CEA Applauds Senate Committee for Exploring Issues Related to MGM v. Grokster; Expresses Concern That Ruling Will Chill Development of New Technologies.

ARLINGTON, Va. -- The following statement was issued by Consumer Electronics Association President and CEO Gary Shapiro regarding today's hearing before the Senate Commerce Committee on "Issues Related to MGM v. Grokster":

"CEA applauds the Senate Commerce Committee for exploring the ramifications of the recent U.S. Supreme Court decision in MGM v. Grokster.

"While we are pleased that the Supreme Court left the Betamax ruling in place, the Court's introduction of an "inducement" standard has decreased the legal clarity necessary for manufacturers and innovators to develop and market new technologies and services.

"The risks are real: copyright law allows plaintiffs to collect statutory damages based on a standard of 'per work infringed.' Thus, a copyright claim filed against a mass market product such as a CD burner, which is used by millions of consumers to make copies of millions of works, could bankrupt even the largest company.

"Copyright holders say that the Grokster decision gives them the critical tool they need to fight piracy. We will be watching closely to see if ensuing litigation is aimed solely at wrongdoers, or if it also encompasses the legitimate products and practices and innovations commonly found in American homes.

"We look forward to working with the full Congress as it considers issues regarding copyrights, fair use, technology and intellectual property."

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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