Thursday, September 21, 2006

Copyright Moderization Act FAQ

What is CMA?

CMA is the Copyright Modernization Act of 2006. It includes all the language that S1RA had requiring incidental copies of internet streams to be licensed. To make the bill more palatable, it now includes the Orphan Works Act.

Why is the S1RA section of the CMA bad?

It has a laudable goal of bringing mechanical licensing into the 21st century, but in doing so changes the balance of fair use. The biggest issue is how CMA deals with "incidental copies." Right now, incidental copies like buffers of internet radio stations do not need to be licensed because they fall under fair use. In order to have a quality stream, the file needs to be temporarily copied, or "cached." CMA would, for the first time, define these incidental copies as licensable and allow copyright holders to charge for them. CMA will also require a separate license of satellite radio if the receiver can time shift the content making an end run around the Audio Home Recording Act that explicitly allows recording of radio for personal use.

Isn’t the Orphan Works portion of CMA a good thing?

Yes, the Orphan Works Act is a needed piece of legislation that frees artists from fear of a long dormant copyright holder extorting them. However, the S1RA portion of CMA is unacceptable and should be excised.

How does CMA impact me as a consumer?

CMA will have a significant impact on current and future consumer devices. With the time-shifting provisions of CMA, satellite radio will would be subject huge new fees. If incidental copies like buffers are licensable, Tivo would be in big trouble. They don’t currently need a license to time shift TV, but with the CMA on the books, Tivo could be forced to get a license for their live TV buffer. That could be all that is needed by the cable companies to squeeze Tivo out of the PVR market.

Who else opposes S1RA?

Over a dozen of companies, non profits, and trade organizations wrote Congresses to express their opposition to S1RA. The letter can be found here (PDF), but here is the list that signed on:

ATI Technologies

Consumer Electronics Association

Consumer Electronics Retailers Coalition

Electronic Frontier Foundation

Entercom Communications Corp

Home Recording Rights Coalition

National Association of Broadcasters

Neuros Technology

Public Knowledge

RadioShack Corporation

Salem Communications Corp.

Sirius Satellite Radio Inc.

XM Satellite Radio Inc.

I made tons of phone calls about S1RA before, has my work done anything?

Absolutely!

This bill was supposed to sail right through Congress without a fight. Your phone calls and letters let everyone in Congress know that S1RA is controversial and requires serious amendments.

In order to pacify the opposition to S1RA Congress included the Orphan Works Act which is strongly opposed by Big Copyright.

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