As the Senate Commerce Committee began hearings on issues related to MGM v. Grokster on July 28, Consumer Electronics Association (CEA) president Gary Shapiro issued a masterfully constructed statement reminding the Committee of the stakes involved. Why masterful? Essentially, we are struck by the concision of the CEA argument and its gentle reminder that a significant American industry will be crucially affected by the final resolution of this issue—and not the one that first springs to mind, either."While we are pleased that the Supreme Court left the Betamax ruling in place, the Court's introduction of an 'inducement' standard has decreased the legal clarity necessary for manufacturers and innovators to develop and market new technologies and services."The risks are real: copyright law allows plaintiffs to collect statutory damages based on a standard of 'per work infringed.' Thus, a copyright claim filed against a mass-market product such as a CD burner, which is used by millions of consumers to make copies of millions of works, could bankrupt even the largest company.
"Copyright holders say that the Grokster decision gives them the critical tool they need to fight piracy. We will be watching closely to see if ensuing litigation is aimed solely at wrongdoers, or if it also encompasses the legitimate products and practices and innovations commonly found in American homes."We look forward to working with the full Congress as it considers issues regarding copyrights, fair use, technology, and intellectual property."We salute Shapiro for this timely reminder. We, too, will be watching closely.
