DALLAS, TX: Institute for Policy Innovation (IPI) President Tom Giovanetti released the following statement today regarding legislative efforts to protect intellectual property from international online theft:
"The Institute for Policy Innovation (IPI) commends the Congressional leadership in both Houses of Congress for attempting to limit the trafficking of pirated and counterfeited goods to American consumers.
It is now well understood, thanks to the research by IPI and others, that piracy and counterfeiting are serious economic crimes against the U.S. economy. Indeed, the economic costs of copyright piracy alone are staggering. According to IPI research, copyright piracy costs the U.S. economy annually at least 373,000 jobs, $16 billion in lost earnings, and $3 billion in lost state, federal and local tax revenue.
But the victim is also the purchaser. What if your prescription drug or electrical breaker box or brake pads for your car are counterfeit? All of these products are commonly counterfeited, and if you’re the unfortunate consumer of such goods, you’re likely to experience loss, harm, or even death at the hands of the counterfeiters. And while for the time being law enforcement agencies have sufficient tools to deal with domestic websites trafficking in illegal goods, they are powerless to act against such foreign domiciled websites.
It’s worth finding a means to cut off these websites so that they can no longer take advantage of U.S. consumers, and we are gratified that such a process is underway. As with any legislative process, it is to be expected that solutions will be presented, critiqued, modified, further critiqued, and further refined so that the solution narrowly targets the problem without creating a host of unintended consequences. Such fits and starts are normal, and are not an indictment of legitimacy of the effort.
In this case, much heated and overblown rhetoric has been lobbed against this effort, with critics claiming that government is attempting to 'censor the Internet.' Such rhetoric is dishonest and unhelpful, and threatens a worthwhile endeavor. Similarly dishonest and unhelpful is the rhetoric claiming that those in the service provider or Internet space do not want to stop piracy and counterfeiting because it somehow benefits them.
But the endeavor is also threatened by proposals that ignore the legitimate concerns of ISPs, Internet companies, and payment processors. A real solution to the problem of piracy and counterfeiting is one that works for the entire Internet ecosystem, rather than pitting content against the means of distribution. It must include clear definitions, safe harbors, genuine due process provisions, carefully defined duties and responsibilities, and must avoid needless duplication of effort across multiple government agencies lacking in appropriate expertise. It should also explicitly target websites hosted outside of U.S. jurisdiction, and must not create a whipsaw of legal liability for intermediaries acting in good faith.
IPI encourages all stakeholders to work constructively with lawmakers in order to craft an effective solution to the 'rogue website' problem that incorporates the input of all stakeholders."
IPI President Tom Giovanetti is author of "Protecting Property Rights on the Web: Thoughts on the PROTECT IP Act." He is available for interview by contacting Erin Humiston at (972) 874-5139, or erin@IPI.org.
December 15, 2011