WASHINGTON, October 8 – The “broadband ecosystem” of the future needs strong legal, technological and cultural efforts to protect American intellectual property, a group of entertainment and technology executives said Wednesday at the U.S. Chamber of Commerce’s Fifth Intellectual Property Summit.
Although the panelists also spoke about the importance of preserving users’ right to make “fair use” of copyrighted material, they emphasized the importance of technological protection measures.
“We know the story” on the history of the music industry, said Mark McKinnon of Arts+Labs, a coalition of technology and entertainment companies that develops content delivery and protection systems.
McKinnon compared the music industry’s negative experience with Napster file-sharing service with the success of commercial video sharing site Hulu. McKinnon said Hulu accounts for 90% of commercial television being viewed online. “The models are finally being figured out.” In the future, consumers would respond positively to online content that is affordable, legal, and safe, said McKinnon.
There is “no question” that old business models need to change in a networked world, said Rick Cotton, executive vice president and general counsel for NBC Universal. Embracing digital distribution will “drive the future,” Cotton said. “It’s what consumers want.”
New content protection technology brings the promise of a “mature model” of internet distribution that avoids “the dark side” of peer-to-peer technology, said Cotton. The broadband ecosystem envisioned by Cotton would somehow tell people that they can access programming as they please, but also send a message that stealing is not acceptable. Such an ecosystem must be built cooperatively, balancing ease of access, consumer desires and a choice of ad-based or fee-based models.
Putting content-style restrictions on technology can be an “enormously powerful teacher” that can teach people on a “speed bump basis,” Cotton said. Without such technological measures, Cotton said, young people could grow up believing that “if [downloading pirated content] is easy, it can’t be wrong.”
Referring to the success of Hulu and NBC’s Olympic video streaming, Cotton said that a broadband-based model would be successful if there are clear “rules of the road,” and as long as consumers could easily access legal content.
Content protection has a critical role to play in the future, said Rick Lane, senior vice president of government affairs at News Corporation. Protection mechanisms have to allow some control for content owners, while leaving room for new and innovative business models, he said. Without content protection mechanisms, Lane predicted that online content would be reduced to the model of a DVD purchase.
More consumer education would cut down on “Net Pollution,” McKinnon said, suggesting educational campaigns to link pirated content with malware and viruses.
The ecosystem would have some room for fair use, Cotton said. Content protection is not about facilitating mashups, he emphasized. Rather, technological restrictions must focus on whole episodes, skits, and movies, he said.
“Fair use should not be a code word for doing nothing,” Cotton proclaimed, adding that technology should send cues about what is right.
Lane and McKinnon agreed that consumer convenience is paramount in any content protection scheme and should be “seamless,” Lane said. McKinnon predicted that with the rise of broadband and good content protection, it would not be long before “DVD’s are like 8-tracks.”
Fair use is not incompatible with content protection, Lane said. Content protection technology is a “key component” of the future broadband economy, and mechanisms could be devised to protect fair use as well as copyrights. Lane cited News Corp.’s MySpace Music as an example. He said that MySpace had received “zero complaints” about its content protections restricting fair use.
Lane said the idea that News Corporation is against fair use was “ridiculous.” Cotton said that fair use and privacy are too often used as “scare tactics,” and said people need to “get past the name calling” when it comes to examining content protection mechanisms. “Trying to create fear doesn’t help the dialogue,” he said.
Cotton said later in an interview that improving technology will make piracy more difficult, but consumer rights and fair use will be protected with “reasonable accommodations” built into copy protection technology. The “vast majority of people” will be satisfied by such accommodations, while fulfilling the goal of cleaning up the “wild west” of today’s internet, he said.
In an interview, David Sohn of the Center for Democracy and Technology took issue with Cotton’s characterization of fair use as a “code word” for anything. Content protection systems can’t distinguish fair use from copyright infringement, Sohn said. Instead, he called fair use an “important policy consideration” that is not only enshrined in law, but is also a “safety valve” so that copyright law doesn’t violate the First Amendment.
Sohn said he hoped the future will include a “broad range” of options available to consumers. Such options should be in response to consumer demand for content models that meet their needs. Market pressures simply won’t allow content to be completely locked down, he said.
Broadband Breakfast Club Forum on the Digital Millennium Copyright Act:
Editor’s Note: Don’t miss “10 Years Under the Digital Millennium Copyright Act – Success or Failure?”, on Tuesday, October 14, from 8 a.m. to 10 a.m. at Old Ebbitt Grill, 675 15th Street NW, Washington.
This event, the kick-off event in the monthly “Broadband Breakfast Club” hosted by BroadbandCensus.com, is designed to bring several key stakeholders together to share perspectives on this topic:
- Drew Clark, Executive Director, BroadbandCensus.com (Moderator)
- Mitch Glazier, Senior Vice President, Government Relations, Recording Industry Association of America
- Michael Petricone, Senior Vice President, Government Affairs, Consumer Electronics Association
- Wendy Seltzer, Practitioner in Residence, Glushko-Samuelson Intellectual Property Law Clinic, American University Washington College of Law
- Emery Simon, Counselor, Business Software Alliance
Breakfast for registrants will be available beginning at 8:00 a.m., and the forum itself will begin at around 8:30 a.m., and conclude promptly at 10 a.m. Seated attendance is limited to the first 45 individuals to register for the event. For more information, visit http://broadbandbreakfast.eventbrite.com
Broadband is Affordable for Middle Class, NCTA Claims
According to analysis, the middle class spends on average $69 per month on internet service.
WASHINGTON, November 22, 2022 – Even as policymakers push initiatives to make broadband less expensive, primarily for low-income Americans, broadband is already generally affordable for the middle class, argued Rick Cimerman, vice president of external and state affairs at industry group NCTA, the internet and television association.
Availability of broadband is not enough, many politicians and experts argue, if other barriers – e.g., price – prevent widespread adoption. Much focus has been directed toward boosting adoption among low-income Americans through subsidies like the Affordable Connectivity Program, but legally, middle-class adoption must also be considered. In its notice of funding opportunity for the $42.5-billion Broadband Equity, Access, and Deployment program, the National Telecommunications and Information Administration required each state to submit a “middle-class affordability plan.”
During a webinar held earlier this month, Cimerman, who works for an organization that represents cable operators, defined the middle class as those who earn $45,300–$76,200, basing these boundaries on U.S. Bureau of Labor statistics for 2020. And based on the text of an Federal Communications Commission action from 2016, he set the threshold of affordability for broadband service at two percent of monthly household income.
According to his analysis, the middle class, thus defined, spends on average $69 per month on internet service. $69 is about 1.8 percent of monthly income for those at the bottom of Cimerman’s middle class and about 1.1 percent of monthly income for those at the top. Both figures fall within the 2-percent standard, and Cimerman stated that lower earners tended to spend slightly less on internet than the $69-per-month average.
Citing US Telecom’s analysis of the FCC’s Urban Rate Survey, Cimerman presented data that show internet prices dropped substantially from 2015 to 2021 – decreasing about 23 percent, 26 percent, and 39 percent for “entry-level,” “most popular” and “highest-speed” residential plans, respectively. And despite recent price hikes on products such as gas, food, and vehicles, Cimerman said, broadband prices had shrunk 0.1 percent year-over-year as of September 2022.
Widespread adoption is important from a financial as well as an equity perspective, experts say. Speaking at the AnchorNets 2022 conference, Matt Kalmus, managing director and partner at Boston Consulting Group, argued that providers rely on high subscription rates to generate badly needed network revenues.
Federal Communications Commission Mandates Broadband ‘Nutrition’ Labels
The FCC also mandated that internet service provider labels be machine-readable.
WASHINGTON, November 18, 2022 – The Federal Communications Commission on Thursday afternoon ordered internet providers to display broadband “nutrition” labels at points of sale that include internet plans’ performance metrics, monthly rates, and other information that may inform consumers’ purchasing decisions.
The agency released the requirement less than 24 hours before it released the first draft of its updated broadband map.
The FCC mandated that labels be machine-readable, which is designed to facilitate third-party data-gathering and analysis. The commission also requires that the labels to be made available in customers’ online portals with the provide the and “accessible” to non-English speakers.
In addition to the broadband speeds promised by the providers, the new labels must also display typical latency, time-of-purchase fees, discount information, data limits, and provider-contact information.
“Broadband is an essential service, for everyone, everywhere. Because of this, consumers need to know what they are paying for, and how it compares with other service offerings,” FCC Chairwoman Jessica Rosenworcel said in a statement.
“For over 25 years, consumers have enjoyed the convenience of nutrition labels on food products. We’re now requiring internet service providers to display broadband labels for both wireless and wired services. Consumers deserve to get accurate information about price, speed, data allowances, and other terms of service up front.”
Industry players robustly debated the proper parameters for broadband labels in a flurry of filings with the FCC. Free Press, an advocacy group, argued for machine-readable labels and accommodations for non-English speakers, measures which were largely opposed by trade groups. Free Press also advocated a requirement that labels to be included on monthly internet bills, without which the FCC “risks merely replicating the status quo wherein consumers must navigate fine print, poorly designed websites, and byzantine hyperlinks,” group wrote.
“The failure to require the label’s display on a customer’s monthly bill is a disappointing concession to monopolist ISPs like AT&T and Comcast and a big loss for consumers,” Joshua Stager, policy director of Free Press, said Friday.
The Wireless Internet Service Providers Association clashed with Free Press in its FCC filing and supported the point-of-sale requirement.
“WISPA welcomes today’s release of the FCC’s new broadband label,” said Vice President of Policy Louis Peraertz. “It will help consumers better understand their internet access purchases, enabling them to quickly see ‘under the hood,’ and allow for an effective apples-to-apples comparison tool when shopping for services in the marketplace.”
Midterm Control of Congress Remains Uncertain, But States Got Answers to Broadband Votes
Alabama, Colorado, New Mexico, New York, Kansas and Pennsylvania had broadband-related measures on the ballot.
As voters went to the polls on Tuesday, November 8, 2022, broadband-focused initiatives and candidates could be found up and down the ballot all across the country.
Alabama voters cast their ballots to decide on a state Constitutional amendment known as the Broadband Internet Infrastructure Funding Amendment. The measure sought to amend the state’s constitution “to allow local governments to use funding provided for broadband internet infrastructure under the American Rescue Plan Act (ARPA) and award such funds to public or private entities.”
That measure passed, garnering a “Yes” vote from nearly 80 percent of Alabama voters. With 73 percent of the vote counted late last night, 922,145 “Yes” votes had been tallied with 251,441 “No” votes.
Also in Alabama, Democratic U.S. Rep. Terri Sewell won her re-election bid to represent Alabama’s 7th congressional district. Sewell, whose district covers a large swath of the Alabama Black Belt, “spent much of her past two years in office bringing American Rescue Plan Act funds to rural Alabama, dedicated to healthcare, broadband access and infrastructure building,” as noted by The Montgomery Advertiser.
The Centennial State is not listed as one of 17 states in the nation with preemption laws that erect barriers to municipal broadband because nearly every community that had a vote has passed it to nullify it. But more communities had to go through that unnecessary process yesterday due to the law known as SB-152 that bans local governments in the state from establishing municipal broadband service absent a referendum.
As of spring 2022, 118 Colorado municipalities, 40 counties and several school districts have opted out of SB-152.
Now Colorado can add to that list.
In Pueblo County, nearly 48,000 ballots were cast with 34,457 or 72 percent, voting yes to opt out of SB 152 while 13,087 (28 percent) cast a “No” vote.
In the City of Pueblo, the county seat, Mayor Nick Gradisar told The Pueblo Chieftain that his city was not looking to build a municipal broadband network but rather to pursue a public-private partnership to bring ubiquitous high-speed Internet service to the city in a way that does not “just allow (broadband companies) to cherry pick the ones that can pay the most.”
Meanwhile, in the City of Lone Tree, one of about a dozen communities located in Douglas County, voters there overwhelmingly approved opting out of SB-152 with over 83 percent of voters casting a “Yes” ballot.
According to the city’s website, the ballot question was put to voters to enable the county to extend broadband infrastructure into Lone Tree. The website goes on to explain what opting out of SB-152 would mean for city residents and businesses:
- Along with providing support for the County’s efforts, voter approval opens a range of opportunities to improve broadband access or services. Approval would allow the conversation to begin, while not binding the City to any specific actions or timelines.
Similar to the Constitutional question voters decided in Alabama, a ballot question in New Mexico asked voters to modify the New Mexico Constitution to ensure the easy flow of broadband funding. A 1900s era portion of the state’s constitution restricts “lending, pledging credit, or donating to any person, association, or public or private corporation.”
The proposal, which was approved by the New Mexico state legislature last February, passed with a 65 to 35 percent split in favor of adding an exception to the state’s anti-donation clause that will allow the state legislature to appropriate state funds through a majority vote in each chamber for infrastructure that provides essential services such as water, sewer, electricity, and broadband.
Bipartisan Support for Expanding Broadband Access
Yes, one day after the election and it was still unclear which party will control Congress, even as political analysts pontificate on what happened to the “Red Wave.” But, this much is clear: for successful candidates in both parties, at the federal and state-level, expanding access to broadband has become a bipartisan issue.
In New York, Republican State Sen. Dan Stec won his bid re-election, building on his first victory in 2020 when he campaigned for better broadband and mobile phone service. In North Carolina, Renée Price, a Democratic state representative, was elected by a wide margin. During the campaign, Price said her priorities are funding a range of initiatives and that she was particularly focused on increasing access to broadband.
Meanwhile, Republican Congressman Rick Allen was re-elected to represent Georgia’s 12th Congressional District. Allen said he would “continue to fight for the priorities of the 12th District like securing funding for Fort Gordon and the Savannah River Site, expanding rural broadband, and supporting our farmers and rural America.”
In Kansas, where Republican Congressman Mark Alford was elected to represent Missouri’s staunchly conservative 4th Congressional District, Alford told The Kansas City Star that as he campaigned “’on just about every back road of the district, all 24 counties,’ he heard that the No. 1 issue in the district is lack of rural broadband access.”
Over in Pennsylvania, where Democratic candidate Josh Shapiro won the race to be that battleground state’s next Governor, Shapiro’s campaign told Spotlight PA “he will prioritize expanding quality and affordable access to broadband in rural regions of the state by supporting the newly created Pennsylvania Broadband Development Authority, and establishing comprehensive subsidies for low-income households with high [I]nternet prices.”
And finally, in Texas, where Republican Gov. Greg Abbott fended off a challenge from Beto O’Rourke, in the less sexy race for State Comptroller, Republican incumbent Glenn Hegar won his re-election bid in which he touted his record championing the expansion of broadband in the Lone Star State.
Eye On State Legislatures
States are now beefing up or establishing state broadband offices to award billions of dollars for the deployment of new or expanded broadband infrastructure thanks to an historic infusion of federal funds from the American Rescue Plan Act (ARPA) and the Infrastructure Investment and Jobs Act (IIJA). With those bills already passed and the midterm elections behind us, most of the action on the broadband front will rest in the hands of state lawmakers.
The National Conference of State Legislatures notes that “with roughly 9 out of 10 adults in America using the Internet, many consider it to be a necessity of modern life,” which is why there are numerous pieces of broadband-related legislation that was enacted or is pending in the 2022 legislative session.
- In the 2022 legislative session, 43 states, the District of Columbia and Puerto Rico have pending and enacted legislation addressing broadband in issue areas such as educational institutions and schools, dig once, funding, governance authorities and commissions, infrastructure, municipal-run broadband networks, rural and underserved communities, smart communities and taxes. Twenty-six jurisdictions enacted legislation or adopted resolutions: Alabama, Alaska, Arizona, California, Colorado, Hawaii, Idaho, Illinois, Kentucky, Louisiana, Maine, Minnesota, Mississippi, Missouri, Nebraska, New Hampshire, New Mexico, New York, Oklahoma, Oregon, South Dakota, Tennessee, Utah, Virginia, Washington and West Virginia.
Authored by Sean Gonsalves, this article originally appeared on the web site of the Institute for Local Self Reliance’s Community Broadband Broadband Networks Project on November 9, 2022, and is reprinted with permission.
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