Brief notes on 1201 space-shifting exemption hearings

PROPOSED CLASS 3: Space-shifting

Keith Chatfield SolaByte: Electronic new media solution developers: method for space-shifting based on licensed transactions, not moving the files.  Support OmniQ’s proposal on behalf of consumer—can convert content to more robust security, devices. Future-proof content against platform obsolescence. Can watermark optical media like DVD and Blu-Ray—can be used to disable disc in the field. These create the capability to enable a controlled licensing transaction where you can trade in a disc.  Allows consumer to move to new media. Patent stage, now licensing it in the market.  It doesn’t involve TPM circumvention.  DVDs are sunsetting; 13 billion are in circulation. We’d like to allow consumers to archive their content into a more permanent library after we authenticate the disc.  OmniQ’s aim is similar with another type of tech. 

John Mitchell OmniQ

Restore benefits of first sale, including the opportunity for unlicensed resale. OmniQ’s process destroys the DVD while it transfers to a hard drive w/one encryption key that the consumer has and we don’t.  There’s never more than one copy, as opposed to previous technologies. 

They fought about the meaning of “copy” under the statute, Cablevision, etc.  Also about whether licensing was possible given the size of the demands of guaranteed revenues up front/the variety of content sources.