Wyden blocks online copyright bill

Sen. Ron Wyden (D-Ore.) said he is placing a hold on the controversial online piracy bill passed by the Senate Judiciary Committee Thursday that would expand the government's authority to seize websites that link to pirated or counterfeit content.

"I understand and agree with the goal of the legislation, to protect intellectual property and combat commerce in counterfeit goods, but I am not willing to muzzle speech and stifle innovation and economic growth to achieve this objective," Wyden said, arguing the bill takes an "overreaching approach to policing the Internet when a more balanced and targeted approach would be more effective."

"The collateral damage of this approach is speech, innovation and the very integrity of the Internet."

The Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act, or PROTECT IP Act, is strongly supported by the music, film, software, gaming and publishing industries, which lose billions of dollars in revenue each year to online piracy.

It authorizes the Justice Department to file a civil action against the registrant or owner of a domain names dedicated to infringing activities. If the court issues a cease-and-desist order against the rogue website, the Justice Department can serve that court order on third parties, including Internet service providers, payment processors, online advertising network providers and search engines.

Those firms would have to take appropriate action to either prevent access to the infringing site (in the case of an Internet service provider or search engine), or cease doing business with the Internet site (in the case of a payment processor or advertising network).

Rights holders who are the victim of infringement can bring a similar action against a rogue site, whether domestic or foreign. That court order can be served on payment processors and online advertising networks to cut off the financial viability of the criminal activity.

“Copyright infringement and the sale of counterfeit goods can cost American businesses billions of dollars, and result in hundreds of thousands of lost jobs,” said Chairman Patrick Leahy (D-Vt.), who authored the bill and a predecessor that passed the committee last year, upon the bill's passage.

“Protecting intellectual property is not uniquely a Democratic or Republican priority — it is a bipartisan priority.” 

“Today the Judiciary Committee took an important step in protecting online intellectual property rights. The Internet is not a lawless free-for-all where anything goes,” said Sen. Orrin Hatch (R-Utah). “The Constitution protects both property and speech, both online and off.”

But free speech advocates argue the bill gives the government too much power to take down sites and could amount to censorship of the Internet, as well as do little to deter piracy.

"At a time when U.S. businesses are increasingly confronted with barriers to Internet trade and censorship abroad, a government committed to Internet openness should not be in the business of blacklisting Internet sites," said Computer and Communications Industry Association President and CEO Ed Black.

"We are disappointed that the Senate Judiciary Committee today approved legislation that will threaten the security and global functioning of the Internet, and opens the door to nuisance lawsuits while doing little if anything to curb the issues of international source of illegal downloads the bill seeks to address," said Public Knowledge deputy legal director Sherwin Siy.

The bill also encourages voluntary action by Internet firms that have evidence a rogue website is trafficking in counterfeit prescription drugs. In order for it to reach the floor Senate Majority Leader Harry Reid (D-Nev.) would have to call for cloture, which requires 60 votes.

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