Court says FCC's 'broadcast flag' is toast

By Declan McCullagh
http://news.com.com/Court+says+FCCs+broadcast+flag+is+toast/2100-1030_3-5697
719.html

Story last modified Fri May 06 08:10:00 PDT 2005

In a stunning victory for television buffs and hardware makers, a federal
appeals court has tossed out government rules that would have outlawed many
digital TV receivers and tuner cards starting July 1.

The U.S. Court of Appeals for the D.C. Circuit ruled Friday that the Federal
Communications Commission did not have the authority to prohibit the
manufacture of computer and video hardware without copy protection
technology known as the "broadcast flag." The FCC's regulations, which it
created in November 2003, had been intended to limit unauthorized Internet
redistribution of TV broadcasts.

"The broadcast flag regulations exceed the agency's delegated authority
under the statute," a three-judge panel unanimously concluded. (Click here
for a PDF of the decision). "The FCC has no authority to regulate consumer
electronic devices that can be used for receipt of wire or radio
communication when those devices are not engaged in the process of radio or
wire transmission."

Under the FCC rules, starting in July digital TV tuners manufactured would
have had to include copy-protection technology--called the broadcast
flag--that's backed by the Motion Picture Association of America. The
broadcast flag limits the TV recipient's ability to redistribute video clips
made from the recorded over-the-air broadcasts.

Friday's ruling represents a sizable setback for the MPAA, which had lobbied
for the broadcast flag rules and had intervened in the lawsuit to defend
them. It's also a reprieve for makers of HDTV sets, PC tuner cards, and USB
and Firewire tuners--which will no longer have to redesign their products to
comply with FCC rules.
Disharmony on your cell phone

In January, the advocacy group Public Knowledge filed suit against the FCC's
broadcast rules, arguing that the regulations would sharply curtail the
ability of librarians and consumers to make "fair use" of copyrighted works
and would curb interoperability between devices.

One result of Friday's ruling is that, if upheld on appeal, the fight over
digital TV piracy will return to Capitol Hill. The court noted that the FCC
"has no power to act" until "Congress confers power on it" through enacting
a law explicitly authorizing the broadcast flag.




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