The dome of the Capitol is reflected in a puddle in Washington February 17, 2012.REUTERS/Kevin Lamarque

Another debt ceiling debacle could sink the economy

Last year's Congressional debt standoff hurt consumer confidence more than the collapse of Lehman Brothers, Betsey Johnson and Justin Wolfers write. This time could be worse.  Read more at Counterparties  

Author of online piracy bill vows not to buckle

SAN ANTONIO | Thu Jan 12, 2012 7:07pm EST

SAN ANTONIO (Reuters) - The author of the Stop Online Piracy Act vowed to press ahead with his bill despite fierce opposition from internet giants such as Google and Facebook, faulting opponents for putting their profits ahead those lost by victims of counterfeit products.

"It is amazing to me that the opponents apparently don't want to protect American consumers and businesses," U.S. Representative Lamar Smith, a Republican from Texas, told Reuters in a telephone interview on Thursday.

"Are they somehow benefitting by directing customers to these foreign websites? Do they profit from selling advertising to these foreign websites? And if they do, they need to be stopped. And I don't mind taking that on."

The bill, which is before the House Judiciary Committee chaired by Smith, aims to reduce online piracy of pharmaceuticals, music and other consumer products by allowing the Department of Justice to ask federal courts to issue injunctions against foreign-based websites.

Smith claims internet counterfeiters cost American consumers, businesses, inventors and workers some $100 billion a year, though critics accuse him of exaggerating.

Under the bill if a judge agrees websites are offering material that violates U.S. copyright laws, internet service providers could be required to block access to foreign sites, and U.S. online ad networks could be required to stop advertisements and search engines barred from directly linking to them.

High tech heavyweights such as Google, Twitter, Facebook, and Reddit oppose the bill, which came under fire at this week's Consumer Electronics Show in Las Vegas.

Reddit CEO Alexis Ohanian has said it would "cripple the internet" and pledged to take his social media site dark for one day next week to protest the bill.

"This (SOPA) could potentially obliterate the entire tech industry -- a job-creating industry," Ohanian wrote on his blog.

Smith stressed the bill would only affect websites based outside the United States and criticized opponents for failing to cite specific sections, saying many have failed to read it and were disguising their economic interests with rhetoric about internet freedom.

Google Executive Chairman Eric Schmidt told the Economic Club of Washington last month that Smith's bill would "effectively break the Internet" and he compared Smith's efforts to the same type of censorship which Google has experienced in the People's Republic of China.

"There are some companies like Google that make money by directing consumers to these illegal web sites," Smith said. "So I don't think they have any real credibility to complain even though they are the primary opponent."

Smith, 64, is the heir of a prominent south Texas ranching family who is more comfortable with cattle brands than computers and has received numerous awards from conservative organizations for his opposition to efforts to expand the power of the federal government. But he says giving Washington sweeping powers over the internet is necessary to protect free enterprise.

Smith predicted the bill would pass the House. It was about halfway through the process of committee hearings and could go to the House floor in a matter a weeks, he said. A similar bill was under way in the Senate.

Politico reported earlier this week that opposition to SOPA has become a rallying cry and fundraising tool for opponents of members of Congress who support it, including House Budget Committee Chairman Paul Ryan, a Republic from Wisconsin.

(Editing by Daniel Trotta)

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Comments (2)
This legislation is about promoting and protecting American jobs and American consumers, and about ensuring the Internet is a safe and lawful tool for all. As Chairman Smith points out in his comments in this story, the bill is narrowly targeted at offshore web sites that are primarily designed or operated to offer complete copies of infringing works for purposes of commercial advantage or private financial gain. These sites are trafficking unlicensed, unregulated and unsafe products to U.S. consumers. Taking action against criminal activity is not stifling free speech, and it will not “break the internet”. People should take a look at what the bill actually does.

Jan 13, 2012 1:18pm EST  --  Report as abuse
William78 wrote:
This legislations is about Conservatives who know next to nothing about online activity, yet feel it’s their duty to restrict and regulate the American People’s right to choose for themselves, not to mention freedom of expression.

HOW IS IT OKAY to “deregulate” Corporate America and Wallstreet while simultaneously adding MORE regulations to the freedoms of the people who make this country great?!?!

The last I heard conservative republicans like Ron Paul wanted to do away with copyright restrictions. NOT layer more protections on them.

Today “They” want to block sites that offer “pirated movies”, tomorrow “They” will want to block free open source software that some US Corporation (ie: Apple, Google, Microsoft, etc…) CLAIMS infringes on their product’s copyrights. The Government will shut down free download access until the matter is resolved and by the time the copyright infringment is debunked the company will have made YET ANOTHER fortune off of the people. Just another perk-in-the-system for the corporate elite.

Why not block pedestrian traffic to 7th and Broadway because law enforcement can’t keep people from purchasing bootleg DVDs. Why not restrict U.S. Travel to the Netherlands because Americans travel there to use Marijuana freely, even though the Puritans back in the States vehemently oppose it’s legalization?

It’s REDICULOUS, that’s why!!!!

“Safe and Lawful???” SOPA protects American jobs my A$$! Don’t be a stooge…

Jan 13, 2012 9:45pm EST  --  Report as abuse
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