Nike, NBC praise administration's crackdown on rogue websites

A diverse group of companies including Nike, NBC Universal and several professional sports leagues praised the Obama administration on Tuesday for cracking down on online piracy.

The companies, which also include Xerox, Adidas and Tiffany & Co., wrote to Attorney General Eric Holder and John Morton, director of Immigration and Customs Enforcement, expressing their appreciation for the administration shutting down websites that traffic in counterfeit and pirated goods in November as part of "Operation In Our Sites."

"We believe that the online marketplace can only work for consumers and creators if there is respect for property rights and the rule of law — and urge you to continue to act against the kinds of domains that you have targeted," the firms wrote.

"Unfortunately, there are far too many sites stealing from our businesses but we believe that your efforts will drive consumers to the many legitimate online ventures and services that we have worked hard to foster and support."

According to Morton, ICE's seizure of eight domain names prompted 80 other sites selling counterfeit goods to shut down on their own.

"I've never seen that kind of deterrence come from a single law enforcement action before," Morton said at the State of the Net conference in Washington on Tuesday.

The firms also wrote in support of the Combating Online Infringement and Counterfeits Act (COICA), which stalled in the Senate during last Congress after passing the Judiciary Committee and will likely be introduced again this session by Sens. Patrick Leahy (D-Vt.) and Orrin Hatch (R-Utah).

The bill would make it easier for the Justice Department to shut down websites providing pirated materials by shutting down the domain after receiving a preliminary court order. The bill has broad support from the U.S. Chamber of Commerce as well as the clothing, entertainment and software industries.

However, critics including the Electronic Frontier Foundation, have argued the bill amounts to online censorship and would infringe on Americans' free speech rights.

Sen. Ron Wyden (D-Ore.) has been COICA's most vocal opponent on the Hill, calling its approach too heavy-handed and vowing to put a formal hold on the bill to prevent a floor vote. Two of his home state's largest firms, Nike and Adidas, are both supporters of the legislation.