Lawsuits against device manufacturers, starting with the one against Sony, were based on the false assumption that new technologies that let consumers enjoy content in new ways are inherently bad for the music and movie industries. Yet, the VCR, once a feared device, turned out to be good for the movie industry, by creating a new revenue stream: the pre-recorded videocassette. Similarly, new technologies that allow consumers to do more with their music should be viewed as potential revenue opportunities. Chances are that consumers will buy more music if they are allowed to listen to music when and where they want on the devices of their choice.
To facilitate the rollout of more innovative services, copyright law’s statutory damages regime needs to be reformed. Many including Public Knowledge, have suggested that statutory damages should not be available in cases of secondary infringement. The “Freedom and Innovation Revitalizing U.S. Entrepreneurship Act of 2007” introduced on February 27, 2007 by Congressman Rick Boucher contains a similar provision.
Both Public Knowledge and Congressman Boucher’s bill also call for a codification of the Sony standard.
As the 110th Congress is approaching the end of its term, the House Subcommittee on Courts, Internet and Intellectual Property is yet to take H.R. 1201 up for consideration. We are hopeful that if not this Congress, a future one will pass a bill like H.R. 1201.