Friday, April 26, 2024

World IP Day 2024: Time to Step Things Up Against Online Copyright Piracy

April 26 is World Intellectual Property Day. Copyrights are more important to the U.S. economy today than at any previous time in history. The American Founders had the wisdom and foresight to put copyright protections in the 1787 U.S. Constitution. But securing Americans' rights in creative works such as movies, TV shows, and music from mass online piracy is an ongoing responsibility of Congress. In 2024, Congress should consider establishing a legal process for copyright owners to obtain court orders requiring broadband providers to block access to third-party websites whose entire or overwhelming purpose is to unlawfully traffick copyrighted content. 

According to a January 30 report by the U.S. Trade Representative, commercial-scale copyright piracy causes "significant financial losses for U.S. right[s] holders and legitimate businesses" and it "undermine[s] critical U.S. comparative advantages in innovation and creativity to the detriment of American workers." The report cited a June 2019 study by the Global Intellectual Property Center that found online piracy costs the U.S. economy $29.2 billion in lost revenue each year. The study also found that illegal streaming and file-sharing operations cost about 250,000 American jobs yearly. 

As the Trade Representative's report explained, there is a worldwide "complex ecosystem" for online piracy.Unauthorized Internet Protocol television (IPTV) operators stream vast libraries of copyrighted content, including live sports and premium channels, at below-market prices. "Cyberlocker" sites "act as the hosting and content storage sites for the world's most popular piracy streaming and linking websites." Many cyberlocker sites "offer a tiered revenue sharing system to reward the uploaders of their most popular content," including copyrighted content that has not yet been commercially released to the public. Online infringements also are facilitated by foreign "bulletproof" Internet service providers (ISPs) that "often explicitly advertise leniency in allowing their customers to upload and distribute infringing content" and refuse to comply with U.S. law.

 

In a February 2024 Perspectives from FSF Scholars, "Congress and the Administration Should Move Against Online Copyright Piracy," I identified three ways to better protect Americans' copyrighted works from mass online piracy: (1) confirmation of an Intellectual Property Enforcement Coordinator (IPEC) to engage foreign nations on copyright piracy: (2) stepped-up prosecutorial efforts against commercial streaming piracy operations; and (3) establishment of a "notice-and-stay-down" requirement for major online platforms to prevent serial re-posts of infringing content on their websites as a condition for obtaining immunity for infringements. 

 

But here is a fourth way to combat online piracy and improve protections for copyrighted content: establishment of a legal process for judicial site-blocking of third-party websites that are dedicated entirely or overwhelmingly to unlawful online copyright piracy.

 

In an April 9 speech, Motion Picture Association (MPA) Chairman and CEO Charles Rivkin called digital piracy "a central threat to the security of workers, audience, and the economy at large." His estimate of the damages from such piracy is stunning: "In the U.S. alone, it steals hundreds of thousands of jobs from workers and tens of billions of dollars from our economy, including more than one billion in theatrical ticket sales."

 

Mr. Rivkin pledged that his organization is going to work with Congress on judicial site-blocking legislation that "focuses only on sites featuring stolen materials" and that is "within the bounds of due process, requiring detailed evidence establishing a target's illegal activities and allowing alleged perpetrators to appear in a court of law." On behalf of MPA, he also pledged an "unflinching commitment to the First Amendment."

 

Indeed, due process and free speech are essential starting points for any judicial site-blocking legislation worth considering. Such a bill must be tightly focused on websites that are entirely or overwhelmingly dedicated to trafficking commercial copyrighted content, not viewpoints expressed on such sites. It must authorize only a private civil cause of action and not be a potential tool for government censorship of lawful speech. Additionally, a worthy judicial site-blocking bill would avoid imposing any undue burdens or costs on compliant broadband ISPs. Also, there must be a legislative process that provides transparency on the content of bills and amendments, committee hearings, and opportunities for public input.

 

On World IP Day, Congress should remember the billions in economic damages suffered by American copyright owners each year because of the global online piracy ecosystem. In the months ahead, Congress should develop and consider a constitutionally sound bill authorizing judicial orders to block access to third-party sites that exist for the purpose of engaging in unlawful mass online infringements.