U.S. Senate Votes in Favor of Levying Internet Sales Taxes

Some senators argued that implementing an Internet sales tax would be harmful to taxpayers, would be anti-business and would create a “bureaucratic nightmare.” Nonetheless, endorsement of Internet sales taxes onto a Democratic budget bill passed easily in the Senate last week by a 75 to 24 margin. The adopted amendment allows states to “collect taxes on remote sales,” ushering in the first national Internet sales tax. Continue reading U.S. Senate Votes in Favor of Levying Internet Sales Taxes

SHIELD Act: Legislation Hopes to Discourage Patent Trolls

Representatives Peter DeFazio (D-Oregon) and Jason Chaffetz (R-Utah) want to put an end to America’s patent troll problem with the newly introduced SHIELD Act, which aims to define patent trolls and distinguish them from honest patent holders. In an effort to discourage those who do nothing more than file patent lawsuits, the bill would create a “loser pays” system for specific types of patent litigants. Continue reading SHIELD Act: Legislation Hopes to Discourage Patent Trolls

Editorials Respond to Proposed Legislation Regarding Online Piracy

  • According to an editorial in The New York Times, the House’s proposed Stop Online Piracy Act is too broad as it has provisions to cut off payments from providers such as Visa and ad networks like Google simply by filing a notice of infringement.
  • While the legislation is aimed at foreign websites like Pirate Bay, it could also be used against domestic websites covered by the Digital Milennium Copyright Act that has safe harbor provisions.
  • The editorial asserts that safe harbor provisions should be made available to foreign websites that abide by the DMCA. And a court order should be required before action is taken.
  • A related Los Angeles Times editorial suggests that the Stop Online Piracy Act and the PROTECT IP Act both go to extremes in an effort to protect intellectual property.
  • The legislation could force companies to monitor their users’ behavior “turning them into a private security force for copyright and trademark owners.”
  • Infringement on popular sites like Facebook, Dropbox and YouTube are certainly opening them up to action in spite of safe harbor provisions now in force. The result would be less innovation to create the next YouTube and would have a potentially chilling effect on free speech.

Online Piracy: Controversial House Bill Proposed to Block Pirate Sites

  • The Stop Online Piracy Act was introduced in the House of Representatives last week.
  • “While sites that host and distribute pirated content continue to operate around the world, members of the House of Representatives are seeking a new legal method to shutting down access to copyrighted content,” reports Digital Trends.
  • The proposed bill would provide the U.S. Attorney General with the power to order search engines and ISPs to block sites that feature pirated content.
  • The Act is the House’s version of the PROTECT-IP Act introduced in the Senate that if passed, would enable the government or courts to monitor users and remove infringing websites from the global network, even without hearings.
  • Critics have used labels such as the “Internet Death Penalty” and “Great Firewall of America” to describe the proposal.
  • “The bottom line is that if it passes and becomes law, the new act would give the government and copyright holders a giant stick — if not an automatic weapon — with which to pursue websites and services they believe are infringing on their content,” suggests GigaOM. “That might make for the kind of Internet that media and entertainment conglomerates would prefer, but it would clearly be a much diminished version of the Internet we take for granted.”