Abstract
In late 2003, the FCC approved a regulation called the "Broadcast Flag." The regulation
mandated that after July 1, 2005, all consumer electronics devices that could receive over-the-air
terrestrial television signals must also be able to detect and read "Broadcast Flags."
These "Flags" are small pieces of software code embedded in a digital terrestrial
television stream that can be recognized by consumer electronics products like digital TV sets, PVRs,
and even PCs with TV tuner cards. The Flags are designed to fight digital video piracy by
restricting how consumers can record and transfer their TV programming to other forms of media.
However, a lawsuit filed by consumer groups challenging the Broadcast Flag mandate was recently
upheld by the US Court of Appeals, and the future of the Broadcast Flag is now in doubt.
This report looks at the history of the Broadcast Flag, and examines the reasoning behind the
recent Appeals Court decision. It also identifies approved Broadcast Flag technologies, and tracks
the opinions of key players in the Broadcast Flag debate. Finally, the report discusses the future
of the Broadcast Flag, to include a prediction about specific regulatory and legislative scenarios
that will likely occur before the end of 2005.
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