Digital TV Copyright Concerns Tentatively Resolved by Group

After months of negotiations, a working group of technology and entertainment companies said Thursday that it has reached a tentative resolution of one of the key stumbling blocks slowing the roll-out of high-definition digital television.

At a hearing in Washington, industry leaders told lawmakers that they were only weeks away from coming up with the final plan to implement a technology, known as a “broadcast flag,” that will address most of the copyright concerns of television producers.

Entertainment companies have resisted making their programs available in high-definition television because of concerns that content would be copied and redistributed via the Internet.

The broadcast flag would be embedded into digital programs sent over the air. It would permit consumers to make copies of digital programs, but prevent them from sending copies over the Internet without permission.

Members of the House Subcommittee on Telecommunications and the Internet praised the private-sector progress and said they saw no need to step in with a broad government mandate. Several members criticized a bill pending in the Senate--which was backed by several Hollywood studios--that calls for the government to resolve the technological hurdles if they aren’t settled within 18 months.

“I truly believe that the best solution is a private-sector solution,” said Rep. Fred Upton (R-Mich.), who chairs the subcommittee.

A final agreement is expected by May 17, said Paul F. Liao, chief technology officer of Panasonic, formally known as Matsushita Electric Industrial Co. Liao is a representative for five major technology firms in the working group.

One electronics manufacturer, however, called upon Congress to intervene in the negotiations.

Philips Consumer Electronics said the working group has been closed to smaller firms and is not considering alternative technologies that might stem piracy.

Lawrence J. Blanford, president of Philips, also expressed concern that the technologies will hinder the ability of consumers to make personal copies of movies and music that they have purchased.

Entertainment leaders deny such claims.

“We don’t want to shut down innovation,” said Jack Valenti, president of the Motion Picture Assn. of America. “We just want to protect private property from being pillaged.”

Congress has been pressuring the industries to resolve their differences to meet a 2006 deadline for television broadcasters to deliver all programs digitally.

But despite five years of prodding by federal regulators, nearly three-quarters of the nation’s 1,240 commercial television stations won’t meet the government’s Wednesday deadline to begin airing digital TV, according to a report released Thursday by the General Accounting Office.

The delays--which stem from lack of finances, copyright issues and TV transmitters destroyed in the Sept. 11 attacks--are a setback for the industry advocates and policymakers who believe the technology can help create thousands of jobs and boost the economy.

They also are shining an unflattering light on the laissez-faire policies of Federal Communications Commission Chairman Michael K. Powell, who told broadcasters this month to get on board with digital TV “or it will run over you.” Critics say tougher FCC rules, rather than tough talk, is what’s needed to speed up the digital transition.

Digital TV “still has incredible potential for being a driver of economic growth and job creation, but its promise has been held back for far too long due in part to the reluctance of policymakers to insist forcefully on more progress and to inter-industry jockeying for advantage,” said Rep. Edward J. Markey (D-Mass.), the telecommunications subcommittee’s ranking member.