Intel Corp, IBM Corp and computer and software makers say proposed legislation to protect movies sold over the Internet and other digital media would cost companies money and stifle product innovation.
A proposal by Senate Commerce Committee Chairman Ernest Hollings -- backed by Walt Disney Co and News Corp -- would require all devices that play digital content to meet set standards for copyright protection, affecting hardware from personal computers to handheld devices, the computer companies said.
The rise of the Internet and mobile devices has prompted entertainment companies to explore new ways of selling content. Some holders of copyrights on such content fear the technology could increase piracy.
"One of the great problems we see is political and regulatory bodies being involved in our product development," Intel lobbyist Doug Comer said at a news conference, which included Microsoft Corp, Hewlett-Packard Co, and Compaq Computer Corp. representatives as well as technology-industry groups.
A hearing Hollings had scheduled for Thursday on the matter had to be postponed because Congress lost working time when buildings were shut down Thursday, Friday and Monday to be screened for anthrax, spokesman Andy Davis said.
Hollings sees the legislation as a way to encourage companies to invest in broadband, or high-speed Internet networks capable of transmitting data-heavy video and interactive content, Davis said.
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