SILICON vs. CELLULOID



Tech Kings Fight Back

As anticipated, the battle between the silicon valley Kings and the celluloid Moguls has begun - and somewhat sooner then even I expected.

In their effort to block anti-piracy legislation, Internet companies, including Google, Facebook, Amazon, and even Bloomberg are lobbying Washington hard saying that the Hollywood backed piracy measures - to curb trafficking of illegally copied music and movies - would amount to on-line censorship.

The legislation, as proposed, would allow the Justice Dept. to seek court orders requiring Internet service providers, search engines, payment services, and advertising networks to block or cease business with non-U.S. websites linked to piracy.

Anti-piracy poster

For its part, Hollywood has been waging its own rigorous campaign. For example, last week a delegation led by the Motion Picture Assoc. of America and consisting of executives from Fox, Warner Bros., and others descended on Washington, D.C. for meetings with members of the House Judiciary Committee, V.P. Joe Biden, White House Chief of Staff, Bill Daley, and Valerie Jarrett, a senior advisor to President Obama.  They reject the tech companies' accusation that the proposed legislation amounts to on-line censorship.

The Web honchos, however, say that the anti-piracy laws would require them to police the Internet and "threaten the growth of the U.S. technology industry".  To bolster their case they are also flexing their political muscle. Google and Facebook have increase their spending and presence in Washington to cope - not only with the pending on-line piracy legislation but consumer privacy and antitrust issues as well.  Google has hired 19 new lobbying firms this year alone, and Facebook just added two new lobbyists to its army.

The tech firms are pushing for alternative legislation that would make the U.S. Intl' Trade Commission versus the Justice Dept. the major arbiter of piracy issues.  The U.S. ITC has the power to block the import of products found to infringe on intellectual property rights. In a statement, the Consumer Electronics Association,  asserted "the alternative would provide effective remedies without creating new liabilities for lawful, U.S. technology companies."

As of now, an amendment the the House and Senate bills has been added which calls for an "inter-agency study on the legislation's impact on the Internet."  So, for now, there is a truce putting the battle on hold, allowing the opposing groups time to re-arm.

My Take

First, U.S. anti-piracy laws have no clout overseas and are not enforceable. And second, Hollywood is fighting the last battle, as the only way to stop piracy is to release movies day-and-date across the entire world accessible to all projection and mobile devices simultaneously. And we will reach that point in the future.

Best and Happy Movie Going!
Jim Lavorato