http://www.latimes.com/business/la-fi-camcorder19apr19,0,2559394.story?coll=la-home-business
Anti-Piracy Bill Sweet, Sour for Hollywood
It would stiffen penalties for bootlegging
but also legalize products used to edit
content of DVDs.
By Jon Healey
Times Staff Writer
April 19, 2005
Congress is poised to pass a bill ratcheting
up the penalties for movie and music
bootlegging, handing Hollywood a long-sought
victory in its drive to prosecute pirates.
But the Family Entertainment and Copyright
Act of 2005, which the House is expected to
approve today, includes a bitter pill for
the studios: It would legalize products that
electronically snip offensive scenes or
words from DVDs.
The measure — which President Bush is
expected to sign — would in effect terminate
a lawsuit that film directors and Hollywood
studios brought against ClearPlay Inc., a
company whose electronic filters let viewers
skip over violent, suggestive or profane
sections of DVDs. A federal judge in
Colorado has yet to rule on the case.
Sponsored by Sen. Orrin G. Hatch (R-Utah),
the bill would make it a federal felony to
record a movie as it was being projected in
a theater. It also would ban offering a
movie on a file-sharing network such as
Kazaa before it goes on sale at video
stores, or a song before it's released for
sale.
The measure would set a maximum penalty of
five years in federal prison and a $250,000
fine for first offenders. The maximum
penalties would double for second or later
offenses.
For Hollywood, most bootlegging starts with
a person using a camcorder to
surreptitiously record a film in a theater.
Within days of a major film's release to
theaters, copies start popping up online and
in markets around the globe.
The entertainment industry has been making
slow headway against the problem. It has
persuaded 24 states to enact their own
measures against camcording in theaters —
it's a misdemeanor in California, for
instance. The industry also has launched
security programs that train and reward
theater employees and helped state
prosecutors bring criminal charges against
half a dozen suspected professional
camcorder pirates. But backers of the Family
Entertainment and Copyright Act said more
steps were needed to prod federal
investigators and prosecutors into getting
involved.
Laura Tunberg, who was the top anti-piracy
executive at Metro-Goldwyn-Mayer Inc. until
the studio was acquired by Sony Corp., said
making theater camcording a federal felony
"would entice prosecutors to go after bigger
fish" among video recorders. The bill also
would make it easier to prosecute online
pirates, she said, by removing the
requirement that the bootlegged works be
worth more than $1,000 — a tough threshold
to meet for movies and songs not yet
available for sale.
MGM executives lobbied for more than two
years for the provisions against recording
and sharing movies, with the help of other
studios and theater owners. Tunberg said the
provisions that would legalize electronic
editing services were disappointing, but the
chairman of a key House subcommittee, Rep.
Lamar S. Smith (R-Texas), insisted upon them.
"Lamar Smith comes along and says, 'Well, if
you want your anti-piracy bill, this is what
you're going to get with it.' What do you
say, no? I'm not going to support my own
legislation?" Tunberg said.
Smith could not be reached for comment. The
electronic editing provision was backed by
social conservatives and by technology
firms, whose political action committees
were among the largest contributors to
Smith's last campaign, according to the
Center for Responsive Politics.
A Directors Guild of America spokesman said
it would "continue in its efforts to
vigorously defend the right of directors to
protect their work from unauthorized
alteration." The guild's suit also targets
firms that sell movies permanently edited to
remove violent or suggestive content, an
approach the bill would not protect.
Spokesmen for two technology advocacy groups
— Public Knowledge and the Electronic
Frontier Foundation — said the issue was
whether viewers would be able to do what
they wished with the movies they owned.
"Once you have the DVD in your living room,
it's nobody's business how you choose to
watch it," EFF attorney Fred von Lohmann
said.