Saying copyright was under attack, Register of Copyrights Marybeth Peters last week urged copyright community to make its voice heard in case set for review by Supreme Court. Peters’s comments came at American Intellectual Property Law Assn. spring meeting in N.Y.C. Implementing Digital Millennium Copyright Act (DMCA), which was enacted to bring the U.S. into line with World Intellectual Property Organization treaties, gets more controversial, Peters said, spurred in part by furor over law’s anticircumvention provisions. Copyright Office thought situation was bad several years ago, she said, but it “got worse” as Internet shifted public perceptions toward viewing content owners as greedy corporations and copyright itself as suspect, she said.
Two weeks after receiving 15-day extension from SEC to file its annual 10-K report, Adelphia said it wouldn’t meet new deadline (CD April 2 p2), which was end of day Tues. Company said it still was working with its auditor, Deloitte & Touche, to review how it treated its co-borrowing agreements for accounting purposes. Adelphia said it would file its 10-K “as soon as practicable.” Company disclosed earlier in conference call with analysts that certain subsidiaries of Adelphia were parties to co-borrowing agreements with several business entities that were owned by Rigas family, which founded Adelphia. Company officials said co-borrowing arrangements totaled $2.3 billion, but analysts now say those pacts could put Adelphia on hook for $2.7 billion or more. Adelphia said Tues. it didn’t believe its review would result in other material changes in its 4th quarter or full-year results for 2001, as reported March 27. However, company said that “in light of the review process,” it intended to re-evaluate its previous guidance for 2002.
After “sleepless night,” CEA Pres. Gary Shapiro said he would begin meeting with CEA members on possibility of compromise on FCC Chmn. Powell’s DTV plan. CEA had indicated DTV tuner portion of plan would be unacceptable because of cost of adding tuners to low-priced TVs. However, Shapiro, in Mon. keynote at MSTV meeting during NAB convention in Las Vegas, indicated CEA was caught partly by surprise by Powell announcement and might have to “modify our initial reaction a bit.” Shapiro wouldn’t discuss possible shape of compromise, saying only that he would discuss issue with members and “see what we can do.” He told us later some members might find including tuner easier than others: “There is some room for discussion.” There were other indications at convention that CEA might seek stronger commitment on cable compatibility issues in return for agreeing to some version of tuner plan, although timing of tuner adoption also remained issue. -- MF
Mich. PSC reinstated majority of counts in CLEC complaint alleging SBC/Ameritech had engaged in anticompetitive practices relating to its Centrex, voice mail and DSL services. Complaint (Case U-13193), filed jointly by 4 CLECs and 2 CLEC trade groups, had been dismissed by administrative law judge Jan. 22 but CLEC interests appealed to PSC, which reinstated counts alleging: (1) Ameritech’s early-termination penalties in Centrex contracts were unreasonable and anticompetitive. (2) Ameritech, through its DSL affiliate, improperly terminated DSL service when customer switched to CLEC service. (3) Ameritech refused to allow voice mail to be part of unbundled network element (UNE) platforms or to sell stutter dial tone as UNE. (4) Ameritech was using its monopoly power to impede competitive DSL deployment. (5) Ameritech wasn’t making DSL available for resale. Reinstated counts were remanded to ALJ with instructions to set case for hearing. PSC upheld dismissal of 3 other counts relating to wholesale pricing and digital loop carrier access, saying those issues were addressed in other proceedings
While many retailers have slowed expansion as they wait out sluggish U.S. economy, regional retailers Ultimate Electronics and H.H. Gregg are pushing ahead on wave of interest in digital products. Ultimate filed last week to sell 2.7 million shares in effort to raise more than $70 million, while Gregg said it planned to open 11 stores in Atlanta area in 2003.
MPAA, NAB and NCTA asked FCC to stay rules for video descriptions for blind. They said in filing that Commission should stay rules, scheduled to take effect April 1, until U.S. Appeals Court, D.C., ruled on their petition seeking to overturn them. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Rules would require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter, starting April 1. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. Hollywood groups said FCC should grant stay because their court case was “likely to succeed on the merits” and because “the Commission clearly lacks statutory authority to adopt video description rules.” Groups said Communications Act empowered FCC to adopt only closed- captioning rules, and video description rules impinged on First Amendment. Groups said if rules went into effect they would have to spend hundreds of thousands of dollars for equipment and programming costs to abide by rules that they said were likely to be overturned by court, and that complying would mean interference with Spanish language audio. American Council of the Blind (ACB) “categorically condemned” entertainment industry trade associations for their filing and asked them to “stop this senseless attack on the need and right of blind people to know what is going on during TV and movie presentations.” ACB said it believed “vast majority” of individual members of those Hollywood trade assns. agreed with ACB. Earlier this week, FCC reminded TV, movie and cable industries of upcoming deadline.
MPAA, NAB and NCTA asked FCC to stay rules for video descriptions for blind. They said in FCC filing that Commission should stay rules, scheduled to take effect April 1, until U.S. Appeals Court, D.C., ruled on their petition seeking to overturn them. Oral argument in that case is set for Sept. 6, and decision is expected in late 2002 or early 2003. Rules would require major broadcast and cable networks to add video descriptions to 50 hours of prime-time or children’s programming per quarter, starting April 1. In video description, narrator describes action and environmental aspects of program during pauses in dialog, and those descriptions are broadcast over Secondary Audio Programming channel. Hollywood groups said FCC should grant stay because their court case was “likely to succeed on the merits” and because “the Commission clearly lacks statutory authority to adopt video description rules.” Groups said Communications Act empowered FCC to adopt only closed- captioning rules, and video description rules impinged on First Amendment. Groups said if rules went into effect they would have to spend thousands or hundreds of thousands of dollars for equipment and programming costs to abide by rules that they said were likely to be overturned by court, and that complying would mean interference with Spanish language audio. American Council of the Blind (ACB) “categorically condemned” entertainment industry trade associations’ for their filing and asked them to “stop this senseless attack on the need and right of blind people to know what is going on during TV and movie presentations.” ACB said it believed “vast majority” of individual members of those Hollywood trade assns. agree with ACB. Earlier this week, FCC reminded TV, movie and cable industries of upcoming deadline.
Court decision Tues. overturning FCC’s cable-TV station cross-ownership ban (CD Feb 20 p1) could have significant effect on how biennial review process is conducted, FCC Chmn. Powell said Wed. In somewhat unusual action, U.S. Appeals Court, D.C., acted not on any new FCC order but on agency’s decision to retain existing rule, in decision made during biennial review. Telecom Act requires FCC to review existing regulations every 2 years to determine whether they remain necessary.
Gemstar-TV Guide shares rose Thurs. after Goldman, Sachs analyst said that stock may have been oversold on concerns that company might lose battle at International Trade Commission over patents covering its interactive program guides. Gemstar stock rose nearly 8% ($1.38 per share) to $19.30 in late morning trading Thurs. and closed day at $19.22. Stock had fallen in Jan. after another analyst quoted ITC staff attorney as saying in pre-trial brief that Gemstar “should not prevail” in case against EchoStar, Scientific-Atlanta, others. Gemstar has settled differences with DirecTV, which counts among its hardware suppliers Thomson Multimedia, which has seat on Gemstar board. “We believe the market has overstated the importance of this recommendation,” GS report said. “The shares are oversold on the ITC overhang.” ITC has eliminated closing arguments in Gemstar case and is expected to issue decision by March 21. Gemstar filed complaint with ITC seeking to block import of set-top boxes from EchoStar, Pioneer, SA and SCI Systems that it alleged infringed on its IPG patents. SCI is one of EchoStar’s suppliers for Digital Sky Highway (DISH) satellite system.
Consumer watchdog authority in Australia is going to court to challenge Sony’s assertion that modifications of PlayStation regional coding violated country’s copyright law. Group, Australian Competition & Consumer Commission (ACCC), said it also had begun separate investigation into possibly illegal collusion by movie studios in establishing DVD regional coding.