Arland contends that companies who object to the rule haven't had to deal with copyright issues before and are overreacting to the threat.

FORBES: Red Flags Over Hollywood

Without a broadcast flag in place, content providers might decide not to release new programming in digital format, thus reducing consumer demand for Thomsons' digital set-top boxes, according to Arland.

FORBES: Red Flags Over Hollywood

"We have worked hand in hand with Hollywood to get some form of broadcast protection, " says Dave Arland, a spokesperson for Thomson Consumer Electronics (nyse: TMS - news - people ).

FORBES: Magazine Article