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August 23, 2004
What's Wrong with the Induce Act?
Ernie Miller is interviewed over at O'Reilly and (no surprise) provides plenty of excellent answers to the question.
Here's just one:
Koman: So, assume that this was passed. How debilitating a hit would it be to technological innovation?
Miller: It's hard to overestimate it, to be honest. It would be incredibly debilitating to investment and innovation across the board, to anything having to do with the Internet, anything having to do with computers and the ability to copy. First of all, there's no clear boundary as to what is legal and what is not. There's no bright line defense. As long as they can provide some evidence that a reasonable person could think some technology was intended to induce infringement, then the lawsuit has to go all the way to the jury. You can't get it dismissed very easily. That's very expensive.
There's no limitation on who can be sued. Not only can the company making the device be sued, but under the Induce Act they can sue the company that invested in the company, they can sue the company that provides parts and supplies to the company, they can sue business partners, they can sue the advertising agencies. If you come up with something that's a really wonderful, neat new product but Hollywood won't like it, who's going to do business with you, who's going to invest in you? It's going to be incredibly difficult to do business, and that's going to dry up investment to no end. It's scary how far-reaching this is.
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