UNIVERSAL CITY, Cal. - While piracy remains a source of deep concern for labels, the reality is that the music industry as a whole is enjoying unprecedented success overall, speakers said Wed. at the Digital Media Conference here. Copyright lawyer Ken Hertz, who represents artists’ interests, said ring tones and other digital avenues are producing huge revenue: “Five years ago, record sales were the issue, with labels saying their industry was at risk because you can’t compete with free. But record sales are only a part of music sales. In fact, the music industry is healthier than it has ever been in its history. This may be the beginning of labels migrating away from record sales” as their main business.

Chinese leaders say they'll crack down on intellectual property rights (IPR) violations, but “we need to see more than just statements,” a Commerce Dept. official told the U.S.-China Economic & Security Commission at a Wed. hearing. Citing improved IPR relations between the 2 giant economies, such as a Chinese vow to try to thwart piracy by importing only computers with preloaded software, International IPR Enforcement Coordinator Chris Israel said: “We consider all options to be on the table.” If China doesn’t clean up its IPR act this summer, “it’s very possible” the U.S. will bring a complaint at the WTO this fall, said Tim Stratford, asst. U.S. Trade Representative (USTR)-China Affairs: “We will not shy away from dispute resolution.”

CHICAGO -- FCC Chmn. Martin hopes to gain consensus among Commission members on the need for “parameters,” including time limits, on local control of video franchising, he said. Following remarks to Globalcomm late Mon. Martin also said he doesn’t fear the advanced wireless services (AWS) auction will raise less than Congress expects, though designated entities and major carriers have threatened to sit out the auction.

The U.S. Department of Agriculture's (USDA's) Food Safety and Inspection Service (FSIS) has issued its annual list of the sanitary and phytosanitary standard-setting activities of the Codex Alimentarius Commission (Codex), in accordance with section 491 of the Trade Agreements Act of 1979, as amended, and the Uruguay Round Agreements Act (Public Law 103-465). According to FSIS, this list covers the time periods from June 1, 2005 to May 31, 2006 and June 1, 2006 to May 31, 2007.

Two proposed rulemakings that could open more satellite spectrum for DirecTV, EchoStar and maybe FSS operators are circulating on the FCC’s 8th floor, with one perhaps making the agenda of the next FCC meeting, FCC officials and industry sources said. Both are vintage satellite conundrums long on the FCC to-do list, sources said: the 17 GHz “reverse DBS band” and “’tweener” DBS satellites. If new Comr. McDowell moves quickly, the 17 GHz NPRM could get a vote at next week’s agenda meeting, we're told; it also could wait until July. The ’tweener rulemaking is moving more slowly, sources said.

CHICAGO -- The Telecom Act may limit the FCC’s ability to override local govt. and address telco arguments for removing municipalities from video franchise oversight, Comr. Adelstein said. “It is very clear to me that there are certain powers that local franchise authorities possess and that those authorities were basically delegated to them,” Adelstein said Mon. at Globalcomm here. The key phrase is that the FCC can act only given local authorities’ “unreasonable refusal” to award a license, but Adelstein questioned whether a build out requirement, for example, could be construed as unreasonable.

LONDON -- Consumers need clear information on risks and rights attached to digital content they buy, the U.K. All Party Internet Group (APIG) said Mon. In the same report, APIG said distributors of technical protection measure (TPM) systems need to know they risk criminal prosecution if their products intrude too much on privacy. The report completes a public inquiry into DRM in the U.K., part of an extensive inquiry into the country’s intellectual property laws.

The Capitol Hill fight over music licensing boils down to golden oldies vs. New Wave, speakers told a Progress & Freedom Foundation event Fri. on licensing questions raised by new satellite radio functionality. The recording and Internet radio industries see new devices from XM as exploiting lower performance royalty rates for functionality better classified as iTunes-like distribution. But satellite radio and CE industries counter that current law is clear on the new devices’ legality, and that XM and Sirius already pay tens of millions of dollars to labels and artists yearly. The labels are suing XM for copyright infringement, based on the new devices’ features.

Consumers need clear information on risks and rights attached to digital content they buy, the London-based All Party Internet Group (APIG) said Mon. In the same report, APIG said distributors of technical protection measure (TPM) systems need to know they risk criminal prosecution if their products intrude too much on privacy.

The Hill fight over music licensing boils down to golden oldies vs. New Wave, speakers told a Progress & Freedom Foundation event Fri. on licensing questions raised by new satellite radio functionality. The music and Internet radio industries see new devices from XM as exploiting lower performance royalty rates for functionality better classified as iTunes-like distribution. But satellite radio and CE industries counter that current law is clear on the new devices’ legality, and that XM and Sirius already pay tens of millions of dollars to labels and artists yearly. The labels are suing XM for copyright infringement, based on the new devices’ features.