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Dean Baker

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The Stop Online Piracy Act: Class War in Cyberspace

Posted: 12/05/11 01:31 PM ET

The 1 percent and their employees are masters of word play. They turned the estate tax into the "death tax," life-saving health and environmental rules became "job-killing" regulations, and of course when it comes to taxes, the richest of the rich are now "job creators" who are supposed to be exempt from paying taxes.

Given this track record, it is hardly surprising that a bill that would require every website in the country to become unpaid copyright enforcement officers for Time Warner, Disney, and the Washington Post comes packaged as the "Stop Online Piracy Act." While the name may lead the public to believe that Congress is trying to keep our email pure and our computer screens safe, the real story is that the 1 percent are again trying to rig the rules so that they get as many dollars as possible from the rest of us.

The Stop Online Piracy Act (SOPA) would place an enormous burden not just on Internet giants like Google and Facebook, but any website that allows people to post content or includes links to other sites. An owner of copyrighted material would be able to go the Justice Department and claim infringement and request that the whole site be taken down.

While sites are already required to remove material that is determined to be infringing under the Digital Millennium Copyright Act, the SOPA requires that sites in effect preemptively screen material for potential infringements. If they fail, they risk having their whole site taken down for a period of time, in addition to paying damages to copyright holders.

The question that serious people would ask is what problem is the SOPA intended to address? There is still plenty of money being made by online distributors of music, movies, books and software. The problem seen by the top executives at Disney and the other promoters of the SOPA is that they want to make more.

A substantial amount of copyright-protected material does slip through the system, as does an even larger amount of material with ambiguous copyright status such as a home-made video with parts of a copyrighted song or material whose copyright may have expired. The big entertainment companies want to impose large costs on web intermediaries (which will be passed on to consumers) and make it more difficult for people to gain access to totally open material, in order to make them pay more money for their copyright-protected material.

Although the SOPA strategy of reducing access while raising prices could fit the dictionary definition of "job-killing regulation," its advocates have the incredible audacity to be touting the 19 million jobs at stake. People really should take a moment to look at the industry's website to see what might well rank as the most outrageous misrepresentation of economic reality ever to appear in a Washington policy debate.

The basic story is that if an industry is in any way directly or indirectly dependent on the output of a copyright-protected industry, then the jobs in that industry will be put at risk if Congress doesn't approve the SOPA. By this methodology, all the jobs in the shipping industry will be at risk if we end the tax credit for solar power, since some of the materials used in solar panels is imported. This is patently absurd, but if you work for the 1 percent, you can get such arguments taken seriously in Washington policy circles.

In reality, the higher costs that the SOPA will impose on consumers both directly, and indirectly by raising costs to intermediaries, are money out of their pocket. The additional money that will be collected by the entertainment industry is money that will not be spent in local stores or restaurants.

It's true that some of the money earned by entertainment industry will get back to writers, musicians and other creative workers, but this will be a very small amount compared with the additional cost to consumers. If we had forward thinking politicians in Washington, or economists who didn't sell their services to the highest bidder, policy would be focused on devising more efficient mechanisms for supporting creative work.

Copyright is an incredibly inefficient mechanism dating back from the 16th century. The costs of enforcement are soaring as the Internet makes it ever more difficult. This is a situation where we are relying on toll booths to pay for our roads, but it is becoming ever easier for travelers to evade the toll booths. Rather looking for alternative ways to finance road construction, we are building bigger more expensive toll booths and increasing the penalties for not paying tolls.

Of course the point is to have money going to the road builders, not the people who run toll booths. There are alternative mechanisms for financing creative work. There is already a vast amount of creative and intellectual work that is not supported by copyrights. This includes work done by university faculty, work supported by non-profit organizations, and even to some extent work supported by the government.

We should be looking to expand and improve these alternative mechanisms rather than turn cyberspace into a copyright protected police state. The SOPA is big government at its worst: an intrusion into the market to help the 1 percent at the expense of everyone else.

 

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The 1 percent and their employees are masters of word play. They turned the estate tax into the "death tax," life-saving health and environmental rules became "job-killing" regulations, and of course ...
The 1 percent and their employees are masters of word play. They turned the estate tax into the "death tax," life-saving health and environmental rules became "job-killing" regulations, and of course ...
 
 
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07:23 PM on 12/14/2011
What about music played on the radio? Can it be recorded by the listener?

I heard that someone copyrighted 'Happy Birthday' and it is illegal to sing or play the song.
07:13 PM on 12/14/2011
Some politician said the other day, "Democracy can't work without the rule of law." He was talking about democracy overseas.

That clarified that the government and big business have to have law 'enforcement' to get by with what they do. It has gradually gotten worse and worse until we have no rights.

The democracy we have in this country wouldn't work here if it wasn't for law enforcement.

The rich don't go to jail unless they want to jail Martha Stewart while they let bigger crimes go unpunished.
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TruEngineHearing
Happiness needs new pursuers...
11:12 AM on 12/07/2011
SOPA is a cancer - it exists to enable the 1% to devour everything you have by manipulating the essence and purpose of copyright.

Here's part of the new landscape: the proposed legislation means that you can't post your wedding photos from 10 years ago without paying the photographer for that right - not included with the prints you originally ordered - remember, the negatives belong to the photographer, and the new regulations will allow your IP to shut down your entire family website if the photographer complains. Some proposed legislation takes it further and says that anything you put on the internet must have a copyright owner and permission to use it must be obtained - if not, the item cannot be put on the internet... so much for using that photo of your kid that your ex-neighbor took a couple of years ago.
04:15 AM on 12/07/2011
I am so tired of hearing about movie companies being ruined by piracy, when movies continue to rake in billions of dollars and so many pointless sequels and remakes continue to be made.

To quote John Dvorak:

The movie and music industries are good at sucking up as much money as possible while crying poverty about losses from piracy and writers' strikes.
03:50 PM on 12/06/2011
Thank you for informing me that I'm among the 1%. I never knew. I do know, however, that I'm a working writer and piracy affects my bottom line. Despite your words, my income isn't anywhere near the 1% level - your lips to readers' ears.

This article is really wrong on so many levels, and I hope people do a little more research on the topic.

As the copyright owner of over thirty books, I won't be able to go to anyone and demand a site be taken down.

I'm not trying to rig anything. I just don't want to be stolen from - where is the harm in that? You would lock your doors, right? If a burglar broke in, wouldn't you want someone to stop them? Or try to get your stuff back? Or prevent it from happening again.

Rigged? Please. That's as silly as believing I'm a 1%er.
10:47 PM on 12/06/2011
What books?
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TruEngineHearing
Happiness needs new pursuers...
10:40 AM on 12/07/2011
You're right, of course, but the sweeping laws being put forward contain horrendous policy; riddled with mutations of the essence of copyright and patent - and actually attacks creators that copyright was originally intended to protect. The predatory copyright hunters are even hoping to destroy 'creative commons' and other mechanisms for distributing intentionally non-copyrighted creative output. This is not good for us...

There are better ways to protect you and your work - don't be herded.
03:29 PM on 12/06/2011
What a crock. You actually have it backwards. Those being most damaged by online theft (piracy) are the indie artists who don't have deep pockets. We are part of the 99%. We depend on earning income from our work to pay the rent and put food on the table.

It's convenient to paint this as Big Hollywood versus the little guy BUT nothing could be further from the truth. Do you consider Google to be part of the 99%. Google earned more than 2.5 BILLION last quarter from its online advertising. Guess what? A good portion of that revenue comes from ads on sites that feature pirated/stolen/counterfeit content.

The fact that Google got their hand slapped with a $500 million fine by the feds for placing ads on illegal pharmacy sites should give you a clue.

It's open season on artists online and something must be done. SOPA can be refined and reworked to address any legit concerns, but the rampant theft that protects those who steal (and profit) at the expense of those who work for a living creating content (at every level) must be stopped.
10:48 PM on 12/06/2011
And yet, so many indie artists are releasing their tracks for free. It's almost as if that draws more attention to them.
01:43 AM on 12/07/2011
#Winning
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HUFFPOST COMMUNITY MODERATOR
Sock De Jour
Democracy is an illusion
03:00 PM on 12/06/2011
More than protecting the 1%, this is actually about greater control over the internet by government agencies and multinationals, who now operate as one.

It's not about protecting people from counterfeit or dangerous products, or about ensuring that artists and authors get paid, as some of the more naive would like to believe.
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HUFFPOST COMMUNITY MODERATOR
iskra
Natural enemy of sharks and tro//s
01:40 PM on 12/06/2011
The companies continue to cling to the archaic notion that content is a disc or file, not what's in it. 

Like the music industry that paid 10 cents to artists for a 20 dollar CD, they have grown accustomed to ripping off both artists and the public. 

I would pay for a movie if it was easily available at a decent price. Of course, they don't release them to netflix or Amazon, they don't provide them on the internet, they don't even release the DVD till they've milked the theater crowd, then the hotel crowd. And they wonder why there's piracy? 
01:11 PM on 12/06/2011
The truly objectionable part of the bill is its preemptive nature. It requires ISPs and payment providers (Google ads, Paypal, etc) to stop all ads, payments, and hosting of SUSPECTED infringing sites without the accuser having to first approach the accused & request removal of their copyright-protected material (as under the current model).

It then requires multiple (likely expensive) legal steps to reinstate services, and places the burden of proof that they're NOT infringing on the accused site itself - not on the accuser! That undermines one of the most fundamental concepts of our entire legal system.

Based on the proposed model, a large company could simply file repeated claims to force small competitors into bankruptcy by tying them up in court and choking off all sources of funds. Even false claims, which the accuser would have to pay for, might be enough to shut down a small business, and totally worth the cost for the already-giant content providers that can afford the legal fees.
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TruEngineHearing
Happiness needs new pursuers...
10:49 AM on 12/07/2011
You're absofukinlootly right. The proposed legislation empowers money to triumph over every other concern; allowing financial juggernauts to "...force small competitor­s into bankruptcy by tying them up in court and choking off all sources of funds."
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02:52 PM on 12/08/2011
It's called totalitarianism and every gobblement wants to implement it as far as it can!
12:47 PM on 12/06/2011
Talk about “outrageous misrepresentation”. SOPA is not about the 1% making more money. It is about the preservation of the legitimate financial models that rightly reward “the rest of us” - working Americans like individual photographers, songwriters, and authors. Working Americans in the 99% who support the legislation also include the Teamsters and the International Brotherhood of Electrical Workers, and organizations that represent independent artists and creators like the American Society of Picture Professionals and the Independent Film & Television Alliance. SOPA is also about protecting U.S. consumers from counterfeit products that make their way into the U.S. supply chain through rogue websites. Counterfeit drugs, military parts and products that the consumer purchases under the belief that they are genuine can severely threaten health and safety. Purchases from discount drug sites tend to be made by the 99% - not the 1%, and our military forces, who may end up wearing Kevlar that isn’t really Kevlar, are also not generally drawn from the 1%. That is why 43 U.S. State Attorney Generals, the Better Business Bureau and the National Consumers Union all support this legislation.
ByAndForThePeople
and corporations aren't people!
02:42 PM on 12/06/2011
Nobody is suggesting that there be no such thing as Intellectual Property (IP) Rights (IPR), nor that everything has to be made available for free to everybody. Counterfeit drugs and fake "kevlar" are a completely different subject than a kid singing "Happy Birthday" (a copyrighted song) on a home video that gets posted on YouTube. There are perfectly reasonable ways to address the problem of IPR violations than this horribly damaging bill. The owners of IPR have an obligation to protect their IP, just as the owner of a store has an obligation to protect his store. The bill is analogous to a requirement that taxi drivers be responsible for all robberies committed by people who have ridden in their cabs! But this bill requires that third parties enforce everybody else's IPR and the penalties are so grotesque that those third parties, being literally unable to tell whether somebody's IPR is involved or not, will eventually just prevent any contributions from the public. And that's what the 1% wants -- no public discourse about anything that threatens their supremacy.
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TruEngineHearing
Happiness needs new pursuers...
10:58 AM on 12/07/2011
Yeah, your heartfelt sincerity and wisdom come through quite clearly.
12:29 PM on 12/06/2011
I agree with Dean Baker that SOPA is "big government at its worst: an intrusion into the market to help the 1 percent at the expense of everyone else.” Another issue with SOPA that the media has largely failed to address is its implications for health. Hundreds of thousands of Americans get their prescription medications online from safe, legitimate Canadian and other international pharmacies. SOPA goes too far and inappropriately groups real pharmacies — licensed, legitimate pharmacies that require a doctor’s prescription and sell brand-name medications — with the rogues who sell everything from diluted or counterfeit medicine to narcotics without a prescription.

In Florida alone, 90,000 people would lose access to safe, affordable prescription medications because of SOPA. These Americans cannot afford the exorbitant prescription costs in the United States, and need the life-saving, safe and affordable option of drug importation.

RxRights is a national coalition of individuals and organizations dedicated to promoting and protecting American consumer access to sources of safe, affordable prescription drugs. The Coalition is asking consumers to take action now by sending letters to Capitol Hill and the White House encouraging them to oppose this legislation in its current form. For more information or to voice your concern, visit www.RxRights.org.
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Christopher Hull
Democratic Socialist
12:13 PM on 12/06/2011
Well I'm going to be the dissenter in this crowd.
I own, produce and distribute adult films. Oftentimes those films show up online BEFORE I am finished releasing the film on DVD to my mail order and retail customers undermining the value of the film. I understand piracy happens. What I don't understand is that frequently the pirate sites make their money by getting eyeballs by stealing content and then selling adspace to Google or whoever for those eyeballs.
I absolutely think the internent should be regulated and controlled. If I had my way there would be NO adult or violent content on the internet. But IF it is going to be there and IF it is my property being stolen then yes, I want the government to enfrorce my ownership. I am tired of having to write letters to webmasters asking them to please take down my stolen content. Usually they do. Of course, they have already made money and lowered the value of my content by that time but nobody seems to care about that.
Just to be clear: I am all for censoring adult and violent content from the internet. I am all for punishing ANY company that profits by stealing the work of other people. And there are already "fair use" provisions in copyright law so YouTube wouldn't have that much trouble. Duh.
10:51 PM on 12/06/2011
So you make adult films, but would like to see all adult films censored. Wow. I don't believe a word of what you just wrote.
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Christopher Hull
Democratic Socialist
06:07 PM on 12/07/2011
Well you would be wrong. Feel free to look up my company, The French Connection. Also, I did not say I want to see adult films censored. I want the internet to have reasonable cesorship from violence and sex directed towards the eyes of children.
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11:20 AM on 12/06/2011
Say NO to Internet Censorship Sign the petition. Folow the fillibuster led by Senator Ron Wyden (D-OR) this week as the names of those signing the petition are read.
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Robert Frank
My last name is FRANK so thats what I am..
09:09 AM on 12/06/2011
why not pass a: "leave the god-damn internet alone" act? I mean really leave it alone...it doesn't need any meddling or regulations passed to favor the big players
03:15 AM on 12/06/2011
They should pass the "Everybody gets paid 80 percent of the Revenue They Generate for Their employer act". With congresses help we can end exploitation in every facet of our society.