CEA Assails Court Decision against Sima Products; Ruling Leverages DMCA to Hamper Innovative American Entrepreneur.

ARLINGTON, Va. -- Consumer Electronics Association (CEA(R)) President and CEO Gary Shapiro issued the following statement in response to the U.S. District Court ruling in Macrovision v. Sima Products Corporation, a CEA member company:

"Consumers should be outraged by today's decision. The devices Sima Products manufactures simply allow consumers to use digital techniques to make up for viewing artifacts in analog material - some from age or distortion, and some caused as a result of the use of distortive copy protection techniques. Such products have been necessary and available, in the analog and digital domains, for years. The legislative history of the 1998 Digital Millennium Copyright Act (DMCA) is clear that passive analog measures that distort video signals are not "technical protection measures." Indeed, the "No Mandate" clause of the DMCA (Section 1201(c)(3)) makes this clear. To consider them as such, and for courts to extend the reach of a problematical law is another extreme example of the growing imbalance between consumer rights and intellectual property rights.

"The DMCA should not trump consumer rights. When a court sends a message to consumers that they can no longer transfer their home movie archives between software platforms, and cannot correct artifacts caused by passive copy protection techniques, it's clear the scales are tipping too far in the content industry's favor. It's time to stop government intrusion into private, non-commercial home entertainment practices."

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 2,100 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 $125 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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