Broad-based Coalition Launched to Fight Technology Mandates

1/23/2003

WASHINGTON, Jan. 23 -- A broad-based alliance of consumer groups, think tanks, taxpayer organizations and businesses united today to launch an alliance that opposes government-designed and mandated technology to solve the problem of digital piracy.

The Alliance for Digital Progress (ADP) will fight efforts by Hollywood to make the government design anti-copying technology and require all digital devices to be built using that technology.

The more than 20 members of ADP strongly support the protection of digital content: movies, music, software and books. But they also firmly believe that the best way to fight piracy is through private-sector collaboration.

"Piracy of digital content is a serious, complex problem that concerns all of us," said Fred McClure, ADP president. "But government-designed and mandated technology that swaps the diversity of marketplace solutions for a 'one size fits all' approach is not the answer. Mandates are a mistake. A mandate will raise the price of everything from CD players and DVD players to personal computers. It will make the devices consumers own today obsolete. And it will stifle the innovation at the heart of digital progress.

"ADP believes Hollywood should fight piracy by working with industry to come up with solutions that meet consumer expectations, and by providing attractive legal alternatives to piracy by putting content online in a wide variety of digital formats," McClure added.

Such collaboration is what gave consumers products such as the DVD, a cooperative effort among the technology industry, the consumer electronics industry and Hollywood. The DVD has become the most rapidly adopted entertainment technology in history. In fact, a study unveiled by the DVD Entertainment Group earlier this month showed that, for the first time ever, DVD sales and rental revenues in 2002 surpassed the box office's record-breaking receipts for the same period. According to projections from PricewaterhouseCoopers, Hollywood's total DVD revenues, fueled by increasing mainstream adoption of DVDs, will exceed box office receipts again next year.

But Hollywood movie studios are pushing instead for the government to step into the role of technology designer.

"This is the wrong role for government," McClure said. "Instead, ADP believes the proper role of government is to help educate consumers about digital piracy while strongly enforcing existing copyright laws."

Hollywood studios are insisting on these stifling mandates despite the fact that the industry's 2002 revenues set a record for the third year running. Both box office sales and the sales and rentals of VHS and DVD videos are at all-time highs, according to the industry's own figures.

"We are greatly concerned that Hollywood is trying to pressure Congress into forcing technology mandates onto American consumers," McClure said. "Hollywood should be working with others in the private sector to develop solutions to the piracy problem that will succeed in the marketplace and benefit consumers."

The overwhelming majority of the American public shares the beliefs of ADP, according to a nationwide poll conducted January 17-19 by The Mellman Group and Fabrizio McLaughlin Associates:

a. Nearly three-quarters (72 percent) believe that the best way to address digital piracy is through the private sector, without government involvement; b. A full three quarters (75 percent) support industry agreements to address piracy with new innovations instead of new legislation; c. More than three-quarters (76 percent) believe that the movie studios should invest in research and new ways of business instead of turning to the government for solutions.

Backed by that support, ADP plans a vigorous national campaign to prevent the adoption of mandates through legislation or regulation. The Alliance will reach out to lawmakers on Capitol Hill, Administration officials and the public to communicate the threat government-designed technology mandates pose to consumers and businesses alike.

ADP is launching a Web site, http://www.alliancefordigitalprogress.org, as part of the campaign to provide information about this crucial issue and a platform for consumers to communicate about the subject with their elected officials. ADP's membership list and results from the survey can be found on the Web site.