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"Some 400,000 to 600,000 films are being stolen every day, and it is getting progressively worse," says MPAA boss Jack Valenti.
He was giving evidence to the Senate Commerce, Science and Transportation Committee hearing and during his testimony, called proposals to ban technological mandates "poor public policy".
Valenti dubbed the technology "access control or redistribution control". In reality, it's Consumer Control and Hollywood has an ongoing, very carefully orchestrated plan to have hardware and software Consumer Control technologies and legislations locked into the America's laws and legal frameworks, and to use that to force the adoption of similar 'controls' in other parts of the world.
They would allow Hollywood and its movie, recording and hardware and software components to legally plug directly into 'user environments' - private homes - to manage what's being played and/or viewed gaining, in the process, hitherto private, personal and confidential information from, and about, users and their habits.
Moreover, persuading the entertainment industry to allow various 'administrative' and enforcement agencies to piggy-back (and load in) hidden surveillance and feed-back systems via "access control or redistribution control" technologies would be no task at all. In return, law enforcers would increasingly act for, and on behalf of, the entertainment industry - something that's already happening increasingly around the world.
"No one," Valenti told the hearing, "can forecast what future technology mandates will be needed. That's why it is not in the national interest to ban what you cannot see, to prohibit what you do not know, to turn your back on what you cannot measure."
"Enjoys cross-industry support"
As an example, he recalled Broadcast Flag designed, he said, "simply to stop digital over-the-air broadcasts from being re-directed to the Internet for anyone to pilfer, easily, swiftly," adding, "by the way, consumers will never know there is a Broadcast Flag, unless they try to re-distribute a program to the Internet."
By the way? Not at all. Consumers would get Broadcast Flag, not to speak of other Consumer Contol devices, whether they liked it or not. If they tried to remove them, they'd in trouble because Hollywood could quite literally shut them down, remotely. And that's the
best case scenario. Under the worst, they could end up in jail for disabling Hollywood's Customer Control systems.
"The Flag enjoys cross-industry support," promises Valenti.
Not true. In fact, to the contrary. But if the words seem familiar, last year Valenti said, "The MPAA is very pleased that a broad, multi-industry consensus has been reached on the fundamental aspects of a technology, called the 'broadcast flag'."
The "broad, multi-industry consensus" is in truth a small, extremely venal group which, under the guise of guarding members against dangerous new technology, is doing its best to front what it calls a 'standard' to give members control of digital TV technology and how people use their TVs, DVDs, and other devices in the privacy of their homes.
Valenti - from 1963 until 1966, a top advisor to former US president Lyndon B. Johnson - warned sternly that new technology threatens an entire industry's [guess which industry] "economic vitality and future security". However, this wasn't in 2002 - it was in 1982 and Valenti was referring to VCR's.
Concocted by that small group of movie companies and record labels known collectively as Hollywood, Broadcast Flag ostensibly calls for purpose-built technology to be 'inserted' into streaming stations under the pretext of preventing copyrighted items from being pirated.
Under it, every computer sold would
have to have industry developed monitoring and remote control technology on board and anyone who tampered with, or disabled, this technology could, and would, be prosecuted by various US government departments.
Broadcast Flag caught the public eye last summer when then US Senator Fritz Hollings was trying to get his so-called anti-piracy
CBDTPA (Consumer Broadband and Digital Television Promotion) Act passed. At the time, Home Recording Rights Coalition chairman Gary Shapiro called it, "a particularly dangerous delegation of broad, unfettered regulatory authority, which could have severe, adverse, long-term consequences for American consumers."
Enter the MPAA's Copy Protection Technical Working Group (CPTWG) which conceived the Broadcast Protection Discussion Group (BPDG) as a way of corralling digital television devices and technologies.
The BPDG, in turn, asked certain software, hardware, and consumer electronics companies - among them, Intel, Philips, Matsushita, Apple and Microsoft - to develop a standard to prevent digital TV broadcasts from being re-transmitted over the Net in a way that both allows technology, "to thrive" and, "the consumer to be protected," as Lawrence J. Blanford, President and CEO of Philips Consumer Electronics North America whose company is/was a member described it.
But at the end of the day, the BPDP 'standard' would allow Holluywood to move in. And you'd pay the rent.
Within the main group was a smaller bunch later dubbed 4C and 5C made up of Intel, IBM, Toshiba, and Matsushita, in the first instance, and Intel, Hitachi, Matsushita, Sony and Toshiba, in the second. They had deal with the MPAA to promote certain 'security' options and technologies, and to get them into the main standard.
In reality, of course, they wanted these secret options to
be the standard.
And you'd never have heard of 5C had it not been for the efforts of Lawrence Blanford.
Broadcast Flag is, "really the same model for what's already been happening on the video side," CNET News.com quoted RIAA senior vice president of government relations Mitch Glazier as saying. "The concept of a similar 'broadcast flag' for digital television signals has already gained approval from an industry standards group, but has drawn criticism from opponents who say the technology will strip consumers of their traditional 'fair use' rights."
The 'industry standards group' Glazier referred to was, of course, the BPDG.
"Convened by a few private companies, the BPDG reached many of its decisions in secret and repeatedly evicted reporters from its discussion lists and conference calls," said the Electronic Frontier Foundation (EFF). "BPDG sought the appearance of consensus and downplayed significant disagreements."
And Lawrence Blanford said the technology supporting the "emerging plan" has the potential to remotely disable a device that's recording a movie or other program in a consumer's home.
Testifying before the House Energy and Commerce Subcommittee on Telecommunications and the Internet, Blanford said in essence, through their private contractual relationships, the small group of studios and companies [5C] would control digital TV technology and how people use their TVs, DVDs, and other devices in the privacy of their homes.
"All manufacturers of TVs, DVDs, and other devices will have to sign up for an overly broad, burdensome and private license, which will govern the encryption technologies that must be in these devices and the process to enforce copyright protection," stated Blanford.
"This small group of companies will mandate the technologies, control the rules that govern the technologies, and change those rules whenever they desire.
"Most alarming, the public, consumers, licensees, and public officials have not been part of the process that developed the 5C approach, and they would be shut out of its implementation. In short, private interests are taking control of the balance among consumer rights and commercial interests and, as a result, establishing public policy.
"Philips cannot, and will not, accept that. We believe other companies will not accept that. Congress should not accept it either."
Blanford said Philips had "lost all confidence" that the BPDG will achieve consensus, or that it will allow for serious consideration or adoption of technology solutions of equal merit presented by other interested parties.
"Private industry should be given a chance to reach a consensus," he added, "but the process should be cleansed by the sunlight of government. Further discussion should be held in an open forum, with the involvement of those who are entrusted with the development of public policy."
Calling on Congress "to reassert its role in this critical public-private partnership by providing an appropriate, public forum to continue these industry discussions and to foster workable solutions on a timely basis," Blanford said Philips would offer, "complete support to such an effort, including offering related Philips technologies to all comers, under open, fair and easily available terms."
He also called on other companies to join this discussion to make sure, "we get this right".
Notwithstanding his concerns, "most of the hurdles to protecting copyrighted digital broadcasts from being illegally redistributed over the Internet have been overcome and a report is slated to be issued on May 17," said an April 25 Reuters story.
Shortly after Lawrence Blanford revealed the existence of 5C, in a press release, MPAA boss Jack Valenti said, "The MPAA is very pleased that a broad, multi-industry consensus has been reached on the fundamental aspects of a technology, called the 'broadcast flag'."
Ed Black, President and CEO of CCIA (Computer & Communications Industry Association) says the anti-copying quest seems doubtful in and of itself, but, "there is something worse at work here: Proposals from the Broadcast Protection Discussion Group would give Hollywood - not consumers - the right to decide what consumers may and may not record in the privacy of their own homes. BPDG chairmen say they intend to send the proposal to Capitol Hill for incorporation in a national law.
"If the BPDG proposal succeeds, ordinary people will not be able to cut and paste 'protected' sections of digital newscasts or other programming for their own use. Indeed, one scheme put forth by Intel and four consumer-electronics companies would make it impossible to view protected recordings on any hardware outside of one's home." Worse still, he goes on, the BPDG would let "media moguls" decide which new inventions would be allowed to copy existing media, and which not. Devices such as mp3 players would have to follow anti-copying instructions built into copyrighted media that gave only the producer the right to decide what their customers could do with them.
"They'd even have a place for people who dared to use products that didn't follow their rules, or tried to go around the anti-copying technology," says Black. "It's called prison."
Computer makers and consumer-electronics manufacturers that complied with the law - again, under pain of imprisonment - would be saddled with the bill for expensive re-engineering the proposal required, Black went on, also making the point that from the advent of the radio to player piano rolls, juke boxes and cable TV, the VCR and mp3 player, new media have threatened the old but, "At the same time, society has found ways to accommodate new technologies, pay writers, artists and other creators, and still hew to the principle that people who pay for content should have real flexibility in how they use it.
"Balanced copyright evolves along with society. It brings about progress. It makes possible innovation and creative uses of others' work. It gives us old quotes for new books, 'sampling' from the latest hit tunes, and new software features inspired by the 'look and feel' of others' program.
"But many of those same creative uses will disappear with the BPDG proposal, at least as far as they go in the new world of digital television. Indeed, the plan calls for extending already flawed copy-control technologies into every digital device on the market, from PCs to digital cameras, camcorders and just about anything else that could process a digital image."
Black reminds visitors to the association's site that Hollywood tried to kill the VCR, too.
"Consider," he says: "Until the video cassette recorder came along, no one thought of home taping as fair use. Now, Hollywood makes some 46% of its revenues from videos. Rebroadcasting TV signals over copper wires once seemed pointless and almost certainly illegal, but for the legal environment that gave us the cable TV system we have today.
Entrenched interests tried to exterminate both technologies and failed. They screamed 'piracy' and failed. And because they failed, those same interests - Hollywood and terrestrial broadcasters - are wealthier than ever before."
As Black says, we didn't believe them then.
Why should we now?
Back to the Commerce hearing, concluding his testimony, Valenti urged Congress to "heed our warnings that unless there is put in place various baffle-plates of protection, we will bear witness to the slow undoing of a huge economic and creative force.
"Which is why I urge the Congress not to close the legislative door on any new technological magic that has the capacity to combat digital thievery, which – if unchecked – will drown the movie industry in ever-increasing levels of piracy."
Jon Newton