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CEA SUPPORTS FCC IN CURRENT COURT OF APPEALS TRIAL
Common Reliance on Security Functions in Cable and Consumer Electronics Devices Necessary to Create Competitive Market, Benefit Consumers

Arlington, Virginia 5/11/2006

The following statement was issued today by Consumer Electronics Association (CEA®) President and CEO Gary Shapiro regarding today's oral arguments before the U.S Court of Appeals for the D.C. Circuit in the matter of Advance/Newhouse and Charter Communications, Inc. v. Federal Communications Commission (FCC). CEA is an intervenor on behalf of the FCC (brief filed on March 21, 2006).

"The FCC did not act in an arbitrary or capricious manner in March 2005 when it upheld its rules regarding common reliance of security functions in cable and consumer electronics devices. As we discussed in our brief supporting the FCC, it has been fourteen years since Congress required the FCC to bring competition to the market for cable-related devices. Ten years have passed since Congress required the Commission's regulations to assure competitive entry. Eight years have passed since the Commission enacted its common reliance rules. These rules were affirmed by the Commission on reconsideration in 1999, and unsuccessfully challenged in this Court in 2000 by essentially the same parties in interest.

"All the FCC has done to occasion this appeal is to say it has not changed its mind about its own 1998 regulation. According to the FCC, among the reasons that the agency has not changed its mind is the fact that the market Congress has twice urged to open to competition remains substantially closed, and that common reliance has been shown to be essential to opening it. Common reliance will benefit consumers by enabling manufacturers to provide a broad array of products that can connect to cable systems featuring innovative new features for competitive prices.

"The Commission is entitled to rely on the representations of the parties before it; the public is entitled to rely on the decisions of the Commission; and the Commission is entitled to rely on the decisions of this Court. Anything other than a decisive dismissal of this appeal would violate all three of these principles."

CEA's brief, filed on March 21, 2006, is available at: http://www.ce.org/shared_files/GAC/CEAIntervenorFinalBrief040606.pdf

About CEA:
     The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,100 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $125 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.
     CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.



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CEA SUPPORTS FCC IN CURRENT COURT OF APPEALS TRIAL