Wednesday, May 23, 2012

MPAA, CEA at Odds on FCC Order

May 7, 2010 | 5:14 PM

The FCC sided with anti-piracy groups on Friday in an order that will allow satellite and cable providers to encode content sent to set-top boxes with a signal preventing it from being distributed online. The FCC order granted a waiver to its rule against "selectable output control," which enables video programming to disable certain audio and video outputs on set-top boxes.

The Motion Picture Association of America hailed the order for making it possible to distribute movie programming that is still in theaters without as much of a risk of piracy. "This action is an important victory for consumers who will now have far greater access to see recent high definition movies in their homes," said Bob Pisano, MPAA president. "We deeply appreciate the recognition by the FCC that recently released movies need special protection against content theft when they are distributed to home televisions."

Consumer advocates had a different view, arguing that leaks from set-top boxes to the Internet have not been a problem and that the order grants providers too much power over the television experience. The decision will "allow the big firms for the first time to take control of a consumer's TV set or set-top box, blocking viewing of a TV program or motion picture," according to Public Knowledge president Gigi Sohn.

The Consumer Electronics Association also reacted negatively to the decision, arguing that it allows "any video copyright owner to unilaterally shut off video outputs on consumers' televisions." It raised the question of whether the FCC has ever allowed private entities "the right to disable consumers' products in their home," arguing that the order will allow motion picture studios take apart functioning products in service to a new business model.

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Juliana Gruenwald

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Juliana Gruenwald has been covering tech and telecom issues for more than a decade for National Journal, Interactive Week, BNA and Congressional Quarterly. This is her second stint with National Journal. She was recruited by NJ in 1998 to help launch its first tech policy publication, Technology Daily. She left in 2000 to cover international tech and telecom issues for Ziff Davis Media's Interactive Week magazine. She started her career at United Press International as the wire service's first Helen Thomas Intern. She has a Bachelor of Arts degree from the University of Minnesota. A Minneapolis native, she misses the lakes but not the cold.


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Adam Mazmanian reports on technology for National Journal. He comes to NJ from SmartBrief, where he was a senior editor on the advertising, media and digital beats. Before moving to Washington, D.C., he worked as worked in New York City as an editor at AOL, About.com and the alternative newsweekly New York Press. He’s contributed book reviews, pop music criticism and film writing to Washington City Paper, the Washington Times, the Washington Post, Newsday, Architect Magazine and elsewhere. He lives in the Petworth neighborhood of Washington, D.C. with his wife and son.


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Josh Smith covers technology policy as a staff reporter for National Journal. He previously interned at National Journal Daily, a Senate press office, and the Deseret News in Salt Lake City where he covered the state legislature, courts, and crime. In 2009 he graduated with honors from Southern Utah University after managing an award-winning student newspaper as editor-in-chief. Josh has received state, regional and national awards for his political and policy reporting, including first place in CapitolBeat’s 2009 Best of Statehouse Reporting college competition. A native of drop-dead-gorgeous Utah, Josh lives in Virginia with his wife, Amber.