Senators Introduce Bipartisan Bill to Combat Online Infringement

A bipartisan group of Senators has introduced legislation to address what they called a “growing problem of online piracy and counterfeiting.”

Senate Judiciary Committee Chairman Patrick Leahy (D-Vt.) and senior Republican member Orrin Hatch (R-Utah) will introduce the Combating Online Infringement and Counterfeits Act when the Senate returns to session later today.  The legislation is cosponsored by Committee members Herb Kohl (D-Wis.), Arlen Specter (D-Pa.), Chuck Schumer (D-N.Y.), Dick Durbin (D-Ill.), Sheldon Whitehouse (D-R.I.), and Amy Klobuchar (D-Minn.).  Senators Evan Bayh (D-Ind.) and George Voinovich (R-Ohio) are also cosponsors of the legislation.

According to Sen.  Leahy, the legislation will give the Department of Justice tools to track and shut down websites devoted to providing access to unauthorized downloads, streaming or sale of copyrighted content and counterfeit goods.  The illegal products offered through these websites, which are often foreign-owned and operated, range from new movie and music releases, to pharmaceuticals and consumer products.  Intellectual property theft costs the U.S. economy more than $100 billion every year, according to estimates.

“Each year, online piracy and the sale of counterfeit goods cost American businesses billions of dollars, and result in hundreds of thousands of lost jobs,” said Leahy.  “The Combating Online Infringement and Counterfeits Act will protect the investment American companies make in developing brands and creating content and will protect the jobs associated with those investments.  Protecting intellectual property is not uniquely a Democratic or Republican priority – it is a bipartisan priority.”

“In today’s global economy the Internet has become the glue of international commerce – connecting consumers with a wide-array of products and services worldwide. But it’s also become a tool for online thieves to sell counterfeit and pirated goods, making hundreds of millions of dollars off of stolen American intellectual property,” said Hatch.

“This legislation is critical to our continued fight against online piracy and counterfeiting. By coordinating our efforts with industry stakeholders and law enforcement officials, we’ll be better able to target those who are profiting from illegal activity.”

“This much needed bill will help law enforcement keep pace in shutting down websites that illegally sell copyrighted goods.  That way we protect legitimate businesses from losing sales and consumers from being duped into purchasing counterfeit and unauthorized goods.  By cracking down on online piracy of television shows and movies, we hope this bill will encourage copyright owners to develop innovative and competitive new choices for consumers to watch video over the internet,” Kohl said.

“I’m happy to cosponsor this important bill with Senator Leahy to help fight online piracy and counterfeiting,” said Specter.  “It is imperative that we advance this legislation to protect the intellectual property rights of American businesses.”

“The online sale of stolen intellectual property—whether pirated movies or music or counterfeit electrical goods or pharmaceuticals—hurts American companies, kills American jobs, and puts consumers at risk of defective products,” said Whitehouse.  “This important legislation will help combat websites that often are linked to criminal syndicates, making the Internet safer for consumers and legitimate businesses.”

“In our increasingly competitive global economy, intellectual property is our last substantial competitive advantage. This bill gives the Department of Justice additional tools needed to combat counterfeiting, which ultimately protects American jobs,” Voinovich said.  “I’ve fought throughout my Senate career to protect intellectual property rights, and I look forward to working with my colleagues to pass this bill.”

The Combating Online Infringement and Counterfeits Act will:

- Give the Department of Justice an expedited process for cracking down on websites that are dedicated to making infringing goods and services available;

- Authorize the Department of Justice to file an in rem civil action against a domain name, and seek a preliminary order from the court that the domain name is being used to traffic infringing material.  The Department must publish notice of the action promptly after filing, and it would have to meet clear criteria that focus on the sites’ substantial and repeated role in online piracy or counterfeiting;

- Provide safeguards allowing the domain name owner or site operator to petition the court to lift the order;

- Provide safeguards against abuse by allowing only the Justice Department to initiate an action, and by giving a federal court the final say about whether a particular site would be cut off from supportive services.

Leahy and Hatch are the authors of the Patent Reform Act, which would make the first major updates to the nation’s patent system in more than 55 years.

In June, the Senate Judiciary Committee held the first oversight hearing with the Intellectual Property Enforcement Coordinator (IPEC), Victoria Espinel.  The IPEC was established by the 2008 Prioritizing Resources and Organization for Intellectual Property (PRO-IP) Act.  The Coordinator chairs an inter-agency committee, and was tasked with producing a joint strategic plan to combat piracy and counterfeiting.  The PRO-IP Act was designed to address intellectual property rights enforcement concerns and to protect American innovation and advancement.

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