New Bill Would Protect Against Online Sale of Counterfeit Goods
On May 12, 2011, Senate Judiciary Committee leaders Leahy (D), Grassley (R), and Hatch (R)1 introduced S. 968, the Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property (PROTECT IP) Act of 2011, a bipartisan effort to strengthen protections against the illegal online sale of counterfeit goods.
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According to a press release, S. 968 builds on legislation approved by the Senate Judiciary Committee (but not enacted) in 2010, while incorporating provisions in response to concerns raised by stakeholders.
Would Provide Law Enforcement Tools to Stop Websites from Online Piracy
S. 968 would provide law enforcement with important tools to stop websites dedicated to online piracy and the sale of counterfeit goods, which range from new movie and music releases, to pharmaceuticals and consumer products.
According to a summary, S. 968 would, among other things:
- Authorize DOJ to file a civil action - authorize the Justice Department (DOJ) to file a civil action against the registrant or owner of a domain name that accesses a foreign infringing Internet site, or the foreign-registered domain name itself, and to seek a preliminary order from the court that the site is dedicated to infringing activities;
- Authorize a rights holder to bring action - authorize a rights holder who is the victim of the infringement to bring an action against the owner, registrant, or Internet site dedicated to infringement, whether domestic or foreign, and to seek a court order against the domain name registrant, owner, or the domain name;
- Ensure 3rd parties are not overburdened - ensure that third-parties are not overly burdened to comply with an order by stipulating that the party is not required to take action beyond what is technically feasible and reasonable.
- Provide safeguards if site not involved in infringing activities - provide safeguards to allow the domain name owner or site operator to petition the court to suspend or vacate the order, including in the situation in which the Internet site at issue is not longer, or never was, dedicated to infringing activities, or the interests of justice to require it;
- Protect against counterfeit pharmaceuticals - protect consumers against counterfeit, adulterated, or misbranded pharmaceutical products sold on the Internet by providing a safe harbor for domain name registries, registrars, search engines, payment processors, and advertising networks to take voluntary action against any infringing website that “endangers the public health” by offering such dangerous medication.
1S. 968 is co-sponsored by Senators Schumer (D), Feinstein (D), Whitehouse (D), Graham (R), Kohl (D), Coons (D), and Blumenthal (D).
(See ITT’s Online Archives or 05/13/11 news, 11051302, for BP announcement of the introduction of S. 968.)
Press release, including link to bill text, available here