Online Copyright Infringement and 
Counterfeiting: Legislation in the 112th 
Congress 
Brian T. Yeh 
Legislative Attorney 
December 5, 2011 
Congressional Research Service 
7-5700 
www.crs.gov 
R42112 
CRS Report for Congress
Pr
  epared for Members and Committees of Congress        
Online Copyright Infringement and Counterfeiting: Legislation in the 112th Congress 
 
Summary 
The global nature of the Internet offers expanded commercial opportunities for intellectual 
property (IP) rights holders but also increases the potential for copyright and trademark 
infringement. Piracy of the content created by movie, music, and software companies and sales of 
counterfeit pharmaceutical drugs and consumer products negatively impact the American 
economy and can pose risks to the health and safety of U.S. citizens. Although rights holders and 
law enforcement agencies currently have some legal tools to pursue domestic infringers, they face 
difficult challenges in enforcing IP laws against actors located abroad. Many websites trafficking 
in pirated copyrighted content or counterfeit goods are registered and operate in foreign countries. 
These foreign “rogue sites” sell or distribute subject matter protected by federal IP laws to people 
located within the United States—without the authorization of the IP rights holders—yet the 
website operators remain beyond the reach of U.S. courts and authorities. 
Some believe that legislation is necessary to address the jurisdictional problem of holding foreign 
websites accountable for piracy and counterfeiting. In 2010, the Combating Online Infringement 
and Counterfeits Act (COICA) was approved by the Senate Judiciary Committee, but the full 
Senate took no action on the bill before the end of the 111th Congress. On May 12, 2011, Senator 
Leahy introduced S. 968, the Preventing Real Online Threats to Economic Creativity and Theft of 
Intellectual Property Act (PROTECT IP Act), which is similar to COICA in several respects. The 
PROTECT IP Act would allow the Attorney General to seek an injunction from a federal court 
against a domain name used by a foreign website that promotes infringement or the sale of 
counterfeit goods; such court order may then be served on U.S.-based domain name servers, 
Internet advertisers, search engines, and financial transaction providers, which would be required 
to take certain appropriate actions such as preventing access to the website or suspending 
business services to the site. Intellectual property rights holders may also bring an action against 
the owner, registrant, or operator of an Internet site dedicated to infringement (whether domestic 
or foreign), and obtain a cease and desist order against them. 
On October 26, 2011, Representative Lamar Smith introduced H.R. 3261, the Stop Online Piracy 
Act (SOPA). SOPA is similar to the PROTECT IP Act yet, it is broader in scope by including 
several provisions not found in S. 968, such as those that increase the criminal penalties for online 
streaming of copyrighted content, create criminal penalties for trafficking in counterfeit drugs, 
increase penalties for foreign espionage, and require the appointment of dedicated intellectual 
property personnel in U.S. embassies or diplomatic missions. SOPA also allows intellectual 
property rights holders to send a written request to financial transaction providers and Internet 
advertisers asking them to terminate business relationships with a website (whether domestic or 
foreign) that is dedicated to theft of U.S. property; if such request is ignored, or if the website 
files a counter notification, the rights holder may then file a lawsuit against the domain name 
registrant, the owner/operator of the site, or the domain name itself. 
There has been considerable public debate about the PROTECT IP Act and SOPA. Critics claim 
these legislative measures amount to “Internet censorship” and that they would impair free speech 
rights. There are also concerns that focusing on intermediary services, such as non-authoritative 
domain name servers, will disrupt the technical integrity of the Internet. Opponents believe that 
these problems will be exacerbated by the legislative measures’ inclusion of a private cause of 
action for rights holders. Supporters of the bills, however, argue that in order to reduce digital 
piracy and online counterfeiting, new enforcement mechanisms are vital for U.S. economic 
growth and needed to protect public health and safety. 
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Online Copyright Infringement and Counterfeiting: Legislation in the 112th Congress 
 
Contents 
Introduction...................................................................................................................................... 1 
Brief Overview of Federal Laws That Apply to Particular Unlawful Online Activity .................... 2 
Digital Millennium Copyright Act (DMCA)............................................................................. 2 
Prioritizing Resources and Organization for Intellectual Property Act of 2008 (PRO-
IP Act)..................................................................................................................................... 4 
Anticybersquatting Consumer Protection Act (ACPA) ............................................................. 5 
Unlawful Internet Gambling Enforcement Act (UIGEA) ......................................................... 6 
Ryan Haight Online Pharmacy Consumer Protection Act......................................................... 7 
Legislative History of Online Copyright Infringement and Counterfeiting Legislation.................. 7 
Summary of PROTECT IP Provisions............................................................................................. 8 
Action by the Attorney General................................................................................................. 8 
Action by a “Qualifying Plaintiff”........................................................................................... 10 
Due Process, Safeguards, and Limitations on Liability........................................................... 10 
Reports to Congress................................................................................................................. 11 
Summary of SOPA Provisions ....................................................................................................... 12 
Title I of SOPA, “Combating Online Piracy”.......................................................................... 12 
Action by the Attorney General......................................................................................... 12 
Actions by a “Qualifying Plaintiff”................................................................................... 14 
Due Process, Safeguards, and Limitations on Liability .................................................... 16 
Reports to Congress .......................................................................................................... 17 
Title II of SOPA, “Additional Enhancements to Combat Intellectual Property Theft” ........... 18 
Streaming of Copyrighted Works in Violation of Criminal Law....................................... 18 
Trafficking in Inherently Dangerous Goods or Services................................................... 18 
Protecting U.S. Businesses From Foreign and Economic Espionage ............................... 18 
Amendments to Sentencing Guidelines ............................................................................ 19 
Defending Intellectual Property Rights Abroad ................................................................ 19 
Debate Over the Legislation .......................................................................................................... 19 
Impact on Free Speech ............................................................................................................ 19 
Technical Integrity of the Internet ........................................................................................... 21 
Private Cause of Action ........................................................................................................... 22 
Conflict with the DMCA “Safe Harbors” and Potential Impact on Internet Innovation 
(Referring to SOPA Only) .................................................................................................... 23 
 
Contacts 
Author Contact Information........................................................................................................... 25 
Acknowledgments ......................................................................................................................... 25 
 
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Online Copyright Infringement and Counterfeiting: Legislation in the 112th Congress 
 
Introduction 
The 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% of the U.S. gross national product is generated by 
industries supported by intellectual property laws.1 A recent report contends that nearly 24% of all 
Internet traffic worldwide is infringing.2 Piracy of the content created by movie, music, and 
software companies, and the sale of counterfeit goods that include inauthentic clothing, 
pharmaceutical drugs, and consumer electronics, negatively impacts the American economy.3 
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.4  
However, many websites trafficking in copyrighted content or counterfeit goods are registered 
and operate entirely in foreign countries. These foreign “rogue sites” often provide creative 
content and physical goods protected by U.S. intellectual property law to people located within 
the United States. S. 968, the Preventing Real Online Threats to Economic Creativity and Theft of 
Intellectual Property Act (PROTECT IP Act), and H.R. 3261, the Stop Online Piracy Act (SOPA), 
are legislative responses to the jurisdictional problem of holding foreign websites accountable for 
piracy and counterfeiting. The bills also authorize new enforcement mechanisms against domestic 
sites that facilitate infringing activities. These bills would create new obligations for U.S.-based 
domain name servers, Internet advertisers, search engines, and financial transaction providers to 
address such harm to intellectual property rights holders. There has been considerable public 
debate about the changes to existing law that are proposed by these two bills. 
 
                                                 
1 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Frederick Huntsberry, Chief Operating Officer Paramount Pictures Corp.). 
2 See Targeting Websites Dedicated To Stealing American Intellectual Property: Hearing Before the S. Comm. on the 
Judiciary, 112th Cong. (2011) (written statement of Sen. Patrick Leahy, Chairman S. Comm. on the Judiciary, citing a 
report commissioned by NBC Universal, available at http://documents.envisional.com/docs/Envisional-Internet_Usage-
Jan2011.pdf). 
3 As used in this report, the term “piracy” refers to the unlawful reproduction and distribution of copyrighted content, 
and “counterfeiting” refers to the manufacture and distribution of products that bear (without authorization) a 
trademark that is identical to a trademark validly registered for those goods, or that cannot be distinguished in its 
essential aspects from such a trademark, and that, thereby, infringes the rights of the owner of the trademark in 
question. These definitions are adapted from those used in the World Trade Organization (WTO)’s Agreement on 
Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement), Section 4, Article 51, footnote 14, available 
at http://www.wto.org/english/tratop_e/trips_e/t_agm4_e.htm#Footnote14. 
4 U.S. Government Accountability Office, Observations on Efforts to Quantify the Economic Effects of Counterfeit and 
Pirated Goods, 10-423, April 2010, p. 2, available at http://www.gao.gov/new.items/d10423.pdf. 
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Brief Overview of Federal Laws That Apply to 
Particular Unlawful Online Activity 
Digital Millennium Copyright Act (DMCA) 
Congress passed the Digital Millennium Copyright Act (DMCA) in 1998 in an effort to adapt 
copyright law to an evolving digital environment.5 Title II of the DMCA added a new Section 512 
to the Copyright Act (Title 17 of the U.S. Code) in order to limit the liability of service providers 
against claims of copyright infringement relating to online materials. This “safe harbor” 
immunity is available only to parties that qualify as a “service provider” as defined by the 
DMCA, and only after the provider complies with certain eligibility requirements. In exchange 
for immunity from liability, the DMCA requires service providers to cooperate with copyright 
owners to address infringing activities conducted by the providers’ customers. The DMCA’s safe 
harbors greatly limit service providers’ liability based on the specific functions they perform.6 The 
safe harbors correspond to four functional operations of a service provider that might otherwise 
constitute copyright infringement: (1) transitory digital network communications, (2) system 
caching, (3) storage of information on systems or networks at direction of users, and (4) 
information location tools.7  
One safe-harbor-qualifying condition common to three of the four categories is the requirement 
that upon proper notification by the copyright owner of online material being displayed or 
transmitted without authorization, a service provider must “expeditiously” remove or disable 
access to the allegedly infringing material.8 This “notice and takedown” obligation does not apply 
when the service provider functions as a passive conduit of information under 17 U.S.C. Section 
512(a) (offering transitory digital network communications), but is a condition that must be met 
to obtain shelter under the remaining three safe harbor provisions. As indicated by the eligibility 
conditions in each subsection of Section 512(b)-(d), the notice and takedown procedure varies 
slightly for each. To prevent abuse of the notice and take-down procedure, Section 512(f) 
provides damages, costs, and attorneys’ fees to any service provider that is injured by a knowing, 
material misrepresentation that an item or activity is infringing.9 For example, any person who 
sends a “cease and desist” letter to a service provider, with the knowledge that the claims of 
copyright infringement are false, may be liable to the accused infringer for damages. 
                                                 
5 For more information regarding the DMCA, see CRS Report RL32037, Safe Harbor for Service Providers Under the 
Digital Millennium Copyright Act, by Brian T. Yeh and Robin Jeweler, and CRS Report RL33887, The Digital 
Millennium Copyright Act: Exemptions to the Prohibition on Circumvention, by Brian T. Yeh. 
6 Ellison v. Robertson, 189 F. Supp. 2d 1051, 1064 (C.D. Cal. 2002), aff’d in part and rev’d in part, 357 F.3d 1072 (9th 
Cir. 2004). Service providers who qualify for safe harbor are protected from all monetary and most equitable relief that 
may arise from copyright liability. In such a situation, “even if a plaintiff can show that a safe harbor-eligible service 
provider has violated her copyright, the plaintiff will only be entitled to the limited injunctive relief set forth in 17 
U.S.C. §512(j).” Corbis Corp. v. Amazon.com, Inc., 351 F. Supp. 2d 1090, 1098-99 (W.D. Wash. 2004) (citations 
omitted). 
7 17 U.S.C. §512(a)-(d). 
8 See 17 U.S.C. §512(b)(E), (c)(C), and (d)(3). 
9 “‘Knowingly’ means that a party actually knew, should have known if it acted with reasonable care or diligence, or 
would have had no substantial doubt had it been acting in good faith, that it was making misrepresentations. “‘Material’ 
means that the misrepresentation affected the ISP’s response to a DMCA letter.” Online Policy Group v. Diebold, Inc., 
337 F. Supp. 2d 1195, 1204 (N.D. Cal. 2004) (citations omitted). 
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As noted earlier, the DMCA’s safe harbor provisions do not confer absolute immunity from legal 
liability for copyright infringement. Although they ensure that qualifying service providers are 
not liable for monetary relief, they may be liable for limited injunctive relief. For example, a 
service provider that provides “transitory digital network communications” may be subject to the 
following injunctive relief: 
•  an order restraining the service provider from providing access to a subscriber or 
account holder of the service provider’s system or network who is using the 
provider’s service to engage in infringing activity and is identified in the order, 
by terminating the accounts of the subscriber or account holder that are specified 
in the order; 
•  an order restraining the service provider from providing access, by taking 
reasonable steps specified in the order to block access, to a specific, identified, 
online location outside the United States.10 
In the case of service providers that provide either (1) system caching, (2) storage of information 
on systems or networks at direction of users, or (3) information location tools, the court may grant 
injunctive relief with respect to a service provider in one or more of the following forms: 
•  an order restraining the service provider from providing access to infringing 
material or activity residing at a particular online site on the provider’s system or 
network; 
•  an order restraining the service provider from providing access to a subscriber or 
account holder of the service provider’s system or network who is engaging in 
infringing activity and is identified in the order, by terminating the accounts of 
the subscriber or account holder that are specified in the order; 
•  such other injunctive relief as the court may consider necessary to prevent or 
restrain infringement of copyrighted material specified in the order of the court at 
a particular online location, if such relief is the least burdensome to the service 
provider among the forms of relief comparably effective for that purpose.11 
One public interest group has praised the importance of the DMCA’s safe harbor provisions to the 
development of the Internet: 
Without these protections, the risk of potential copyright liability would prevent many online 
intermediaries from providing services such as hosting and transmitting user-generated 
content. Thus the safe harbors have been essential to the growth of the Internet as an engine 
for innovation and free expression.12 
Some have called for Congress to pass legislation that would expand the DMCA to include notice 
and takedown provisions regarding trademark infringement and other illegal conduct such as 
spam, phishing, and fraud.13 
                                                 
10 17 U.S.C. §512(j)(1)(B). 
11 17 U.S.C. §512(j)(1)(A). 
12 Electronic Frontier Foundation, Digital Millennium Copyright Act, at http://www.eff.org/issues/dmca. 
13 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearings Before the 
House Subcomm. on Intellectual Property, Competition, and the Internet, 112h Cong., 1st sess. (2011) (statement of 
Christine N. Jones, General Counsel, The Go Daddy Group, Inc.), at 8. 
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Prioritizing Resources and Organization for Intellectual Property 
Act of 2008 (PRO-IP Act) 
The Prioritizing Resources and Organization for Intellectual Property Act of 2008 (PRO-IP Act) 
strengthened existing forfeiture provisions for use in cases involving criminal copyright 
infringement and trademark counterfeiting.14 The PRO-IP Act allows civil forfeiture of “[a]ny 
property used, or intended to be used, in any manner or part to commit or facilitate the 
commission of [criminal copyright infringement or trafficking in counterfeit goods].”15 The 
Department of Justice and U.S. Immigration and Customs Enforcement (ICE) have recently 
begun to use this civil forfeiture authority in an innovative way—to seize and forfeit domain 
names of websites that are being used for criminal activity, in this case websites that are involved 
in selling counterfeit goods and distributing pirated merchandise and copyrighted digital 
materials.16 Domain name registrars redirect traffic from the seized domains to a government 
website explaining that the domain name has been seized by ICE. However, the sites remain 
online and accessible through their Internet protocol addresses.17  
Between June 30, 2010, and November 28, 2011, ICE seized 350 domain names18 associated with 
Internet piracy in its initiative called “Operation In Our Sites.”19 Of these 350 seized domain 
names, 116 have been forfeited to the U.S. government.20 In order to obtain domain name seizure 
warrants, ICE agents present evidence of criminal trademark violations or criminal copyright 
infringement that is occurring on the website to a federal magistrate judge. In order to issue the 
warrant, the judge must determine, by a standard of probable cause, that the domain name is 
being used in violation of federal criminal laws.21 Due process protections are part of this process, 
as described by the ICE Director: 
As with all judicially authorized seizure warrants, the owners of the seized property have the 
opportunity to challenge the judge’s determination through a petition. If a petition is filed, a 
hearing is held in a federal court to determine the validity of the affidavit supporting the 
seizure, at which point the government would have the burden of proof.… Under existing 
                                                 
14 P.L. 110-403, 122 Stat. 4256. 
15 18 U.S.C. §2323. 
16 For more information about this initiative, see Ben Sisario, U.S. Shuts Down Web Sites in Piracy Crackdown, N.Y. 
TIMES, Nov. 27, 2010, at B2; see also U.S. Dep’t of Justice, Press Release: Federal Courts Order Seizure of 82 
Website Domains Involved in Selling Counterfeit Goods as Part of DOJ and ICE Cyber Monday Crackdown, Nov. 29, 
2010, available at http://www.justice.gov/opa/pr/2010/November/10-ag-1355.html. 
17 An Internet protocol address is a series of numbers assigned to a device attached to a network. These numbers are 
used to indicate where the device is located on the network. For example, when a user visits http://www.google.com the 
user’s computer is communicating with 74.125.93.147, the Internet protocol address of google.com’s webserver. 
18 A domain name can be typed into a web browser to access an Internet address; it usually consists of a “top level 
domain” and a “second level domain”—for example, in the domain name “amazon.com,” “.com” is a top level domain, 
and “amazon” is the second level domain. A domain name registry operates top level domains, and a domain name 
registrar manages the registration of domain names. See S.Rept. 111-373 at 6. 
19 U.S. Dep’t of Justice, U.S. Immigration and Customs Enforcement (ICE), Federal Courts Order Seizure of 150 
Website Domains Involved in Selling Counterfeit Goods as Part of DOJ, ICE HIS and FBI Cyber Monday Crackdown, 
Nov. 28, 2011, at http://www.justice.gov/opa/pr/2011/November/11-ag-1540.html. 
20 Id. 
21 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearings Before the 
House Subcomm. on Intellectual Property, Competition, and the Internet, 112h Cong., 1st sess. (2011) (statement of 
John Morton, Director, ICE), at 11. 
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federal law, the website owner may also choose to demand return of the property through the 
law enforcement agency itself, by writing a letter to ICE.… Further, if the website owner 
determines he or she does not wish to pursue either of these avenues of due process, a 
challenge may be filed directly with the law enforcement agency conducting a forfeiture 
action under administrative processes.22 
The assistant deputy director of ICE has explained that several factors are taken into account 
before the agency decides which domain name should be seized, including 
•  the popularity of the website, which often correlates with its profitability; 
•  whether the website is commercial in nature and earns a substantial amount of 
money—those that run advertisements, sell subscriptions, or sell merchandise; 
and 
•  whether seizing a site will have a substantial impact on piracy.23 
However, the global nature of the Internet presents problems to the civil forfeiture approach used 
by ICE. Only domain names registered within the United States and subject to ICE’s jurisdiction 
may be seized. 
Anticybersquatting Consumer Protection Act (ACPA) 
The Anticybersquatting Consumer Protection Act (ACPA)24 includes two provisions that provide 
individuals with remedies against abuses of the domain name system. First, it provides a means to 
protect against trademark dilution through the domain name system. Second, it provides 
anticybersquatting protections for individuals.25  
ACPA allows trademark owners to file a lawsuit against domain name registrants and their 
licensees for trademark dilution.26 Such suits are permissible if the domain name is identical or 
confusingly similar to a mark that was distinctive or famous at the time the domain name was 
registered, or infringes upon names or insignias of the American Red Cross or United States 
Olympic Committee.27 If the registrant is found to have registered the domain name in bad faith, 
ACPA authorizes a court to order that the domain name be forfeited, canceled, or transferred to 
the trademark owner.28 
                                                 
22 Id. at 12. 
23 BNA’s Electronic Commerce & Law Report, U.S. Nexus, Website’s Profit Factor Into ICE Calculus of Which 
Domains to Seize, June 8, 2011 (interview between BNA’s Tamlin Bason and Erik Barnett, assistant deputy director of 
ICE). 
24 P.L. 106-113, app. I, tit. III.  
25 Cybersquatting is defined under ACPA as registering a domain name that “consists of the name of another living 
person [such as a celebrity], or a name substantially and confusingly similar thereto, without that person’s consent, with 
the specific intent to profit from such name by selling the domain name.” 15 U.S.C. §8131. 
26 15 U.S.C. §1125(d)(1)(A). For more information about trademark dilution generally, see CRS Report RL33393, 
Protecting Famous, Distinctive Marks: The Trademark Dilution Revision Act of 2006, by Brian T. Yeh. 
27 15 U.S.C. §1125(d)(1)(A)(ii). 
28 15 U.S.C. §1125(d)(1)(C). 
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ACPA also authorizes in rem actions directly against a domain name that infringes upon a 
trademark, where personal jurisdiction cannot be obtained over the owner of the infringing 
domain name or if the owner cannot be identified by the trademark owner.29 
ACPA also allows individuals to sue cybersquatters, defined as one who intends to profit by 
registering and subsequently selling a domain name that is comprised of or confusingly similar to 
the first individual’s name without consent.30 The court may award injunctive relief to the 
plaintiff, “including the forfeiture or cancellation of the domain name or the transfer of the 
domain name to the plaintiff.”31  
Unlawful Internet Gambling Enforcement Act (UIGEA) 
The Unlawful Internet Gambling Enforcement Act (UIGEA), which Congress passed in 2006 as 
Title VIII of the SAFE Port Act,32 seeks to cut off the flow of revenue to unlawful Internet 
gambling businesses.33 UIGEA prohibits gambling-related businesses from accepting checks, 
credit card charges, electronic transfers, and similar payments in connection with unlawful 
Internet gambling.34 Anyone who violates this prohibition of UIGEA is subject to a criminal fine 
of up to $250,000 (or $500,000 if the defendant is an organization), imprisonment of up to five 
years, or both.35 In addition, upon conviction of the defendant, the court may enter a permanent 
injunction enjoining the defendant from making bets or wagers “or sending, receiving, or inviting 
information assisting in the placing of bets or wagers.”36 The Attorney General of the United 
States or a state attorney general may bring civil proceedings to enjoin a transaction that is 
prohibited under UIGEA.37 
UIGEA directed the Board of Governors of the Federal Reserve System and the Treasury 
Department to promulgate regulations that require “each designated payment system, and all 
participants therein, to identify and block or otherwise prevent or prohibit restricted transactions 
through the establishment of policies and procedures” reasonably calculated to have that result.38 
The final rule adopted by the Federal Reserve and the Treasury Department identifies five 
relevant payment systems that could be used in connection with, or to facilitate, the “restricted 
transactions” used for Internet gambling: Automated Clearing House System (ACH), card 
systems, check collection systems, money transmitting business, and wire transfer systems.39 The 
rule defines a “restricted transaction” to mean any transactions or transmittals involving any 
credit, funds, instrument, or proceeds that the UIGEA prohibits any person engaged in the 
business of betting or wagering from knowingly accepting, in connection with the participation of 
                                                 
29 15 U.S.C. §1125(d)(2)(A).  
30 15 U.S.C. §8131(1)(A). 
31 15 U.S.C. §8131(2). 
32 P.L. 109-347, 120 Stat. 1952 (31 U.S.C. §§5361-5367) (2006). 
33 For a more detailed analysis and description of UIGEA, see CRS Report RS22749, Unlawful Internet Gambling 
Enforcement Act (UIGEA) and Its Implementing Regulations, by Brian T. Yeh and Charles Doyle. 
34 31 U.S.C. §5363.  
35 31 U.S.C. §5366(a). 
36 31 U.S.C. §5366(b). 
37 31 U.S.C. §5365. 
38 31 U.S.C. §5364(a). 
39 31 C.F.R. §132.3. 
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another person in unlawful Internet gambling.40 The rule directs participants in the designated 
systems, unless exempted, to “establish and implement written policies and procedures 
reasonably designed to identify and block or otherwise prevent or prohibit restricted 
transactions,”41 and then provides non-exclusive examples of reasonably compliant policies and 
procedures for each system.42 
Some Members of Congress have criticized UIGEA for being, in their view, ineffective at 
stopping Internet gambling by millions of Americans.43 
Ryan Haight Online Pharmacy Consumer Protection Act  
“Rogue” Internet pharmacies engage in practices that are illegal, such as selling unapproved or 
counterfeit drugs or dispensing drugs without a prescription. In response to the problem of rogue 
Internet pharmacies and the illegal sale of prescription controlled substances over the Internet, the 
110th Congress passed the Ryan Haight Online Pharmacy Consumer Protection Act of 200844 
(hereinafter called “Ryan Haight Act”), which amends the federal Controlled Substances Act to 
expressly regulate online pharmacies that dispense controlled substances by mandating that the 
pharmacy post specific information on its website, and that the pharmacy register with and submit 
certain reports to the Drug Enforcement Administration. The Ryan Haight Act requires that 
delivery, distribution, or dispensing of controlled substances over the Internet must be pursuant to 
a “valid prescription” (defined by the statute as a prescription that is issued for a legitimate 
medical purpose in the usual course of professional practice, by a practitioner who has conducted 
at least one medical evaluation of the patient in the physical presence of the practitioner). The 
Ryan Haight Act also clarifies and enhances the penalties for illegal distributions of controlled 
substances over the Internet. According to the White House 2010 National Drug Control Policy, 
the Ryan Haight Act has “already had a significant impact on reducing the number of illegal 
Internet pharmacies.”45 
Legislative History of Online Copyright 
Infringement and Counterfeiting Legislation 
On September 20, 2010, Senator Leahy with Senator Hatch introduced the Combating Online 
Infringement and Counterfeits Act (COICA). The Senate Judiciary Committee voted to report 
COICA favorably to the Senate, with an amendment in the nature of a substitute. However, no 
                                                 
40 31 C.F.R. §132.2(y). 
41 31 C.F.R. §132.5(a). 
42 31 C.F.R. §132.6. 
43 Tax Proposals Related to Legislation to Legalize Internet Gambling: Hearing Before the House Comm. on Ways and 
Means, 111th Cong., 2nd sess. (2010) (statement of Rep. McDermott) (“[E]very day millions of Americans gamble on 
the Internet. Prohibition hasn’t prevented the millions of Americans who want to gamble online from doing it. It has 
forced internet gambling operators to work offshore, it has put consumers at risk, and it sends billions in dollars of 
revenue to other nations.”). 
44 P.L. 110-425. 
45 White House Office of National Drug Control Policy, 2010 National Drug Control Strategy, at 33. 
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public hearing was held to consider COICA before the end of the 111th Congress, and the full 
Senate did not act on the legislation before the end of the congressional term.  
At the request of Senator Coburn, the Senate Judiciary Committee in the 112th Congress held a 
hearing February 16, 2011, on the topic of “Targeting Websites Dedicated To Stealing American 
Intellectual Property.” This hearing considered the scope of intellectual property theft over the 
Internet and the problem of “rogue websites” that exclusively traffic in infringing material, issues 
that COICA was designed to address.46  
On May 12, 2011, Senator Leahy introduced S. 968, the PROTECT IP Act. On May 26, 2011, the 
Senate Committee on the Judiciary voted to report the legislation to the full Senate, with an 
amendment in the nature of a substitute.47 Senator Wyden then placed a hold on the bill, 
indicating his intent to object to any unanimous consent request to proceed,48 a sentiment that has 
been since joined by Senators Moran, Cantwell, and Paul.49 The Senate Judiciary Committee held 
a hearing on June 22, 2011, entitled “Oversight of Intellectual Property Law Enforcement 
Efforts” that included testimony from ICE and other agencies charged with enforcement of 
intellectual property laws online. On July 22, 2011, Senator Leahy filed a written report.50 
On October 26, 2011, Representative Lamar Smith, chairman of the House Judiciary Committee, 
introduced H.R. 3261, the Stop Online Piracy Act (SOPA). The House Judiciary Committee held 
a hearing on SOPA on November 2, 2011. 
Summary of PROTECT IP Provisions 
The following is a brief summary of the key provisions of S. 968, as reported in the Senate. 
Action by the Attorney General 
S. 968 focuses on Internet sites that are “dedicated to infringing activities.” An “Internet site 
dedicated to infringing activities,” as defined by the bill, is an Internet site that has no significant 
use other than engaging in, enabling, or facilitating (1) copyright infringement; (2) circumvention 
of copyright protection systems; or (3) the sale, distribution, or promotion of goods, services, or 
materials bearing a counterfeit mark. The term also encompasses websites that facts or 
circumstances suggest are used primarily as a means for engaging in or enabling those activities.51 
The PROTECT IP Act also defines “nondomestic domain name” as a domain name for which the 
domain name registry is not located in the United States.52 
                                                 
46 Nathan Pollard and Amy E. Bivins, Leahy Vows to Offer Tough Anti-Piracy Bill; Senator Demands ‘Accountability’ 
From ISPs, 16 Electronic Commerce & Law Report 257 (Feb. 23, 2011). 
47 Sen. Leahy, Report of the Sen. Judiciary Committee, Congressional Record, May 26, 2011, p. S3426. 
48 Sen. Wyden, Intent to Object, Congressional Record, May 26, 2011, p. S3419. 
49 Letter from Senators Wyden, Cantwell, Moran, and Paul, to Senators Reid and McConnell, Nov. 17, 2011. 
50 S.Rept. 112-39. 
51 S. 968 as reported, §2(7). 
52 S. 968 as reported, §2(9). 
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The PROTECT IP Act would authorize the Attorney General to file a civil action against a person 
who registers a nondomestic domain name used by an Internet site dedicated to infringing 
activities, or against a person who owns or operates such an Internet site.53 This provision is 
unlikely to be invoked often because these individuals are rarely located in the United States and 
are therefore difficult to prosecute domestically. 
If through due diligence the Attorney General cannot find such a person, the Attorney General 
may commence an in rem action against a nondomestic domain name used by an Internet site 
dedicated to infringing activities. In such an action, a federal court may issue a temporary 
restraining order, a preliminary injunction, or an injunction against the domain name if the 
domain name is used within the United States to access the Internet site and the Internet site 
harms U.S. intellectual property rights holders. A federal law enforcement officer (with prior 
court approval) may serve a copy of such court order (to cease and desist from undertaking any 
further activity as an Internet site dedicated to infringing activities) to the following entities that 
would be required to take the specified actions: 
•  Operators of non-authoritative domain name servers: Non-authoritative 
domain name servers are intermediary servers used to resolve a domain name to 
its Internet protocol address. They do this by retaining a copy of information 
stored on an authoritative domain name server. Operators of these servers, 
generally Internet service providers, are directed to prevent access to seized 
domain names through the least burdensome technically feasible means.54 
•  Financial transaction providers: Companies that facilitate online transactions, 
such as credit card companies, are required to prevent their service from 
completing transactions between customers located within the United States and 
the Internet site.55 
•  Internet advertising services: Internet advertising services are required to stop 
selling advertising to and providing advertising for the Internet site.56 
•  Information location tools: Search engines such as Google and Yahoo must take 
technically feasible measures to remove or disable access to the Internet site.57 
The PROTECT IP Act authorizes the Attorney General to bring an action for injunctive relief 
against any of the third parties that receive this court order and knowingly and willfully fail to 
comply with the obligations described above. A defendant in such an action may establish an 
affirmative defense by showing that it does not have the technical means to comply without 
incurring an unreasonable economic burden.58 
                                                 
53 S. 968 as reported, §3(a)(1). 
54 S. 968 as reported, §3(d)(2). 
55 Id. 
56 Id. 
57 Id. 
58 S. 968 as reported, §3(e). 
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Action by a “Qualifying Plaintiff” 
A qualifying plaintiff59 may bring suit for civil injunctive relief against a person who registered a 
domain name used by an Internet site dedicated to infringing activities, or the owner/operator of 
such an Internet site. Because this provision does not use the term “nondomestic” to limit the 
term “domain name,” this action by a qualifying plaintiff is available against the owner/operator 
of any Internet site dedicated to infringement (whether domestic or foreign) or the registrant of 
such domain name.60 This provision gives a new “private right of action” to intellectual property 
rights holders who are harmed by the activities occurring on the domestic or foreign Internet site 
dedicated to infringing activities.  
If through due diligence a qualifying plaintiff is unable to find such a person (or no such person 
has an address within the United States), the qualifying plaintiff may bring suit against a domain 
name used by an Internet site dedicated to infringing activities. In response, a federal court may 
issue a temporary restraining order, a preliminary injunction, or an injunction, against the domain 
name if the domain name is used within the United States to access the Internet site and the site 
harms U.S. intellectual property rights holders. Should the court grant the injunctive relief, the 
qualifying plaintiff (with prior court approval) may serve a copy of the court’s cease and desist 
order to the following entities, which would then be responsible for taking the specified actions: 
•  Financial transaction providers: Companies that facilitate online transactions, 
such as credit card companies, are required to prevent their service from 
completing transactions between customers located within the United States and 
the Internet site.61 
•  Internet advertising services: Internet advertising services are required to stop 
selling advertising to and providing advertising for the Internet site.62 
The PROTECT IP Act authorizes a qualifying plaintiff to bring an action for injunctive relief 
against any party receiving this court order that knowingly and willfully fails to comply with such 
order. A defendant in such an action may establish an affirmative defense by showing that it does 
not have the technical means to comply without incurring an unreasonable economic burden.63 
Due Process, Safeguards, and Limitations on Liability 
The PROTECT IP Act specifies that Rule 65 of the Federal Rules of Civil Procedure (FRCP) will 
govern how a federal court may issue injunctive relief in either an action brought by the Attorney 
General against a nondomestic entity, or an action brought by a qualifying plaintiff against 
domestic or nondomestic parties.64 Rule 65 of the FRCP provides that a “court may issue a 
preliminary injunction only on notice to the adverse party,” and that a “court may issue a 
                                                 
59 A qualifying plaintiff is defined by the bill as (1) the U.S. Attorney General or (2) “an owner of an intellectual 
property right ... harmed by the activities of an Internet site dedicated to infringing activities occurring on that Internet 
site.” See S. 968 as reported, §2(11)(B). 
60 S. 968 as reported, §4(a). 
61 S. 968 as reported, §4(d)(2). 
62 Id. 
63 S. 968 as reported, §4(e). 
64 S. 968 as reported, §§3(b)(1), 4(b)(1). 
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temporary restraining order without written or oral notice to the adverse party or its attorney only 
if (1) specific facts in an affidavit or a verified complaint clearly show that immediate and 
irreparable injury, loss, or damage will result to the movant before the adverse party can be heard 
in opposition; and (2) the movant’s attorney certifies in writing any efforts made to give notice 
and the reasons why it should not be required.” Thus, Rule 65 requires that, prior to the issuance 
of a preliminary injunction, the party that is the target of the injunction is entitled to notice and an 
opportunity to be heard. However, an ex parte temporary restraining order (with no notice to the 
adverse party) may be granted if the party seeking the order satisfies the stringent requirements 
described above.  
The Attorney General is also required by S. 968 to provide notice of the alleged violation and 
intent to proceed under the act to the registrant of the domain name or to the owner/operator of 
the Internet site, by using the postal or email address of the registrant/owner or by some other 
means that the court finds necessary.65 The PROTECT IP Act places a similar notice requirement 
upon the quantifying plaintiff.66 
Any person bound by a court order (registrant of the domain name, owner/operator of the Internet 
site, financial transaction provider, Internet advertising service) may file a motion with the court 
to modify, suspend, or vacate the order; the court may grant such relief if the court finds that 
either (1) the Internet site associated with the domain name is no longer, or never was, dedicated 
to infringing activities, or (2) the interests of justice require it.67 
To encourage financial transaction providers and Internet advertising services to “self-police,” the 
PROTECT IP Act makes them immune from liability for voluntarily taking action against an 
Internet site, so long as they act in good faith on credible evidence that the Internet site is 
dedicated to infringing activities.68  
S. 968 provides immunity from liability to more actors when they refuse to provide services to 
“infringing Internet sites that endanger the public health.” An “infringing Internet site that 
endangers the public health” is an Internet site that sells, dispenses, or distributes counterfeit 
prescription medicine. Domain name registries, domain name registrars, financial transaction 
providers, search engines, and Internet advertising services may refuse to provide services to such 
Internet sites when they have a good faith belief that the site is infringing.69 
Reports to Congress 
The PROTECT IP Act requires reports to Congress regarding the effectiveness of the act and its 
effect on Internet technologies, from the following government entities: the Attorney General, the 
Register of Copyrights, the Secretary of Commerce, and the Government Accountability Office.70 
                                                 
65 S. 968 as reported, §3(c)(1). 
66 S. 968 as reported, §4(c)(1). 
67 S. 968 as reported, §4(f). 
68 S. 968 as reported, §5(a). 
69 S. 968 as reported, §5(b). 
70 S. 968 as reported, §7. 
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Summary of SOPA Provisions 
SOPA contains two titles: (1) Combating Online Piracy and (2) Additional Enhancements to 
Combat Intellectual Property Theft. Prior to the titles are savings and severability clauses. The 
first savings clause pronounces that “Nothing in this Act shall be construed to impose a prior 
restraint on free speech or the press protected under the 1st amendment to the Constitution.” The 
second savings clause explains that nothing in Title I of this act shall be construed to enlarge or 
diminish copyright infringement liability for any cause of action under the Copyright Act, 
including any limitations on liability that the Copyright Act provides. The severability clause 
explains that if any provision of this act is held to be unconstitutional, the other provisions of the 
act are not to be affected by that determination. 
Title I of SOPA, “Combating Online Piracy” 
Action by the Attorney General 
Whether an Internet site may be subject to an action by the Attorney General under SOPA 
depends on if it qualifies as a “foreign infringing site.” Section 102(a) of SOPA provides a 
definition of a “foreign infringing site” to mean 
1.  the Internet site (or portion thereof) is a U.S.-directed site and is used by users in 
the United States, 
2.  the owner/operator of such Internet site “is committing or facilitating the 
commission of” criminal trademark and copyright infringement, and 
3.  the Internet site would be subject to seizure in the United States by the Attorney 
General if such site were a domestic Internet site.71 
Section 102(b) of SOPA authorizes the Attorney General to commence either an in personam 
action against a registrant of a domain name used by a foreign infringing site (or the 
owner/operator of such site), or an in rem action against a foreign infringing site or the foreign 
domain name used by such site. An in rem action is only permitted where, after diligence by the 
Attorney General, the domain name’s registrant or the site’s owner cannot be found.  
Federal district courts are authorized by SOPA, following the commencement of these actions, to 
issue a temporary restraining order, a preliminary injunction, or an injunction against the 
registrant of the domain name used by the foreign infringing site, or the owner/operator of the 
foreign infringing site, to cease and desist from undertaking any further activity as a foreign 
infringing site. 
A process server on behalf of the Attorney General, who obtains prior approval of the court, may 
serve a copy of the court’s cease and desist order on third parties that fall within the following 
four categories; these parties that receive the court order are then required to take the actions 
specified below. 
                                                 
71 Examples of such domestic sites are those that have been seized by the U.S. Immigration and Customs Enforcement 
(ICE) in its “Operation In Our Sites” initiative, described at the outset of this report. 
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•  A service provider is required to take “technically feasible and reasonable 
measures designed to prevent access by its subscribers located within the United 
States to the foreign infringing site (or portion thereof) that is subject to the order, 
including measures designed to prevent the domain name of the foreign 
infringing site (or portion thereof) from resolving to that domain name’s Internet 
Protocol address. Such actions shall be taken as expeditiously as possible, but in 
any case within 5 days after being served with a copy of the order, or within such 
time as the court may order.”72 
•  An Internet search engine is required to “take technically feasible and 
reasonable measures, as expeditiously as possible, but in any case within 5 days 
after being served with a copy of the order, or within such time as the court may 
order, designed to prevent the foreign infringing site that is subject to the order, 
or a portion of such site specified in the order, from being served as a direct 
hypertext link.”73 
•  A payment network provider is required to “take technically feasible and 
reasonable measures, as expeditiously as possible, but in any case within 5 days 
after being served with a copy of the order, or within such time as the court may 
order, designed to prevent, prohibit, or suspend its service from completing 
payment transactions involving customers located within the United States or 
subject to the jurisdiction of the United States and the payment account” that is 
used by the foreign infringing site and through which the payment network 
provider would complete such payment transactions.74 
•  An Internet advertising service is required to “take technically feasible and 
reasonable measures, as expeditiously as possible, but in any case within 5 days 
after being served with a copy of the order, or within such time as the court may 
order, designed to prevent its service from providing advertisements to or relating 
to the foreign infringing site that is subject to the order or a portion of such site 
specified in the order; cease making available advertisements for the foreign 
infringing site or such portion thereof, or paid or sponsored search results, links, 
or other placements that provide access to such foreign infringing site or such 
portion thereof; and cease providing or receiving any compensation for 
advertising or related services to, from, or in connection with such foreign 
infringing site or such portion thereof.”75 
SOPA authorizes the Attorney General to bring an action for injunctive relief against any party 
that receives this court order and knowingly and willfully fails to comply with the obligations 
described above. A defendant in such an action may establish an affirmative defense by showing 
that it does not have the technical means to comply without incurring an unreasonable economic 
burden.76 
                                                 
72 H.R. 3261, §102(c)(2)(A)(i). 
73 H.R. 3261, §102(c)(2)(B). 
74 H.R. 3261, §102(c)(2)(C). 
75 H.R. 3261, §102(c)(2)(D). 
76 H.R. 3261, §102(c)(4). 
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SOPA also authorizes the Attorney General to bring an action for injunctive relief against “any 
entity that knowingly and willfully provides or offers to provide a product or service designed or 
marketed for the circumvention or bypassing of measures” that were taken by any of the parties 
that received the court order.77 
Actions by a “Qualifying Plaintiff” 
Whether an Internet site (that may be either domestic or foreign) may be subject to a private right 
of action by a “qualifying plaintiff” under SOPA depends on if the Internet site is one that is 
“dedicated to theft of U.S. property.” An intellectual property right holder who is “harmed by” the 
activities of such an Internet site is classified by SOPA as a “qualifying plaintiff.”78 SOPA 
provides a definition of the term “Internet site is dedicated to theft of U.S. property” to mean 
1.  an Internet site, or a portion thereof, that is a U.S.-directed site and is used by 
users within the United States; and 
2.  either: 
a.  “the U.S.-directed site is primarily designed or operated for the purpose of, 
has only limited purpose or use other than, or is marketed by its operator or 
another acting in concert with that operator for use in, offering goods or 
services in a manner that engages in, enables, or facilitates:” (1) copyright 
infringement, (2) circumvention of copyright protection systems, or (3) the 
sale, distribution, or promotion of goods, services, or materials bearing a 
counterfeit mark, or 
b.  the operator of the U.S.-directed site: 
i.  “is taking, or has taken, deliberate actions to avoid confirming a high 
probability of the use of the U.S.-directed site to carry out acts that 
constitute” copyright infringement or circumvention of copyright 
protection systems, or 
ii.  “operates the U.S.-directed site with the object of promoting, or has 
promoted, its use to carry out acts that constitute” copyright infringement 
or circumvention of copyright protection systems, “as shown by clear 
expression or other affirmative steps taken to foster infringement.”79 
Notification Process (No Court Involvement) 
Subsection 103(b) of SOPA authorizes a qualifying plaintiff to send written notifications to 
payment network providers and Internet advertising services regarding an Internet site that is 
                                                 
77 H.R. 3261, §102(c)(4)(A)(ii). The bill defines “a product or service designed or marketed for the circumvention or 
bypassing of measures” to mean a product or service that is designed or marketed to enable a domain name described in 
the court order to (1) resolve to that domain name’s Internet protocol address notwithstanding the measures taken by 
the service provide to prevent such resolution, or (2) resolve to a different domain name or Internet protocol address 
that the provider of the product or service knows, reasonably should know, or reasonably believes is used by an Internet 
site offering substantially similar infringing activities as those with the infringing foreign site that is subject to the court 
order. H.R. 3261, §102(c)(4)(D). 
78 H.R. 3261, §103(a)(2) (definition of “qualifying plaintiff”). 
79 H.R. 3261, §103(a)(1) (definition of “Internet site is dedicated to theft of U.S. property”). 
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dedicated to the theft of U.S. property. Such notification must, among other things, include the 
following items: 
•  Identify the Internet site that is allegedly dedicated to the theft of U.S. property, 
including the domain name or Internet Protocol address of such site. 
•  Identify specific facts to support a claim that the Internet site is dedicated to theft 
of U.S. property, and that “clearly show that immediate and irreparable injury, 
loss, or damage will result to the holder of the intellectual property right harmed 
by the activities” of such Internet site “in the absence of timely action by the 
payment network provider or Internet advertising service.” 
•  “Information reasonably sufficient to establish that the payment network provider 
or Internet advertising service is providing payment processing or Internet 
advertising services for such site.” 
•  “A statement that the holder of the intellectual property right has a good faith 
belief that the use of the owner’s works or goods in which the right exists, in the 
manner described in the notification, is not authorized by the holder, its agent, or 
law.”80 
A payment network provider or Internet advertising service is required to “take technically 
feasible and reasonable measures, as expeditiously as possible, but in any case within 5 days 
after” delivery of the notification, that are, respectively, “designed to prevent, prohibit, or suspend 
its service from completing payment transactions involving customers located within the United 
States and the Internet site” or “prevent its service from providing advertisements to or relating to 
the Internet site.”81 
The owner/operator of the Internet site may file a “counter notification” to the payment network 
provider or Internet advertising service that states (under penalty of perjury) that the 
owner/operator/registrant of the Internet site “has a good faith belief that it does not meet the 
criteria of an Internet site dedicated to theft of U.S. property.”82 
SOPA provides liability (in the form of damages, costs, and attorneys’ fees) for any provider of a 
notification or counter notification who, respectively, knowingly materially misrepresents that a 
site is an Internet site dedicated to the theft of U.S. property, or that such site does not meet the 
criteria of an Internet site dedicated to the theft of U.S. property.83 
Civil Actions for Injunctive Relief 
If a counter notification is filed, or if a payment network provider or Internet advertising service 
fails to comply with its obligations upon receiving the notification, Section 103(c) of SOPA 
allows the qualifying plaintiff to commence an in personam action against the registrant of the 
domain name used by the Internet site, or the owner/operator of the Internet site. If the qualifying 
                                                 
80 H.R. 3261, §103(b)(4)(A). 
81 H.R. 3261, §103(b)(1), (2). 
82 H.R. 3261, §103(b)(5). 
83 H.R. 3261, §103(b)(6). 
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plaintiff cannot find these individuals through due diligence, he or she may bring an in rem action 
against the Internet site or the domain name used by such site.84  
SOPA authorizes federal district courts, following the commencement of this action by the 
qualifying plaintiff, to issue a temporary restraining order, a preliminary injunction, or an 
injunction against the registrant/owner/operator of the Internet site, to cease and desist from 
undertaking any further activity as an Internet site dedicated to theft of U.S. property.85 
A qualifying plaintiff who obtains prior approval of the court may serve a copy of the court’s 
cease and desist order on payment network providers and Internet advertising services, which are 
then required to take the same measures as required of these parties under the action brought by 
the Attorney General described above. If the qualifying plaintiff demonstrates to the federal court 
probable cause to believe that any of these third parties that received the court order has not 
complied with its obligations, the court shall require the entity to explain why an order should not 
be issued directing it to comply with the obligations and to impose a monetary sanction.86 An 
entity against whom this relief is sought may establish an affirmative defense by showing that it 
does not have the technical means to comply without incurring an unreasonable economic burden. 
Due Process, Safeguards, and Limitations on Liability 
SOPA would require courts to follow Rule 65 of the Federal Rules of Civil Procedure (FRCP) in 
deciding whether to issue injunctive relief in either an action brought by the Attorney General 
against a nondomestic entity, or an action brought by a qualifying plaintiff against domestic or 
nondomestic parties.87 Rule 65 of the FRCP provides that a “court may issue a preliminary 
injunction only on notice to the adverse party,” and that a “court may issue a temporary 
restraining order without written or oral notice to the adverse party or its attorney only if: (A) 
specific facts in an affidavit or a verified complaint clearly show that immediate and irreparable 
injury, loss, or damage will result to the movant before the adverse party can be heard in 
opposition; and (B) the movant’s attorney certifies in writing any efforts made to give notice and 
the reasons why it should not be required.” Thus, Rule 65 requires that, prior to the issuance of a 
preliminary injunction, the party that is the target of the injunction is entitled to notice and an 
opportunity to be heard. However, an ex parte temporary restraining order (with no notice to the 
adverse party) may be granted if the party seeking the order satisfies the stringent requirements 
described above. 
SOPA requires the Attorney General to provide notice of the alleged violation and intent to 
proceed under the act to the registrant of the domain name or to the owner/operator of the Internet 
site, by using the postal or email address of the registrant/owner or by some other means that the 
court finds necessary.88 The bill requires qualifying plaintiffs to provide similar notice.89 
                                                 
84 H.R. 3261, §103(c)(2). 
85 H.R. 3261, §103(c)(5). 
86 H.R. 3261, §103(d)(4). 
87 H.R. 3261, §§102(b)(5), 103(c)(5). 
88 H.R. 3261, §102(b)(3). 
89 H.R. 3261, §103(c)(3). 
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SOPA provides immunity from liability to third parties for their actions taken to reasonably 
comply with the court order.90 
Any person bound by the court order (registrant of the domain name, owner/operator of the 
Internet site, service provider, Internet search engine, payment network provider, Internet 
advertising service) may file a motion with the court to modify, suspend, or vacate the order; the 
court may grant such relief if the court finds that either (1) the Internet site associated with the 
domain name is no longer, or never was, a foreign infringing site, or (2) the interests of justice 
require it.91 
To encourage certain third parties to “self-police,” SOPA provides immunity from any cause of 
action for service providers, payment network providers, Internet advertising services, Internet 
search engines, domain name registries, or domain name registrars, that voluntarily take action 
against an Internet site, so long as they act in the reasonable belief that (1) the Internet site is a 
foreign infringing site or is dedicated to theft of U.S. property, and (2) the action is consistent 
with the entity’s terms of service or other contractual rights.92 
SOPA also provides immunity from liability to service providers, payment network providers, 
Internet advertising services, advertisers, Internet search engines, domain name registries, or 
domain name registrars, when they, in good faith and based on credible evidence, stop providing 
or refuse to provide services to “an Internet site that endangers the public health.”93 “An Internet 
site that endangers the public health” is defined by subsection (c) to mean an Internet site that is 
primarily designed or operated for the purpose of, has only limited purpose or use other than, or is 
marketed by its operator for use in (1) offering/selling/dispensing/distributing prescription 
medicine without a valid prescription, or (2) offering/selling/dispensing/distributing prescription 
medicine that is adulterated or misbranded. 
Reports to Congress 
SOPA requires the Register of Copyrights to “conduct a study on the enforcement and 
effectiveness of this title and on any need to amend the provisions of this title to adapt to 
emerging technologies.”94  
SOPA also requires the Intellectual Property Enforcement Coordinator (IPEC), in consultation 
with the Secretaries of the Treasury and Commerce, the United States Trade Representative, the 
Chairman of the Securities and Exchange Commission, and the heads of other departments and 
appropriate agencies, to identify and conduct an analysis of notorious foreign infringers whose 
activities cause significant harm to holders of intellectual property rights in the United States.95 
The IPEC is required to submit a report to Congress that includes, among other things, “an 
examination of whether notorious foreign infringers have attempted to or succeeded in accessing 
capital markets in the United States for funding or public offerings,” and “whether notorious 
                                                 
90 H.R. 3261, §§102(c)(5), 103(d)(5). 
91 H.R. 3261, §§102(d), 103(e). 
92 H.R. 3261, §104. 
93 H.R. 3261, §105. 
94 H.R. 3261, §106(b). 
95 H.R. 3261, §107(a). 
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foreign infringers that engage in significant infringing activity should be prohibited by the laws of 
the United States from seeking to raise capital in the United States, including offering stock for 
sale to the public.”96 
Title II of SOPA, “Additional Enhancements to Combat Intellectual 
Property Theft” 
Streaming of Copyrighted Works in Violation of Criminal Law 
Section 201 of SOPA would amend the criminal copyright statutes (17 U.S.C. §506, 18 U.S.C. 
§2319) to provide additional criminal penalties for unlawful public performances of copyrighted 
works over the Internet using technology such as “streaming.” This section authorizes a 
maximum five-year prison sentence for those who, without authorization, willfully stream 
commercially valuable copyrighted material for purposes of commercial advantage or private 
financial gain. In addition, this section would authorize misdemeanor and felony penalties for 
non-commercial willful public performance by means of digital transmission, during any 180-
period, of 1 or more copyrighted works, where the total retail value of the public performance 
exceeds $1,000. For a detailed analysis and discussion of the changes that Section 201 would 
make to existing law, see CRS Report R41975, Illegal Internet Streaming of Copyrighted 
Content: Legislation in the 112th Congress, by Brian T. Yeh. 
Trafficking in Inherently Dangerous Goods or Services 
Section 202 of SOPA would amend 18 U.S.C. Section 2320 (the criminal offense of trafficking in 
counterfeit goods or services) to include the intentional importation, exportation, or trafficking of 
counterfeit drugs.97 This section also provides penalties if this criminal offense involves a good or 
service that, “if it malfunctioned, failed, or was compromised, could reasonably be foreseen to 
cause” (1) serious bodily injury or death, (2) disclosure of classified information, (3) impairment 
of combat operations, or (4) other significant harm, to a member of the Armed Forces, law 
enforcement agency, or national security or critical infrastructure. In order for a person to be 
liable under this new provision, the person must possess “knowledge that the good or service is 
falsely identified as meeting military standards or is intended for use in a military or national 
security application, or a law enforcement or critical infrastructure application.” 
Protecting U.S. Businesses From Foreign and Economic Espionage 
Section 203 of SOPA would increase the penalties for the criminal offense of theft of trade secrets 
by someone who intends or knows that the offense will benefit any foreign government (18 
U.S.C. §1831(a)), from the existing 15 years in prison to 20 years, and from a $500,000 fine to 
“not less than $1,000,000 and not more than $5,000,000.” If this offense is committed by 
organizations, the penalty is changed from the existing fine of “not more than $10,000,000” to 
“not more than the greater of $10,000,000 or 3 times the value of the stolen trade secret to the 
                                                 
96 H.R. 3261, §107(b). 
97 Other legislation in the 112th Congress provide similar amendments to 18 U.S.C. §2320 (although with more 
stringent penalties), see Counterfeit Drug Penalty Enhancement Act of 2011 (H.R. 3468 and S. 1886). 
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organization (including expenses for research and design or other costs of reproducing the trade 
secret that the organization has thereby avoided).” 
Amendments to Sentencing Guidelines 
Section 204 of SOPA directs the U.S. Sentencing Commission to review and, if appropriate, 
amend the Federal Sentencing Guidelines and policy statements applicable to persons convicted 
of intellectual property offenses, trafficking in counterfeit goods or services, and economic 
espionage. 
Defending Intellectual Property Rights Abroad 
Section 205 of SOPA directs the Secretary of State and the Secretary of Commerce, in 
consultation with the Register of Copyrights, to “ensure that the protection in foreign countries of 
the intellectual property rights of United States persons is a significant component of United 
States foreign and commercial policy in general, and in relations with individual countries in 
particular.” This section also requires the Secretary of State and the Secretary of Commerce, in 
consultation with the Register of Copyrights, to “appoint at least one intellectual property attaché 
to be assigned to the United States embassy or diplomatic mission (as the case may be) in a 
country in each geographic region covered by a regional bureau of the Department of State.” 
Debate Over the Legislation 
Numerous concerns have been raised about the provisions of the PROTECT IP Act and SOPA by 
a variety of organizations, including human rights and civil liberties groups, technology 
companies, law professors, public interest groups, and consumer organizations. These concerns, 
and the responses by the legislation’s supporters (the bills’ sponsors as well as organizations 
representing intellectual property rights holders, labor unions, and small and large businesses that 
manufacture and sell goods), can be organized broadly into the following categories. 
Impact on Free Speech 
Some commentators are concerned that the expansive definitions used by the bills to describe an 
Internet site that is “dedicated to infringing activity” (PROTECT IP Act) or an Internet site that is 
“dedicated to theft of U.S. property” (SOPA) could impact non-infringing content that is 
legitimate speech protected by the First Amendment.98 Editorials from several major newspapers 
have also expressed serious reservations about the overly broad definitions.99 Others claim that 
the legislation will give owners of copyrighted content “broad censorship powers.”100 These 
concerns are heightened by fears that the act provides insufficient legal process.101  
                                                 
98 See, e.g., Letter from Mark Lemley, Professor, Stanford Law School, et al. to Sen. Judiciary Comm. (June 27, 2011), 
and Open Letter from Mark Lemley to the House of Representatives (Nov. 15, 2011). 
99 See, e.g., Editorial, “Internet Piracy and How to Stop It,” NEW YORK TIMES, June 9, 2011; Editorial, “Piracy vs. an 
Open Internet,” LOS ANGELES TIMES, Nov. 25, 2011. 
100 Mike Masnick, Son of COICA, Techdirt, May 10, 2011, http://www.techdirt.com/articles/20110510/13285714230/. 
101 See, e.g., H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. 
(continued...) 
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Opponents of the legislation argue that repressive foreign regimes could cite U.S. domain name 
seizures to justify online suppression of speech. Eric Schmidt, executive chairman of Google, 
compared the domain name blocking approach to China’s attempts to stifle free speech. He 
warned that any legislative measure that authorizes domain name blocking could set a disastrous 
precedent if done the wrong way.102 There is concern that backing away from an open and global 
Internet could set “a precedent for other countries ... to use DNS [domain name system] 
mechanisms to enforce a range of domestic policies, erecting barriers on the global medium of the 
Internet. Non-democratic regimes could seize on the precedent to justify measures that would 
hinder online freedom of expression and association.”103 
However, supporters of the legislation note that “[a]ll existing copyright protections are 
applicable to the Internet” and that “injunctions are a longstanding, constitutionally sanctioned 
way to remedy and prevent copyright violations.”104 The Register of Copyrights also has stated 
that she does not believe that shutting down a website that is devoted to infringing activity would 
violate the First Amendment or that it constitutes censorship, yet she also stressed that “[c]are 
must be taken to ensure that noninfringing expression is not unnecessarily suppressed and that the 
relief is effective but narrowly tailored.”105 Supporters also point to Supreme Court precedents in 
favor of injunctions for copyright infringement, even when the copyrighted material is a matter of 
public debate.106 Nevertheless, these supporters concede that “the most troublesome First 
Amendment concerns” would be raised “where an entire website could be blocked or seized for a 
single, or just a few, [infringing] offenses.”107 Yet they assert that neither the PROTECT IP Act 
nor SOPA would permit such an result.108 
In addition, supporters of the legislation argue that the legislation provides sufficient procedural 
protections by incorporating Rule 65 of the Federal Rules of Civil Procedure as the basis for 
governing the process by which federal judges may issue a temporary restraining order, 
preliminary injunction, or injunction.109 As explained earlier in this report, Rule 65 provides 
certain procedural safeguards, including requiring notice to the allegedly infringing website and 
                                                                  
(...continued) 
(2011) (written statement of Katherine Oyama, Copyright Counsel, Google, Inc.). 
102 Nathan Olivarez-Giles, “Google’s Eric Schmidt: Blocking File-sharing Sites Would Make U.S., Britain like China,” 
Los Angeles Times, May 18, 2011, available at http://latimesblogs.latimes.com/technology/2011/05/google-eric-
schmidt-says-blocking-filesharing-sites-would-make-u-s-u-k-ike-china.html. 
103 Letter from Center for Democracy and Technology et al. to Sen. Patrick Leahy, Chairman Sen. Judiciary Comm. 
(May 25, 2011) available at http://www.cdt.org/files/pdfs/20110525_public_interet_968_ltr.pdf. 
104 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Floyd Abrams, Partner, Cahill Gordon & Reindel LLP). 
105 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part I: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Maria Pallante, Acting Register of Copyrights). 
106 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Floyd Abrams, Partner, Cahill Gordon & Reindel LLP citing Harper & Row v. Nation Enters., 
471 U.S. 539 (1985) (finding an injunction against a magazine’s infringing publication of portions of Gerald Ford’s 
memoir valid)). 
107 Id. 
108 H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Maria Pallante, Register of Copyrights). 
109 Id. 
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providing an opportunity for that party to be heard and defend themselves before an order is 
issued. Foreign entities would be entitled to these same procedural safeguards as U.S.-based 
website operators.110 
Technical Integrity of the Internet 
Opponents of the legislation have raised concerns that the bills, if either is enacted into law, may 
affect the integrity of the Internet.111 They claim that “DNS blocking itself could affect the 
Internet’s reliability, security, and performance.”112 Other commentators have called the domain 
name blocking approach ineffective,113 noting that the Internet sites will still remain available 
through their Internet protocol addresses: 
[D]omain name address resolution takes place throughout the Internet, not just by larger ISPs 
and registries. Indeed, there are as many as a million worldwide domain names “resolvers,” 
and it is unlikely U.S. courts could or would order all of them to comply with a blocking 
order. But incomplete blocking could seriously undermine the integrity of this key feature of 
the Web’s architecture, incentivizing truly rogue Web site operators to use shadow 
registration systems or simply forgo domain names and rely solely on IP addresses.114 
A group of Internet network engineers have argued that DNS filtering requirements under both 
bills “is incompatible with” implementation of the new security protocols known as DNS 
Security Extensions (DNSSEC), which have been promoted and supported by the federal 
government to further national cybersecurity goals.115 They warn that “[a] legal mandate to 
operate DNS servers in a manner inconsistent with end-to-end DNSSEC would therefore interfere 
with the rollout of this critical security technology and stifle this emerging platform for 
innovation.”116 
Supporters respond that taking down infringing Internet sites is akin to “whac-a-mole” and that 
the law must provide sufficient authority to combat this problem.117 Furthermore, supporters 
                                                 
110 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Floyd Abrams, Partner, Cahill Gordon & Reindel LLP). 
111 Letter from Internet Engineers Opposed to COICA, to Sen. Judiciary Comm. (Sept. 28, 2010) available at 
http://www.publicknowledge.org/files/docs/COICA_internet_engineers_letter.pdf (discussing similar provisions in a 
preceding bill). 
112 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part II: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Kent Walker, Senior Vice President, Google). 
113 See e.g. Editorial, “Internet Piracy and How to Stop It,” New York Times, June 9, 2011, p. A26; Editorial, “Policing 
the Internet”, Los Angeles Times, June 7, 2011, available at http://articles.latimes.com/2011/jun/07/opinion/la-ed-
protectip-20110607. 
114 Larry Downes, Leahy’s Protect IP Bill Even Worse than COICA, CNET News (June 20, 2011 2:46 p.m.), 
http://news.cnet.com/8301-13578_3-20062419-38.html.  
115 Steve Crocker et al., Security and Other Technical Concerns Raised by the DNS Filtering Requirements in the 
PROTECT IP Bill, available at http://www.circleid.com/pdf/PROTECT-IP-Technical-Whitepaper-Final.pdf. 
116 Id. at 6. 
117 The references to “whac-a-mole” are ubiquitous. See e.g. Targeting Websites Dedicated To Stealing American 
Intellectual Property: Hearing Before the S. Comm. on the Judiciary, 112th Cong. (2011) (written statement of Tom 
Adams, Chief Executive Officer, Rosetta Stone). 
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believe the DNS blocking provisions of the legislation are key to preventing foreign sites from 
infringing American intellectual property rights:  
Reaching sites originating outside the U.S. is critical to fighting a worldwide epidemic that is 
destroying the ability of the [content owners] to obtain the financing needed to produce 
future [content].... Internet sites that steal and distribute American intellectual property are 
often foreign-owned and operated, or reside at domain names that are not registered through 
a U.S.-based registry or registrar, setting them outside the scope of U.S. law enforcement. 
The Justice Department and rights holders are currently limited in their options for legal 
recourse, even when the website is directed at American consumers and steals American-
owned intellectual property.118 
Supporters also observe that site blocking and filtering technology that is often used to combat 
spam, malware, and viruses, have had “no adverse impact on the Internet.”119 Furthermore, they 
argue that there is no technical reason why DNS filtering and DNSSEC need to be incompatible; 
rather, network engineers can and will find a way to make the required changes to the DNSSEC 
code to ensure no such conflict occurs.120 
Private Cause of Action 
There is considerable consternation from opponents of the legislation that the problems they have 
identified will be exacerbated by including the new enforcement mechanisms available to 
intellectual property rights holders. They worry that content owners will use the private right of 
action to stifle Internet innovation and protect outdated business models.121 “[T]he Internet and 
digital technologies can be highly disruptive of traditional business models for reasons having 
nothing to do with infringement.”122 Additionally, technology companies are concerned that they 
will be unable to cope with thousands of suits from content owners. They argue that these suits 
will overwhelm their ability to handle requests and ultimately increase costs for consumers.123 
“We believe that the currently proposed private litigation-based process will, however 
unintentionally, become a one-sided litigation machine with rights owners mass-producing 
virtually identical cases against foreign domain names for the purpose of obtaining orders to serve 
on U.S. payment and advertising companies.”124  
                                                 
118 Press Release, The Motion Picture Association of America, Broad Creative Industry Coalition Praises Senate 
Introduction of Bipartisan Legislation to fight Online Theft (May 12, 2011) available at http://mpaa.org/resources/
e62fa607-8234-4120-97f2-aa4082cd691a.pdf. 
119 H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Michael P. O’Leary, Senior Executive Vice President, the Motion Pictures Association of 
America, Inc.). 
120 Id.  
121 See Abigail Phillips, The “PROTECT IP” Act: COICA Redux, The Electronic Frontier Foundation (June 20, 4:31 
p.m.), https://www.eff.org/deeplinks/2011/05/protect-ip-act-coica-redux (wondering whether Viacom would have 
quashed YouTube had the bill been law at the time). 
122 Promoting Investment and Protecting Commerce Online: Legitimate Sites v. Parasites, Part I: Hearing Before the 
Subcomm. on Intellectual Property, Competition and the Internet of H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of David Sohn, Senior Policy Counsel, Center for Democracy and Technology). 
123 See Targeting Websites Dedicated To Stealing American Intellectual Property: Hearing Before the S. Comm. on the 
Judiciary, 112th Cong. (2011) (written statement of Thomas Dailey, General Counsel, Verizon). 
124 Letter from American Express et al. to Sen. Patrick Leahy, Chairman, Sen. Judiciary Comm. (May 25, 2011) 
available at http://www.publicknowledge.org/letter-opposing-PIPA-privaterightofaction. 
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Proponents of the legislation argue that online infringement is rampant and that law enforcement 
lacks the resources to deter infringing activities. Additionally, they point out that in an action 
brought by a qualifying plaintiff, the court order may only be served on payment processors and 
online advertisers to require them to cut off financial ties to the Internet site; therefore, content 
owners lack the power under either bill to block domain names or websites. In contrast, the 
Attorney General can serve the court order on DNS operators (PROTECT IP Act), service 
providers (SOPA), and search engines to require them to prevent access to infringing websites (in 
addition to having the authority to serve the court order on the financial intermediaries). As the 
Register of Copyrights has explained, the enforcement structure provided by the bills: 
appropriately provides much broader tools and flexibility to the Attorney General than it 
provides to copyright owners. This is a sound policy choice at this time. The Department of 
Justice has experience fighting online infringers, will use resources carefully, must exercise 
prosecutorial discretion in bringing actions, and must plead its case to the court and obtain a 
court-issued order before proceeding. Put another way, while the copyright industries are 
extremely important (and certainly a point of pride with respect to the U.S. economy), [the 
legislation] recognizes that many sectors rely on, invest in, and contribute to the success of 
the Internet.  
It is for this reason that [the legislation] puts only limited tools in the hands of copyright 
owners, and provides the Attorney General with the sole authority to seek orders against 
search engines and Internet service providers.125  
Conflict with the DMCA “Safe Harbors” and Potential Impact on 
Internet Innovation (Referring to SOPA Only) 
Section 512(m) of the Digital Millennium Copyright Act (DMCA) (17 U.S.C. §512(m)) explains 
that a service provider that seeks a safe harbor from liability (as described earlier in this report) is 
not required to “monitor[] its service or affirmatively seek[] facts indicating infringing activity” 
as a condition of enjoying such safe harbor. 
Critics of SOPA note that, unlike the PROTECT IP Act, SOPA appears to effectively repeal 17 
U.S.C. Section 512(m) and erode the safe harbor protections available to many Internet 
companies under the DMCA with its definition of an “Internet site [] dedicated to theft of U.S. 
property” (applicable to actions by qualifying plaintiffs). Such definition includes an operator of a 
U.S.-directed site that “is taking, or has taken, deliberate actions to avoid confirming a high 
probability of the use of the U.S.-directed site to carry out acts that constitute” copyright 
infringement or circumvention of copyright protection systems.126 In the view of SOPA’s critics, 
this definition would mean that companies that host user-generated content websites (such as 
YouTube) and operators of cloud computing storage services (such as Dropbox) would need to 
monitor, filter, and otherwise police user behavior for infringing activities, in order to avoid being 
covered by the definition.127 In addition, while SOPA does not directly modify the DMCA safe 
harbor provisions, SOPA “creates uncertainty about whether court orders issued against ‘foreign 
                                                 
125 H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Maria Pallante, Register of Copyrights). 
126 H.R. 3261, §103(a)(1)(B)(ii)(I). 
127 Corynne McSherry, SOPA: Hollywood Finally Gets a Chance to Break the Internet, Electronic Frontier Foundation, 
Oct. 28, 2011, at https://www.eff.org/deeplinks/2011/10/sopa-hollywood-finally-gets-chance-break-internet. 
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infringing sites’ and ‘sites dedicated to theft’ might disqualify an online service provider from the 
DMCA safe harbors.”128 This “legal uncertainty for Internet companies” means that “SOPA will 
significantly deter current and future Internet businesses from investing in new ventures.”129 
Others point out that although the “notice and takedown” provisions of the DMCA may be abused 
by content owners making erroneous claims, the consequence is the blocking or removal of such 
content, whereas under SOPA’s notification process available to qualifying plaintiffs, the 
consequence for false claims is that the money to the website is stopped.130 They note that such 
funds (that the website may depend on to exist) may be cut off merely “based on an allegation of 
harm that falls short of an allegation of infringement.”131 
Supporters of SOPA observe that while the DMCA has worked well for copyright holders and 
service providers to address online infringement, the DMCA’s “notice and takedown” procedures 
are ineffective against foreign rogue sites; furthermore, the DMCA does not apply to trademark 
infringement and does not address the use of financial intermediaries such as payment processors 
and Internet advertising services.132 Other supporters contend that SOPA’s notification process is 
less likely to be misused than the DMCA’s “notice and takedown” procedure, because under the 
latter, a service provider has an incentive to remove infringing content in order to preserve its safe 
harbor from liability. In contrast, Internet advertisers and payment processors “don’t have 
business incentives to comply with bad faith notices under SOPA. Each site they are ordered to 
block is, presumably, a paying customer or revenue source.”133 Thus, not many such companies 
would be willing to “rubber-stamp any and every order that cuts into their bottom line without 
some way of making sure the site at issue is one that genuinely falls within the scope of” 
SOPA.134 
Other supporters disagree that SOPA will diminish investment in new technology ventures or 
stifle innovation. They believe that “strong copyright law promotes innovation,” and observe that 
“[m]any of the loudest voices opposing rogue sites legislation are the same critics who predicted 
disaster in the wake of the DMCA, the NET Act (No Electronic Theft Act),135 and the unanimous 
                                                 
128 H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Katherine Oyama, Copyright Counsel, Google, Inc.). 
129 Id. 
130 Mike Masnick, The Definitive Post on Why SOPA and PROTECT IP are Bad, Bad Ideas, Techdirt, Nov. 22, 2011, 
at http://www.techdirt.com/articles/20111122/04254316872/definitive-post-why-sopa-protect-ip-are-bad-bad-
ideas.shtml. 
131 Rashmi Rangnath, SOPA and the DMCA Safe Harbors, Public Knowledge, Nov. 3, 2011, at 
http://www.publicknowledge.org/blog/sopa-and-dmca-safe-harbors (“Thus far, a copyright holder has had to allege that 
her copyright was infringed before she can take action under the law. Under SOPA, however, a copyright owner could 
argue that because a site allows users to upload material, and indeed many have uploaded infringing material, she is 
harmed by the site’s activities. After all, her work could be in imminent danger of being uploaded without her 
permission.”). 
132 Statement of Judiciary Committee Chairman Lamar Smith, Hearing on H.R. 3261, the “Stop Online Piracy Act,” 
Nov. 16, 2011. 
133 Terry Hart, How the Stop Online Piracy Act Will Hit What It Aims At, Copyhype, Oct. 31, 2011, at 
http://www.copyhype.com/2011/10/how-the-stop-online-piracy-act-will-hit-what-it-aims-at/. 
134 Id. 
135 The No Electronic Theft Act, P.L. 105-147, 111 Stat. 2678 (1997), was enacted to enable criminal prosecution of 
certain peer-to-peer file-sharing of copyrighted works. For a detailed discussion of this law, see CRS Report R41975, 
Illegal Internet Streaming of Copyrighted Content: Legislation in the 112th Congress, by Brian T. Yeh. 
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Supreme Court decision in Grokster.136 Yet since those events occurred, the Internet has grown by 
leaps and bounds, innovation is off the charts and access to technology is at an all time high.”137 
 
Author Contact Information 
 
Brian T. Yeh 
   
Legislative Attorney 
byeh@crs.loc.gov, 7-5182 
 
 
Acknowledgments 
Portions of this report were prepared by Jonathan H. Miller, Law Clerk, American Law Division. 
 
                                                 
136 The Supreme Court in its 2005 opinion Metro-Goldwyn-Mayer Studios v. Grokster held that one who distributes a 
device “with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative 
steps taken to foster infringement, is liable for the resulting acts of infringement by third parties.” For more 
information, see CRS Report RL31998, File-Sharing Software and Copyright Infringement: Metro-Goldwyn-Mayer 
Studios, Inc. v. Grokster, Ltd., by Brian T. Yeh and Robin Jeweler. 
137 H.R. 3261, the “Stop Online Piracy Act”: Hearing Before the H. Comm. on the Judiciary, 112th Cong. (2011) 
(written statement of Michael P. O’Leary, Senior Executive Vice President, the Motion Pictures Association of 
America, Inc.). 
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