Hollywood loses key anti-piracy battle

A US court has unanimously rejected an attempt by the Federal Communications Commission (FCC) and major Hollywood studios to have compulsory anti-piracy technology built into all digital electronic devices.

The US Circuit Court of Appeals for the District of Columbia ruled 3-0 that the FCC had overstepped its authority by insisting that the so-called 'Broadcast Flag' technology should be mandatory.

The system, backed by the FCC, would only allow programmes to be recorded on hardware containing copy protection devices, and all devices built after 1 July would have to include the technology.

"In the seven decades of its existence the FCC has never before asserted such sweeping authority," said Judge Harry T Edwards.

"Indeed, in the past, the FCC has informed Congress that it lacked any such authority. In our view, nothing has changed to give the FCC the authority it now claims."

The American Library Association brought the case against the FCC, maintaining that the new rules would stop it distributing educational broadcasts.

Technology groups, like online rights advocacy organisation Public Knowledge, also supported the action, saying that the FCC had no right to regulate computer and home entertainment hardware design.

But the Hollywood studios have vowed to fight on to introduce the technology, and may now lobby Congress. The television networks in particular are concerned that widespread piracy will hurt sales of programmes overseas.

"If the Broadcast Flag cannot be used, programme providers will have to weigh up whether the risk of theft is too great over free, off-air broadcasting, and could limit such high quality programming to cable, satellite and other more secure delivery systems," said Dan Glickman, president of the Motion Picture Association of America.

"It is important to remember that this decision is only about the FCC's jurisdiction, not the merits of the Broadcast Flag itself. We will continue working aggressively on all fronts to make sure consumers will have access to high-value content on broadcast television."