Techies Blast Induce Act

A U.S. Senate bill that would allow copyright holders to sue creators of products that "induce" copyright violations would discourage technology companies from offering new media players or other recording products. The Inducing Infringement of Copyrights Act of 2004 -- otherwise known as the Induce Act (S. 2560) -- broadly allows lawsuits against anyone defined as inducing copyright violations and could be used by the music and movie industries to sue venture capitalists who invest in new technologies or journalists who review digital recording products.

The bill, aimed at peer-to-peer (P2P) software vendors, would allow artists and entertainment companies to sue creators of products that "intentionally induce" copyright violations, based on what a "reasonable person" would consider an inducement. However, the language is sufficiently vague that suits could be brought against manufacturers of MP3 players, CD burners, and any device that conceivably could be used to copy audio or video content.

"I can't find any technology company that supports this legislation as written," Gary Shapiro, president and chief executive officer of the Consumer Electronics Association estified before the Senate Judiciary Committee. "This bill is, by far, the biggest threat to personal creativity, new technology, and innovation in 20 years. I urge you to consider the harm it will engender."

Currently, civil penalties for copyright infringement can be up to $30,000 per act of infringement, or up to $150,000 per act of willful infringement. Total damages are determined at trial.

(Via Slashdot, InfoWorld, Wired News)

Posted by Tom on July 24, 2004