*Pages 1--4 from Microsoft Word - 33019* NEWS News media Information 202 / 418- 0500 Fax- On- Demand 202 / 418- 2830 TTY 202/ 418- 2555 Internet: http:// www. fcc. gov ftp. fcc. gov Federal Communications Commission 445 12 th Street, S. W. Washington, D. C. 20554 This is an unofficial announcement of Commission action. Release of the full text of a Commission order constitutes official action. See MCI v. FCC. 515 F 2d 385 (D. C. Circ 1974). FOR IMMEDIATE RELEASE NEWS MEDIA CONTACTS: November 4, 2003 Michelle Russo 202- 418- 2358 David Fiske 202- 418- 0513 FCC ADOPTS ANTI- PIRACY PROTECTION FOR DIGITAL TV Broadcast Flag Prevents Mass Internet Distribution; Consumer Copying Not Affected; No New Equipment Needed Washington, D. C. - Today, the Federal Communications Commission (FCC) adopted an anti- piracy mechanism, also known as the “broadcast flag,” for digital broadcast television. The goal of today’s action is to foster the transition to digital TV and forestall potential harm to the viability of free, over- the- air broadcasting in the digital age. The FCC said that consumers’ ability to make digital copies will not be affected; the broadcast flag seeks only to prevent mass distribution over the Internet. Finally, the FCC said implementation of the broadcast flag will not require consumers to purchase any new equipment. Today’s rules are targeted only at products that are capable of receiving DTV signals over- the- air. These products must comply with the broadcast flag requirements by July 1, 2005. Other products such as digital VCRs, DVD players and personal computers that are not built with digital tuners installed are not required to comply with the new rule. In addition, the FCC explained that existing televisions, VCRs, DVD players and related equipment will remain fully functional under the new broadcast flag system. In a Report and Order adopted today, the FCC permits use of the flag at the discretion of the broadcaster. The FCC said that the current lack of digital broadcast content protection could be a key impediment to the DTV transition’s progress. The absence of such content protection could cause high value programming to migrate from broadcast television to more secure platforms such as cable and satellite TV service. Reduced availability of high value content on broadcast television could harm the viability of free over- the- air television and slow the DTV transition. The FCC declined to prohibit the use of the flag with regard to certain types of programming, such as news or public affairs. To facilitate adoption of broadcast flag technology in television receivers and related equipment by 2005, the FCC established an interim policy that allows proponents of a particular content protection or recording technology to certify to the FCC that such technology is an appropriate tool to give effect to the broadcast flag, subject to public notice and objection. The FCC’s interim certification decisions will be guided by a series of objective criteria aimed at promoting innovation in content protection technology. - more - 1 2 The FCC also adopted a Further Notice of Proposed Rulemaking (FNPRM) seeking comment on a permanent objective process for the approval of digital recording and output content protection technologies that will foster innovation and marketplace competition. A summary of the key issues is attached. Action by the Commission, November 4, 2003, by Report and Order and Further Notice of Proposed Rulemaking (FCC 03- 273). Chairman Powell, Commissioners Abernathy and Martin, with Commissioners Copps and Adelstein approving in part and dissenting in part. Commissioners Abernathy, Copps, and Adelstein issuing separate statements. -FCC- FNPRM Comments due: January 14, 2003 Reply Comments due: February 13, 2003 MB Docket 02- 230 Media Bureau contacts: Rick Chessen, Susan Mort at 202- 418- 7200. News about the Federal Communications Commission can also be found on the Commission's web site www. fcc. gov. 2