One of these content protection schemes is the Audio Protection Flag (APF or "audio flag"), which would protect the content of digital radio transmissions against unauthorized dissemination and reproduction. Background

		What Is Digital Audio? Digital audio technologies include digital radio broadcasts (such as high-definition radio, or "HD Radio"), satellite radio, Internet radio, compact discs, and MP3-format music files. Section 1201(a)(1) prohibits any person from circumventing a technological measure that effectively controls access to a copyrighted work. The "Audio Flag"

One form of DRM technology that may be used to protect the content of digital audio transmissions from unauthorized distribution and reproduction is the "audio flag." Those advocating the use of an audio flag for digital radio programming include musicians, songwriters, record labels, and other providers of audio content that could be broadcast to the public through digital transmissions. Rights That May Be Affected by the Audio Flag Proposal

Critics of the audio flag proposal raise concerns that such a government-mandated measure may stifle technological innovation and restrict the rights of consumers to record broadcast radio—conduct that, according to audio flag opponents, is protected by the Audio Home Recording Act of 1992, as well as "fair use" principles in copyright law. Two bills were introduced in the 109 th Congress that would have delegated such authority; these may represent legislative approaches that could be taken in the 110 th Congress. H.R. 4861, the Audio Broadcast Flag Licensing Act of 2006

This bill would have empowered the FCC to promulgate regulations governing the licensing of "all technologies necessary to make transmission and reception devices" for digital broadcast and satellite radio. S. 2686, the Digital Content Protection Act of 2006

Title IV, Subtitle C of S. 2686 would have granted the FCC the authority to issue "regulations governing the indiscriminate redistribution of audio content with respect to—digital radio broadcasts, satellite digital radio transmissions, and digital radios."
Protecting audio content broadcasted by digital and satellite radios from unauthorized dissemination and reproduction is a priority for producers and owners of those copyrighted works. One technological measure that has been discussed is the Audio Protection Flag (APF or "audio flag"). The audio flag is a special signal that would be imbedded into digital audio radio transmissions, permitting only authorized devices to play back copyrighted audio transmissions or allowing only limited copying and retention of the content. Several bills introduced in the 109th Congress would have granted the Federal Communications Commission (FCC) authority to promulgate regulations to implement the audio flag. The parties most likely affected by any audio flag regime (including music copyright owners, digital radio broadcasters, stereo equipment manufacturers, and consumers) are divided as to the anticipated degree and scope of the impact that a government-mandated copyright protection scheme would have on the "fair use" rights of consumers to engage in private, noncommercial home recording. Critics of the audio flag proposal are concerned about its effect on technological innovation. However, proponents of the audio flag feel that such digital rights management (DRM) technology is needed to thwart piracy or infringement of intellectual property rights in music, sports commentary and coverage, and other types of copyrighted content that is transmitted to the public by emerging high-definition digital radio services (HD Radio) and satellite radio broadcasters.
This report provides a brief explanation of the audio flag and its relationship to digital audio radio broadcasts, and summarizes legislative proposals considered by the 109th Congress, including H.R. 4861 (Audio Broadcast Flag Licensing Act of 2006) and S. 2686 (Digital Content Protection Act of 2006), that would have authorized its adoption. Although not enacted, these two bills represent approaches that may be taken in the 110th Congress to authorize the use of an audio flag for protecting broadcast digital audio content.