[Congressional Record Volume 159, Number 34 (Monday, March 11, 2013)]
[Senate]
[Pages S1594-S1595]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself, Mr. Grassley, Mr. Franken, Mr. Hatch, 
        Mr. Lee, and Ms. Klobuchar):
  S. 517. A bill to promote consumer choice and wireless competition by 
permitting consumers to unlock mobile wireless devices, and for other 
purposes; to the Committee on the Judiciary.
  Mr. LEAHY. Mr. President, today I am introducing bipartisan 
legislation that will help promote competition in the wireless industry 
and restore consumer choice. From 2006 until last year, an exemption to 
the Digital Millennium Copyright Act, DMCA, permitted cell phone users 
to ``unlock'' their cell phones when their contract expired, allowing 
them to change wireless providers and thereby promoting consumer 
choice. This exemption has enhanced competition in the cell phone 
market, but it was allowed to expire last year.
  Over the past few weeks and months, consumers have spoken clearly--
they want to retain the right to transfer their cell phones between 
wireless providers, if they so choose, when their contracts expire. I 
agree, which is why today I am pleased to introduce the Unlocking 
Consumer Choice and Wireless Competition Act, along with Senator 
Grassley, Senator Hatch, Senator Lee and Senator Franken, who chairs 
the Judiciary Committee's Subcommittee on Privacy, Technology and the 
Law. We are working closely with Chairman Goodlatte and members of the 
House Judiciary Committee to pass commonsense legislation and provide 
consumers with better choice.
  The Unlocking Consumer Choice and Wireless Competition Act 
reestablishes the Library of Congress's rule permitting cell phone 
unlocking. It also directs the Library to undertake a new proceeding to 
consider whether to broaden this exemption to allow unlocking of other 
wireless devices such as tablets. At a time when the line between phone 
and tablet is beginning to blur, it makes sense for the Library to 
consider extending this exemption to those devices as well.

[[Page S1595]]

  The DMCA maintains an important balance between protecting copyright 
owners and users. It was designed to be sufficiently flexible to meet 
the challenges of an ever-evolving digital copyright world. Every 3 
years, the Library of Congress conducts its public review of the 
exemptions permitted under the DMCA to help promote that flexibility. 
Unfortunately, in its most recent proceeding, there was not a 
sufficient record for the Library to continue the cell phone exemption, 
despite the strong merits of the rule. Our legislation restores the 
important exemption that had been in effect in previous years. Although 
Congress has stepped in in this instance to restore an important policy 
objective, I urge parties in future rulemakings to provide a more full 
record so that the rulemaking process can proceed as it was designed.
  When I wrote the DMCA, the law was intended to allow choice and 
protect consumers. This straightforward restoring bill furthers that 
objective. When consumers finish the terms of their contract, they 
should be able to keep their phones and make their own decision about 
which wireless provider to use. They should not be forced to stay with 
their original provider due to software that restricts a phone to only 
one network. I am pleased that many wireless providers already sell 
unlocked phones, or will unlock phones for consumers once contracts 
expire, but that does not mean that consumers should face penalties 
under the DMCA for taking those same steps on their own. This bill will 
protect and promote competition in the wireless market by allowing 
consumers to bring their phones with them to the provider that best 
suits their needs.
  I urge all Senators to support this narrow, commonsense legislation 
to protect consumers and promote competition.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 517

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Unlocking Consumer Choice 
     and Wireless Competition Act''.

     SEC. 2. REPEAL OF EXISTING RULE AND ADDITIONAL RULEMAKING BY 
                   LIBRARIAN OF CONGRESS.

       (a) Repeal and Replace.--Paragraph (3) of section 201.40(b) 
     of title 37, Code of Federal Regulations, as amended and 
     revised by the Librarian of Congress on October 28, 2012, 
     pursuant to his authority under section 1201(a) of title 17, 
     United States Code, shall have no force and effect, and such 
     paragraph shall read, and shall be in effect, as such 
     paragraph was in effect on July 27, 2010.
       (b) Rulemaking.--Not later than 1 year after the date of 
     enactment of this Act, the Librarian of Congress, upon the 
     recommendation of the Register of Copyrights, who shall 
     consult with the Assistant Secretary for Communications and 
     Information of the Department of Commerce and report and 
     comment on his or her views in making such recommendation, 
     shall determine, consistent with the requirements set forth 
     under section 1201(a)(1) of title 17, United States Code, 
     whether to extend the exemption for the class of works 
     described in section 201.40(b)(3) of title 37, Code of 
     Federal Regulations, as amended by subsection (a), to include 
     any other category of wireless devices in addition to 
     wireless telephone handsets.
       (c) Rule of Construction.--Nothing in this Act alters, or 
     shall be construed to alter, the authority of the Librarian 
     of Congress under section 1201(a)(1) of title 17, United 
     States Code.
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