The Federal Communications Commission said the new rules, known as the "broadcast flag," only target devices capable of receiving digital broadcast signals. DTV receivers must comply with the broadcast flag rules by July 1, 2005.

Exempt from the new FCC rules are digital VCRs, DVD players and PCs not equipped with digital tuners. "Existing televisions, VCRs, DVD players and related equipment will remain fully functional under the new broadcast flag system," the agency said in a statement.

"Today's decision strikes a careful balance between content protection and technology innovation in order to promote consumer interests," added FCC Chairman Michael Powell.

Groups like the Motion Picture Association of America had lobbied hard in Congress for the copy-protection scheme, arguing that they could not release digital copies of films for broadcast until rules and technology were in place to prevent unlimited copying of digital content.

Some consumer groups have argued that the rules will restrict the use of new technologies. Congress had threatened to intervene unless industry groups broke a deadlock over digital content protection issue. The FCC ruling represents a compromise between the two sides, observers said.

The “broadcast flag” is a digital code that can be embedded into a digital broadcasting stream. It signals DTV reception equipment to limit the indiscriminate redistribution of digital broadcast content. Under the new rules, broadcasters will be able decide what programs will be flagged to prevent copying.

By: DocMemory
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