
immediate effect. Major television manufacturers design their
products up to 18 months before they hit retail stores and have
been preparing for the upcoming July deadline.
Some manufacturers, however, could choose to market TVs, computers
and VCRs as unrestricted.
"Courts are right to be wary when government institutions seek to
regulate the specific features and functions of safe, useful
consumer technology," said Shapiro.
His trade group did not challenge the FCC rules in court because
some member companies agreed with the requirement. Shapiro said he
was "personally gratified the court took a narrow view over how
government can regulate products."
Entertainment companies said the technology was needed to block
viewers from recording high-quality, digital versions of television
shows and films and distributing them free online. The Motion
Picture Association of America and the National Association of
Broadcasters warned that companies may choose not to air their best
programs over local television if the shows couldn't be
protected.
"If the broadcast flag cannot be used, program providers will have
to weigh whether the risk of theft is too great over free, off-air
broadcasting and could limit such high quality programming to only
cable, satellite and other more secure delivery systems," said Dan
Glickman, MPAA's chief executive.
The FCC acknowledged it had never before tried to impose
regulations affecting television broadcasts after such programs are
beamed into households. But it maintained that it was permitted to
do so under the 1934 Federal Communications Act since Congress
didn't explicitly tell the commission not to do it.
"We categorically reject that suggestion," the appeals panel
said.
There were clear signals for Friday's ruling.
During earlier courtroom arguments, U.S. Circuit Judge Harry T.
Edwards told the FCC's lawyer the agency had "crossed the line" by
requiring the new anti-piracy technology for next-generation
television devices and rhetorically asked whether the FCC also
intended to regulate household appliances.
"You've gone too far," Edwards said. "Are washing machines
next?"
