Escalating battle over anticopying encryption technology for adva...

Escalating battle over anticopying encryption technology for advanced digital cable set-top boxes, Consumer Electronics Retailers Coalition (CERC) wrote to FCC Chmn. Powell last week, urging him to break cable industry’s “five-decade monopoly on cable navigation devices.” In 6-page letter to Powell Feb. 12, CERC disputed claims made by CableLabs in its own letter to Powell week earlier and called on FCC to intervene in dispute (CD Feb 14 p7). “As in many cases of deregulation, one cannot expect that the ‘market’ will force an entrenched monopolist, with remaining official power over potential competitors, to offer fair terms of entry to those who would attempt to destroy his monopoly,” group argued. “Thus it is necessary to finish the job of deregulation before competition can be expected to bloom.” Specifically, CERC expressed concerns that CableLabs'PHILA technology license was overly broad, overreaching, discriminated against new entrants. CERC also objected that copy protection provisions of PHILA license: (1) Go beyond digital TV signals to cover analog TV. (2) Mandate that OpenCable digital boxes automatically shut off or degrade images in response to particular copy control signal even if content provider doesn’t want that. (3) Would give content providers “flat, unbridled authority to impose, unilaterally, broad impositions on competitive entrants.” Finally, CERC contended that Commission “has not approved any particular provision” of PHILA license and has not even released final version of license for public comment. Group sought meeting with Powell and his staff to press its case further.