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April 22, 2002
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Congress Turns Attention to Consumers' Digital-Content Rights
Bill Gates, Chairman and Chief Software Architect for Microsoft, took the stand today in the antitrust trial with the non-settling states. Just before he entered the courtroom, Gates said, "I'm here to share my story and answer questions about Microsoft and the PC industry. I hope that my testimony helps the Court to resolve the issues in this case. That would be best for consumers and the industry, and that's why I'm here."

But the antitrust case isn't the only issue of concern to consumers and the industry. A new threat has erupted in the area of "Digital Rights Management," or DRM. The DRM debate is over how to protect content producers from piracy: By one-size-fits-all government mandate, or with technology solutions developed in the IT marketplace?

This Thursday, the House Commerce Subcommittee on Telecommunications and the Internet will hold hearings on DRM, taking a step toward drastically limiting how consumers can use digital content, including music, video, e-books and so on.

The House hearings follow a bill introduced last month by Senator Ernest "Fritz" Hollings' (D-SC), called the "Consumer Broadband and Digital Television Promotion Act" (CBDTPA). If enacted, CBDTPA would require any device that can digitally "read" copyrighted works -- computers, MP3 players, car stereos, high definition televisions, to name just a few -- to include federally mandated copy protection technology.

Our digital technology future would be frozen to this standard.

FIN members can help set the terms of this debate. Here's what's at stake:
  • Consumer choice. Your right to transfer lawfully acquired digital content into other formats, such as recording music from a CD onto your PC or PDA, would be severely limited.
  • The IT industry. A federally mandated standard would hamstring the industry, imposing unreasonable costs and delays that would degrade product performance and drive up prices.
  • Innovation. Government mandates would lock technology into a single copy-protection standard, stopping companies from developing innovative new products.
Protection of copyrighted materials is a serious issue. That's why Microsoft and many other software and hardware companies already are working hard to develop copy-protection technologies that meet the needs of both consumers and content producers, including music companies, Hollywood studios and the publishing industry.

We don't need legislation that freezes technology into a single DRM standard. The marketplace should guide which systems emerge, not one-size-fits-all regulation that would limit the development of new digital media and copy-protection technology.

To learn what others are saying about the Hollings' bill and the DRM debate, visit:
http://ptech.wsj.com/archive/ptech-20020314.html
http://www.salon.com/tech/feature/2002/03/29/hollings_bill/
http://www.actonline.org/press_room/releases/040208.asp
http://www.wired.com/news/politics/0,1283,51274,00.html

HELP STOP DRM LEGISLATION
FIN Members can help stop DRM mandates now! Before the House holds hearings on this issue, we urge you to share your views on this critical issue with your U.S. Representative.

IT'S EASY TO TAKE ACTION NOW!
Follow the link below, and in a few easy steps, you can send your elected officials e-mail that communicates where you stand on DRM mandates.
www.microsoft.com/freedomtoinnovate

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