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Internet Piracy

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Internet Piracy
History of the Internet Piracy Debate
Executive and Legislative Branch Actions

T

he Internet has become a central part of the American economy, delivering innovative products while eliminating the need for inefficient middlemen. However, the free flow of information facilitated by the Internet has also created problems with copyright and trademark infringement. The problem is significant; as much as 6 percent of the U.S. gross national product is generated by industries supported by intellectual property laws. A recent report contends that nearly 24 percent of all Internet traffic worldwide is infringing. Piracy of the content created by movie, music, and software companies, and counterfeiting of goods such as clothing, pharmaceutical drugs, and consumer electronics, negatively impacts the American economy. Although the Government Accountability Office cautions that it is difficult to precisely quantify the economy-wide impacts of piracy, it is believed to be a serious problem. To combat problems with online copyright and trademark infringement, U.S. Immigration and Customs Enforcement (ICE) began a new initiative called “Operation In Our Sites.” Between June 30, 2010, and February 14, 2011, ICE seized 112 domain names associated with Internet piracy. Domain name seizures are an innovative use of civil forfeiture proceedings authorized under criminal copyright law. Domain name registrars redirected traffic from the seized domains to a government website explaining that the domain name had been seized by ICE pursuant to a warrant issued by a Federal court. However, the sites remain online and accessible through their Internet protocol addresses. The global nature of the Internet presents problems to the civil forfeiture approach. Only domain names registered within the United States and subject to ICE’s jurisdiction may be seized. However, many websites trafficking in copyrighted content or counterfeit goods are registered and operate entirely in foreign

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