DATE=03/14/02

TYPE=CORRESPONDENT REPORT

TITLE=PIRACY POLITICS (L-Only)

NUMBER=2-287575

BYLINE=CHRISTINE ELLIOTT

DATELINE=WASHINGTON

INTERNET=

CONTENT=

VOICED AT:

INTRO: The music industry is selling a new compact disk, or C-D, that cannot be copied. Debate about it illustrates a controversy among consumer advocates, the technology sector and the entertainment industry. V-O-A's Christine Elliott reports, now, the U-S Congress is getting involved.

TEXT: The music recording industry says it is only trying to stop the piracy of its products.

But consumer advocates, such as Joe Kraus, say restricting consumers' ability to make copies of the digital media they buy for personal use violates fair use laws.

/// KRAUS ACT // OPT ACT ///

The solutions that the content industry has advanced to date have been more effective at preventing my mom from copying her legally bought music to her M-P-3 player [portable digital music player] than at diminishing major commercial piracy operations in China and Taiwan.

/// END ACT // END OPT ///

The issue plaguing the technology and entertainment industries is how to prevent the piracy of copyrighted material over the Internet.

The entertainment industry is pressuring technology companies to make it more difficult for others to commit piracy with their products. But the technology industry says it is not responsible, and it should not have to change its products because of another industry's problem. Many argue the consumer will lose out in the end.

/// OPT /// Proposed draft legislation would require that any so-called "interactive digital devices" sold in the United States include technological safeguards against piracy. /// END OPT ///

The Senate Judiciary Committee on Thursday held the third Congressional hearing on Internet piracy in recent weeks..

Judiciary Committee Chairman Patrick Leahy (of Vermont) says the technology and entertainment industries must work together.

/// LEAHY ACT ///

Despite the strides we've made over the past few years, some are now telling the Congress the progress in finding technical solutions to the remaining gaps in protection are at an impasse. Until the differences are resolved, certainly no legislation will pass this year.

/// END ACT ///

The entertainment industry vows it will not spend the money to produce movies and music, if piracy continues.

Richard Parsons, chief executive of media giant A-O-L-Time Warner told the congressional committee his company believes in fair use.

/// PARSONS ACT ///

Under the content protections licenses negotiated to date, consumers will not only be able to continue to make analog home copies, but also to make protected digital copies of over-the-air broadcasts, basic cable, satellite and pay-T-V offerings.

/// END ACT ///

But, the music industry says it plans to expand sales of copy-protected C-Ds. (Signed)

NEB/CE/TW