[IP] MP3 Device Makers Could Be Next
Begin forwarded message:
From: EEkid@xxxxxxx
Date: July 10, 2004 11:55:09 AM EDT
To: dave@xxxxxxxxxx
Subject: MP3 Device Makers Could Be Next
MP3 Device Makers Could Be Next
Fri Jul 9, 3:15 PM ET
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Add Technology - NewsFactor to My Yahoo!
Jason Lopez, www.newsfactor.com
Critics say it is a chilling proposal, but if the Inducing Infringement
of Copyrights Act, currently in the Senate, were to become law,
manufacturers of digital-music devices could be held liable for illegal
downloading of music.
Forty-two tech companies, including Google, Yahoo (Nasdaq: YHOO -
news), Cnet and Intel (Nasdaq: INTC - news), have signed a letter
denouncing the proposed legislation.
The author of the bill, Republican Senator Orrin Hatch of Utah, is
requesting hearings on music downloading and who should bear the
liability of damages caused by music piracy.
Bi-Partisan Solution
Last year, Hatch suggested that one remedy to the problem would be to
develop technology that would destroy the hard drives of offending
users remotely. He later backed off his extreme stance when it was
discovered that his own computers were powering his Web site with
unlicensed software.
Joining Hatch as co-sponsors of the bill are lawmakers from both sides
of the aisle, including Democrats Patrick Leahy, Vermont; Tom Daschle,
South Dakota; and Barbara Boxer, California, as well as fellow
Republican Bill Frist of Tennessee.
While many legal experts do not believe the bill will become law, they
say the tendency to punish rather than innovate is hampering the
ability of the market to correct the problem. In essence, record
companies are seen as making attempts to win through the courts,
because they have been unable to create a successful music-downloading
system.
Beyond Borders
In the meantime, the operators of popular peer-to-peer networks
responsible for carrying much of the pirated music on the Internet
remain offshore. "Because the Internet has no borders, it is almost
impossible to reach offshore companies operating on the Internet with
no U.S. presence," said IP attorney Jim Burger of the Washington, D.C.,
firm Dow, Lohnes & Albertson.
"The last time I checked, the U.S. had no jurisdiction over Vanuatu,"
he told NewsFactor. Vanuatu is the island nation where Kazaa's
programmers reside.
The new legislation might have a bigger impact on companies in the
U.S. that are engaged in legitimate businesses, Burger believes.
Negative Impact
"While I have sympathy for the creators whose copyrighted material is
illegally downloaded, I am concerned that this type of legislation
could negatively affect companies making products used for
substantially non-infringing purposes," he said.
He is not alone in his sentiments. High-tech companies understand that
litigation, while necessary to protect property on one hand, often
makes for a lousy long-term business strategy. Suits against individual
music downloaders can be effective only as long as the lawsuits make
headlines.
As news outlets give the suits less coverage, the newest tactic
appears to be to sue more parties.
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