Hearing of the Courts, the Internet, and Intellectual Property Subcommittee of the House Judiciary Committee

Date: June 17, 2004
Location: Washington DC

June 17, 2004 Thursday

HEADLINE: HEARING OF THE COURTS, THE INTERNET, AND INTELLECTUAL PROPERTY SUBCOMMITTEE OF THE HOUSE JUDICIARY COMMITTEE

SUBJECT: H.R. 4586, THE FAMILY MOVIE ACT OF 2004

CHAIRED BY: REPRESENTATIVE LAMAR SMITH (R-TX)

WITNESSES:

MARYBETH PETERS, REGISTER OF COPYRIGHTS, COPYRIGHT OFFICE OF THE UNITED STATES, THE LIBRARY OF CONGRESS; AMITAI ETZIONI, FOUNDER AND DIRECTOR, THE INSTITUTE FOR COMMUNITARIAN POLICY STUDIES, THE GEORGE WASHINGTON UNIVERSITY; JACK VALENTI, PRESIDENT AND CHIEF EXECUTIVE OFFICER, MOTION PICTURE ASSOCIATION OF AMERICA;

PENNY NANCE, PRESIDENT, KIDS FIRST COALITION

LOCATION: 2141 RAYBURN HOUSE OFFICE BUILDING, WASHINGTON, D.C.
REP. MAXINE WATERS (D-CA): Thank you very much, Mr. Chairman. I'd like to thank our panelists for being here today and I would like to just reiterate probably what has been said over and over again, that we're all very much concerned about our children and what they have access to and the impact that movies have on our children. And no matter what our approaches are, we all share that same very basic concern.

Mr. Chairman and members, I'm very concerned at this point about whether or not the hearings that we are holding are timely or whether or not this hearing or the possibility of legislation like this bill can be used as a club to influence settlement negotiations between the movie studios and ClearPlay in the federal court litigation pending.

Mr. Valenti, you referred to this-you alluded to this, I think, in your statement. Could you expand on this a bit and help me to understand whether or not what we're doing at this particular time makes good sense in light of what is going on right now with litigation?
MR. VALENTI: Congressman Waters, the negotiations have been going on for some time. It's very difficult to negotiate when one side believes, as I said in my testimony, that legislation is going to favor them, and if they just hold on and not make any final negotiations, they will get everything they want because of legislation. Now, keep in mind also the Directors Guild has made two proposals, I have been told, to ClearPlay. At this point, ClearPlay has not made any proposals. As a matter of fact, I have been told-and, again, I can't certify this-that they have stiffened their position.

I believe that-the Directors Guild have said they would have-they would agree to licensing agreements by the copyright owners if they took the airline version of a film, which has been edited by the director, but with his consultation, so that he approves of what has been done of that movie so it doesn't destroy the dramatic narrative. That's what this is about. This can be done. Our companies, the seven member companies, are not against the proposition of licensing to ClearPlay. It's doing it on a basis that both sides will agree to. I believe if ClearPlay understood that this legislation was going to wait for another year or whatever, I think there would be an end to this negotiation, and an end that both sides would accept. I truly believe that.

REP. WATERS: Thank you, Mr. Valenti, for expanding on that discussion that you initiated in your testimony.

And I'd like to direct my remarks now to my colleagues and to our chairman. I have come to understand, despite the fact that I'm viewed as a liberal or progressive, that government can't solve everything, and there are times when government should just hold and allow those who are involved in negotiation, certainly in litigation, to see what they can get done. I would hope that I am not-no one is attempting to use me or this committee or this Congress to threaten or intimidate or to be leveraged in an effort to have their way. And I would hope that we would be wise enough to allow the negotiations to continue and to say to both parties, you better go solve it. That it is not in the best interests of any of us for the Congress to jump in and try to determine the outcome.

There are a lot of issues at stake here, certainly issues about freedom of speech, issues about how we basically decide what is the proper direction in protecting our children, and whether or not in this atmosphere and environment that we're in now, where all kinds of rights are being threatened, whether or not we take advantage of this atmosphere and election time and all of that to look at this. We are better than others because we care more about the children than others. I think it's time for us all to cool out and let the negotiations go forward.

Thank you, Mr. Chairman.

REP. SMITH: Thank you, Ms. Waters.

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