Statement on the Digital Copyright Act

The following statement is attributed to Abby Rives, IP Counsel of Engine, regarding the discussion draft of the Digital Copyright Act of 2021, released today:  

The Digital Copyright Act of 2021 from Sen. Thom Tillis (R-N.C.) proposes changes to copyright law that would be bad for startups that host user-generated content and the everyday Internet users and Internet-enabled creators they serve. As currently drafted, the bill would disrupt a statutory framework at the foundation of innovation, creative expression, and economic growth that would not have been possible twenty-five years ago. 

The Digital Copyright Act proposes substantial changes to Section 512 of the Digital Millennium Copyright Act (“DMCA”), a law that provides a balanced framework for resolving allegations of copyright infringement online. By complying with the law’s provisions, startups that host user-generated content know that when their users are accused of infringement—infringement the platforms have no knowledge of or direct involvement in—it should not automatically strap them with unaffordable legal exposure and put them on a fast track to insolvency. 

Among other things, today’s draft of the Digital Copyright Act would shift the existing balance and force platforms that host user-generated content—including startups and platforms that rarely experience alleged infringement—to screen every user post for potential infringement. And the bill would make it easier for purported content owners to sue or threaten to sue emerging platforms for millions of dollars over a few user posts. This would disproportionately impact startups, which lack the resources to review or filter every user post and cannot afford the costs and risks of increased litigation. 

Lawmakers are right to highlight the importance of innovation when considering changes to copyright law. And Congress must account for the realities facing today’s tech startups to craft legislative proposals that do not create new, unwarranted barriers to entry. Engine stands ready to help, and we hope as this conversation moves forward lawmakers will take into account the perspectives of the startup ecosystem, and the innovators, users, and creators across the country who rely on Section 512.