Why Hollywood Is Winning Its War

Consumer electronics is now split into several factions, leaving it less able to battle the entertainment industry's protection demands

In November, after a long, controversial battle, the Federal Communications Commission unveiled its proposal for the "broadcast flag," a technology that protects the high-resolution programs shown on digital TV from being shared on the Internet. The Motion Picture Association of America (MPAA) and big-name consumer-electronics outfits such as Sony (SNE ), Matsushita (MC ), Toshiba, and Hitachi hailed the FCC's move as a smart compromise between consumers' right to make copies of movies and TV programs for personal use and protecting content owners' intellectual property.

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