Building a Digital Democracy

August 12, 2002

Recent proposed legislation that attempts to aide Hollywood's digital piracy battle has been criticized as extreme and dangerously far reaching. Independently, these bills may be insignificant and never see the light of day. Yet this does signal a serious interest to amend current laws, and the possible beginning of a high stake political battle over how much reign a studio or record label should have in protecting its assets.


As intellectual properties were rendered more vulnerable upon the rapid ascent of Internet usage in the mid 1990s, existing copyright laws were limited in the amount of protection they ensured content owners. When The Digital Millennium Copyright Act was enacted in 1998, this was an attempt to create an international legal umbrella for all intellectual property transmitted online. Yet the Act was arguably useless against the onslaught of MP3 a year later. The record labels attempted, unsuccessfully, to legally prevent what was from its perspective an essentially anarchic method of audio distribution and storage with a joint lawsuit against Diamond Multimedia, the manufacturers of the first MP3 player. The subsequent rise of peer to peer file exchange networks then opened up a new and rapid way to exchange licensed content for no cost to the end user (and no profit to content owners). The vastness of these P2P networks, where licensed audio and (often first run) filmed content became widely available for free download, proved that the DMCA and other copyright laws were difficult to enforce against this digital genie that had come out of the bottle.

The impossibility of prosecuting every end user who exchanges licensed content for free, and of suing all of the P2P successors of Napster, could leave the industry chasing its tail for years. Now it seems Hollywood is looking towards Washington again, yet not to reform copyright laws, but laws governing technology practices which allow content owners to have more leverage in their efforts to bottle, or at least contain, the genie.

Earlier this year, Senator Fritz Hollings of North Carolina proposed The Consumer Broadband and Digital Television Promotion Act, which would require all next generation digital devices to have built-in copyright-protection controls. This instigated heated debate between prominent figures in Hollywood and Silicon Valley. The tech industry argued that the bill unfairly assigned the responsibility of content copyright protection to hardware manufacturers, while entertainment industry leaders claimed that Silicon Valley was selling new hardware technology by marketing its ability to enable content piracy. Then another technology-focused bill was proposed at the end of last month by Howard L. Berman of California, the ranking Democrat on the House Judiciary subcommittee on courts, the Internet and intellectual property. The bill would essentially grant the content industry unprecedented authority to penetrate P2P networks (and end users' computers), or launch DOS attacks, if there is suspicion of acquisition of copyrighted material. "There is no excuse or justification for this piracy,'' stated Berman, who is also the top recipient in the House of campaign contributions from the entertainment industry (Sen. Hollings receives a significant amount of his contributions from those industries as well). "Theft is theft, whether it is shoplifting a CD in a record store or illegally downloading a song.''

These legal proposals have been blasted as dangerously radical, Orwellian, and unnecessary. The Hollings Bill was labeled "policeware", while the Berman Bill quickly acquired the nickname of the "hacking bill" by media and critics alike, implying that entertainment companies would be given unwarranted control of networks and privacy, and would be unfairly exempted from civil and criminal penalties.

Fred Von Lohman of The Electronic Frontier Foundation, a non profit organization which lobbies against many of the RIAA and MPAA's policies relating to copyright protection, feels that the entertainment industry needs to focus on how to protect its assets within the perimeters of existing laws, instead of trying to enact legislation that would grant a new level of technology-enabled control. Von Lohman argues that The Hollings Bill is an effort of the copyright industry to acquire veto power over the technology industries, whereas The Berman Bill is "far beyond the pale."

"The Berman Bill exempts copyright owners from any laws, in connection with their efforts to impair peer to peer file sharing, and is essentially a license to be a vigilante," says Von Lohman. "Never in the history of America has there been a law that exempts other laws across the board. It's true that the Berman Bill includes certain limits about how you can't damage people's files, and cause economic loss, but other than that, there's few restrictions. The Berman Bill essentially says you can ignore the laws in the name of copyright protection."

Predictably the recording industry praised the legislation--RIAA chief Hilary Rosen called the Berman bill an "innovative approach to combating the serious problem of Internet piracy." The response from the film studios was more lukewarm, with the MPAA commending Berman's efforts within a cautionary statement that there were aspects of the bill it believed needed to be changed.

Whatever happens with these two individual proposed bills, it does signify an urgent restlessness within the entertainment industry, via its political allies, to obtain more legal leverage to execute copyright protection online. Despite disagreements about the particulars of these, or any future, proposed legislation, it is a likely conclusion that the entertainment industry will seriously push for an expansion of existing legal limitations.

"Without a doubt, this (Berman) legislation is necessary," argues Kevin Moylan of Vidius, a network security company which has been assisting the RIAA and the MPAA with its efforts to track illegal file sharing over decentralized networks. "There are no current provisions within existing laws that give intellectual property owners the comfort level they seek to pursue flagrant offenders of piracy via peer-to-peer file sharing networks. It puts the law firmly on the side of the content owner and allows them to use technical measures to counter the capabilities of peer-to-peer file sharing networks."

If the Berman and/or Hollings Bill don't pass, this restlessness for law reform will not be squelched. Von Lohman says that the buzz among lobbyists in Washington is to prepare for what is expected to be, "a very big fight along this Hollywood versus Silicon Valley axis." If the Hollings Bill is not enacted he says, then it is expected that there will be additional bills proposed that pertain to individual technologies (instead of a blanket laws governing all hardware). Ultimately he admits, it's likely that law reform will take place, and that it will relate to technology.

"I think the real answer in terms of enforcement, lies in technology," says Chaz Austin, a consultant who advises on strategic business development in integrated media, e-commerce and online marketing. "There has to be something to stop all this piracy. That's the problem with digital technology. The studios and labels are in a tough spot. They've been losing so much money, and there are no laws, but at least this is a start. You can't give people the license to steal under the guise of sharing files."

by Wendy Hall
Larta Staff Writer

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