Disney Exec. Vp Preston Padden said he wanted to form better rela...

Disney Exec. Vp Preston Padden said he wanted to form better relationships with telecom companies, particularly over content theft and licensing issues. At USTA convention in Boca Raton this week, he said it probably was first time Assn. ever had invited Disney official to its convention. Padden said that some in telecom industry had indicated interest in compulsory licenses but said “I think we have more in common than at loggerheads.” Content providers are faced “either with outright theft of our product or the government forcing licenses at prices set by the government,” he said, likening such govt.-set prices to telecom industry’s problems with govt.-mandated TELRIC prices: “I hope you'll see commonality with our position.” In panel discussion moderated by Chris Israel, deputy asst. secy. for technology policy at the Commerce Dept., Padden invited telcos to attend meeting in Disney World in Orlando later in fall to discuss those issues. Invitation appeared somewhat spur of moment so Padden told group he would contact USTA officials with more information. After session, several USTA members told Padden privately that he also ought to contact National Telecom Co-op Assn. when meeting details were set. Trent Boaldin, pres. of rural telecom company Epic Touch, said telcos were beginning to offer content as part of their broadband services and “it doesn’t take long to see it’s in our best interests to work together, telecom providers and content providers.” Goal, he said, is “to come up with a low- cost solution to [lessen] the incentive to steal.” Padden said it was time to make overtures to telecom companies that were becoming more involved in providing content. “The theme today is common ground,” he said: “We're not speaking enough together. We both want broadband deployed. We want direct connection to the consumer and not have Blockbuster take half of the rental fee.” Attorney James Halpert said telcos had stake in Internet content issues because under Digital Millennium Copyright Act they could be held liable if one of their employees knew of illegal act’s being conducted by customer and didn’t report it. Halpert urged telcos to work with providers to find “consensus solution” because “it’s better to keep the government out of it.” Halpert said “there should be business negotiations [because] government mandates is not the answer.”