News: FCC demands pirate-proof, digital TV
Right now, I can digitally record a news program in my living room, then watch that recording in another room, or in my office, or at my friend's house," said Chris Murray, an attorney at Consumers Union, which publishes the magazine Consumer Reports. "Will the FCC's rulemaking guarantee that I'll continue to be able to do this in the future?"

So far, digital TV sales have languished. An estimated 3 million high-definition TV sets have been sold, but only 12 percent of buyers have digital tuners, with the rest using their sets to watch DVDs or satellite broadcasts. Digital broadcasts are expected to change the way people watch television and to foster a new breed of TV sets. But movie studios and broadcast networks are worried that content converted in digital files would be easily copied and swapped.

FCC Commissioner Kevin Martin opposed the requirement, saying it would unreasonably increase the cost of new sets. "If government intervention is necessary, it must be clear that the benefits outweigh the costs," Martin said.

The second vote, which was unanimous, tentatively says that digital TV transmissions will include a "broadcast flag" designating shows that may not be copied freely. All televisions sold after a certain date would be required to recognize the flag and, if it is present, permit consumers to record broadcasts only in lower-quality analog or encrypted digital formats.

FCC officials will not release the text of the draft regulations until next week, but they said Thursday that the rules aim to be sensitive to consumers' concerns. Susan Mort, an attorney in the FCC's Media Bureau, said the process would recognize "privacy and First Amendment concerns (and) consumers' ability to make secure copies of digital TV content for personal use."

The draft rules will also ask for comments on technical impediments to a copy protection regime, whether regulations need to cover broadcasts and receivers, and whether any other mechanism would suffice, the FCC said.
http://zdnet.com.com/2100-1103-948956.html