| Contacts: | Jeff Joseph tel: 703 907-7664 e-mail: jjoseph@CE.org |
Jenny Pareti tel: 703 907 7079 e-mail: jpareti@CE.org |
CEA Joins Array Of Public Interest Groups, Industry Associations And Companies In Offering Changes To Induce Act
Proposed Legislative Language Addresses Mass Infringing Conduct While Preserving Betamax Principles
| Arlington, Virginia | 8/24/2004 |
The Consumer Electronics Association (CEA) today joined several public interest groups, industry associations and technology companies in submitting proposed alternative language to the Inducing Infringement of Copyrights Act of 2004 (S.2560) to the bill's leading co-sponsors. The proposed draft was submitted in response to a request to provide alternative language issued to witnesses at a hearing on the bill held last month before the Senate Judiciary Committee.
The language and an accompanying cover letter were sent today to bill co-sponsors Senate Majority Leader Bill Frist (R-TN), Senate Minority Leader Tom Daschle (D-SD), Senator Orrin Hatch (R-UT) and Senator Patrick Leahy (D-VT).
The proposed language is narrower in scope than the existing legislation. The proposal is intended to, "address mass, indiscriminate infringing conduct while preserving the Supreme Court's Betamax decision, the Magna Carta of the technology industry which is in no small measure responsible for our nation's preeminence in technological innovation and entrepreneurship," wrote CEA and the other organizations.
Specifically, the proposed alternative to S. 2560 would establish a new subsection of the Copyright Act that would impose liability on any person who actively distributes in commerce a computer program that is specifically designed for use by individuals to engage in the indiscriminate, mass infringing distribution to the public of copyrighted works with the intent to reap financial gain by doing so. In short, the new language says only someone who distributes a commercial computer program that is "specifically designed" for widescale piracy on digital networks could be held liable for copyright violations.
The draft also provides complete exemptions from liability for ISPs, venture capitalists, credit card companies, banks, advertising agencies, IT help desks, and others for providing routine services for their customers and librarians for serving their patrons.
Finally, the proposed alternative codifies the Supreme Court's Betamax decision, confirming that a person or company may - without fear of liability - manufacture or distribute a hardware or software product that is capable of commercially significant non-infringing uses.
In testimony delivered during last month's hearing, CEA President and CEO Gary Shapiro warned that the Induce Act, "would gut the Supreme Court's Betamax ruling and unleash massive new litigation on innovators and venture capitalists."
In the cover letter, the groups noted that the Senators had, "expressed interest in a 'technology-neutral law directed at a small set of bad actors while protecting our legitimate technology industries from frivolous litigation.'
"We believe that the enclosed draft meets these goals and serves as the best platform for the discussion of the interests of all concerned parties. We look forward to discussions with your staff and the Register of Copyrights on the basis of the enclosed alternative."
Cosignatories of the letter include:
* American Association of Law Libraries
* American Library Association
* Association of Research Libraries
* BellSouth Corporation
* Computer & Communications Industry Association
* Consumer Electronics Association
* Consumer Electronics Retailers Coalition
* DigitalConsumer.org
* Digital Future Coalition
* Home Recording Rights Coalition
* MCI
* Public Knowledge
* SBC
* U.S. Internet Industry Association
* U.S. Internet Service Provider Association (BellSouth Corporation, Earthlink, MCI, SAVVIS, SBC and Verizon)
* U.S. Telecomm Association
* Verizon
About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 1,700 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $90 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.
CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.