States that such transactions constitute either an unfair method of competition, or an unfair and deceptive act or practice in commerce.
Authorizes the Commission to develop rules and regulations governing such transactions.
Amends Federal copyright law to exempt from its prohibitions against circumvention of copyright protection systems any persons acting solely in furtherance of scientific research into technological protection measures.
Declares it is not a violation of copyright law, but fair use, to: (1) circumvent a technological measure in connection with access to, or the use of, a work if such circumvention does not result in an infringement of the copyright in the work; or (2) manufacture, distribute, or make noninfringing use of a hardware or software product capable of enabling significant noninfringing use of a copyrighted work.
[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 107 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 107
To amend the Federal Trade Commission Act to provide that the
advertising or sale of a mislabeled copy-protected music disc is an
unfair method of competition and an unfair and deceptive act or
practice, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 7, 2003
Mr. Boucher (for himself, Mr. Doolittle, Mr. Bachus, and Mr. Kennedy of
Rhode Island) introduced the following bill; which was referred to the
Committee on Energy and Commerce, and in addition to the Committee on
the Judiciary, for a period to be subsequently determined by the
Speaker, in each case for consideration of such provisions as fall
within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Federal Trade Commission Act to provide that the
advertising or sale of a mislabeled copy-protected music disc is an
unfair method of competition and an unfair and deceptive act or
practice, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Digital Media Consumers' Rights Act
of 2003''.
SEC. 2. FINDINGS.
Congress finds the following:
(1) The limited introduction into commerce of ``copy-
protected compact discs'' has caused consumer confusion and
placed increased, unwarranted burdens on retailers, consumer
electronics manufacturers, and personal computer manufacturers
responding to consumer complaints, conditions which will worsen
as larger numbers of such discs are introduced into commerce.
(2) Recording companies introducing new forms of copy
protection should have the freedom to innovate, but should also
be responsible for providing adequate notice to consumers about
restrictions on the playability and recordability of ``copy-
protected compact discs''.
(3) The Federal Trade Commission should be empowered and
directed to ensure the adequate labeling of prerecorded digital
music disc products.
SEC. 3. INADEQUATELY LABELED COPY-PROTECTED COMPACT DISCS.
The Federal Trade Commission Act (15 U.S.C. 41 et seq.) is amended
by inserting after section 24 the following new section:
``SEC. 24A. INADEQUATELY LABELED COPY-PROTECTED COMPACT DISCS.
``(a) Definitions.--In this section:
``(1) The term `Commission' means the Federal Trade
Commission.
``(2) The term `audio compact disc' means a substrate
packaged as a commercial prerecorded audio product, containing
a sound recording or recordings, that conforms to all
specifications and requirements for Red Book Audio and bears a
duly licensed and authorized `Compact disc Digital Audio' logo.
``(3) The term `prerecorded digital music disc product'
means a commercial audio product comprised of a substrate in
the form of a disc in which is recorded a sound recording or
sound recordings generally in accordance with Red Book Audio
specifications but that does not conform to all licensed
requirements for Red Book Audio: Provided, That a substrate
containing a prerecorded sound recording that conforms to the
licensing requirements applicable to a DVD-Audio disc or a
Super Audio Compact Disc is not a prerecorded digital music
disc product.
``(4) The term `Red Book Audio' means audio data digitized
at 44,100 samples per second (44.1 kHz) with a range of 65,536
possible values as defined in the `Compact Disc-Digital Audio
System Description' (first published in 1980 by Philips N.V.
and Sony Corporation, as updated from time to time.
``(b) Prohibited Acts.--
``(1) The introduction into commerce, sale, offering for
sale, or advertising for sale of a prerecorded digital music
disc product which is mislabeled or falsely or deceptively
advertised or invoiced, within the meaning of this section or
any rules or regulations prescribed by the Commission pursuant
to subsection (d), is unlawful and shall be deemed an unfair
method of competition and an unfair and deceptive act or
practice in commerce under section 5(a)(1).
``(2) Prior to the time a prerecorded digital music disc
product is sold and delivered to the ultimate consumer, it
shall be unlawful to remove or mutilate, or cause or
participate in the removal or mutilation of, any label required
by this section or any rules or regulations prescribed by the
Commission pursuant to subsection (d) to be affixed to such
prerecorded digital music disc product. Any person violating
this subsection shall be deemed to have engaged in an unfair
method of competition and an unfair and deceptive act or
practice in commerce under this Act.
``(c) Mislabeled Discs.--For purposes of this section, a
prerecorded digital music disc product shall be considered to be
mislabeled if it--
``(1) bears any logo or marking which, in accordance with
common practice, identifies it as an audio compact disc;
``(2) fails to bear a label on the packaging in which it is
sold at retail in words that are prominent and plainly legible
on the front of the packaging that--
``(A) it is not an audio compact disc;
``(B) it might not play properly in all devices
capable of playing an audio compact disc; and
``(C) it might not be recordable on a personal
computer or other device capable of recording content
from an audio compact disc; or
``(3) fails to provide the following information on the
packaging in which it is sold at retail in words that are
prominent and plainly legible--
``(A) any minimum recommended software requirements
for playback or recordability on a personal computer;
``(B) any restrictions on the number of times song
files may be downloaded to the hard drive of a personal
computer; and
``(C) the applicable return policy for consumers
who find that the prerecorded digital music disc
product does not play properly in a device capable of
playing an audio compact disc.
``(d) Rulemaking.--(1) The Commission may develop such rules and
regulations as it deems appropriate to prevent the prohibited acts set
forth in subsection (b) and to require the proper labeling of
prerecorded digital music disc products under subsection (c).
``(2)(A) The Commission may develop such additional rules and
regulations as it deems necessary to establish appropriate labeling
requirements applicable to new audio discs, using new playback formats
(including DVD-Audio discs and Super Audio Compact Discs), if the
Commission finds, with respect to a particular type of disc, that
``(i) the manner in which the discs are displayed at
retail, packaged, or marketed results in substantial consumer
confusion about the playability and recordability of such
discs;
``(ii) the discs are not appropriately labeled with respect
to their playability on standard audio compact disc playback
devices; and
``(iii)(I) the discs are not recordable on a personal
computer; or
``(II) if the discs are recordable, a recording made from
such a disc is bound to a particular device.
``(B) To the maximum extent practicable, the Commission shall seek
to ensure that any rules and regulations developed under this paragraph
impose labeling requirements comparable to the requirements imposed
under the rules and regulations developed under paragraph (1).''.
SEC. 4. REPORT TO CONGRESS.
Not later than 2 years after the date of enactment of this Act,
the Federal Trade Commission shall submit to Congress a report
detailing the following:
(1) The extent to which prerecorded digital music disc
products (as defined in section 24A of the Federal Trade
Commission Act, as added by section 3 of this Act) have entered
the market over the preceding 2 years.
(2) The extent to which the Commission has received
complaints from consumers about the implementation of return
policies for consumers who find that a prerecorded digital
music disc product does not play properly in a device capable
of playing an audio compact disc (as defined in section 24A of
such Act).
(3) The extent to which manufacturers and retailers have
been burdened by consumer returns of devices unable to play
prerecorded digital music disc products.
(4) The number of enforcement actions taken by the
Commission pursuant to section 24A of such Act.
(5) The number of convictions or settlements achieved as a
result of enforcement actions taken by the Commission pursuant
to section 24A of such Act.
(6) Any proposed changes to this Act, with respect to
prerecorded digital music disc products, that the Commission
believes would enhance enforcement, eliminate consumer
confusion, or otherwise address concerns raised by consumers
with the Commission.
SEC. 5. FAIR USE AMENDMENTS.
(a) Scientific Research.--Subsections (a)(2)(A) and (b)(1)(A) of
section 1201 of title 17, United States Code, are each amended by
inserting after ``title'' in subsection (a)(2)(A) and after ``thereof''
in subsection (b)(1)(A) the following: ``unless the person is acting
solely in furtherance of scientific research into technological
protection measures''.
(b) Fair Use Restoration.--Section 1201(c) of title 17, United
States Code, is amended--
(1) in paragraph (1), by inserting before the period at the
end the following: ``and it is not a violation of this section
to circumvent a technological measure in connection with access
to, or the use of, a work if such circumvention does not result
in an infringement of the copyright in the work''; and
(2) by adding at the end the following new paragraph:
``(5) It shall not be a violation of this title to
manufacture, distribute, or make noninfringing use of a
hardware or software product capable of enabling significant
noninfringing use of a copyrighted work.''.
<all>
Introduced in House
Introduced in House
Sponsor introductory remarks on measure. (CR E19-21)
Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Commerce, Trade and Consumer Protection.
Referred to the Subcommittee on Courts, the Internet, and Intellectual Property.
Subcommittee Hearings Held.
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