Finally, the bill directs the Comptroller General to study the business arrangements between small webcasters and third parties and report its findings to Congress. Despite the length, expense, and controversy that accompanied the setting of this initial royalty rate, a new CARP process to set a rate going forward begins at the Copyright Office on March 5, 2003. So far, while both sides profess their desire to negotiate a reasonable compromise, there is no sign that webcasters and the recording industry will be able to reach agreement in this new round.
The only relevant bill introduced so far this Congress is H.R. 107, the Digital Media Consumers' Rights Act of 2003, introduced on January 7, 2003 by Representatives Rick Boucher (D-VA) and John Doolittle (R-CA). This bill, identical to a measure introduced in October 2002, is based on a belief that "the DMCA dramatically tilted the balance in the Copyright Act towards content protection and away from information availability" and is intended "to restore the historical balance in our copyright law". (7) This measure would, among other things, amend the anti-circumvention provisions of the DMCA to permit scientific research into technological protection measures and clarify that circumvention of technological protections is permitted to make "fair use" of a copyrighted work; require conspicuous notice to consumers that a Compact Disc (CD) is copy-protected; and writes the "Betamax standard" into copyright law by clarifying that it is not a violation to manufacture, distribute or make non-infringing use of any hardware or software product capable of making significant non-infringing use of a copyrighted work. This proposal is strongly opposed by Hollywood interests but backed by a broad coalition of computer and telecommunications firms, library associations, and cyber-liberties and consumer organizations. It has been referred to both the Energy and Commerce and Judiciary Committees.
Relevant legislation introduced during the 107th Congress that is likely to be re-introduced this year includes (all bill numbers from 107th Congress):
* Consumer Broadband and Digital Television Promotion Act (S. 2048). This measure, introduced by then-Senate Commerce Committee Chairman Ernest Hollings, is a top priority of the Motion Picture Association of America (MPAA). It would authorize the FCC to establish security system standards for all hardware and software capable of reproducing digital media if their manufacturers and copyright interests fail to reach agreement on such standards within one year after enactment. It also requires Internet service providers (ISPs) to store and transmit with integrity any such security measure used in conjunction with copyrighted material that passes through them. This proposal is strongly opposed by computer hardware and software and consumer electronics interests on the grounds that government should not impose any such standard on private parties, that such a standard will fail to be effective given rapid changes in technology, and that it will result in devices and software that cost consumers more but have reduced functionality. This proposal was never reported from the Commerce Committee despite its then-Chairman's authorship, and is not likely to fare better under Chairman McCain.
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