Shapiro Warns House Committee That Audio ''Flag'' is Anti-Technology and Anti-Consumer; Video Flag Acceptable with Safeguards and Consumer Rights.

ARLINGTON, Va. -- "The rationale for the video flag is debatable and the audio flag is nonexistent," said Consumer Electronics Association (CEA(R)) President and CEO Gary Shapiro in testimony delivered today before a congressional committee. Testifying on behalf of CEA and the Home Recording Rights Coalition (HRRC), Shapiro made his comments before a hearing held by the House Committee on Energy and Commerce's Subcommittee on Telecommunication and the Internet exploring, "The Audio and Video Flags: Can Content Protection and Technological Innovation Coexist?"

Shapiro explained his concerns about the audio flag and the vital need to preserve the innovation, integrity and usefulness of the products that CEA members deliver to consumers. "The content industry reacts to every new technology with fear, apprehension and cries for government intervention. Their track record is unbroken: they opposed the player piano, FM radio, television, the cassette recorder, the VCR, the MP3 player and the TiVo. Again, the Recording Industry Association of America (RIAA) is showing up late to the party, with no evidence of harm and demanding that everyone bring their lawful business to a full stop.

"The video flag, as promulgated by the FCC, assured consumers' rights to record from broadcast television," explained Shapiro. "This flag was meant solely to address 'mass, indiscriminate redistribution' of content over the Internet. The audio flag should also have those intentions - noncommercial recording inside a private home. Instead, this bill, H.R. 4861 targets 'unauthorized copying,' not 'illegal copying.' Of course, the RIAA considers virtually any copying to be 'unauthorized.'"

Shapiro urged Congress to consider the television broadcast flag and the audio flag separately stating, "The television broadcast flag emerged from a rigorous multi-year, multi-industry process. The audio flag, unlike the video flag, was not the result of an open industry process and the RIAA does not have a technical proposal. The proposed flag would also bring the digital radio transition to a screeching halt. Finally, the audio flag bill directly contradicts the Audio Home Recording Act, which started in this Committee, which the RIAA helped draft, and which protects consumer rights to make digital recordings."

"Copyright protection is already at a historically high water-mark. This is why, if Congress chooses to give even more powers to the copyright owners, it must protect the rights of consumers by passing H.R. 1201, sponsored by Congressman Boucher (D-VA)," argued Shapiro. "H.R. 1201 would help restore balance to copyright laws in a way that promotes innovation and consumer freedom, while ensuring that copyright owners can put real pirates in jail."

In closing, Shapiro said, "I ask you to be very suspicious of claims that government limits on consumers and innovation are necessary to protect the content industry. Perhaps they are finally right - maybe this time, the sky is really falling. But I believe you have earned the right to be skeptical."

HRRC is urging concerned consumers to visit its web site, www.HRRC.org, and to send a message to Members of Congress.

About HRRC

The Home Recording Rights Coalition, founded in 1981, is a leading advocacy group for consumers' rights to use home electronics products for private, non-commercial purposes. The members of HRRC include consumers, retailers, manufacturers and professional servicers of consumer electronics products. Further information on this and related issues can be found on the HRRC website, www.hrrc.org.

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, digital imaging, 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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