Volume III No. 10

A publication of the National Association of Theatre Owners

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Lawmakers Hope to Help Manage Digital Rights
Congress Considers New
Anti-Piracy Legislation

by Jonathan Yarowsky
NATO Washington Counsel

On several occasions over the past few years, we have discussed in this space the increasing concern over digital piracy of copyrighted works. With the worldwide reach of the Internet and ingenious technology applications that can re-digitize pirated works and then spread them far and wide before the opening date of a first-run movie, the problem has only grown more serious for the movie and content industry.

NATO continues to show its commitment to protecting entertainment products through its collaborative work with movie studios and others, legal proceedings, educational campaigns and federal and state legislative efforts, and in the digital cinema arena. This public policy debate falls under the broad heading of “digital rights management” (DRM), meaning any system designed to limit a user’s ability to make use of digital content. Understanding the importance of this issue to the future of the entire motion picture industry, NATO has made piracy a larger concern in 2003, and as such has been increasingly active in supporting the efforts of the Motion Picture Association of America and others in fighting digital piracy.

H.R. 2752 would provide law enforcement with other anti-piracy tools, such as additional funds, and impose a prison sentence of up to five years for anyone who makes copyrighted material available over a computer network without permission.
In the legislative arena, Congress continues to consider options for how to best resolve the competing issues of significant content protection, “fair use” of products by consumers, and technological advancements. Some in Congress continue to encourage the private sector to develop uniform standards; some see a more proactive role for the federal government in helping to direct the standards-setting process; others favor a private sector/public sector partnership to drive the process forward.

In recent months, a number of members of Congress have sponsored new legislation intended to defeat piracy in the dynamic technological world by giving consumers, law enforcement, and creators of content added tools to protect their rights. Two new Congressional proposals have been introduced to enhance law enforcement resources in discovering and prosecuting copyright infringement. One proposal would broaden the definition of what is covered by copyright law; the other bill seeks to deter piracy by increasing the penalties for making copyrighted material available over the Internet without permission.

The Piracy Deterrence and Education Act of 2003 (H.R. 2517). “The Piracy Deterrence and Education Act of 2003” was introduced in June by Rep. Lamar Smith (R-Texas), chairman of the House Judiciary Committee’s Subcommittee on Courts, the Internet, and Intellectual Property (CIIP), together with Rep. Howard Berman (D-Calif.), ranking member of that subcommittee, and Rep. John Conyers (D-Mich.), ranking member of the full House Judiciary Committee.

The Piracy Deterrence and Education Act targets two of the most basic elements of the effort to stop piracy – consumer education and deterrence through enhanced penalties. Recognizing that consumers must know that piracy of movies, recordings, and other copyrighted works is wrong, and that there are real consequences to unauthorized reproduction and distribution, the bill would create aggressive warning, education and enforcement programs within the Federal Bureau of Investigation and within the associate attorney general’s office. Additionally, the bill provides that the owner of a pirated work could claim criminal copyright infringement even if the work is not officially registered with the U.S. Copyright Office. On July 17, Smith’s subcommittee held a hearing on H.R. 2517 where the bill’s provisions were roundly endorsed by the witnesses who had been invited to testify.

However, some public interest groups who did not appear at that particular hearing have joined representatives of technology industries in expressing concerns that the legislation might curtail the “fair use” and privacy rights of consumers and interfere with the free market development of technology-based products and services. Earlier this year, Rep. Rick Boucher (D-Va.), an important member of both the House Judiciary and House Energy and Commerce Committees, re-introduced his fair use legislation “with the announced goal of protecting the fair use rights of the users of copyrighted material and thereby enabling the consumers of digital media to make use of it in ways that enhance their personal convenience.” The bill was referred to the House Energy and Commerce Committee, but no further action has been taken on the legislation.

The Author, Consumer, and Computer Owner Protection and Security Act of 2003 (H.R. 2752). On July 13, two Democratic members of the House Judiciary Committee introduced another anti-infringement bill that might be combined with the Piracy Deterrence and Education Act of 2003. Conyers and Berman introduced H.R. 2752, the “Author, Consumer, and Computer Owner Protection and Security (ACCOPS) Act of 2003.”

The ACCOPS Act is intended to provide authors, consumers and computer owners with protection against several online threats. The bill would provide law enforcement with other anti-piracy tools, such as additional funds and increased information sharing among domestic and international enforcement agencies; and it would impose a prison sentence of up to five years for anyone who makes copyrighted material available over a computer network without permission. The legislation would also take the significant step of creating a new federal offense of camcording a movie in a theatre without authorization.

Lawmakers Struggle with Competing Priorities. Understandably, many lawmakers are grappling with what should be the appropriate role of the federal government in protecting intellectual property, while not unduly dampening new generations of technological innovation beneficial to the consumer. As Congress continues to consider anti-piracy legislation, some legislators, like Billy Tauzin (R-La.), head of the House Energy and Commerce Committee, and chairman Orrin Hatch (R-Utah) of the Senate Judiciary Committee, continue to encourage private industry negotiations as the appropriate means for creating a standard by which content can be protected. These members have indicated a strong preference for a consensus solution, rather than for legislative mandates.

As this important policy debate continues to unfold, we will be working hard to ensure that movie theatres continue to thrive in a digital world where “public policy” often has to struggle to keep pace with technological change.

 

 

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