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The digital music market balances on at least five legs: software producers, technology developers, electronics manufacturers, consumers, and regulating bodies. So, can a two-legged agreement stand? That's the question industry watchers are asking as representatives of two groups, the Recording Industry Association of America (RIAA) and the technology sector, announced that they have reached agreement on a "core set of principles" to guide their public policy activities regarding the distribution of digital content.

The agreement, embodied in a document issued by the Business Software Alliance (BSA), the Computer Systems Policy Project (CSPP), and the Recording Industry Association of America (RIAA), represents what the groups call "new and common ground for the industries," which have been working to stem piracy "while also seeking to embrace the digital age and meet consumer expectations."

The BSA, CSPP, and RIAA say they have agreed on seven principles (which can be downloaded here) to govern their activities for the 108th Congress. The associations would like to see the private sector continue to drive digital distribution rather than "government-dictated technology mandates." The associations stated, "How companies satisfy consumer expectations is a business decision that should be driven by the dynamics of the marketplace, and should not be legislated or regulated."

To combat piracy, the agreement calls for privately funded public awareness efforts, as well as approaching Congress regarding any federal role. While wanting to work without government intervention to create restriction technologies, both industries stated their support for "federal enforcement against those who infringe copyrights as well as unilateral technical protection measures" and agreed that "legislation should not limit the effectiveness of such measures." The two groups also expressed support for "actions by rights holders that could limit the illegal distribution of copyrighted works in ways that are not destructive to networks or products, or that violate consumers' privacy."

The RIAA, BSA, and CSPP argue that government technical mandates are not the best way to serve their interests. The BSA's Robert Holleyman explains, "This is a landmark agreement because it shows that a broad cross-section of companies have come to the conclusion that government-mandated technology protection measures simply won't work. The technology industry knows this."

As a result, the agreement could limit the effectiveness of the so-called Hollings Bill, introduced by South Carolina senator Ernest "Fritz" Hollings last year, which would require government-approved copy restriction technology built into digital products. Notably absent from the new discussions is the Motion Picture Association of America (MPAA), an avid supporter of the Hollings bill, which has pushed for government requirements for built-in restrictions on new devices, such as DVD recorders. The MPAA's Jack Valenti released a statement saying that his group will continue to work through legislation.

In addition, the move may have an adverse effect on The Digital Choice and Freedom Act introduced by Representative Zoe Lofgren (D-CA) last October. That bill is intended as a countermeasure to draconian copy-protection legislation being promoted by Hollings; it would protect consumers' rights to copy CDs, DVDs, and other digital works for personal use, but would not legalize large-scale copying or distribution of copyrighted material.

Consumers may also be getting the short end of the stick in other ways, says fair-use advocate Brett Wynkoop. "If Hollywood and RIAA get technology companies to work in collusion with them to put any kind of restrictions into the hardware we buy that Hollywood and RIAA want, then the public is still hurt, because we can't bypass those restrictions legally."

Jonathan Potter, consumer advocate with the Digital Media Association, remarks, "I think it was essentially a non-event. The RIAA and the other groups still support the Digital Millennium Copyright Act, which makes it illegal for consumers to circumvent copy-protection devices, and the agreement supports marketplace copyright protection efforts. While the RIAA is now asking the government to lay off, it's still threatening consumers with legal action if they share files illegally." Potter adds, "The only question is, when are the record companies going to actually meet the consumer in the marketplace instead of trying to hit the consumer over the head with a hammer."

The Consumer Electronics Association's Gary Shapiro says his group is studying the agreement, stating, "We welcome the RIAA's apparent opposition to government mandates that would force consumer electronics manufacturers to insert controls into their products which would limit consumers' home recording and fair-use rights."

However, a cautious Shapiro adds, "While we also support private negotiations between device manufacturers and content developers, we continue to believe that legislation is required to strike the necessary balance between protecting copyrights and consumers' fair-use rights. To that end, we join numerous technology companies and consumer rights advocates in strongly supporting the Digital Media Consumers' Rights Act, introduced by Representatives Rick Boucher (D-VA) and John Doolittle (R-CA)."