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Copyright Modernization Act Headed for Markup Amid Flurry of Concern

A copyright reform bill circulated by Rep. Smith (R-Tex.) and headed for markup by the House Judiciary Committee today (Wed.) is being met with protest from digital rights activists, consumer electronics interests, satellite radio providers and even RIAA. The bill’s broad aim -- to streamline copyright laws governing digital downloads, webcasts and subscription services - is laudable, groups said. But pieces of the draft said to threaten digital broadcasting aren’t being received well, including parts that could affect the major record labels’ $300 billion lawsuit against XM.

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The bill, the Copyright Modernization Act of 2006 (HR- 6052) into a 100-page piece of legislation the Sec. 115 Reform Act of 2006 (HR-5553), the Orphan Works Act of 2006 (H-5439) and the Intellectual Property Enhanced Criminal Enforcement Act of 2006 (HR-5921). It’s slated for a Wed. markup with 6 other bills, a Judiciary Committee spokesman confirmed Tues. The committee “is going to make every attempt” to deal with all bills on Wed.’s calendar, the spokesman said.

The bill’s music licensing provisions, which would reform Sec. 115 of the Copyright Act, make up over 80% of the draft’s text. The bill would modernize the current music licensing system and give the public broad access to legitimate downloads of music, groups said. Among other changes, the bill would create a blanket license for all musical compositions and give licensing control to a “designated agent” representing music publishing entities.

But several provisions could raise costs for radio, particularly satellite radio, Public Knowledge said. As written, the bill would require licensing of and payment for “technical” and “incidental” copies of music created in the digital transmission process and declared fair use by the Copyright Office: Server copies, cache copies and buffer copies. Webcasters and terrestrial broadcasters could get an exemption for licensing “technical” and “incidental” copies. But satellite radio wouldn’t be eligible for that exemption because some satellite radio devices allow listeners to record music. “The bill would inflict grave harm on satellite radio, both in our core business and in XM’s pending litigation,” XM and Sirius told the committee in a joint letter sent Tues.

“The most recent version of SIRA that we have seen is not consensus legislation, but continues to include provisions that adversely affect the undersigned,” said a joint letter sent to House Judiciary Chmn. Sensenbrenner (R- Wis.) by the CEA, Public Knowledge, XM, Sirius and others: “We understand that certain interested parties have been discussing amendments to the bill. We, however, have been largely excluded from those discussions. As a result, the bill continues to include extraneous provisions that threaten the development of innovative technologies and services that deliver all forms of content.”