Ban on Family-Friendly DVDs Favors Copyright Owners Over Consumers; CEA's Shapiro Calls on Congress to Stop the Expansion of Copyright Law Until Consumer Rights are Protected

Business Wire, July 11, 2006

ARLINGTON, Va. -- Last week's federal court ruling in the CleanFlicks case proved how copyright law has tilted toward content owners at the expense of the public, according to Consumer Electronics Association (CEA(R)) President and CEO Gary Shapiro. A federal court in Denver found that CleanFlicks, a business that bought DVDs of movies and removed obscene and offensive portions and then resold the movies, violated the copyright law and had to cease operations.

According to Mr. Shapiro, "Parents should have the right to benefit from technology to protect their children from graphic sex and violence.

"This is an example of the copyright laws going awry. The movie industry suffers no economic harm. The defendant, CleanFlicks, purchased a DVD for every movie that it edited and sold to parents.

"This has nothing to do with piracy. This is all about further limiting fair use rights of consumers to make choices of what they view, when they view it and how they view it.

"The CleanFlicks decision is further proof that copyright law is tilted too strongly toward copyright owners and away from consumers. In my lifetime, copyright terms have been extended 11 times, and the penalties for violations have increased dramatically. A barrage of legislation, like the audio broadcast flag, the Perform Act and the analog hole bill, would require innovators to design their products to add cost and reduce features and operability, regardless of how the product is used.

"Finally, massive, costly and frequent lawsuits against legitimate companies like CleanFlicks and XM Satellite Radio chills innovation and hurts our economy."

"Congress must say no to the content industry's voracious demand for yet more rights at the expense of ordinary Americans," concluded Shapiro. "It is time that Congress stopped considering any copyright legislation which does not recognize and protect the legitimate needs of consumers."

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The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,100 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, digital imaging, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $125 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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