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Audio Flag

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Summary of "Audio Flag" Provisions in the Senate Telecommunications Bill

(Protection of Digital Audio Broadcasting Content Provisions Contained in Sections 453 and 454 of H.R. 5252, the Communications Opportunity, Promotion, and Enhancement Act of 2006)

S. 2686, Senator Stevens' version of the telecommunications bill H.R. 5252, was passed by the Senate Commerce Committee by a vote of 15-7 on June 27, 2006. The bill contains an audio flag provision which addresses the music community's concern that certain digital radio services are transforming themselves into download services without paying the appropriate license fee. The audio flag provision recognizes the value of digital radio as well as the compensation that creators deserve for their work. It provides a fair balance for all parties involved, enabling the growth of digital radio while protecting the valuable content it carries.

Key Points:

Protection technology should be adopted in the marketplace – The bill recognizes that it is best for a solution on digital radio to be developed in the marketplace with all of the affected stakeholders at the table. By creating the possibility for an FCC rule without the assurance that one will be adopted, the bill creates risk for all parties in order to encourage a consensus in the marketplace

Consideration of protection technology must be subject to a deliberate, fair and reasonable process – To ensure that the legislation addresses the concerns of all parties, the bill calls for a Digital Audio review board that contains representatives from copyright owners, creators, distributors, and public interest groups. It marks the beginning of a process that provides risk and incentives to all parties. It also provides for a deliberate process before the Commission should private negotiations fail.

Fair Use is protected – The grant of authority contained in the bill calls for digital audio broadcast protection technology to be applied in a manner consistent with fair use principles.

Fast Rollout of HD Radio – The bill makes clear that the adoption and implementation of any protection technology shall in no way delay the final operational rules for digital radio.