2. 1 CPTWG MEETING #78 January 13, 2003 Legislative/Regulatory Update [Happy New Year] Jim Burger jburger@dowlohnes.com CPTWG MEETING #78 January 13, 2003 Legislative/Regulatory Update [Happy New Year] Jim Burger jburger@dowlohnes.com

3. 2 OverviewOverview n Legislation u All Quiet on the Western Front u Except RIAA v. Verizon Decision n Regulatory u Broadcast Flag Order u Cable Plug & Play n Legislation u All Quiet on the Western Front u Except RIAA v. Verizon Decision n Regulatory u Broadcast Flag Order u Cable Plug & Play

4. 3 RIAA v. Verizon n Verizon Refused to Honor Section 512 Subpoenas for Customer Information n Federal DC Court Granted RIAA’s Request to Order Verizon to Comply n On Appeal US CA for DC Circuit Agreed With Verizon – Section 512(h) Does Not Authorize Issuance of Subpoena to ISP Acting Solely as a Communications Conduit n Verizon Refused to Honor Section 512 Subpoenas for Customer Information n Federal DC Court Granted RIAA’s Request to Order Verizon to Comply n On Appeal US CA for DC Circuit Agreed With Verizon – Section 512(h) Does Not Authorize Issuance of Subpoena to ISP Acting Solely as a Communications Conduit

5. 4 FCC Extends the Broadcast Flag and Cable Plug & Play Due Dates FCC Extends the Broadcast Flag and Cable Plug & Play Due Dates  Further Notice of Proposed Rulemaking  Comments Due: February 13, 2004  Reply Comments: March 15, 2004  Further Notice of Proposed Rulemaking  Comments Due: February 13, 2004  Reply Comments: March 15, 2004

6. 5 Further Notice of Proposed Rulemaking n Software Defined Radio n Process & Standards for Approving Content Protection & Recording Technologies n Objective Criteria n Scope n Who Approves Technology n Revocation n Encryption of Cable Basic Tier n Software Defined Radio n Process & Standards for Approving Content Protection & Recording Technologies n Objective Criteria n Scope n Who Approves Technology n Revocation n Encryption of Cable Basic Tier

7. 6 Broadcast Flag: Petitions for Reconsideration n MPAA u Revise Robustness Rule u Clarify Robustness Rules for Add-in n NMPA/ASCAP/BMI/SGA u Erroneous reliance on MPAA Ex Parte permits less protection for audio n NCTA u Permit other forms of modulation u Burdens Cable more than DBS u Clarify that cable equipment = professional u Clarify that Robust Method applies to altered Unscreened Content n MPAA u Revise Robustness Rule u Clarify Robustness Rules for Add-in n NMPA/ASCAP/BMI/SGA u Erroneous reliance on MPAA Ex Parte permits less protection for audio n NCTA u Permit other forms of modulation u Burdens Cable more than DBS u Clarify that cable equipment = professional u Clarify that Robust Method applies to altered Unscreened Content

8. 7 FCC Order on Reconsideration: Plug & Play n Clarification – No Down Resolution or Copy Restrictions on Broadcast Programming Transmitted in the Clear

9. 8 Cable Plug & Play: Petitions for Reconsideration n NCTA u Confusion over “cable ready” label u Testing of “first DTV product” u Third Party Testing Labs u PSIP Clarification n DirecTV – Order Discriminates u Exemption for Internet Delivered Content u Minimum IEEE 1394 Standards u Objection to CableLabs even as interim authority n Genesis Micro – argues against requiring digital sets to employ DVI or HDMI n NCTA u Confusion over “cable ready” label u Testing of “first DTV product” u Third Party Testing Labs u PSIP Clarification n DirecTV – Order Discriminates u Exemption for Internet Delivered Content u Minimum IEEE 1394 Standards u Objection to CableLabs even as interim authority n Genesis Micro – argues against requiring digital sets to employ DVI or HDMI

10. 9 Cable Plug & Play: Petitions for Reconsideration n BMI/ASCAP u Exemption for performance monitoring n NMPA/BMI/ASCAP/SGA u Order discriminates against audio copyright owners u Commission lacks statutory authority u Would require protection of audio soundtrack n Oppositions Due 15 Days After Federal Register Notice – Replies 10 Days Later n BMI/ASCAP u Exemption for performance monitoring n NMPA/BMI/ASCAP/SGA u Order discriminates against audio copyright owners u Commission lacks statutory authority u Would require protection of audio soundtrack n Oppositions Due 15 Days After Federal Register Notice – Replies 10 Days Later