Senate Bill Proposes Tough Action on Internet Pirates

WASHINGTON, D.C.:  A new bill introduced in the U.S. Senate yesterday—with broad backing from the Hollywood community—aims to crack down on the distribution of pirated content, enabling authorities to shut down "rogue websites."

The Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act or PROTECT IP Act was introduced by Senators Patrick Leahy, Orrin Hatch and Chuck Grassley and will target sites dedicated to the sale of infringing or counterfeit goods.

“This legislation will protect the investment American companies make in developing brands and creating content and will protect the jobs associated with those investments,” Leahy said in a statement. “It will also protect American consumers, who should feel confident that the goods they purchase are of the type and quality they expect.  The PROTECT IP Act targets the most egregious actors, and is an important first step to putting a stop to online piracy and sale of counterfeit goods.”

“With this legislation, we are sending a strong message to those selling or distributing counterfeit goods online that the United States will strongly protect its intellectual property rights,” Hatch added. “Just because it’s on the Internet doesn’t mean it’s free. Fake pharmaceuticals threaten people’s lives. Stolen movies, music, and other products put many out of work. This is why protecting property rights is a critical imperative and is why we’ve come together in introducing this common-sense bill.”

Grassley noted: “The online distribution and sale of pirated content and counterfeit goods imposes a huge cost on the American economy in terms of lost jobs, lost sales, lost innovation and lost income. Piracy and counterfeiting can also present serious health and safety problems for consumers. This legislation will add another tool to the toolbox for going after these criminals and protecting the American public.”

The legislation—a revamp of the controversial Combating Online Infringement and Counterfeits Act (COICA), which failed to pass last year—provides for a narrower definition of a site “dedicated to infringing activities.” It authorizes the Attorney General to serve an issued court order on search engines, payment processors, advertising networks and ISPs that are in business with a so-called rogue website. In addition, rights owners can seek out court orders to have a site blocked or delisted.

Philippe Dauman, president and CEO of Viacom—which is in the midst of an copyright violation dispute with YouTube—commended the introduction of the bill, noting, "Online counterfeiting and infringement are serious and growing threats that have the potential to undermine America’s economic resurgence. With increasing sophistication, criminal elements are infecting the internet ecosystem with illegal, parasitic websites that steal the hard work of millions and expose innocent users to a spectrum of significant, real-world dangers. In order to combat these evolving threats, law enforcement must be given the necessary tools to continue to effectively protect American workers. Across the entertainment industry alone, more than 140,000 jobs have already been lost due to online piracy, and other IP-dependent industries are equally at risk."

The bill has several critics. The civil liberties group Electronic Frontier Foundation (EFF) said it is "dismayed" with the legislation, noting that the bill aims to "inject a little due process into the mix," but it "falls far short of the mark given the potential implications of these actions for online speech."