STOP ONLINE PIRACY ACT HEARING BEFORE THE COMMITTEE ON THE JUDICIARY HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS FIRST SESSION ON H.R. 3261 NOVEMBER 16, 2011 Serial No. 112–154 Printed for the use of the Committee on the Judiciary ( Available via the World Wide Web: http://judiciary.house.gov U.S. GOVERNMENT PRINTING OFFICE 71–240 PDF WASHINGTON : 2013 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 COMMITTEE ON THE JUDICIARY LAMAR SMITH, Texas, Chairman F. JAMES SENSENBRENNER, JR., JOHN CONYERS, JR., Michigan Wisconsin HOWARD L. BERMAN, California HOWARD COBLE, North Carolina JERROLD NADLER, New York ELTON GALLEGLY, California ROBERT C. ‘‘BOBBY’’ SCOTT, Virginia BOB GOODLATTE, Virginia MELVIN L. WATT, North Carolina DANIEL E. LUNGREN, California ZOE LOFGREN, California STEVE CHABOT, Ohio SHEILA JACKSON LEE, Texas DARRELL E. ISSA, California MAXINE WATERS, California MIKE PENCE, Indiana STEVE COHEN, Tennessee J. RANDY FORBES, Virginia HENRY C. ‘‘HANK’’ JOHNSON, JR., STEVE KING, Iowa Georgia TRENT FRANKS, Arizona PEDRO R. PIERLUISI, Puerto Rico LOUIE GOHMERT, Texas MIKE QUIGLEY, Illinois JIM JORDAN, Ohio JUDY CHU, California TED POE, Texas TED DEUTCH, Florida JASON CHAFFETZ, Utah LINDA T. SA´ NCHEZ, California TIM GRIFFIN, Arkansas [Vacant] TOM MARINO, Pennsylvania TREY GOWDY, South Carolina DENNIS ROSS, Florida SANDY ADAMS, Florida BEN QUAYLE, Arizona MARK AMODEI, Nevada SEAN MCLAUGHLIN, Majority Chief of Staff and General Counsel PERRY APELBAUM, Minority Staff Director and Chief Counsel (II) C O N T E N T S NOVEMBER 16, 2011 Page TEXT OF THE BILL H.R. 3261, the ‘‘Stop Online Piracy Act’’ ............................................................... 3 OPENING STATEMENTS The Honorable Lamar Smith, a Representative in Congress from the State of Texas, and Chairman, Committee on the Judiciary ..................................... 1 The Honorable John Conyers, Jr., a Representative in Congress from the State of Michigan, and Ranking Member, Committee on the Judiciary ......... 22 The Honorable Bob Goodlatte, a Representative in Congress from the State of Virginia, and Member, Committee on the Judiciary .................................... 37 The Honorable Melvin L. Watt, a Representative in Congress from the State of North Carolina, and Member, Committee on the Judiciary ......................... 39 WITNESSES The Honorable Maria Pallante, Register of Copyrights, U.S. Library of Con- gress Oral Testimony ..................................................................................................... 47 Prepared Statement ............................................................................................. 50 John P. Clark, Chief Security Officer and Vice President of Global Security, Pfizer, Inc. Oral Testimony ..................................................................................................... 60 Prepared Statement ............................................................................................. 62 Michael P. O’Leary, Senior Executive Vice President, Global Policy and Exter- nal Affairs, Motion Picture Association of America (MPAA) Oral Testimony ..................................................................................................... 68 Prepared Statement ............................................................................................. 71 Linda Kirkpatrick, Group Head, Customer Performance Integrity, Mastercard Worldwide Oral Testimony ..................................................................................................... 80 Prepared Statement ............................................................................................. 82 Katherine Oyama, Copyright Counsel, Google, Inc. Oral Testimony ..................................................................................................... 98 Prepared Statement ............................................................................................. 101 Paul Almeida, President, Department for Professional Employees (DPE), American Federation of Labor, Congress of Industrial Organizations (AFL- CIO) Oral Testimony ..................................................................................................... 113 Prepared Statement ............................................................................................. 115 LETTERS, STATEMENTS, ETC., SUBMITTED FOR THE HEARING Material submitted by the Honorable John Conyers, Jr., a Representative in Congress from the State of Michigan, and Ranking Member, Committee on the Judiciary ................................................................................................... 24,25 Prepared Statement of the Honorable J. Randy Forbes, a Representative in Congress from the State of Virginia, and Member, Committee on the Judiciary ............................................................................................................... 41 (III) IV Page Prepared Statement of the Honorable Zoe Lofgren, a Representative in Con- gress from the State of California, and Member, Committee on the Judici- ary ......................................................................................................................... 42 Prepared Statement of the Honorable Henry C. ‘‘Hank’’ Johnson, Jr., a Rep- resentative in Congress from the State of Georgia, and Member, Committee on the Judiciary ................................................................................................... 44 Material submitted by the Honorable Howard L. Berman, a Representative in Congress from the State of California, and Member, Committee on the Judiciary ............................................................................................................... 131 Material submitted by the Honorable Zoe Lofgren, a Representative in Con- gress from the State of California, and Member, Committee on the Judici- ary ......................................................................................................................... 144 Material submitted by the Honorable Darrell Issa, a Representative in Con- gress from the State of California, and Member, Committee on the Judici- ary ......................................................................................................................... 204 APPENDIX MATERIAL SUBMITTED FOR THE HEARING RECORD Prepared Statement of the Honorable Ron Wyden, a U.S. Senator from the State of Oregon ..................................................................................................... 261 Prepared Statement of Terry Hart, Creator of Copyhype .................................... 263 List of submitters contributing material in association with the consideration of H.R. 3261 .......................................................................................................... 272 STOP ONLINE PIRACY ACT WEDNESDAY, NOVEMBER 16, 2011 HOUSE OF REPRESENTATIVES, COMMITTEE ON THE JUDICIARY, Washington, DC. The Committee met, pursuant to call, at 10:06 a.m., in room 2141, Rayburn Office Building, the Honorable Lamar Smith (Chair- man of the Committee) presiding. Present: Representatives Smith, Coble, Goodlatte, Lungren, Chabot, Issa, Forbes, King, Franks, Gohmert, Jordan, Poe, Chaffetz, Griffin, Marino, Gowdy, Ross, Adams, Quayle, Amodei, Conyers, Berman, Nadler, Watt, Lofgren, Jackson Lee, Waters, Cohen, Johnson, Quigley, Chu, Deutch, and Sa´nchez. Staff present: (Majority) David Whitney, Counsel; Olivia Lee, Clerk; and (Minority) Jason Everett, Counsel. Mr. SMITH. Good morning. The Judiciary Committee will come to order. Without objection, the Chair is authorized to declare recesses of the Committee at any time. I am going to recognize myself for an opening statement, then the Ranking Member, and then the Chairman and the Ranking Member of the appropriate Subcommittee. Today’s hearing is on legislation that will help protect one of the most productive sectors of the American economy. While the Digital Millennium Copyright Act does provide some relief to copyright owners whose works are infringed, it only helps in limited cir- cumstances. The DMCA provides no effective relief when a rogue website is foreign-based and foreign operated, like The Pirate Bay, the 89th most visited site in the U.S. It does not protect trademark owners and consumers from counterfeit and unsafe products, like fake prescription medicines and misbranded branded drugs that are often presented to the public by unlicensed online pharmacies. Nor does the law assist copyright owners when rogue websites con- tribute to the theft of intellectual property on a massive scale. And, finally, this does nothing to address the use of certain inter- mediaries, such as payment processors and Internet advertising services, that are used by criminals to fund the illegal activities. Mr. SCOTT. Mr. Chairman, I am having trouble hearing your statement. Mr. SMITH. I would not want anyone to miss my statement, so I will make sure that the sound system is working and that I am close enough to the mic. Mr. SCOTT. Turn his mic way up. (1) 2 Mr. SMITH. That is where the Stop Online Piracy Act comes in. This bill focuses not on technology, but on preventing those who engage in criminal behavior from reaching directly into the U.S. market to harm American consumers. We cannot continue a system that allows criminals to disregard our laws and import