AT&T in talks with Hollywood studios against piracy

NEW YORK (Reuters) - AT&T Inc. is in talks with Viacom Inc. and Hollywood studios to fight online piracy as the phone company seeks to work more closely with media companies to expand into video entertainment.

AT&T, which is looking to its Internet and video services for growth amid a decline in traditional phone subscriptions, said on Thursday it would work with the studios to keep pirated films and music off its network.

The move, first reported by the Los Angeles Times, sparked criticism from many Internet commentators who said it was a threat to consumer rights.

Gigi Sohn, president and co-founder of Public Knowledge, a consumer advocacy group that focuses on technology and communications, said the move would constrain use of the Web.

"AT&T's announced plans fly in the face of the expectations of consumers to use their material more flexibly, and appear to disregard the recent willingness of some in the content industry to oblige them," she said on the group's Web site, www.publicknowledge.org.

AT&T said the alliance did not target "regular" customers, but those who profit from piracy.

"AT&T aims to balance Viacom's and other companies' need to protect copyrighted data with the consumers' right to fair use of and access to legal material," said spokeswoman Claudia Jones.

Besides partnerships with satellite television providers, AT&T has launched its own Internet-based video service called U-Verse --a business that requires it to negotiate deals with Hollywood studios and TV networks.

Viacom, home to the MTV Networks and Comedy Central, said it was pleased with AT&T's support. AT&T and Viacom declined to name the Hollywood studios taking part in the discussions.

AT&T's Jones said criticism of the partnership was premature as the company did not yet have the technology and had not decided on specifics, such as who to target.

Some bloggers also questioned whether AT&T could effectively patrol its network for pirated content.