[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2048 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2048

  To regulate interstate commerce in certain devices by providing for 
 private sector development of technological protection measures to be 
  implemented and enforced by Federal regulations to protect digital 
  content and promote broadband as well as the transition to digital 
                  television, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 21, 2002

  Mr. Hollings (for himself, Mr. Stevens, Mr. Inouye, Mr. Breaux, Mr. 
 Nelson of Florida, and Mrs. Feinstein) introduced the following bill; 
    which was read twice and referred to the Committee on Commerce, 
                      Science, and Transportation

_______________________________________________________________________

                                 A BILL


 
  To regulate interstate commerce in certain devices by providing for 
 private sector development of technological protection measures to be 
  implemented and enforced by Federal regulations to protect digital 
  content and promote broadband as well as the transition to digital 
                  television, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF SECTIONS.

    (a) Short Title.--This Act may be cited as the ``Consumer Broadband 
and Digital Television Promotion Act''.
    (b) Table of Sections.--The table of sections for this Act is as 
follows:

Sec. 1. Short title; table of sections.
Sec. 2. Findings.
Sec. 3. Adoption of security system standards and encoding rules.
Sec. 4. Preservation of the integrity of security.
Sec. 5. Prohibition on shipment in interstate commerce of nonconforming 
                            digital media devices.
Sec. 6. Prohibition on removal or alteration of security technology; 
                            violation of encoding rules.
Sec. 7. Enforcement.
Sec. 8. Federal Advisory Committee Act exemption.
Sec. 9. Definitions.
Sec. 10. Effective date.

SEC. 2. FINDINGS.

    The Congress finds the following:
            (1) The lack of high quality digital content continues to 
        hinder consumer adoption of broadband Internet service and 
        digital television products.
            (2) Owners of digital programming and content are 
        increasingly reluctant to transmit their products unless 
        digital media devices incorporate technologies that recognize 
        and respond to content security measures designed to prevent 
        theft.
            (3) Because digital content can be copied quickly, easily, 
        and without degradation, digital programmers and content owners 
        face an exponentially increasing piracy threat in a digital 
        age.
            (4) Current agreements reached in the marketplace to 
        include security technologies in certain digital media devices 
        fail to provide a secure digital environment because those 
        agreements do not prevent the continued use and manufacture of 
        digital media devices that fail to incorporate such security 
        technologies.
            (5) Other existing digital rights management schemes 
        represent proprietary, partial solutions that limit, rather 
        than promote, consumers' access to the greatest variety of 
        digital content possible.
            (6) Technological solutions can be developed to protect 
        digital content on digital broadcast television and over the 
        Internet.
            (7) Competing business interests have frustrated agreement 
        on the deployment of existing technology in digital media 
        devices to protect digital content on the Internet or on 
        digital broadcast television.
            (8) The secure protection of digital content is a necessary 
        precondition to the dissemination, and on-line availability, of 
        high quality digital content, which will benefit consumers and 
        lead to the rapid growth of broadband networks.
            (9) The secure protection of digital content is a necessary 
        precondition to facilitating and hastening the transition to 
        high-definition television, which will benefit consumers.
            (10) Today, cable and satellite have a competitive 
        advantage over digital television because the closed nature of 
        cable and satellite systems permit encryption, which provides 
        some protection for digital content.
            (11) Over-the-air broadcasts of digital television are not 
        encrypted for public policy reasons and thus lack those 
        protections afforded to programming delivered via cable or 
        satellite.
            (12) A solution to this problem is technologically feasible 
        but will require government action, including a mandate to 
        ensure its swift and ubiquitous adoption.
            (13) Consumers receive content such as video or programming 
        in analog form.
            (14) When protected digital content is converted to analog 
        for consumers, it is no longer protected and is subject to 
        conversion into unprotected digital form that can in turn be 
        copied or redistributed illegally.
            (15) A solution to this problem is technologically feasible 
        but will require government action, including a mandate to 
ensure its swift and ubiquitous adoption.
            (16) Unprotected digital content on the Internet is subject 
        to significant piracy, through illegal file sharing, 
        downloading, and redistribution over the Internet.
            (17) Millions of Americans are currently downloading 
        television programs, movies, and music on the Internet and by 
        using ``file-sharing'' technology. Much of this activity is 
        illegal, but demonstrates consumers' desire to access digital 
        content.
            (18) This piracy poses a substantial economic threat to 
        America's content industries.
            (19) A solution to this problem is technologically feasible 
        but will require government action, including a mandate to 
        ensure its swift and ubiquitous adoption.
            (20) Providing a secure, protected environment for digital 
        content should be accompanied by a preservation of legitimate 
        consumer expectations regarding use of digital content in the 
        home.
            (21) Secure technological protections should enable content 
        owners to disseminate digital content over the Internet without 
        frustrating consumers' legitimate expectations to use that 
        content in a legal manner.
            (22) Technologies used to protect digital content should 
        facilitate legitimate home use of digital content.
            (23) Technologies used to protect digital content should 
        facilitate individuals' ability to engage in legitimate use of 
        digital content for educational or research purposes.

SEC. 3. ADOPTION OF SECURITY SYSTEM STANDARDS AND ENCODING RULES.

    (a) Private Sector Efforts.--
            (1) In general.--The Federal Communications Commission, in 
        consultation with the Register of Copyrights, shall make a 
        determination, not more than 12 months after the date of 
        enactment of this Act, as to whether--
                    (A) representatives of digital media device 
                manufacturers, consumer groups, and copyright owners 
                have reached agreement on security system standards for 
                use in digital media devices and encoding rules; and
                    (B) the standards and encoding rules conform to the 
                requirements of subsections (d) and (e).
            (2) Report to the commerce and judiciary committees.--
        Within 6 months after the date of enactment of this Act, the 
        Commission shall report to the Senate Committee on Commerce, 
        Science and Transportation, the Senate Committee on the 
        Judiciary, the House of Representatives Committee on Commerce, 
        and the House of Representatives Committee on the Judiciary as 
        to whether--
                    (A) substantial progress has been made toward the 
                development of security system standards and encoding 
                rules that will conform to the requirements of 
                subsections (d) and (e);
                    (B) private sector negotiations are continuing in 
                good faith;
                    (C) there is a reasonable expectation that final 
                agreement will be reached within 1 year after the date 
                of enactment of this Act; and
                    (D) if it is unlikely that such a final agreement 
                will be reached by the end of that year, the deadline 
                should be extended.
    (b) Affirmative Determination.--If the Commission makes a 
determination under subsection (a)(1) that an agreement on security 
system standards and encoding rules that conform to the requirements of 
subsections (d) and (e) has been reached, then the Commission shall--
            (1) initiate a rulemaking, within 30 days after the date on 
        which the determination is made, to adopt those standards and 
        encoding rules; and
            (2) publish a final rule pursuant to that rulemaking, not 
        later than 180 days after initiating the rulemaking, that will 
        take effect 1 year after its publication.
    (c) Negative Determination.--If the Commission makes a 
determination under subsection (a)(1) that an agreement on security 
system standards and encoding rules that conform to the requirements of 
subsections (d) and (e) has not been reached, then the Commission--
            (1) in consultation with representatives described in 
        subsection (a)(1)(A) and the Register of Copyrights, shall 
        initiate a rulemaking, within 30 days after the date on which 
        the determination is made, to adopt security system standards 
        and encoding rules that conform to the requirements of 
        subsections (d) and (e); and
            (2) shall publish a final rule pursuant to that rulemaking, 
        not later than 1 year after initiating the rulemaking, that 
        will take effect 1 year after its publication.
    (d) Security System Standards.--In achieving the goals of setting 
open security system standards that will provide effective security for 
copyrighted works, the security system standards shall ensure, to the 
extent practicable, that--
            (1) the standard security technologies are--
                    (A) reliable;
                    (B) renewable;
                    (C) resistant to attack;
                    (D) readily implemented;
                    (E) modular;
                    (F) applicable to multiple technology platforms;
                    (G) extensible;
                    (H) upgradable;
                    (I) not cost prohibitive; and
            (2) any software portion of such standards is based on open 
        source code.
    (e) Encoding Rules.--
            (1) Limitations on the exclusive rights of copyright 
        owners.--In achieving the goal of promoting as many lawful uses 
        of copyrighted works as possible, while preventing as much 
        infringement as possible, the encoding rules shall take into 
        account the limitations on the exclusive rights of copyright 
        owners, including the fair use doctrine.
            (2) Personal use copies.--No person may apply a security 
        measure that uses a standard security technology to prevent a 
        lawful recipient from making a personal copy for lawful use in 
        the home of programming at the time it is lawfully performed, 
        on an over-the-air broadcast, premium or non-premium cable 
        channel, or premium or non-premium satellite channel, by a 
        television broadcast station (as defined in section 
        122(j)(5)(A) of title 17, United States Code), a cable system 
        (as defined in section 111(f) of such title), or a satellite 
        carrier (as defined in section 119(d)(6) of such title).
    (f) Means of Implementing Standards.--The security system standards 
adopted under subsection (b), (c), or (g) shall provide for secure 
technical means of implementing directions of copyright owners for 
copyrighted works.
    (g) Commission May Revise Standards and Rules Through Rulemaking.--
            (1) In general.--The Commission may conduct subsequent 
        rulemakings to modify any security system standards or encoding 
        rules established under subsection (b) or (c) or to adopt new 
        security system standards that conform to the requirements of 
        subsections (d) and (e).
            (2) Consultation required.--The Commission shall conduct 
        any such subsequent rulemaking in consultation with 
        representatives of digital media device manufacturers, consumer 
        groups, and copyright owners described in subsection (a)(1)(A) 
        and with the Register of Copyrights.
            (3) Implementation.--Any final rule published in such a 
        subsequent rulemaking shall--
                    (A) apply prospectively only; and
                    (B) take into consideration the effect of adoption 
                of the modified or new security system standards and 
                encoding rules on consumers' ability to utilize digital 
                media devices manufactured before the modified or new 
                standards take effect.
    (h) Modification of Technology by Private Sector.--
            (1) In general.--After security system standards have been 
        established under subsection (b), (c), or (g) of this section, 
        representatives of digital media device manufacturers, consumer 
        groups, and copyright owners described in subsection (a)(1)(A) 
        may modify the standard security technology that adheres to the 
        security system standards rules established under this section 
        if those representatives determine that a change in the 
        technology is necessary because--
                    (A) the technology in use has been compromised; or
                    (B) technological improvements warrant upgrading 
                the technology in use.
            (2) Implementation notification.--The representatives 
        described in paragraph (1) shall notify the Commission of any 
        such modification before it is implemented or, if immediate 
        implementation is determined by the representatives to be 
        necessary, as soon thereafter as possible.
            (3) Compliance with subsection (d) requirements.--The 
        Commission shall ensure that any modification of standard 
        security technology under this subsection conforms to the 
        requirements of subsection (d).

SEC. 4. PRESERVATION OF THE INTEGRITY OF SECURITY.

    An interactive computer service shall store and transmit with 
integrity any security measure associated with standard security 
technologies that is used in connection with copyrighted material such 
service transmits or stores.

SEC. 5. PROHIBITION ON SHIPMENT IN INTERSTATE COMMERCE OF NONCONFORMING 
              DIGITAL MEDIA DEVICES.

    (a) In General.--A manufacturer, importer, or seller of digital 
media devices may not--
            (1) sell, or offer for sale, in interstate commerce, or
            (2) cause to be transported in, or in a manner affecting, 
        interstate commerce,
a digital media device unless the device includes and utilizes standard 
security technologies that adhere to the security system standards 
adopted under section 3.
    (b) Exception.--Subsection (a) does not apply to the sale, offer 
for sale, or transportation of a digital media device that was legally 
manufactured or imported, and sold to the consumer, prior to the 
effective date of regulations adopted under section 3 and not 
subsequently modified in violation of section 6(a).

SEC. 6. PROHIBITION ON REMOVAL OR ALTERATION OF SECURITY TECHNOLOGY; 
              VIOLATION OF ENCODING RULES.

    (a) Removal or Alteration of Security Technology.--No person may--
            (1) knowingly remove or alter any standard security 
        technology in a digital media device lawfully transported in 
        interstate commerce; or
            (2) knowingly transmit or make available to the public any 
        copyrighted material where the security measure associated with 
        a standard security technology has been removed or altered, 
        without the authority of the copyright owner.
    (b) Compliance With Encoding Rules.--No person may knowingly apply 
to a copyrighted work, that has been distributed to the public, a 
security measure that uses a standard security technology in violation 
of the encoding rules adopted under section 3.

SEC. 7. ENFORCEMENT.

    (a) In General.--The provisions of section 1203 and 1204 of title 
17, United States Code, shall apply to any violation of this Act as 
if--
            (1) a violation of section 5 or 6(a)(1) of this Act were a 
        violation of section 1201 of title 17, United States Code; and
            (2) a violation of section 4 or section 6(a)(2) of this Act 
        were a violation of section 1202 of that title.
    (b) Statutory Damages.--A court may award damages for each 
violation of section 6(b) of not less than $200 and not more than 
$2,500, as the court considers just.

SEC. 8. FEDERAL ADVISORY COMMITTEE ACT EXEMPTION.

    The Federal Advisory Committee Act (5 U.S.C. App.) does not apply 
to any committee, board, commission, council, conference, panel, task 
force, or other similar group of representatives of digital media 
devices and representatives of copyright owners convened for the 
purpose of developing the security system standards and encoding rules 
described in section 3.

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Standard security technology.--The term ``standard 
        security technology'' means a security technology that adheres 
        to the security system standards adopted under section 3.
            (2) Interactive computer service.--The term ``interactive 
        computer service'' has the meaning given that term in section 
        230(f) of the Communications Act of 1934 (47 U.S.C. 230(f)).
            (3) Digital media device.--The term ``digital media 
        device'' means any hardware or software that--
                    (A) reproduces copyrighted works in digital form;
                    (B) converts copyrighted works in digital form into 
                a form whereby the images and sounds are visible or 
                audible; or
                    (C) retrieves or accesses copyrighted works in 
                digital form and transfers or makes available for 
                transfer such works to hardware or software described 
                in subparagraph (B).
            (4) Commission.--The term ``Commission'' means the Federal 
        Communications Commission.

SEC. 10. EFFECTIVE DATE.

    This Act shall take effect on the date of enactment of this Act, 
except that sections 4, 5, and 6 shall take effect on the day on which 
the final rule published under section 3(b) or (c) takes effect.
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