Bipartisan Bill Looks to Crack Down on Rogue Websites


May 23, 2013     By Sheldon Mak & Anderson PC

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A bipartisan group in the U.S. House of Representatives recently introduced legislation intended to combat the illegal distribution of counterfeit goods via rogue websites hosted overseas. The proposed bill greatly expands protections for intellectual property (IP) and, if passed, would bring sweeping changes to copyright law.

Among other things, the Stop Online Piracy Act (H.R. 3261) would allow the Justice Department to seek injunctions against foreign websites suspected of pirating goods or content. The bill would also allow the government and copyright holders to demand that third parties, such as payment processors and online ad networks, terminate services with rogue sites.

As stated by Judiciary House Judiciary Committee Chairman Lamar Smith (R-Texas), “Rogue websites that steal and sell American innovations have operated with impunity. The online thieves who run these foreign websites are out of the reach of U.S. law enforcement agencies and profit from selling pirated goods without any legal consequences. According to estimates, IP theft costs the U.S. economy more than $100 billion annually and results in the loss of thousands of American jobs.”

Despite the strong words from the bill’s sponsors and support from the content industry, the Stop Online Privacy Act has many critics. Leaders from both the public and private sector argue that the bill goes too far and would create too much uncertainty for the technology industry. Industry groups representing Internet Service Providers and the large tech companies such as Google and Yahoo have all spoken out against the bill.

Most recently, Rep. Zoe Lofgren (D-CA) and Rep. Darrell Issa (R-CA) sent a letter to their colleagues urging them not to support the bill. They stated: “H.R. 3261 unfortunately does not follow a consensus-based approach. It would give the government sweeping new powers to order Internet Service Providers to implement various filtering technologies on their networks. It would also create new forms of private legal action against websites—cutting them off from payment and advertising providers by default, without any court review, upon a complaint from any copyright owner, even one whose work is not necessarily being infringed.”

Given the controversy surrounding the bill, its future is largely uncertain. A hearing on the bill is scheduled for this week. We will post updates as they become available.

ABOUT THE AUTHOR: William D. Bowen
William Bowen specializes in intellectual property litigation. Mr. Bowen manages all stages of the litigation process, including pre-filing investigation and case assessment, pretrial motion practice, discovery, trial practice, and post-trial and appellate proceedings. He has represented clients in federal and state courts in Delaware, Texas, and California, as well as appellate courts including the Ninth Circuit, the Federal Circuit, and the U.S. Supreme Court.

With a strong background in computer science and internet technology, Mr. Bowen's technical expertise positions him to be adept at working with expert witnesses, as well as explaining complex technical and legal issues to judges and juries.

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Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.