Valenti fears pic piracy
H'w'd studios hesitant to open up libraries
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Digital copy protection is taking center stage in Washington since the failure to agree on a technology standard is cited as a major reason for the hold-up in the digital TV transition. Hollywood studios don't want to open up their libraries if the content will be linked up from digital cable to the Internet.
Valenti's comments came during testimony before the Senate Foreign Relations Committee, which convened a hearing on worldwide piracy. Committee topper Sen. Joseph Biden (D-Del.) also was wearing his hat as chair of the Judiciary Subcommittee on Crime and Drugs.
"We are discussing an issue that is not only a matter of international dimension, but it is also a crime, pure and simple," Biden said. "Though we may not have the tools to eradicate all intellectual property theft, we can do much more to stem the tide of crime that has engulfed markets around the world."
Also testifying were Recording Industry Assn. of America prexy-CEO Hilary Rosen and Interactive Digital Software Assn. prexy Doug Lowenstein.
Online nightmare
Valenti and his colleagues stressed that the Internet is a dangerous tool in the hands of pirates. "It is digital piracy that gives movie producers multiple Maalox moments," Valenti said.
Accordingly, the major Hollywood studios want guarantees that digital TV set-top boxes and other equipment include the appropriate technology making it impossible to hook up digital cable to the Internet.
Valenti said he held one meeting with computer makers and other tech companies several months ago in Silicon Valley, and that he is eager to meet again.
"Disappointingly, no further meetings have emerged from that first gathering. I continue to try," Valenti said. "If all groups could find common ground on which an agreement would sit firmly, perhaps we could then come to the Congress to mandate that concord."
Computer makers and consumer electronics manufactures don't want to put unnecessary limits or constraints on digital TV equipment and computers. And while they may not be meeting with Valenti, the sector is making advances with separate Hollywood studios, specifically Warner Bros. and Sony Pictures Entertainment.
Several key solons have told the industries working on the issue that Capitol Hill will intervene, possibly with legislation, if no agreement is reached.
