CEA Expresses Strong Opposition to Tennessee 'Model Communications Security' Bills; Association Joins Philips and Sharp in Speaking Out Against SB 213 and HB 457.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--May 20, 2003

The Consumer Electronics Association (CEA) today joined CEA member companies Philips Consumer Electronics North America and Sharp Electronics Corporation in speaking out about anti-consumer and anti-technology legislation currently being considered today by the Tennessee General Assembly.

This legislation has been promoted as addressing theft of cable and Internet service, but in fact threatens the manufacture, sale and use of legitimate products such as computers, televisions and personal video recorders.

"This overreaching legislation is not about piracy or theft of service; this legislation is about Hollywood trying to dictate what products lawful consumers can use in the privacy of their homes," said CEA Vice President of Technology Michael Petricone. "The Motion Picture Association of America (MPAA) has devoted enormous resources to a state-by-state effort to 'update' communications security or 'theft of service' laws, but if cable and Internet service theft truly is the issue, their model legislation - which is reflected in these Tennessee bills - is not the solution.

"CEA joins service providers and the content community in their desire to address true theft of service and piracy, but these bills are not directed at digital pirates. Rather, they unfairly target everyday, law-abiding Tennesseans. Existing law already criminalizes theft of service."

Petricone expressed concern about the broad scope of the bills under consideration.

"With S.B. 213, manufacturers, retailers and their customers could be made into criminals for legitimate activities that today they take for granted, such as use of consumer electronics products over the Internet or allegedly 'unauthorized' uses on a home network.

"For some offenses," Petricone continued, "this legislation requires a showing of 'intent to defraud,' but leaves this crucial provision undefined. This and other gray areas in these bills mean that a consumer who attaches legal products to a broadband network could be subject to criminal penalties if the device is not specifically permitted by the service contract. S.B. 213 and H.B. 457 would have a chilling impact on Tennessee businesses, consumers and innovators.

"These bills would turn average, law-abiding consumers into thieves," said Petricone. "The draconian civil and criminal penalties that would be imposed by S.B. 213 are disproportionate to the conduct of the person charged with its violations. CEA joins Philips, Sharp, the high tech industry, consumer groups, retailers and others in voicing opposition to these anti-consumer, anti-technology and anti-innovation bills currently being considered in Tennessee. We urge Tennessee lawmakers to reject this legislation."

CEA continues to fight for consumer fair use rights in 10 states that are considering bills modeled on MPAA's "communications security" or "theft of service" legislation, including Tennessee, Texas, California, Arkansas, Colorado, Florida, Georgia, Massachusetts, Oregon and South Carolina.

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 1,000 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 $85 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 Technology's Future. 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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