NEW FIGHT BREAKS OUT OVER ENCRYPTING TV BROADCASTS
In fresh twist on old dispute, Hollywood studios, major broadcast networks, consumer electronics manufacturers and software developers are battling over whether over-the-air TV signals should be encrypted like digital programming carried over cable and satellite. Led by CBS, ABC and Fox, broadcasters are fighting 5C copy protection technology in Congress and at FCC, arguing that technology wouldn’t prevent their terrestrial TV broadcasts from being copied repeatedly by consumers or distributed by Internet pirates. But they're fiercely opposed by consumer electronics industry, which is pushing to preserve home copying rights of consumers for over-the-air programming. Meanwhile, 7 major Hollywood studios were split over issue, with 5 backing broadcasters but 2 willing to break ranks and adopt 5C technology.
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New lobbying war broke into open late last week as broadcasters pressed their case in congressional testimony. CEA- backed Home Recording Rights Coalition (HRRC) sent letter to FCC Chmn. Powell and 5C software developers worked out compromise digital copyright licensing agreement with Warner Bros. and Sony Pictures Entertainment. Moves followed March 2 letter to Powell by 12 key lawmakers, who called for greater copyright protection for over-the-air TV signals as broadcasters went digital. They warned that “the digital transition will slow considerably” and free, over-the-air TV would suffer if proposed 5C technology were adopted because program producers would move their shows to cable and satellite channels “where protections are clearly stronger” (CD March 5 p9). Group called 5C is composed of Hitachi, Intel, Matsushita, Sony, Toshiba.
CBS Exec. Vp Martin Franks hammered that point home again Thurs. in his testimony at House Telecom Subcommittee hearing (CD March 16 p3). Expressing concern that “the copy protection scheme that is presently being discussed leaves us behind,” he said CBS has “absolutely no objection to our viewers being able to record us off air for their own viewing.” But, he said, “without some measure of copy protection that makes unlawful piracy, particularly over the Internet, more difficult, we fear that premium content, whether it is Titanic or Survivor, will not be made available to over-the-air broadcasters and will instead migrate to cable and satellite where its airing is more secure from piracy.”
In spite of protests from broadcasters and their fellow movie studios, Warner Bros. and Sony said they would go ahead with 5C licensing agreement covering digital programming transmitted over cable lines. Testifying at same hearing as Franks, Warner Bros. Exec. Vp/Chief Technology Officer Chris Cooksen conceded that lack of copyright protection for over-the-air TV could lead to “unauthorized retransmission over the Internet” and “would delay the consumer benefits of what we can do with existing technology.” But, he said, Warner Bros. planned to sign 5C deal anyway because “we do not want to delay digital TV until as-yet-undeveloped technology comes into being.”
CEA’s HRRC entered fray anew Fri. with its own letter to Powell. Responding to key lawmakers’ concerns, group argued that encrypting free, over-the-air TV signals would undermine established home recording rights. It also contended that such “diminished fair use rights” would create “a poor incentive for consumers to enter the DTV world,” delaying nation’s digital transition. And it warned FCC and Congress against taking steps “based on an assumption that the motion picture industry would jointly withhold its product from the marketplace.” In letter, CEA Pres.-HRRC Chmn. Gary Shapiro specifically called for “certain boundaries” in examining issue: (1) No consideration of encryption of free, terrestrial TV broadcasts. (2) No imposition on ability to record free terrestrial broadcasts for private, noncommercial use. (3) Extension of any legislation tackling redistribution of broadcast programming over Internet to “all products capable of storing and uploading broadcast signals,” presumably including cable and satellite set-top boxes.