IP Plan Gets Warm Reception At Senate Committee

"I am concerned the Internet is being used to steal intellectual property -- from books and journal articles to software, movies and music,” said Leahy at the hearing. “This is no longer an emerging nuisance but a real problem that is draining our economy and costing American jobs. The AFL-CIO recently cited studies estimating that digital theft of just movies and music cost more than 200,000 jobs. This is unacceptable in any economic climate. It is devastating today.” IP theft takes other forms such as counterfeit prescription drugs and electronics used by the U.S. military, placing the personal safety of servicemen and women at risk, he added. Leahy promised to get tough on IP theft. “I would like to see a few people go to jail over this,” he said. “It may focus attention.” Leahy promised to build support from the Obama administration and in Congress for tougher legislation against IP theft.

The committee conducted a cordial discussion with Espinel and representatives from private industry about the Obama administration’s national strategy against IP theft, released Tuesday (WID, June 23 p6). It will take a multi-dimensional approach to IP crimes, she said. The federal government will “lead by example” by cracking down on its own inadvertent purchase of counterfeit goods and on contractors that use counterfeit products. The federal government also will collect more data on the jobs lost by IP theft and the resources spent fighting it, she said. Espinel emphasized the importance of coordination among U.S. agencies to fight IP crimes domestically and overseas. For example Espinel said she worked with the Departments of Justice, Homeland Security, Health and Human Services, and State as well as the U.S. Trade Representative’s office to develop the national plan. Espinel said she didn’t encounter bureaucratic resistance from them, instead finding a “tremendous” amount of coordination and commitment to the IP effort.

"[S]trong enforcement of our intellectual property is critical,” Espinel said. “Combating counterfeiting and piracy is an economic concern, it is a national security concern, and it requires a robust federal response. Strong intellectual property enforcement saves American jobs, it creates American jobs, it protects American ideals and it invigorates our economy."

Piracy protections will not interfere with net neutrality and the free flow of information on the web, said Espinel. “After a few months on this job, I feel it is possible for us to preserve net neutrality while still going after piracy,” she said. “Net neutrality does not apply to unlawful conduct including the distribution of illegally copyrighted products.” Espinel sidestepped a question from Sen. Tom Coburn, R-Okla., on China’s willingness to cooperate in IP enforcement. “China is stealing our future,” he said, charging that it is the U.S.’s chief nemesis in IP theft. Espinel responded that China’s enforcement of IP law was a “great concern” to the administration and “much needs to be improved in their IP enforcement.” She also touched on the role of IP enforcement in the Anti-Counterfeiting Trade Agreement. While the administration wants to conclude ACTA negotiations with strong IP protections, it does not see the forum as an appropriate place to change current U.S. law, she said.

The administration’s plan is “another important step in achieving a higher level of cross-agency collaboration on intellectual property issues,” said Warner Bros. Chairman and CEO Barry Meyer. But the plan is no “silver bullet,” he said. Educating the public to respect IP is key, he said. Others from private industry agreed. “The process of educating the public is important,” said AFL-CIO President for the Department for Professional Employees Paul Almeida. “You wouldn’t tell your kids to pick up something off the shelf, but on the Internet it’s OK.”