Capitol Broadcasting will begin field tests in Raleigh-Durham, N.C., next week of technology that it believes will eventually allow the streaming of TV stations on the Web without violating existing network or syndicated programming copyright agreements.

According to Capitol Broadcasting VP Jimmy Goodmon, the tests will involve two proprietary channels (weather and documentaries) and about 50 selected homes in the market.

“This is a proof of concept, a proof of the technology,” Goodmon says, stressing that neither of the channels will contain programming for which Capitol does not already have the rights.

“We are definitely not going to be offering any CBS programming,” he said.

Capitol owns WRAL, the CBS affiliate in Raleigh-Durham, as well as the WRAZ, the Fox affiliate.

Capitol envisions broadcasters or other independent online distributors offering TV stations along with national cable networks via the Web just as cable systems now do over coaxial cable.

Capitol believes that TV stations can be streamed on the Internet under the cable compulsory copyright license if two conditions are met.

First, access to the TV signals must be restricted to viewers in its over-the-air market and, second, the broadband distributor must comply with all cable regulations.

The Capitol technology addresses the first condition.

Here's how it works:

Viewers demonstrate that they live in-market by registering at a Web site at no charge with a credit card.

They are sent software and a dongle, a tiny FM radio receiver about the size of a flash drive that plugs into a USB port of a computer.

The software will permit access to the broadband programming but only if the dongle is in the presence of the RDS identifier of certain local FM radio signals.

If the computer and dongle are moved beyond the reach of the local FM signals, the computer will no longer be able to access the programming.

With such technology, an online distributor could apply for a local cable franchise and take advantage of the compulsory license, which relieves franchisees of any copyright liability for TV station programming.

The distributor could then replicate a conventional cable system, offering TV stations along with cable networks.

“If would be hard to get all the networks, but we could get a lot of them,” said Goodmon.

Capitol has no plans to take the concept beyond the field tests and has yet to apply for a cable franchise, he said.