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When he instituted the film rating system, he had two objectives in mind: first to protect children and provide a warning system for parents, but more importantly to "free the screen." As a defender and advocate of the First Amendment, Valenti despises the censorship of the Production Code, which limited the kind of stories directors could tell. However, with the directors' right to tell stories is the concomitant right of the audience not to watch them. Despite criticism that the system is too subjective, Valenti defends it as necessary for parents to be able to make decisions about their children. In the last decade, copyright protection and piracy have overtaken censorship issues as the main concerns of the MPAA. In a media world that is becoming increasingly digital, Valenti sees the need for changing attitudes towards intellectual property, and the necessity for new business models for the online distribution of movies. Valenti believes there is something substantive about creative property, such as a poem or movie, that makes it just real as physical property; and that it ought to have the same rights and privileges. He makes an analogy that forms the root of his beliefs on intellectual property and piracy: "If I make a table," he says, "it is my table and no one can test that. If you take it out of my house or garage, you've taken something that belongs to me, and we know that's not right. Why isn't something that flourishes in the seedbed of somebody's imagination as worthy as making a table?" For Valenti, copying a DVD is an act of stealing, not very different from stealing a DVD from a video store. Valenti cannot understand why people would never steal a DVD from Blockbuster's for fear of being arrested, but delight in copying a DVD for themselves. When people can take movies without paying for them, such piracy threatens an artist's ability to be creative. Technology is rapidly advancing, and people will soon be able to download media faster than before. At Caltech, Valenti learned of an experimental development called FAST, a data transfer protocol for the Internet that is fast enough to download a full-length movie in less than five seconds, and could be introduced to the market in as little as 18 months. Valenti believes that piracy will rise with the increased sophistication of technology. At a higher rate of piracy, this kind of pillaging will make it hard to nourish new talent and promote movies.

Valenti recognizes the Internet as the greatest distribution channel that ever existed. The movie industry is willing to embrace the web as an efficient distribution system, to make movies available on demand for a price that is fair to the consumer and delivered in a safe fashion. This will give people more choices than they ever had in terms of movie titles and ways of viewing. This is why Valenti and other members of the industry are aggressively meeting with IT people for help with developing the technology for protection. Valenti believes in objective and detailed discourse, and has great respect for people like Lawrence Lessig, with whom he disagrees on certain issues but values the friendship and discussion they share. He is anguished by the hostility and partisanship in politics today, which was not present in the days of the Johnson administration. Discussion DOHERTY: In your testimony before Congress last September, you addressed piracy as a threefold problem. There is the technological problem of protecting movies and DVDs from being illegally copied and distributed. The need for aggressive enforcement of the law, or the rewriting of laws made in the pre-digital age is a legal problem. Finally, there is the ethical problem, which I believe is the most important. How can you change the mentality of people who don't believe they are stealing by copying or downloading movies? VALENTI: I don't know that we can. On all the college campuses I have visited so far, I find the same attitudes among even the most brilliant students, the so-called "leaders of tomorrow." Although they agree that it is a kind of stealing, they reason that everyone does it, and that it costs too much to buy CDs and DVDs anyway. They don't believe they are hurting the industry when stars and studios make so much money. What they don't realize is the carpenters and lighting crews feel the effect too. As the copyright holder, the studio helps to ensure that the film will collect all its revenue and make a profit. Every movie and TV show has residuals that go to a pension for the welfare funds of different guilds. Members of the guilds get a piece of every film that is made. I only ask that people consider whether or not creative property is worthy of being respected. DOHERTY: In 1968, Congress passed the Copyright Term Extension Act, which extended corporate and author copyrights for an additional 20 years. Why was the film industry so zealous about getting this passed? This act is enabling huge conglomerates to constrain works that should be in the public domain. VALENTI: The principle reason for the Extension Act was to provide for the same term of protection as exists in Europe. A difference in copyright terms between the United States and Europe would negatively affect the international operations of the entertainment industry, since American works that are in the public domain here could be expoited elsewhere. DOHERTY: In your testimony before Congress, you expressed vehement opposition to both Internet piracy and the ready access to pornography on the web. The two issues are linked in that pornography, like movies, is available on peer-to-peer (P2P) file sharing systems. VALENTI: I have an old-fashioned obligation to parents. Most parents do not know when they go to file swapping sites that it is an amalgam of music, movies, and the most squalid pornography. The most offensive material is available for children to download. Yet because I believe so strongly in the First Amendment, I want parents to be able to deal with it, so I sound these alarms. DOHERTY: In the 1930s, the Production Code was established as a self-regulatory agency that allowed classical Hollywood to thrive without the hassle of federal censorship. With the Production Code, the criteria for what was acceptable in movies was standardized and published. How does today's ratings board make its decisions?

VALENTI: When I invented the movie ratings system, I consulted with many social scientists and psychologists about what could be considered excessive violence, or what constituted adult content. Their ideas were vapory. To this day, even the Supreme Court is unable to define obscenity. It is a very subjective process. The ratings board is composed of parents who look at films through the eyes of parents. The ratings system merely tells something about a film. A director can accept the rating he is given, or appeal to a board of theater owners and distributors. No director has to cut a millimeter of film — it is still his decision what to include or exclude in a movie. HENRY JENKINS, director, Comparative Media Studies: What you are describing as a crisis in copyright is also a crisis in fair use. As digital technology has expanded our ability to quote media, there is a lack of leadership in Hollywood for defining guidelines for what constitutes fair use. Studios demand such a high price from academics who use material for teaching. Why can't the MPAA help establish guidelines for the scholarly use of materials? Can you work with academics to enable and promote media literacy?

QUESTION: The record industry blames piracy for the decline in music sales, but there are other factors such as the lagging economy, or the rise in spending on video games and other forms of entertainment. My personal experience was that downloading got me more interested in music, and I have actually spent more money on CDs. How do they make the correlation that the increase in downloading leads to decrease in sales? Do you expect the same correlation for movies?

VALENTI: I cannot speak for the music industry, and I don't make the same correlation for movies today. Rather, my emphasis is on looking towards the future of movies. Right now, it takes a while to download movies even with a broadband connection. Next year, it could take 5 seconds if systems like FAST are launched. If that happens, the fate of the movie industry will be bleak. QUESTION: I have a problem with how the industry defines the terms "stealing" and "loss." Making a copy of a movie is not the same as stealing a DVD from the video store, because they still have their copy. I don't mean to say it's not wrong, but it is not the same. How can the industry attribute monetary losses to piracy when it represents money they never had? For example, I could download movies that I would never pay to see in the first place. VALENTI: The industry loses about $3.5 billion worldwide in analog and hard goods piracy. This means that if you buy a DVD on the streets of Beijing, you will not buy a legitimate copy from a store. That is how we calculate the loss of a sale. Lost revenues are what every business calculates. We don't have a number on the losses from digital piracy. As I said before, I'm not as concerned about what's happening today, but what will happen in the future.

ANDREW BROOKS, MIT Media Lab: What about the rights of consumers who buy DVDs legitimately, but suffer from problems with regional codes? I purchase a DVD in Australia and can't see it in the United States, which makes me want to download movies.

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