Broadcast Flag Shot Down
By John Eggerton BroadcastingCable.com

The U.S. Court of Appeals in Washington has ruled that the FCC did not have the authority to mandate the use of broadcast flag technology to protect digital content from piracy.

In a decision released Friday, the court agreed with petitioners the American Library Association that the flag rules do not regulate interstate radio communications because it has no effect until after the broadcast transmission is completed.

The flag is a code embedded in broadcast programming that signals the receiver to block the illegal retransmission of the broadcast over computer networks and other devices. Broadcasters argue that without that protection, the switch to digital is fraught with dangers from digital pirates.

The court said there is "no statutory foundation for the broadcast flag rules." Saying the commission acted outside its scope of authority, the court found that "Congress never conferred authority on the FCC to regulate consumers' use of television received apparatus after the completion of broadcast transmissions."

Broadcasters will now have to look to Congress to legislate the flag.
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