Pols: Slow On HD Regs: Pols: Slow On HD Regs Recording Industry Wants Protection

The recording industry wants help from Congress to keep digital radio from devouring music sales. But lawmakers appear reluctant to move quickly, even as satellite radio gains customers and traditional broadcasters roll out what they call HD radio sidechannels to compete.

"What we are talking about here is not casual recording by listeners," Mitch Bainwol, chairman and CEO of the Recording Industry Association of America, told senators during a hearing on Capitol Hill last Tuesday. With HD radio, Bainwol said, "Listeners will be able to automatically build entire collections of music without the need ever to purchase any [or] to listen to the broadcast…This is not fair use."

Bainwol's group represents major music labels that watched sales of recorded music dwindle in recent years as Internet piracy of music soared. Yet his alarm issued before the Commerce Committee fell on ears that, if not deaf, were not entirely sympathetic.

"Maybe the sky really is falling this time. But I think it's worth retaining a little skepticism," said Sen. John Sununu (R-N.H.). "This is an area that deserves a lot more investigation."

The debate came as the committee considered whether to extend copy-protection regimes to digital TV and radio broadcasts. No votes are expected in the Senate until March; prospects are uncertain in the House.

A court last year rejected a broadcast flag regulation from the Federal Communications Commission, saying the agency had exceeded its authority. At last week's hearing, senators said they want to grant the FCC the needed power. That is politically feasible in part because the broadcast flag has important champions, including studios and networks alike (although critics say it could crimp legitimate uses of broadcast matter such as distance learning).

The idea of a similar audio flag draws less support. "What Mr. Bainwol is talking about is stopping legitimate home recording in your house," said Gary Shapiro, president and CEO of the Consumer Electronics Association. The group's members include manufacturers concerned that copying restrictions would leave their digital radios falling short of consumer expectations.

Broadcasters don't like it either. "No proposal should be allowed to derail the HD radio rollout" by making receivers obsolete, Dan Halyburton, senior vp and general manager for group operations for Susquehanna Radio Corp., told the senators. He added, "We are not a good source for music piracy" since broadcasts include DJ patter and commercials. Halyburton said broadcasters are willing to talk with music labels.

That's probably OK with Sen. Ted Stevens, the Commerce Committee chair, who suggested lawmakers might be guided by interindustry negotiations. —Todd Shields