[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 692 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 692
To require the Federal Trade Commission to issue rules regarding the
disclosure of technological measures that restrict consumer flexibility
to use and manipulate digital information and entertainment content.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 24, 2003
Mr. Wyden introduced the following bill; which was read twice and
referred to the Committee on Commerce, Science, and Transportation
_______________________________________________________________________
A BILL
To require the Federal Trade Commission to issue rules regarding the
disclosure of technological measures that restrict consumer flexibility
to use and manipulate digital information and entertainment content.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Digital Consumer Right to Know
Act''.
SEC. 2. CONGRESSIONAL FINDINGS AND PURPOSE.
(a) Findings.--Congress finds the following:
(1) Consumers have developed a number of legitimate
expectations concerning how they may use and manipulate legally
acquired information or entertainment content for reasonable,
personal, and noncommercial purposes. In addition, as digital
technology creates new ways to use and manipulate content,
consumers are likely to develop new expectations that reflect
the new technological possibilities.
(2) Digital technologies also can facilitate unlawful
reproduction and distribution of information or entertainment
content subject to copyright protection. To combat this
problem, technology and content companies are developing and
deploying technologies to prevent or deter such unlawful
behavior.
(3) Such technologies could help promote a competitive
digital marketplace in which consumers have a broad range of
choices and media businesses can pursue a variety of business
models. However, there are also significant risks.
(4) There is a risk that technologies developed to prevent
unlawful reproduction and distribution of digital information
and entertainment content could have the side effect of
restricting consumers' flexibility to use and manipulate such
content for reasonable, personal, and noncommercial purposes.
(5) There is a risk that such technologies could unfairly
surprise consumers by frustrating their expectations concerning
how they may use and manipulate digital content they have
legally acquired.
(6) There is a risk that such technologies could result in
greater market power for the holders of exclusive rights and
reduce competition, by limiting the ability of unaffiliated
entities to engage in the lawful secondhand sale or
distribution of such content.
(b) Purposes.--The purposes of this Act are--
(1) to ensure that consumers of digital information and
entertainment content are informed in advance of technological
features that may restrict the uses and manipulation of such
content, so that--
(A) consumers may factor this information into
their purchasing decisions; and
(B) there will be a strong, market-based incentive
for the development of technologies that address the
problem of unlawful reproduction and distribution of
content in ways that still preserve the maximum
possible flexibility for consumers to use and
manipulate such content for lawful and reasonable
purposes; and
(2) to express the sense of Congress concerning the
importance of retaining competition among distribution channels
for digital information and entertainment content.
SEC. 3. FAIR DISCLOSURE OF TECHNOLOGICAL USE RESTRICTIONS.
(a) FTC Rulemaking.--Not later than 1 year after the date of
enactment of this Act, the Federal Trade Commission shall issue rules
to implement the disclosure requirements described in subsection (b).
(b) Disclosure Requirements.--
(1) In general.--If a producer or distributor of
copyrighted digital content sells such content or access to
such content subject to technological features that limit the
practical ability of the purchaser to play, copy, transmit, or
transfer such content on, to, or between devices or classes of
devices that consumers commonly use with respect to that type
of content, the producer or distributor shall disclose the
nature of such limitations to the purchaser in a clear and
conspicuous manner prior to such sale.
(2) Manner of disclosure.--The Federal Trade Commission
shall prescribe the manner of disclosure required under this
subsection, which may include labels on packaging or such other
means as the Commission determines appropriate to achieve the
purposes of this section. The Commission may prescribe
different manners of disclosure for different types of content and
different distribution channels.
(c) Disclosure of Certain Limitations on Reasonable Consumer
Activities.--The following are examples of limitations which shall
trigger the disclosure requirements of subsection (b):
(1) Limitations on the recording for later viewing or
listening (popularly referred to as ``time shifting'') of audio
or video programming delivered--
(A) via free over-the-air broadcasting; or
(B) as part of a multichannel video or audio system
in which the consumer obtains the programming as part
of a subscription package, with no per view charges and
no ability to select the specific time at which
individual programs will be delivered.
(2) Limitations on the reasonable and noncommercial use of
legally acquired audio or video content--
(A) in different physical locations of the
consumer's choice (popularly referred to as ``space
shifting''); or
(B) on the electronic platform or device of the
consumer's choice, including platforms or devices
requiring that the content be translated into a
comparable format before such use.
(3) Limitations on making backup copies of legally acquired
content distributed in a form or medium that is subject to
accidental erasure, damage, or destruction in the ordinary
course of use, including through computer failure or computer
viruses, to be used only in the event that the original copies
are lost or damaged.
(4) Limitations on using limited excerpts of legally
acquired content for purposes such as criticism, comment, news
reporting, teaching, scholarship, or research.
(5) Limitations on engaging in the secondhand transfer or
sale of legally acquired content to another consumer, provided
that the transferor does not retain the content or any copy
thereof and that the transferee obtains only such rights to the
use and enjoyment of the content as the transferor possessed at
the time of transfer.
(d) Exception to Disclosure Requirement.--The Federal Trade
Commission shall not require disclosure under subsection (b) with
respect to any limitation that applies only to uses--
(1) that are sufficiently unusual or uncommon that the
burdens of prior disclosure would outweigh the utility to
consumers; or
(2) that have no significant application for lawful
purposes.
(e) Annual FTC Review.--On an annual basis, the Federal Trade
Commission shall review the effectiveness of its rules implementing
this section to determine whether revisions are warranted to serve the
purposes of this section. In conducting this review, the Commission
shall consider whether changes in technology or in consumer practices
have led to new, legitimate consumer expectations concerning specific
uses of digital information or entertainment content that would result
in consumers suffering unfair surprise if a technology were to limit
those uses without prior notice.
SEC. 4. EFFECT ON OTHER LAWS.
(a) No Limiting Effect on Fair Use.--Nothing in this Act shall be
interpreted to suggest that a consumer activity not referred to in
section 3(c) or in the Federal Trade Commission's rules implementing
this Act may not constitute a fair use within the meaning of section
107 of title 17, United States Code.
(b) Unlawful Reproduction or Distribution.--Nothing in this Act
shall be interpreted to permit the otherwise unlawful reproduction or
distribution of copyrighted content or to shield a person engaging in
such activity from any type of legal action or judgment.
SEC. 5. COMPETITION IN DISTRIBUTION CHANNELS.
It is the sense of Congress that--
(1) competition among distribution outlets and methods
generally benefits consumers; and
(2) just as copyright holders have sold content embodied in
tangible products such as audio cassettes, videotapes, and
compact discs to multiple competing retail distributors,
copyright holders selling digital content in electronic form
for distribution over the Internet should offer to license such
content to multiple unaffiliated distributors, to enable
competition among different distribution models and
technologies.
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