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1 1 (August 4, 2006)

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                                                                Order Code RS22489
                                                                      August 4, 2006



 CRS Report for Congress

               Received through the CRS Web




  Copyright Protection of Digital Audio Radio
              Broadcasts: The Audio Flag

                               Jared Huber
                               Law Clerk
                         American Law Division

                               Brian T. Yeh
                           Legislative Attorney
                         American Law Division

Summary


     Several bills introduced in the 109th Congress would grant the Federal
 Communications Commission (FCC) authority to promulgate regulations to protect the
 content of digital audio radio broadcasts and transmissions from unauthorized
 reproduction and distribution. Such regulation may require audio devices capable of
 receiving digital over-the-air radio programming or satellite audio broadcasts to
 incorporate an audio flag. The audio flag is a technical measure that flags digital
 audio radio transmissions with a copyright protection signal, permitting only authorized
 devices to play back copyrighted audio transmissions or allowing only limited copying
 and retention of the content. The parties most likely affected by any audio flag regime
 (including music copyright owners, digital radio broadcasters, stereo equipment
 manufacturers, and consumers) are divided as to the anticipated degree and scope of the
 impact that a government-mandated copyright protection scheme would have on the
 fair use rights of consumers to engage in private, noncommercial home recording.
 Critics of the audio flag proposal are concerned about its effect on technological
 innovation. However, proponents of the audio flag feel that such digital rights
 management (DRM) technology is needed to thwart piracy or infringement of
 intellectual property rights in music, sports commentary and coverage, and other types
 of copyrighted content that is transmitted to the public by emerging high-definition
 digital radio services (HD Radio) and satellite radio broadcasters.

     This report provides a brief explanation of the audio flag and its relationship to
 digital audio radio broadcasts, and summarizes legislative proposals, including H.R.
 4861 (Audio Broadcast Flag Licensing Act of 2006) and S. 2686 (Digital Content
 Protection Act of 2006), that would authorize its adoption.


Congressional Research Service + The Library of Congress

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