Consumer Electronics Association (CEA) President and CEO Gary Shapiro testified before a Senate Commerce Committee hearing on the broadcast and audio flags. The audio flag is another giveaway to the entertainment industry at the expense of the consumer.

From his presentation:

"Instead of merely replicating the broadcast flag, RIAA apparently wants to severely limit consumer use of HD Radio and satellite radio services and new products coming to market," said Shapiro. "More, they appear to want to stop Americans from recording free over-the-air radio in their private homes for later enjoyment, no matter what device they want to use to hear lawfully acquired music.

"Indeed, I am not sure what the RIAA means by the term 'audio flag'. Right now, no audio equivalent to the video broadcast flag exists," continued Shapiro. "With respect to the audio flag, there is no industry consensus or agreed-upon technology as there was with the broadcast flag. No audio flag proposal has been brought to a standards body or to CEA for discussion. Nor do any of the flag proposals in circulation limit themselves to addressing mass, indiscriminate redistribution of music over the Internet - which is the purpose of the broadcast flag.

"After seven years of FCC proceedings, all but ignored by the RIAA until recently, the rollout of Digital radio - also known as HD Radio - is underway," noted Shapiro. "Any Congressional nod toward the RIAA limits could stop the rollout of this exciting new technology in its tracks."

Shapiro also testified that RIAA concerns about satellite radio services are unwarranted. "XM and Sirius have announced new hand-held devices to allow their subscribers to record and playback music they have already paid for, like a 'radio TiVo'," said Shapiro. "At the recent International CES, both of these products won awards for innovation and consumer friendliness. These products will be fully compliant with the Audio Home Recording Act - a law the RIAA sought and promised would forever satisfy all their digital recording problems - on which royalties will be paid to the music industry. And satellite companies will continue to pay additional millions in performance royalties."

In addition, Shapiro said, these products ensure that digital content cannot be uploaded to the Internet, and thus will prevent P2P file sharing.

"Content is already encrypted with XM and Sirius satellite services and cannot be redistributed over the Internet. Discussion of a flag in this context makes no sense," he stated.

"But that is apparently not enough for the RIAA, which would like to keep these products out of the hands of consumers by placing severe restrictions on their functionality," Shapiro charged. "This is unjustifiable. Ordinary consumers are not pirates, and recording lawfully acquired content for private personal use is not piracy."