While small Internet upstarts hope to stream digital content, like movies, music and TV programs to computer users, ''old media'' firms like the powerful entertainment studios are fighting to ensure they get compensated for works on the Web.
Experts say billions of dollars are at stake in the dispute.
Wednesday's hearing was part of a study required by the DMCA, and these agencies' will report to Congress regarding further changes to copyright law, Potter said. At the hearing, DiMA and new media companies argued that consumers must be assured digitally-downloaded purchases enjoy the same flexibility and value as physical media, including the right to resell, lend or give away media products. Specifically, these companies say that when a song, for instance, is streamed, the Webcaster should only have to pay a royalty on that performance once. Copyright holders, however, feel royalties should be paid on copies that may be produced incidentally on the computer's buffer as a result of the streaming. Such amendments would threaten to facilitate piracy, he said.