Hatch's bill worries tech firms

WASHINGTON — Internet companies and makers of MP3 players and computers worry they might be caught in a net that Sen. Orrin Hatch is casting to catch and prosecute file-sharing services that "induce" others to illegally copy copyrighted works.

But Hatch, R-Utah, chairman of the Senate Judiciary Committee, says they should not worry, and that he will try to protect them as he goes after the real pirates.

"Some technology companies have expressed concerns that claims for intentional inducement might be misused against companies that merely sell copying devices. We do not believe this to be the case, but are willing to enter into a constructive dialogue to ensure that the language is drawn as tightly as possible," he said.

Hatch and Sen. Patrick Leahy, D-Vt., the committee's ranking Democrat, are together pushing a bill that not only would allow prosecuting those who actually illegally duplicate copyrighted works, but also those who "induce" them to do so — including peer-to-peer Internet services designed largely to allow such copying.

"The architects of this file-sharing piracy make millions of dollars while attempting to avoid any personal risk" by convincing youth to do the actual illegal copying themselves, Hatch said.

The bill was hailed at the hearing by the music industry and the U.S. Copyright Office — but other technology companies worried the bill is too broad and could mire them all in lawsuits.

Marybeth Peters, U.S. Register of Copyrights, said in a hearing that the bill "addresses the most important issue facing our copyright system today: new services that employ peer-to-peer technology to create vast, global networks of copyright infringement."

Mitch Bainwol, chairman of the Recording Industry Association of America, said illegal copies have devastated his industry. For example, he said the top 10 hits sold in 2000 sold 60 million copies in America. Last year, the top 10 sold only 33 million copies.

"This slide has been caused predominantly by illicit P2P (peer-to-peer) services, where these top 10 hits and other valuable content are offered to users — unauthorized and for free," he said.

Kevin McGuiness, a former chief of staff for Hatch who is now the executive director of NetCoalition, representing Internet companies, testified that Hatch's bill is too broad, is "open to multiple interpretations" and could "trigger a flood of litigation" against them.

Gary J. Shapiro, chief executive officer of the Consumer Electronics Association, said the bill "would make a radical and unfortunate change to legal principles on which my industry and many others have relied in order to bring new technology to American consumers."

Hatch insisted he is targeting "only bad behavior — and only intentional behavior that is bad enough to trigger criminal liability under existing law."

He added, "I do not intend to allow S. 2650 (the bill) to be misused against legitimate distributors of copying devices."

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