Not exactly what you are referring to, but shows the tendency to cave in on these things.
http://en.wikipedia.org/wiki/Consumer_Broadband_and_Digital_Television_Promotion_ActCan you say Digital Rights Management?
And it all gets carried to extremes. There is more if you do a search on terms from this site.
SNIP..." Some have suggested that the act was deliberately introduced in an extreme form that has little chance of becoming law. This is a common practice in politics: typically the supporters of such legislation later accept a modified version reflecting a "compromise" or a "balanced view", but which attains most of their goals.
Possible goals of the CBDTPA would be to distract public attention and encourage hardware manufacturers to support less ambititious schemes. Some confirmation of this was the agreement announced on January 14, 2003 between the Recording Industry Association of America, the Business Software Alliance and the Computer Systems Policy Project (supported by a group of computer hardware manufacturers) in which the music industry would drop its support for compulsory schemes such as CBDTPA in return for the computer industry dropping its support for enhanced "fair use" legislation. Other U.S. senators named as sponsors of the CBDTPA include:
John Breaux (D-LA)
Diane Feinstein (D-CA)
Daniel Inouye (D-HI)
Bill Nelson (D-FL)
Ted Stevens (R-AK)