Title I -- Security System Standards

Sec. 101: Prohibition of Certain Devices

(a) In General – If one manufactures, imports, offers to the public, provides or otherwise traffics in any interactive digital device that does not include and utilize certified security technologies that adhere to the security system standards adopted under section 104, one shall not be liable for contributory or vicarious copyright infringement.

(b) Exception -- Subsection (a) does not apply to the offer for sale or provision of, or other trafficking in, any previously-owned interactive digital device, if such device was legally manufactured or imported, and sold, prior to the effective date of regulations adopted under section 104 and not subsequently modified in violation of subsection (a) or 103(a).

Sec. 102: Preservation of the Integrity of Security

An interactive computer service shall store and transmit with integrity any security measure associated with certified security technologies that is used in connection with copyrighted material or other protected content such service transmits or stores.

Sec. 103: Prohibited Acts

(a) Removal or Alteration of Security -- No person may --

(1) remove or alter any certified security technology in an interactive digital device; or

(2) transmit or make available to the public any copyrighted material or other protected content where the security measure associated with a certified security technology has been removed or altered.

[Summary: Personal TV/cable/satellite time-shifting copies normally must be allowed by certified security technologies]

SEC. 104. ADOPTION OF SECURITY SYSTEM STANDARDS.

(a) CRITERIA. -- In achieving the goals of setting standards that will provide effective security for content and certifying as many conforming technologies as possible to develop a competitive and innovative marketplace, the following criteria shall be applied to the development of security system standards and certified security technologies:

(1) Reliability

(2) Renewability

(3) Resistance to attack

(4) Ease of implementation

(5) Modularity

(6) Applicability to multiple technology platforms

(7) Freeing of copyrighted work when copyright lapses. 

(8) Allow fair uses of the copyrighted works to the extent technically feasibly

(9) Public and open.

(b) PRIVATE SECTOR EFFORTS. --

(1) IN GENERAL. -- The Secretary shall make a determination, nor more than 12 months after the date of enactment of the Act, as to whether --

(A) representatives of interactive digital device manufacturers and representatives of copyright owners have reached agreement on security system standards for use in interactive digital devices; and

(B) the standards meet the criteria in subsection (a).

(2) EXTENSION OF 12-MONTH PERIOD. --  The Secretary may, for good cause shown, extend the 12-month period in paragraph (1) for a period of not more than 6 months if the Secretary determines that --

(A) substantial progress has been made by those representatives toward development of security system standards that will meet those criteria;

(B) those representatives are continuing to negotiate in good faith; and

(C) there is reasonable expectation that final agreement will be reached by those representatives before the expiration of the extended period of time.

(c) AFFIRMATIVE DETERMINATION. -- If the Secretary makes a determination under subsection (b)(1) that an agreement on security system standards that meet the criteria in subsection (a) has been reached by those representatives, then the Secretary shall --

(1) initiate rulemaking within 30 days after the date on which the determination is made to adopt those standards; and

(2) publish a final rule pursuant to that rulemaking not later than 90 days after initiating the rulemaking that will take effect 1 year after its publication.

(d) NEGATIVE DETERMINATION. -- If the Secretary makes a determination under subsection (b)(1) that an agreement on security system standards that meet the criteria in subsection (a) has not been reached by those representatives, then the Secretary --

(1) in consultation with representatives described in subsection (b)(1)(A), the National Institute of Standards and Technology and the Register of Copyrights, shall initiate a rulemaking within 30 days after the date on which the determination is made to adopt security system standards that meet those criteria to provide effective security for copyrighted material and other protected content; and

(2) publish a final rule pursuant to that rulemaking not later than 1 year after initiating the rulemaking that will take effect 1 year after its publication.

(e) MEANS OF IMPLEMENTING STANDARDS. -- The security system standards adopted under subsection (c) or (d) shall provide for secure technical means of implementing directions of copyright owners, for copyrighted material, and rights holders, for other protected content, with regard to the reproduction, performance, display, storage, and transmission such material or content.

(f) SUBSEQUENT MODIFICATION; NEW STANDARDS. -- The Secretary may conduct subsequent rulemakings to modify any standards established under subsection (c) or (d) or to adopt new security system standards that meet the criteria in subsection (a). In conducting any such subsequent rulemaking, the Secretary shall consult with representatives of interactive digital device manufacturers, representatives of copyright owners, the National Institute of Standards and Technology, and the Register of Copyrights. Any final rule published in such a subsequent rulemaking shall --

(1) apply prospectively only; and

(2) take into consideration the effect of adoption of the modified or new security system standards on consumers' ability to utilize interactive digital devices manufactured before the modified or new standards take effect.

SEC. 105. CERTIFICATION OF TECHNOLOGIES.

The Secretary shall certify technologies that adhere to the security system standards adopted under section 104. The Secretary shall certify only those conforming technologies that are public and available for licensing on reasonable and nondiscriminatory terms.