I 
108TH CONGRESS 
1ST SESSION 
H. R. 107
To amend the Federal Trade Commission Act to provide that the advertising 
or sale of a mislabeled copy-protected music disc is an unfair method 
of competition and an unfair and deceptive act or practice, and for 
other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 7, 2003
Mr. BOUCHER (for himself, Mr. DOOLITTLE, Mr. BACHUS, and Mr. KENNEDY 
of Rhode Island) introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committee 
on the Judiciary, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall within 
the jurisdiction of the committee concerned 
A BILL 
To amend the Federal Trade Commission Act to provide 
that the advertising or sale of a mislabeled copy-pro-
tected music disc is an unfair method of competition 
and an unfair and deceptive act or practice, and for 
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Digital Media Con-
sumers’ Rights Act of 2003’’.
SEC. 2. FINDINGS. 
Congress finds the following: 
(1) The limited introduction into commerce of 
‘‘copy-protected compact discs’’ has caused con-
sumer confusion and placed increased, unwarranted 
burdens on retailers, consumer electronics manufac-
turers, and personal computer manufacturers re-
sponding to consumer complaints, conditions which 
will worsen as larger numbers of such discs are in-
troduced into commerce. 
(2) Recording companies introducing new forms 
of copy protection should have the freedom to inno-
vate, but should also be responsible for providing 
adequate notice to consumers about restrictions on 
the playability and recordability of ‘‘copy-protected 
compact discs’’. 
(3) The Federal Trade Commission should be 
empowered and directed to ensure the adequate la-
beling of prerecorded digital music disc products. 
SEC. 3. INADEQUATELY LABELED COPY-PROTECTED COM-
PACT DISCS. 
The Federal Trade Commission Act (15 U.S.C. 41 
et seq.) is amended by inserting after section 24 the fol-
lowing new section:
‘‘SEC. 24A. INADEQUATELY LABELED COPY-PROTECTED 
COMPACT DISCS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) The term ‘Commission’ means the Federal 
Trade Commission. 
‘‘(2) The term ‘audio compact disc’ means a 
substrate packaged as a commercial prerecorded 
audio product, containing a sound recording or re-
cordings, that conforms to all specifications and re-
quirements for Red Book Audio and bears a duly li-
censed and authorized ‘Compact disc Digital Audio’ 
logo. 
‘‘(3) The term ‘prerecorded digital music disc 
product’ means a commercial audio product com-
prised of a substrate in the form of a disc in which 
is recorded a sound recording or sound recordings 
generally in accordance with Red Book Audio speci-
fications but that does not conform to all licensed 
requirements for Red Book Audio: Provided, That a 
substrate containing a prerecorded sound recording 
that conforms to the licensing requirements applica-
ble to a DVD-Audio disc or a Super Audio Compact 
Disc is not a prerecorded digital music disc product. 
‘‘(4) The term ‘Red Book Audio’ means audio 
data digitized at 44,100 samples per second (44.1 
kHz) with a range of 65,536 possible values as de-
fined in the ‘Compact Disc-Digital Audio System 
Description’ (first published in 1980 by Philips N.V. 
and Sony Corporation, as updated from time to 
time. 
‘‘(b) PROHIBITED ACTS.—
‘‘(1) The introduction into commerce, sale, of-
fering for sale, or advertising for sale of a 
prerecorded digital music disc product which is mis-
labeled or falsely or deceptively advertised or 
invoiced, within the meaning of this section or any 
rules or regulations prescribed by the Commission 
pursuant to subsection (d), is unlawful and shall be 
deemed an unfair method of competition and an un-
fair and deceptive act or practice in commerce under 
section 5(a)(1). 
‘‘(2) Prior to the time a prerecorded digital 
music disc product is sold and delivered to the ulti-
mate consumer, it shall be unlawful to remove or 
mutilate, or cause or participate in the removal or 
mutilation of, any label required by this section or 
any rules or regulations prescribed by the Commis-
sion pursuant to subsection (d) to be affixed to such 
prerecorded digital music disc product. Any person 
violating this subsection shall be deemed to have en-
gaged in an unfair method of competition and an
unfair and deceptive act or practice in commerce 
under this Act. 
‘‘(c) MISLABELED DISCS.—For purposes of this sec-
tion, a prerecorded digital music disc product shall be con-
sidered to be mislabeled if it—
‘‘(1) bears any logo or marking which, in ac-
cordance with common practice, identifies it as an 
audio compact disc; 
‘‘(2) fails to bear a label on the packaging in 
which it is sold at retail in words that are prominent 
and plainly legible on the front of the packaging 
that—
‘‘(A) it is not an audio compact disc; 
‘‘(B) it might not play properly in all de-
vices capable of playing an audio compact disc; 
and 
‘‘(C) it might not be recordable on a per-
sonal computer or other device capable of re-
cording content from an audio compact disc; or 
‘‘(3) fails to provide the following information 
on the packaging in which it is sold at retail in 
words that are prominent and plainly legible—
‘‘(A) any minimum recommended software 
requirements for playback or recordability on a 
personal computer;
‘‘(B) any restrictions on the number of 
times song files may be downloaded to the hard 
drive of a personal computer; and 
‘‘(C) the applicable return policy for con-
sumers who find that the prerecorded digital 
music disc product does not play properly in a 
device capable of playing an audio compact disc. 
‘‘(d) RULEMAKING.—(1) The Commission may de-
velop such rules and regulations as it deems appropriate 
to prevent the prohibited acts set forth in subsection (b) 
and to require the proper labeling of prerecorded digital 
music disc products under subsection (c). 
‘‘(2)(A) The Commission may develop such additional 
rules and regulations as it deems necessary to establish 
appropriate labeling requirements applicable to new audio 
discs, using new playback formats (including DVD-Audio 
discs and Super Audio Compact Discs), if the Commission 
finds, with respect to a particular type of disc, that 
‘‘(i) the manner in which the discs are displayed 
at retail, packaged, or marketed results in substan-
tial consumer confusion about the playability and re-
cordability of such discs; 
‘‘(ii) the discs are not appropriately labeled with 
respect to their playability on standard audio com-
pact disc playback devices; and
‘‘(iii)(I) the discs are not recordable on a per-
sonal computer; or 
‘‘(II) if the discs are recordable, a recording 
made from such a disc is bound to a particular de-
vice. 
‘‘(B) To the maximum extent practicable, the Com-
mission shall seek to ensure that any rules and regulations 
developed under this paragraph impose labeling require-
ments comparable to the requirements imposed under the 
rules and regulations developed under paragraph (1).’’. 
SEC. 4. REPORT TO CONGRESS. 
Not later than 2 years after the date of enactment 
of this Act, the Federal Trade Commission shall submit 
to Congress a report detailing the following: 
(1) The extent to which prerecorded digital 
music disc products (as defined in section 24A of 
the Federal Trade Commission Act, as added by sec-
tion 3 of this Act) have entered the market over the 
preceding 2 years. 
(2) The extent to which the Commission has re-
ceived complaints from consumers about the imple-
mentation of return policies for consumers who find 
that a prerecorded digital music disc product does 
not play properly in a device capable of playing an
audio compact disc (as defined in section 24A of 
such Act). 
(3) The extent to which manufacturers and re-
tailers have been burdened by consumer returns of 
devices unable to play prerecorded digital music disc 
products. 
(4) The number of enforcement actions taken 
by the Commission pursuant to section 24A of such 
Act. 
(5) The number of convictions or settlements 
achieved as a result of enforcement actions taken by 
the Commission pursuant to section 24A of such 
Act. 
(6) Any proposed changes to this Act, with re-
spect to prerecorded digital music disc products, 
that the Commission believes would enhance enforce-
ment, eliminate consumer confusion, or otherwise 
address concerns raised by consumers with the Com-
mission. 
SEC. 5. FAIR USE AMENDMENTS. 
(a) SCIENTIFIC RESEARCH.—Subsections (a)(2)(A) 
and (b)(1)(A) of section 1201 of title 17, United States 
Code, are each amended by inserting after ‘‘title’’ in sub-
section (a)(2)(A) and after ‘‘thereof’’ in subsection 
(b)(1)(A) the following: ‘‘unless the person is acting solely
in furtherance of scientific research into technological pro-
tection measures’’. 
(b) FAIR USE RESTORATION.—Section 1201(c) of 
title 17, United States Code, is amended—
(1) in paragraph (1), by inserting before the pe-
riod at the end the following: ‘‘and it is not a viola-
tion of this section to circumvent a technological 
measure in connection with access to, or the use of, 
a work if such circumvention does not result in an 
infringement of the copyright in the work’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(5) It shall not be a violation of this title to 
manufacture, distribute, or make noninfringing use 
of a hardware or software product capable of ena-
bling significant noninfringing use of a copyrighted 
work.’’.
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