April 15, 2004

Mr. Cary H. Sherman
President
Recording Industry Association of America

Dear Cary,

Thank you for your letter of April 14.

We always look to work in partnership with RIAA, but are puzzled by a
number of statements in your letter, as well as your belief that longstanding and
legitimate consumer recording practices suddenly pose a threat to your
industry.

First, contrary to what you claim, CEA has never refused to meet with the
RIAA in a multi-industry context. No such offer has been extended. In
fact, I am unaware of any RIAA expression of interest in digital radio, or its
technologies, before the January 30 FCC roundtable, although the standard

Second, you claim that you have "repeatedly" asked the FCC to address the
digital radio content protection issue. I was particularly surprised by
this, since there is no record of any such communication having been filed
in the pertinent FCC docket, which has been open for a long time.

There is also no indication in the docket that you provided the FCC with
any basis for jurisdiction over this issue, despite your counsel's suggestion
at the roundtable that he might do so. Also, as noted in your letter, there
is no content "license" at issue because RIAA members have no licensable
right that could be a basis for imposing limitations on free broadcasts.

Finally, you state that you do not wish to limit the ability of consumers
to record over-the-air radio broadcasts. Instead, you apparently want to
force them to buy what they have received for free since Fleming and Marconi
first made it possible for consumers to hear news and music over the public
airwaves.

As you know, we have long been concerned about content owners seeking to
change the "play" button on our devices to a "pay" button. At least you
have addressed the semantics by suggesting new devices come equipped with a
"buy" button.

Based on your letter as well as your industry's statements at the FCC
roundtable, you appear to be seeking a government mandate precluding,
limiting, or charging for the private, noncommercial home recording of
digital radio programs. Among other troubling issues, this approach
directly contradicts RIAA's January 14, 2003 "Policy Principles on Digital Content"
which read in part:

"Technology and record companies believe that technical protection
measures dictated by the government (legislation or regulations mandating how these
technologies should be designed, function and deployed, and what devices
must do to respond to them) are not practical. The imposition of technical
mandates is not the best way to serve the long-term interests of record
companies, technology companies, and consumers...The role of government,
if needed at all, should be limited to enforcing compliance with voluntarily
developed functional specifications reflecting consensus among affected
interests."

Little more than a year after this statement, you are not only seeking
government intervention to limit noncommercial home recording rights, but
you are doing so without having met even the most minimal burden of
showing that an actionable problem exists.

As you are aware, hundreds of thousands of digital radios have already
been sold in Great Britain, yet you offer no proof of harm to the recording
industry. Indeed, the various consumer recording practices your letter
warns of could be easily accomplished today using commonplace analog radio data
service (RDS) technology combined with the digitization of FM broadcasts,
but there is no evidence this is occurring. The FCC docket is also devoid
of any showing linking digital radio to the unauthorized peer-to peer file
sharing of music.

If you are seeking a consensus technical specification or standard
with respect to digital radio copy protection, instead of calling for federal
mandates the appropriate course would be to devise a technical proposal
and work with the appropriate standards bodies.

Where, as here, proposals are preliminary and unfocused, issues often are
first aired at the multi-industry Copy Protection Technical Working Group.
(CPTWG). You will recall that RIAA initially was a co-chair of this open
forum, which is always attended by members of CEA, representatives of
HRRC,consumer advocates, and other interested groups and their members.

After establishing the Secure Digital Music Initiative - which apparently
did not produce any proposal relevant to your digital radio concerns -
RIAA ceased attending the regular CPTWG meetings and has not returned. In fact,
the CPTWG was meeting at the very moment you sent your letter, but to my
knowledge no one from your organization was in attendance.

In closing, let me again reinforce that non-commercial recording of freely
broadcast over the air radio programming is a fundamental consumer right,
and one that has consistently been given great deference by Congress. Any
discussion of curtailing that right, prior to even the most minimal
showing
of harm, is ill conceived and premature.

Sincerely,

Gary Shapiro
President and CEO Consumer Electronics Association

Great comeback Gary! LOL! The RIAA and it's members are all in disarray and are flailing wildly in all directions in order to try and gain control of digital mediums. It is good to see that some bodies like the CEA see reason.

Funny, one would think Sony is probably a member of both groups

I predicted their downfall once upon a time... people laughed and said I was stupid...

Wow we finally have people speaking up for fair use other than the EFF. Maybe because we have cold hard math that proves the RIAA is a bunch of liars? I think so.

It's good to see that I'm not the only one who likes to list the, uh, inconsistencies in what Cary Sherman says.

"Instead, you apparently want to force them to buy what they have received for free since Fleming and Marconi first made it possible for consumers to hear news and music over the public airwaves."

Yeah, it's called the RIAA Customer Relations program.

This is awsome. where did it come from? was it an open letter or did someone share it with us. guess I'm trying to figure out weather it made it to the press.

It was a letter from Gary Shapiro to Cary Sherman I got from a third party.

pretty cool

Very cool, Code, thanks for sharing it!

It's about time a trade group with some juice and money has called the riaA out on their bullshit. Not to mention lay it out in plain english!

Time to find out more about the CEA and if warranted - support them as well. I would imagine there are deserving of our support...

Good post code!

A really good post code

Very good indeed.

I hope it is a REAL letter from Shapiro and not just wishful thinking fiction.

Shmoo, I think it's legit.
I read this from the Consumer Electronics Assn. website: "Shapiro also urged the broadcast industry to protect consumer home recording rights, arguing that consumers will resist HD radio and other new broadcast formats if it means they have to forfeit their normal, noncommercial home recording rights. Further, he encouraged broadcasters to stand up and fight for the First Amendment in an era of increased regulatory scrutiny and dangerously vague definitions for indecency.

"As fear over government action dilutes broadcast creativity, as consolidation reduces diversity and as the business model squeezes finances, broadcasters must act to ensure that broadcasting does not become a bland, ignored and irrelevant wasteland," he argued.
http://www.ce.org/press_room/press_release_detail.asp?id=10442

Gary Shapiro gave the speech on 4/18/04 after he sent that letter to Cary Sherman.
The CEA is a trade association, too - just like the RIAA. Are they non-profit, too? Their members (1500) have "$90 billion in annual sales." "The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 1,500 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $90 billion in annual sales."