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CES Report 5 — over and out

January 7, 2006

Ed Whitacre finally got his answer from someone of equal stature. You may recall, and you should as we endlessly beat on this, the AT&T Chairman saying that companies like Google should have to pay something to companies like AT&T (formerly SBC, formerly formerly Southwestern Bell) to access their network.

This evening, Google founder Larry Page replied. In Q&A following his product presentations, Page was asked to respond to Whitacre. Page said that the Internet has always been about open-ness. He recalled that Google started out as a Stanford research project, which began eating up more and more bandwidth and partner Sergei Brin began developing Google. If they had to pay for all of that access, Page said, Google probably wouldn't have existed. Putting restrictions on the Internet would be "a horrible thing," Page said.

On the product side, the long-rumored didn't occur. Neither the Google PC nor the Google DRM was introduced. Instead, they produced some nifty new applications, like a Google map version for your car that can either help you get where you're going or get you killed if you watch it instead of the road.

He also announced an enhanced Google video, with real commercial content from partners like the NBA and CBS. CBS Chmn. Les Moonves was on hand for the announcement. Old Paramount shows, like Star Trek, also will be available for purchase.

The evening's entertainment came from Robin Williams, who told more jokes I couldn't remember, and even if I could, wouldn't repeat them here.

However, it was sort of mystifying that given its status as the NUMBER ONE show in America, that no one from CSI: LAS VEGAS was on hand. Maybe next year.

That's all. Goodnight and have a pleasant tomorrow.

rgds,

Art

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CES Update 4

January 6, 2006 Blog Posts, Broadcast Flag, Network Neutrality, Policy Blog

Well, here's the hot story -- Tom Cruise was hanging around in Entourage star Jeremy Piven's bathroom. But more on that in a moment.

In other news, and there wasn't that much, FCC Chairman Kevin Martin said he drew a distinction between content shifted around a home network, and content shift outside, also known as piracy. In his Q&A with CEA Pres. Gary Shapiro, Martin endorsed allowing consumers to have some control over the music and other material they purchase.

Martin didn't elaborate on the crucial question of how that distinction should be made, such as does the "home" also extend to your PSP in your car, or how content should be treated differently to make sure it stays in the approved environment, but not into the non-approved sectors. In the unofficial gaggle Q&A with reporters (and other interested observers) following the event, Martin elaborated only to say that the content protection issue should be viewed in the context as a balance between the needs of consumers and the needs of content providers.

In asking Congress to give the Commission authority to reimpose the overturned broadcast flag (and we all know who brought the case that led to said overturning), Martin said he asked for authority over digital TV and digital radio because they are versions of Internet Protocol-based services and as such are sufficiently alike.

He declined to say exactly what the FCC would do with any new authority, saying the decision over jurisdiction was now in other hands, that is, with Congress.

Martin also spoke at length on net neutrality and defended the FCC's decision to have only principles enforcing the concept, not actual rules. Martin said consumers should have the ability to access any content, and service providers have the right to sell differentiated services. He said he didn't want to do a formal rulemaking in the absence of any evidence of blockage.

However, Martin didn't directly answer the question about the network side of net neutrality -- whether service providers can cut deals with network operators to have higher speeds than other similar providers. The WSJ had a good lead story on that today. He said one factor to be considered in the issue included consumer experience and expectations for the "baseline of access" that consumers now experience and went back to his baseline argument in favor of product differentiation on the consumer side.

And now to our top story. In the battle of the stars going on here, it was Yahoo! which brought out Cruise as Chairman Terry Semel exploited his Hollywood connections and they schmoozed about the glories of Yahoo! and, not coincidentally, showed a trailer for Cruise's new Mission: Impossible 3 flick coming out in May. Showed it twice in fact, responding to audience demand.

After the sessions, Cruise went out to the Yahoo! hut in the Convention Center parking lot. Among the little house on the asphalt's features is a bathroom equipped with video-display-enabled mirrors. The bathroom is a copy of one owned in real life by Jeremy Piven, one of the Entourage stars. We saw him the other night, looking quite scruffy but still recognizable. Yahoo! announced a bunch of new mobile apps in conjunction with Cingular-ATT allowing users who pay the additional cost of wireless broadband to check Yahoo! mail and other Yahoo! features.

Ellen DeGeneres did a few minutes of stand-up during the Yahoo! presentation. Noting the presence of the adult video convention at the Sands going on now, she said that the difference between that one and CES is that at CES, the emphasis is on making things smaller.

Larry Page from Google speaks later, and if says anything of interest or import, we'll let you know.

You've been a lovely audience.

rgds,

Art

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An all-Republican panel of legislators finally got to the heart of what's important here at CES. Of course, I mean fair use. What else is there, right? We couldn't find out where the Ds were.

Rep. Darrel Issa (R-Cal.), member of the House Judiciary Committee, called for Congress to enact legislation to specify what exactly fair use means. Issa said the Digital Millennium Copyright Act was flaws because it didn't make more clear the fair use concept, and created the misimpression that fair use had been taken away. The law, he said, created the odd situation in which he, personally, could use software to hack a program to make a legal copy of something, but that he couldn't use tools devised by others for the same purpose.

What's needed, Issa said, is an "acceptable, enforceable" level of fair use for today that is in line with the expectations of consumers. Congress should act on the issue "sooner rather than later" because of the speed with which consumer devices can interact and share material. "The genie is already out of the bottle with MP3s," he said. "We need to lock in something close to what the public will accept," Issa said, adding that both sides [tech and content] are losing every day as the public keeps advancing its idea of what constitutes fair use, which may not comport with what either industry had in mind.

Issa said that a fair use system could include allow "a little bit of copying" but not commercial transfers. He said levels would need to be set for fair use, but didn't offer a specific suggestion. Issa also said a software "flag" could be used to enforce the personal copying aspect of fair use.

House Telecommunications and Internet Subcommittee Chairman Fred Upton (R-Mich.), said that if the Judiciary panel got serious about a bill, his committee would take a look at it, but said also that it wasn't high on the food chain: "I don't know if the controversy can be resolved this legislative term." Among other items, the telecom rewrite will take precedence, that that will take place over the first half of the year.

The panel also tackled the issue of net neutrality, with Upton and others endorsing a market place solution. Rep. Steve Buyer (R-Ind.) in particular argued vigorously against new regulations for net neutrality or for other telecom issues, including subsidies for the DTV transition.

Rep. Charlie Bass (R-N.H.), was more protective of rural areas, noting that in some towns consumers don't have a choice of broadband services.

Other notes: Gary Shapiro's speech hasn't been posted to the Web yet. When it is, it will be here: http://www.cesweb.org/attendees/conferences/keynotes.asp

The lights were out in the theatre during the speech, and it may be my note-taking skills are a little rusty, so check out the transcript when it gets posted.

We caught up with Verizon Chmn. Ivan Seidenberg for a couple of minutes to ask about the Ed Whitacre controversy. Seidenberg's view was that companies like Google and Yahoo "make markets for us" by increasing demand for high-speed services. However, he still expressed concern over the fact that Verizon works on a subscription basis, while Google and others have an advertising base. "That's something we need to work out," he said, ending a brief but cordial conversation. Another Seidenberg quote -- He started his presentation by noting that most people in the audience probably had at least one, and maybe more, cell phones or other devices with them, said: "Please turn them on." He likes to hear them working.

Having just recovered from seeing Tom Hanks, we were absolutely thrilled by the rumor that Tom Cruise will make an appearance on behalf of Google tomorrow. No word if true, or, if true, whether he will bring his own couch on which to jump.

rgds,

Art

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CES Update 1

January 5, 2006 Blog Posts, Network Neutrality, Policy Blog

For those of you who can't share the glory and the traffic of being in CES, here's the first of occasional updates.

CEA President Gary Shapiro opened the convention with a strong push for protection of fair use and innovation. While he said the consumer electronics industry wants to work with content providers, and doesn't favor piracy or illicit file-sharing, Shapiro said consumers must be able to retain the right to time-shift and place-shift.

He also made a strong pitch for the importance of network neutrality, saying consumers should have unfettered access to content and that proprietary systems shouldn't block access.

This is, of course, the first show in which the music industry is participating, showcasing legal download systems. And MPAA Pres. Dan Glickman and many of his senior staff are expected to come for a tour.

Meanwhile Verizon Chairman Ivan Seidenberg presented a company philosophy which generally showed a more conciliatory attitude to net neutrality than has AT&T Chairman Edward Whitacre. Whitacre famously said he was spending money to build broadband networks, and didn't see why Google, Yahoo and others should use it for free.

Seidenberg and his staff said they see their network as a platform for innovation. Adriana Rizzo, who made the presentation on Verizon's video networking and phone products, said after the presentation the Seidenberg generally takes a more conciliatory attitude toward the network. I wasn't able to catch up with Seidenberg after his presentation to ask for more details.

Sony Chairman Howard Stringer, Sir Howard Stringer to his peers, also made a strong pitch for the ability to shift music and video among devices, including the Playstation Portable. His staff shows a demonstration of devices that allow home TV to be viewed anywhere around the world.

Stringer also made a brief mention of the Sony-BMG copy protection fiasco, saying the content community and tech community misunderstand each other from time to time. But, he said, "that's the definition of marriage."

His star-studded presentation included DaVinci Code author Dan Brown endorsing the new Sony e-reader, and Tom Hanks, director Ron Howard and producer Brian Grazer talking about HD production of movies, including their latest project, the Da Vinci Code.

rgds,

Art

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Blog

CES Update 1

January 5, 2006 Blog Posts, Network Neutrality, Policy Blog

For those of you who can't share the glory and the traffic of being in CES, here's the first of occasional updates.

CEA President Gary Shapiro opened the convention with a strong push for protection of fair use and innovation. While he said the consumer electronics industry wants to work with content providers, and doesn't favor piracy or illicit file-sharing, Shapiro said consumers must be able to retain the right to time-shift and place-shift.

He also made a strong pitch for the importance of network neutrality, saying consumers should have unfettered access to content and that proprietary systems shouldn't block access.

This is, of course, the first show in which the music industry is participating, showcasing legal download systems. And MPAA Pres. Dan Glickman and many of his senior staff are expected to come for a tour.

Meanwhile Verizon Chairman Ivan Seidenberg presented a company philosophy which generally showed a more conciliatory attitude to net neutrality than has AT&T Chairman Edward Whitacre. Whitacre famously said he was spending money to build broadband networks, and didn't see why Google, Yahoo and others should use it for free.

Seidenberg and his staff said they see their network as a platform for innovation. Adriana Rizzo, who made the presentation on Verizon's video networking and phone products, said after the presentation the Seidenberg generally takes a more conciliatory attitude toward the network. I wasn't able to catch up with Seidenberg after his presentation to ask for more details.

Sony Chairman Howard Stringer, Sir Howard Stringer to his peers, also made a strong pitch for the ability to shift music and video among devices, including the Playstation Portable. His staff shows a demonstration of devices that allow home TV to be viewed anywhere around the world.

Stringer also made a brief mention of the Sony-BMG copy protection fiasco, saying the content community and tech community misunderstand each other from time to time. But, he said, "that's the definition of marriage."

His star-studded presentation included DaVinci Code author Dan Brown endorsing the new Sony e-reader, and Tom Hanks, director Ron Howard and producer Brian Grazer talking about HD production of movies, including their latest project, the Da Vinci Code.

rgds,

Art

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The House Judiciary Committee today introduced a bill (HR 4569) to close the analog hole.

Here's what we had to say about the draft version of the bill.

The government is proposing that devices (consumer electronics, computers, software) manufactured after a certain date respond to a copy-protection signal or watermark in a digital video stream, and pass along that signal when converting the video to analog. The same goes for analog video streams, to pass on the protection to the digital video outputs.

The technology Congress is proposing (VEIL) is derived from one that originated with assorted interactive Batman toys that allowed the toys to respond to Batman television shows or videos. How cool--at least for toys.

So, essentially, the government wants your future TV, TiVo, computer, cell phone, Final Cut Pro, (input your favorite analog signal viewing / converting device here) to respond to the Bat Signal.

There are some details in the legislation that have yet to be fully understood, concerning protection of content that is supported by business models ( prerecorded media, video on demand, pay-per-view, subscription-on-demand) and "undefined" business models. And much of the process has to be approved, not by the FCC, but by the Patent and Trademark Office. Why the USPTO? Not because they're an "expert agency" like the FCC, but because the bill was introduced in the Judiciary Committee, which doesn't necessarily have jurisdiction over the FCC.

Perhaps needless to say, Public Knowledge is against government mandated DRM and other similar tech mandates.

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Rootkit and Fair Use

December 13, 2005 Blog Posts, Broadcast Flag, DRM, Fair Use, Policy Blog

Michael Hiltzik of the LA Times has written a great column (free registration required) that started off with the ongoing ridiculousness of rootkit, and develops his point to the climax:

Plainly, the media companies are engaged in an all-out attack on the principle of "fair use."

Here here!

We see it all over the place: copy protected CDs that you can't put on your iPod; copy protected downloaded music that you can't put on a competing player; excerpts can't be made of access controlled DVDs.

The one that PK has fought the hardest--government mandated DRM that would touch every device in your home even capable of playing digital video--the Broadcast Flag. At a recent hearing, when asked why Congress couldn't exempt broadcast news (for which most copying would clearly fall under fair use) and works in the public domain, the content companies had no response.

If they actually spoke their mind, their answer would be that these grand debates have zero to do with piracy. Instead, it's actually about control--not just over everything they conceive, but what consumers can do with it after legally obtaining it, and what technological innovators can do with it to make it more useful.

Thankfully, that's not how copyright works, and we work every day to ensure it.

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Made Possible by You

December 5, 2005 Blog Posts, Policy Blog

You hear and read it all the time if you watch PBS, listen to NPR or podcasts, and even occasionally on a blog: "To keep this great content available, we need your support." It's true for us in the public interest realm, as well. We need your support to keep fighting for your rights, and every little bit helps.

And this isn't something for nothing. We're a results oriented group here at PK, so we made note of how we contributed and impacted the copyright and broadband debate in 2005.

There are a number of different ways you can contribute: donate outright or become a member.

Now back to your regularly scheduled program...

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Recent Fair Uses

December 5, 2005 Blog Posts, Fair Use, Policy Blog

I had been wanting to remark on a specific fair use study(beware of PDF) earlier last week, but never got around to it. Thankfully, Tim Lee on has a to the point post on the Technology Liberation Front.

But while I'm on the fair use subject, I should point out a great post by Donna Wentworth on Corante. It covers a number of ongoing fair use quibbles.

One more: The Free Expression Policy Project at the Brennan Center for Justice at NYU Law School just put out their study entitled, "Will Fair Use Survive?". You can find the full PDF here. Of course, feel free to quote it, make limited copies or excerpts of it to criticize and discuss it, and make personal, non-commercial copies of it--it's your right!

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Muni-WiFi in New Orleans

November 30, 2005 Blog Posts, Municipal Wi-Fi, Policy Blog

In case you haven't heard, the Big Easy is putting up a free municipal WiFi network. If you haven't read it yet, check out the great breakdown on an Engadget comment post from the Chris Drake, with the New Orleans' Mayor's office. Man, the places you'll find sources of information these days!

With donations of equipment and engineering manpower from Intel, Tropos (who actually helped out with DC's OpenPark), Pronto, and Motorola, combined with Federal funds from FEMA, the network is being setup to not only spur commerce, but also provide for city services like EMS, police and fire departments, as well.

We think Muni-WiFi can be a great development for local communities and hopefully will provide the citizens of New Orleans with some low cost universal telecommunications infrastructure. Find out about how you can promote the same in your community here.

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