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CONTENT PROTECTION IN THE DIGITAL AGE: THE BROADCAST FLAG, HIGH-DEFINITION RADIO, AND THE ANALOG HOLE

THURSDAY, NOVEMBER 3, 2005

HOUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COURTS, THE INTERNET,

AND INTELLECTUAL PROPERTY,
COMMITTEE ON THE JUDICIARY,
Washington, DC.

The Subcommittee met, pursuant to notice, at 2:49 p.m., in Room 2141, Rayburn House Office Building, the Honorable Lamar Smith (Chair of the Subcommittee) presiding.

Mr. SMITH. The Subcommittee on Courts, the Internet, and Intellectual Property will come to order.

Let me make a couple of announcements at the outset. First of all, although maybe there is no need to say this, because we actually have a relatively good attendance already here, but there's also a bill on the House floor over which the Judiciary Committee has jurisdiction, and a lot of Members are over on the House floor. In fact, I just came from the House floor, and I'd say at least half the IP Subcommittee is still waiting to be heard on this particular piece of legislation. So that's where some folks are, but I do appreciate the attendance of the Members who are here already.

The second is I am going to have to leave for about a half an hour or so after my opening statement. I don't want anybody to take personal offense that I am leaving so quickly but hope to be back in time for the question period. And in my absence, Congressman Jenkins will be chairing the IP Subcommittee.

I will recognize myself for an opening statement then recognize the Ranking Member.

Today, the Subcommittee turns its attention to the role of content protection in digital media. The days of analog content are dwindling. From televisions to music collections, content is increasingly digital from its original creation to consumer playback. This digital conversion has assured the consumer that they will consistently see and hear a high quality version of a song or movie.

However, creators and content owners have been concerned that the digital transition will result in higher levels of piracy. To reduce the amount of piracy, content owners have used a variety of content protection measures on DVDs and MP3 files. Although these measures do not stop or even hinder hard-core pirates, they do seem to keep basically honest people honest. The most popular content delivery mechanisms, free over the air radio and television

broadcasts, are becoming digital by choice and by Government mandate. Content owners believe that this transition will result in more satisfied consumers but also that the transition will increase piracy unless new content protection measures are adopted.

Content owners have put forward these proposals. One, the broadcast flag to limit redistribution of over the air digital television signals; two, a high-definition radio proposal to limit redistribution of over the air digital radio signals; and three, the analog hole proposal, to address the conversion of analog signals into digital formats.

Clearly, the broadcast flag is the most well-known of the three proposals. This Committee is interested in hearing from proponents and opponents of all three of these proposals, not only to understand the need for them but also the differences in support for them. There are valid issues on both sides of the content protection debate. There are legitimate piracy concerns just as there are legitimate consumer concerns. Not everyone is a pirate, and not everyone has a right to acquire content in any way they like.

To me, content owners deserve the right to market their creations and to profit from them. Consumers have the right to use content within the bounds of the law but not an unfettered right. We hope to accomplish several things in the hearing today: one, learn about the need for such proposals; two, learn about the support for such proposals; three, learn about the impact of the proposals; and finally, if possible, understand where common ground may exist.

By unanimous consent, all Members' opening statements will be made a part of the record, and the Gentleman from California, Mr. Berman, is recognized for his opening statement.

INTRODUCTION OF WITNESSES

The Honorable Dan Glickman,
Chairman and Chief Executive Officer
Motion Picture Association of America (MPAA)

Mitch Bainwol

Chairman and Chief Executive Officer
Recording Industry Association of America (RIAA)

Gigi B. Sohn

President

Public Knowledge

Michael D. Petricone,

Vice President, Government Affairs
Consumer Electronics Association (CEA)

November 3, 2005

Our first witness is Dan Glickman, the head of the Motion Picture Association of

America. As Chairman and Chief Executive Officer of MPAA, Mr. Glickman represents the interests of the U.S. film industry before the U.S. government, as well as being the U.S. movie industry's emissary to foreign capitals and foreign movie makers.

Before taking on leadership of MPAA, Mr. Glickman led the Institute of Politics at Harvard University's JFK School of Government. He also served as President Clinton's Secretary of Agriculture after eighteen years in the House, including serving as Chairman of the Permanent Select Committee on Intelligence.

Our next witness is Mitch Bainwol, the head of the Recording Industry Association of America. Mr. Bainwol joined RIAA as Chairman and CEO in September 2003. Just prior to this, he led The Bainwol Group and served as Senate Majority Leader Bill Frist's Chief of Staff.

Mr. Bainwol began his career as a budget analyst in President Ronald Reagan's Office of Management and Budget. He then served as chief of staff for U.S. Senator Connie Mack for nine

years.

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