Silicon Valley has been the source of many innovations in the last half century. The region introduced to the world the Microsoft Office suite, the iPod, streaming videos, advanced search engines, and hundreds of other technologies from computer chips to open-source software. It also contributed to the development of the Internet, helping it to become what it is today: Billions of web pages full of information, videos, forums, etc.—essentially, a place where a free exchange of ideas can take place.
But some claim the freedom of the Internet is being threatened by a bill called the Stop Online Piracy Act, or SOPA, introduced to Congress in October 2011. When first introduced, few in the technology industry paid much attention to it—until recently. Proponents claim the bill’s purpose is to prevent piracy of copyrighted information, media and merchandise by allowing the US Department of Justice to issue warrants even for websites operating on foreign soil: “SOPA would require search engines, payment processors, ISPs, and ad networks to block access to ‘rogue websites’” if a judge orders it. And if a site fails to comply or has repeated offenses, SOPA, as it’s written, allows authorities to shut down the site. Opponents claim the bill’s language is far too broad, likening it to Internet censorship, that it doesn’t clearly define what does and doesn’t fall under the definition of a “rogue website,” and that it would stifle innovation in the technology sector, hurting job creation in the process. Big technology companies like Google, Facebook, eBay and others joined together and placed a full-page ad in the New York Times denouncing the bill.
These firms make a fair point: What are the possible repercussions if such a law is passed? They could be huge. Yes, copyright infringement has indeed been an issue due to illegal file sharing sites—once one is shut down, a new pops right up to take its place. But are this bill’s proposed solutions the best way to address this problem?
If politicians stay true to form, the bill still has a ways to go before becoming law. And if it does, then the likelihood of unintended consequences will come part and parcel with it, if history is any indication (the Smoot-Hawley Tariff, for example)—SOPA, and other laws similar to it, could actually harm the technology industry a great deal.
For more on government regulations’ possible effects on the Technology sector, see Fisher Investments on Technology.