If you've read what Senator Hollings wants, he wants DRM down to the file level, certified on any code or hardware that has the ability to copy ANY file. So, if I write code that, in the process of normal operation, moves data from one file to another, I'd need a certificate and to pay for that certification, even if I want to GIVE AWAY the code for free. It doesn't matter if it's a database move, a printer enhancement, or an MP3 maker.
As for "controlling piracy", I heard the EXACT SAME ARGUMENTS in the 1970's, dealing with that guaranteed-piracy device, the VCR. My interest in piracy is in making sure that the artists in question get their piece of the pie, instead of 99 44/100 percent of revenue eaten by RIAA or MPAA.
As for your logic being Simple. . . Need I remind you of this quote ???
First they came for the Jews, and I did not speak out because I was not a Jew.
Then they came for the Communists,and I did not speak out because I was not a Communist.
Then they came for the trade unionists, and I did not speak out because I was not a trade unionist.
Then they came for me, and there was no one left to speak out for me.
Last I read the Constitution, the ruling principle in this country was the presumption of innocence until proof of guilt. The "Fritz Chip" sets this all on its' head. . .