March 15, 2011 10:51 AM PDT

White House wants new copyright law crackdown

by Declan McCullagh

http://news.cnet.com/8301-31921_3-20043421-281.html?part=rss&subj=news&tag=2547-1_3-0-20

The White House today proposed sweeping revisions to U.S. copyright law, 
including making "illegal streaming" of audio or video a federal felony and 
allowing FBI agents to wiretap suspected infringers.

In a 20-page white paper (PDF), the Obama administration called on the U.S. 
Congress to fix "deficiencies that could hinder enforcement" of intellectual 
property laws.

The report was prepared by Victoria Espinel, the first Intellectual Property 
Enforcement Coordinator who received Senate confirmation in December 2009, and 
represents a broad tightening of many forms of intellectual property law 
including ones that deal with counterfeit pharmaceuticals and overseas 
royalties for copyright holders. (See CNET's report last month previewing 
today's white paper.)

Some of the highlights:

- The White House is concerned that "illegal streaming of content" may not be 
covered by criminal law, saying "questions have arisen about whether streaming 
constitutes the distribution of copyrighted works." To resolve that ambiguity, 
it wants a new law to "clarify that infringement by streaming, or by means of 
other similar new technology, is a felony in appropriate circumstances."

- Under federal law, wiretaps may only be conducted in investigations of 
serious crimes, a list that was expanded by the 2001 Patriot Act to include 
offenses such as material support of terrorism and use of weapons of mass 
destruction. The administration is proposing to add copyright and trademark 
infringement, arguing that move "would assist U.S. law enforcement agencies to 
effectively investigate those offenses."

- Under the 1998 Digital Millennium Copyright Act, it's generally illegal to 
distribute hardware or software -- such as the DVD-decoding software Handbrake 
available from a server in France -- that can "circumvent" copy protection 
technology. The administration is proposing that if Homeland Security seizes 
circumvention devices, it be permitted to "inform rightholders," "provide 
samples of such devices," and assist "them in bringing civil actions."

The term "fair use" does not appear anywhere in the report. But it does mention 
Web sites like The Pirate Bay, which is hosted in Sweden, when warning that 
"foreign-based and foreign-controlled Web sites and Web services raise 
particular concerns for U.S. enforcement efforts." (See previous coverage of a 
congressional hearing on overseas sites.)

The usual copyright hawks, including the U.S. Chamber of Commerce, applauded 
the paper, which grew out of a so-called joint strategic plan that Vice 
President Biden and Espinel announced in June 2010.

Rob Calia, a senior director at the Chamber's Global Intellectual Property 
Center, said we "strongly support the white paper's call for Congress to 
clarify that criminal copyright infringement through unauthorized streaming, is 
a felony. We know both the House and Senate are looking at this issue and 
encourage them to work closely with the administration and other stakeholders 
to combat this growing threat."

In October 2008, President Bush signed into law the so-called Pro IP ACT, which 
created Espinel's position and increased penalties for infringement, after 
expressing its opposition to an earlier version.

Unless legislative proposals -- like one nearly a decade ago implanting strict 
copy controls in digital devices -- go too far, digital copyright tends not to 
be a particularly partisan topic. The Digital Millennium Copyright Act, 
near-universally disliked by programmers and engineers for its 
anti-circumvention section, was approved unanimously in the U.S. Senate.

At the same time, Democratic politicians tend to be a bit more enthusiastic 
about the topic. Biden was a close Senate ally of copyright holders, and 
President Obama picked top copyright industry lawyers for Justice Department 
posts. Last year, Biden warned that "piracy is theft."

No less than 78 percent of political contributions from Hollywood went to 
Democrats in 2008, which is broadly consistent with the trend for the last two 
decades, according to OpenSecrets.org.
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