Washington: Hollywood studios and television networks were dealt a blow yesterday when a federal appeals court rejected an earlier federal ruling that required the coming or 'next' generation of digital apparatus like TVs, personal computers, DVD recorders to contain anti-piracy technology.
The November 2003 ruling by Federal Communications Commission (FCC) required manufacturers of computers and TV sets to include new technology that would stop consumers from copying and distributing programs. Yesterday, the 3-judge panel blasted FCC for overstepping its authority when it approved the rules. The landmark decision now rewrites the situation for intellectual property rules.
Although it has hurt film and music producers, it has pleased consumer groups and civil-liberties organizations and libraries. Notwithstanding copyright laws, this group maintained that FCC’s ‘broadcast flag’ rules would have stifled innovation in technology and also denied consumers (particularly users of library services) the “freedom” to circulate material “legitimately”.
Trade groups and consumer rights advocates said the fears expressed by Hollywood producers are largely exaggerated. Yesterday’s decision was also welcomed by technology companies like Microsoft and Intel. FCC’s rules would have brought a new array of products under their jurisdiction, which included personal computers.
According to that FCC directive, all digital televisions, DVD recorders and other consumer devices made after July 1 must have a technology that recognizes a digital code transmitted in the broadcast stream. This was expected to control the copying of material by permitting recording only on devices that were made in line with copy-protection rules. It would prevent people from recording digitally broadcast shows on their PCs and then uploading and sharing them via the Internet.
A spokesman for one of the groups that petitioned against the FCC ruling argued that its authority ended once a digital transmission reached the home of a consumer.
The Motion Pictures Association (MPAA) were understandably disappointed with the appeal court’s ruling. They said consumers would consequently get fewer high-quality digital programs. According to an MPAA spokesman, program providers would now have to carefully weigh their risks and choose more secure programmed delivery systems thus sharply limiting the output. They may be forced to opt for channels limited to cable and satellite services that have other means to control the copying of material transmitted via their channels. Citing the example of Napster, he said the transition from analog to digital makes restrictions necessary. Otherwise, films and television shows would be copied and shared over the Internet limitlessly, similar to how music is being shared these days causing widespread copyright infringement and huge losses to music labels and recording companies.
Another case of similar significance: the ‘Metro-Goldwyn-Mayer Studios Vs Grokster’ is being closely watched and the court is expected to issue a ruling soon. The court is considering whether Grokster’s online sharing service can be held liable for copyright infringement. Millions of people use the Grokster site to share songs and movies over the Internet.
The entertainment industry will now take the battle to Congress and urge for new legislation to protect their rights.
