FC: Transcript of Verizon-RIAA subpoena discussion at Nat'l Press Club

From: Declan McCullagh (declanat_private)
Date: Fri Oct 04 2002 - 12:49:40 PDT

  • Next message: Declan McCullagh: "FC: Testifying at FTC hearing on Tuesday on electronic commerce"

    Previous Politech message:
    "Verizon tells RIAA to shove it: 'Should be denied!'"
    http://www.politechbot.com/p-03943.html
    
    News article on oral arguments today:
    http://news.com.com/2100-1023-960838.html
    
    Andrew Schwartzman, the panel's moderator and president of the Media Access 
    Project (http://www.mediaaccess.org/about/people/index.html) closed 
    Wednesday's event by saying:
    >Let me, briefly, give from the perspective of the user.  As journalists, 
    >the fair use rights are incredibly important to you as journalists, and 
    >you have colleagues, like Declan McCullagh, who post a lot of content, 
    >quote letters, quote articles, and speeches.  In this kind of blunderbuss 
    >approach, you could well have a site that had your own personal 
    >journalism, or excerpts of your own stories, challenged by the copyright 
    >owner, and you would have under the, even under the inadequate protection 
    >of the Digital Millennium Copyright Act, an opportunity to go back and 
    >say, no, don’t shut down my site, I’m a journalist exercising First 
    >Amendment rights, and I’m excerpting something that’s of public interest, 
    >because I’m writing about it from the standpoint of a journalist 
    >exercising my First Amendment rights, I have a fair-use right to do this 
    >quote.  That’s the kind of thing that we’re talking about and the kind of 
    >problem that happens with this blunderbuss approach.  Now, having said all 
    >that, there are moments when I’d like to see Declan’s site taken down, but 
    >that’s another discussion. Other Questions?
    
    (Unfortunately I wasn't there to participate -- I'm in California this week.)
    
    -Declan
    
    ---
    
    Internet Community Supports Verizon’s User
    Privacy Defense
    October 2, 2002
    
    Speaker Index
    
    
    
    Dave Baker, Earthlink . . . . . . . . . . . . . . . . . . . . . . . . . . . 
    . . . . . 1-2, 9, 10
    Drew Clark, National Journalist Tech Daily . . . . . . . . . . . . . . . . 8-9
    Susan Decker, Bloomberg News . . . . . . . . . . . . . . . . . . . . . . . 
    .10, 11
    Megan Gray, Council of Record . . . . . . . . . . . . . . . . . . . . . . . 
    . .3-5, 10
    Jon Larimore, Zzapp! Internet . . . . . . . . . . . . . . . . . . . . . . . 
    . . . 6
    Dave McClure, U. S. Internet Industry Association . . . . . . . . . . 6-7, 
    9-10, 11
    Andrew Schwartzman, Moderator . . . . . . . . . . . . . . . . . . . . . . . 
    1, 3, 5, 8, 9, 10, 11
    Gigi Sohn, Public Knowledge . . . . . . . . . . . . . . . . . . . . . . . . 
    . . .7-8, 9
    
    Internet Community Supports Verizon’s User
    Privacy Defense
    October 2, 2002
    
    ANDREW SCHWARTZMAN:  Good morning everybody.  I’m Andy Schwartzman.  I’m 
    president of Media Access Project.
    
    I’m going to try to help moderate this event.  But we have speakers who are 
    very knowledgeable on the subject and I’ll leave it to them to discuss 
    things in a lot of detail.  The important thing that I would underscore in 
    introducing these folks is that you get lots of definitions of what the 
    Internet is.  Some people, depending upon their interests and what they do, 
    will say it’s a way of buying things.  And some people say it’s a way of 
    exchanging information.  And some people say it’s a way of doing 
    commerce.  Some people say it’s a way of communicating.  Some say it’s a 
    way to engage in speech and chat.  And, of course, we answer that it is all 
    these things.
    
    An issue has arisen in which the Recording Industry Association of America 
    is trying to subpoena the names of Verizon’s customers.  Verizon 
    understands that when you make a telephone call, you expect that you can 
    communicate with the person on the other end of the conversation with firm 
    knowledge that nobody from Verizon is sitting there listening to it or is 
    getting ready to turn the names of all it’s customers to anybody who just 
    walks up with a piece of paper.  And they understand that this applies to 
    the Internet in the same way and even more.  And has steadfastly stood up 
    to this highly inappropriate action.  The people here today want to express 
    their support for Verizon’s actions and do so reflecting the different 
    perspectives of people who use the Internet in all its different ways and 
    from all its different perspectives.
    
    I’m not going to read biographies and materials in the packet for you.  But 
    I’m just going to introduce the folks and then we’ll take questions.  First 
    up will be Dave Baker, from Earthlink.  Then Megan Gray who is lead counsel 
    and whose a newcomer to Washington but is bringing some very important 
    experience from being on the front lines on the West Coast over the years 
    as the Internet has evolved and developed.  Jon Larimore from Zzapp! 
    Internet, Dave McClure from the U.  S.  Internet Industry Association and 
    Gigi Sohn my erstwhile colleague for many years at Media Access Project but 
    who now runs Public Knowledge.  And I can’t not note with some 
    extraordinary pleasure what an amazing job she’s done in setting up an 
    organization that is addressing a very important set of needs.  Okay, Dave 
    I’m going to turn it over to you and then speakers will come up without 
    further interruption from me.
    
    DAVE BAKER: See, I thought I was last on the list this morning.  Andy’s 
    just keeping me on my toes.  I’m Dave Baker.  I’m vice president of Law and 
    Public Policy at Earthlink, along with Verizon Online, AOL, E-Bay, SPC, 
    Worldcom, UUNet.  We are members of the U. S. Internet Service Providers 
    Association and I want to speak to a couple of points that were in the 
    amicus brief that the RIAA versus Verizon case.
    
    ISPs have a long history of; at least as long as the DMCA’s been around, we 
    have a history of dealing cooperatively with copyright owners and 
    protecting that copyright pursuant to section 512C of the DMCA.  And that 
    deals with notice and take down professions.  The situation where we get a 
    notice that a web site that an ISP hosts has allegedly… has material that 
    allegedly infringes a copyright.  And there is a history of cooperation 
    there, where a copyright owner uses the provision of section 512C to 
    request that that allegedly infringing and offending material be taken 
    down. And ISPs cooperate with that.
    
    But we have a different situation here.  Where the RIAA is seeking not just 
    to disable a web site that an ISP hosts.  But rather is trying to use the 
    subpoena powers under 512H of the DMCA to get at the identity of 
    individuals who are alleged to have file share using peer-to-peer 
    technology.  And this is not…peer-to-peer is not addressed in the DMCA.  It 
    is obviously an item of current pending legislation.  And however one might 
    feel about the Burman Bill, I think there is a recognition there that it 
    seeks to address peer-to-peer which is not addressed in the DMCA.  And what 
    we and ISPs collectively are concerned with is a situation unlike a 512C 
    notice and take down provision where specific web sites are identified, 
    where specific information has been identified.  Rather, situation Verizon 
    where bots will just go out, scour the Internet, flood ISPs with hundreds 
    if not thousands of requests not just to disable information the web site 
    hosts but to reveal the identity of individuals who allegedly have this 
    information not on the ISPs servers but on their own individual hard 
    drives.  And that is not something that we could comply with.  And it is 
    not something that is provided for in the DMCA.
    
    A couple of examples which the US ISPA sites in their brief.  UUNet 
    received from Copyright dot net sent UUNet over a request to turn over the 
    identity of almost twenty-seven hundred individual subscribers and page 
    after page of alleged infringements that all that start with a C colon 
    slash which indicates that they are not on UUNet servers.  Not on their web 
    server but rather on individuals’ hard drives and this is not what the DMCA 
    was set up to handle.  UUNet says that in 2001, they got about twenty 512C 
    notifications a month.  And that number is now coming in at the rate of 
    over five hundred a month.  So we’ve seen a dramatic increase in these… in 
    all sorts of notices coming from copyright owners.
    
    Another example is…was a request to…for the identity of alleged 
    infringement involving George Harrison songs. There was…not only were there 
    notices to files that actually contained George Harrison music but a file 
    for an interview with George Harrison and then an archain reference to a 
    portrait of Mr. Harrison Williams 1943.JPG.  In other words, something that 
    had nothing to do with George Harrison or his music.  But, rather, just a 
    bot went out there, scoured, found the word Harrison and that got thrown 
    into the subpoena.  And similarly, Harry Potter…requests for information 
    regarding Harry Potter and allegedly looking for video downloads in order 
    to find the identity of users who were peer-to-peer file sharing video 
    clips or video downloads of Harry Potter.  There’s a file that shows up 
    there that was “Harry Potter Book Report dot RTF.”  It was a one K size 
    file.  It was a child’s book report on Harry Potter.  Again, you know, an 
    example that just goes to show that these are not as the RIAA contends 
    specific targeted requests for information but rather just a shot gun 
    approach to try to get ISPs to divulge the identity of individuals who, 
    again, are not putting material on websites or on websites that ISPs host 
    but rather may be peer-to-peer file sharing and the only connection to the 
    ISP is that that information may have transitted the ISPs network.
    
    Now, again, we have been very clear from the start, we agree with the 
    rights of the copyright and other intellectual property right owners to 
    protect their intellectual property.  But, section 512 of the DMC does not 
    address peer-to-peer file sharing.  More specifically, the subpoena powers 
    in section 512H specifically refer back to section 512C which again has to 
    do with the notice and take down provisions.  Pardon all the “legal-ese” 
    but these are important… you know, this is the subject of the hearing on 
    this case.  It’s going to be, when, on Thursday...Friday, thank you.  And 
    the RIAA is trying to take the DMCA, stretch it to encompass something that 
    it does not address.  And it is trying to hold ISPS…impress ISPs into 
    service to turn over information that is not properly done under the 
    DMCA.  So sorry to bore you with the “legal-ese” there.  I’ll turn it over 
    to the other speakers and I think you’ll have questions at the end.
    
    Thank you.
    ANDREW SCHWARTZMAN:  I read off the wrong speaker’s list order so apologies 
    to you Dave.  Let me try this again.  We are going to go back to the 
    original order.  And it is going to be Megan, then Dave McClure, then Jon, 
    then Gigi, and Dave’s already done his.  And, I didn’t say this, and it 
    went fine judging by knowing whose here and the various beeps and stuff 
    that has been going on through the room.  This is a reasonably tech savvy 
    group here.  If the acronyms get out of site and somebody doesn’t know what 
    an RTF file is or thinks it matters, wave or otherwise demonstrate and 
    we’ll elaborate.  We’re not going to explain what the Digital Millennium 
    Copyright Act is unless you guys really need to know.
    
    Okay, Megan.
    
    MEGAN GRAY:   All right, I wrote the brief on behalf of the Civil Liberties 
    Groups and I am just going to walk through some of those arguments.  This 
    has been an interesting case for me personally.  When I was in California, 
    I defended probably the most John Doe lawsuits of anybody in the 
    country.  And I also have been doing a lot of copyright litigation and 
    enforcement throughout my career.  So this has been a nice juncture for me 
    to sit here and be able to analyze what the various rights are.  And file a 
    Friend of the Court brief, an amicus curiae brief with the court explaining 
    those components that often the parties don’t have an opportunity to raise 
    themselves because of court imposed page limits.
    
    This is a very important case.  It is a test case.  I don’t think this is 
    anything even RIAA disputes.  RIAA is trying to focus the court’s attention 
    and presumably your attention as well on the fact that it is going after 
    identity information for a single person.  But that’s really beside the 
    fact because what this case is going to decide is going to have 
    implications for millions of current P2P users.  And that number is just 
    growing and extrapolating everyday.  Even more, we are going to see new 
    advances in the internet and new software developments that we can’t even 
    predict.  And it is those developments that most likely the ISP is going to 
    act as a mere conduit.  Just like it does with P2P programs.  So this 
    really is going to have huge repercussions now and in ways that we can’t 
    even predict.
    
    What the RIAA is seeking is really unprecedented.  They want completely 
    unsupervised investigatory power that will jeopardize the rights of 
    internet users.  Period.  It…that really is the crux of this case.  And by 
    unsupervised, I’ll go into a little more detail about that in a minute, but 
    it is entirely unsupervised.  It is granting any and every copyright holder 
    the right to send a piece of paper to an ISP demanding identity information 
    of an internet user.  And all that piece of paper has to say is that I am a 
    copyright owner and I think somebody has wronged me.
    
    Everybody in this room is a copyright holder.  Everybody in this country is 
    a copyright holder.  So that’s giving anybody that may have a “beef” the 
    right to go and unmask a critic, a target of their affection  whether 
    wanted or otherwise.  Unmask a whistle blower.  It really could expand to 
    any number of uses.  Yet the copyright industry is claiming that this basic 
    connection, that the ISP provides, gives them the right to go to that ISP 
    and get the information under the DMCA.  The DMCA, as is mentioned earlier, 
    was really not, was not negotiated or enacted into law at any time when P2P 
    was in existence.  P2P had not even begun yet.  People had not…could not 
    predict that.  And yet what we are seeing is the RIAA trying to expand to 
    that.
    
    The interesting aspect of this is as well is that the copyright enforcement 
    programs use bots.  They use them extensively.  Too many people are on the 
    internet.  Too many are using P2P.  They can’t individualize it so they 
    devise the software programs to go out and troll the internet.  And collect 
    electronically every mention of Harrison or every mention of Beetles.  And 
    then a low level person at that company, not even a lawyer, reviews the 
    bot-generated search results and sends out this little notice that says, “ 
    I am a copyright owner and I would like…I think someone has done me 
    wrong.  See attachment.”  And then attached any number of pages listing 
    supposedly infringing files.  That no one has actually looked at.  Nobody 
    has analyzed these for fair use.  Nobody has analyzed these to see if it is 
    in fact even a basic copyright infringement.  There’s been no analysis 
    about whether there is jurisdiction over this individual or if they have 
    any other defense to a copyright infringement claim.  Let me get into a 
    little bit about why this is such a problem.
    I think our gut reaction to it is that it is a problem.  Because we don’t 
    like somebody to have that unilateral power to disclose identity.  But it 
    is a problem legally as well because in this country we have a 
    constitutional right to anonymous speech.  That is a right that the Supreme 
    Court has recognized several times.  Even, most recently, this past term in 
    the Watch Tower Case.  This right to anonymous speech obviously is rooted 
    in free speech as well as privacy concerns.  So you can break it down 
    either way, but they really combine here in the right to anonymous 
    speech.  The Supreme Court has noted that anonymous speech is an enduring 
    heritage.  The American people, from the American Revolution, the anonymous 
    pamphleteer was a heroic force during that time.
    
    Anonymous speech fosters robust debate.  It also fosters 
    self-discovery.  People can go on line and participate anonymously in forms 
    that they wouldn’t participate in if they had to identify themselves 
    first.  That can be by downloading text files dealing with sexual disease, 
    sexual exploration.  It can be material that is unpopular with the powers 
    that be.  It can be something that would be personally embarrassing, 
    information on alcoholism.  It can be downloading music that perhaps your 
    parents wouldn’t approve of.  And as long as that is not a copyright 
    infringement, you have the right to participate in that anonymously.  This 
    anonymity right is not absolute and nobody claims that it is.  Nobody wants 
    it to be.
    
    It’s just that the right to anonymous speech cannot be violated on a 
    whim.  It cannot be violated unilaterally.  There is no right…because there 
    is no right to anonymously violate the law.  And because we are not 
    advocating that internet anonymity act as a shield against liability.  The 
    cases that have developed in this field say just that.  You do not have the 
    right to participate anonymously online but…mere allegations are not 
    sufficient to toss aside that anonymity right.  In defamation cases, in 
    trade secret cases, in trademark infringement cases, in security violations 
    cases, the courts have confronted this dilemma of internet anonymity and 
    somebody else’s allegations of illegal conduct.  And tests have been put 
    into place to make sure that these two concerns are balanced.
    
    The court reviews the evidence, decides if it has merit, allows the 
    anonymous person the opportunity to present competing evidence, and then 
    makes a decision.  That’s the hallmark of American jurisprudence.  You have 
    a neutral arbiter that weighs competing concerns, that has been how it has 
    always been before the internet.  And that’s how it should be now, with the 
    internet.  What the RIAA wants to do however is put the cart before the 
    horse and say, “If we…if we say that there is copyright infringement that 
    should be the end of the matter.  We shouldn’t have to have a judge review 
    this.  We don’t need a neutral arbiter to evaluate our claims.  You can 
    trust us.”  And I’m not trying to say that the RIAA is every time lying, or 
    presenting a frivolous claim of copyright infringement.  But accidents 
    happen.  Mistakes happen.  And, more importantly, this court decision is 
    not going to apply, at least persuasively, to all the other copyright 
    holders in the United States, including the Church of Scientology, your 
    neighbor next door, and myself.  And you can’t trust everybody that’s why 
    we have a government of laws here.  And it’s why we need to have a judge 
    review these types of requests for identity disclosure before they are made.
    
    The DMCA, according to the RIAA, gives them broad, unchecked, 
    quasi-judicial authority to any private entity that has a copyright.  RIAA 
    wants to use a judicial tool, a subpoena, without judicial 
    oversight.  Completely divorced from any judicial oversight.  Not only 
    divorced, but in an expedited proceeding so that everybody involved here 
    must act very quickly.  There’s no time to give the purported copyright 
    infringer notice of the subpoena and an opportunity to object to it.  It 
    must happen instantaneously and that is not appropriate.  With this tool, 
    any copyright holder, any purported copyright holder can silence critics, 
    retaliate against whistle-blowers, harass individuals that they consider 
    their enemies, stop people from distributing politically damaging memos.
    
    When I first got this case, one of the first examples that occurred to me 
    was Deep Throat.  If you had a really important document that you wanted to 
    get wide spread dissemination, you might use a P2P system.  I think that if 
    we had Watergate now, that might be a very useful tool.  But it wouldn’t be 
    a tool that could be used if any individual purporting to be a copyright 
    holder could then send a letter…notice requiring the ISP to identify the 
    individual.  The basic point of our amicus brief is that mere allegations 
    are insufficient to irreversibly extinguish a constitutional right.  And 
    that’s an aspect to the right to anonymous speech that’s important 
    here.  Once that right is violated, that’s the end of the story.  There is 
    no remedy that can be devised.  The cat is out of the bag and it cannot be 
    put back in.  So we want a court to be sure that any of these claims of 
    copyright infringement actually hold some water before an individual is 
    identified.
    
    The RIAA needs to have checks and balances.  This country is built on 
    checks and balances.  And that is all we are requesting here.  It is not 
    that the RIAA or any other purported copyright holder would be without a 
    remedy.  There really is very easy and it’s a…it’s a remedy…it’s a recourse 
    that we’ve always had in this country. File a lawsuit.  It costs very 
    little to file a lawsuit.  There is nobody standing at the courthouse steps 
    demanding a huge amount of money to file a copyright infringement suit.  It 
    can be a single piece of paper that is simply filed with the court.  You 
    pay a minimum filing fee.  In California, I think it was twenty 
    dollars.  And once it is in that court system, you have judicial 
    oversight.  And then, the RIAA or the copyright holder then goes into the 
    court and says, “Your Honor, I need to…in order to prosecute this law suit, 
    I need to identify the defendant.  Is that okay with you?”  And then the 
    court reviews the merits and says “Okay.  It looks to me like you have a 
    (?) prima faca case of copyright infringement that outweighs this 
    individual’s constitutional rights to anonymity.”  And that is all that we 
    are asking the RIAA to do.  And this procedure, not only having been the 
    traditional and constant way to deal with illegal activity in this country, 
    also provides a lot protections.  That is why we have a court system.
    
    An individual that is often targeted in a lawsuit has a potential malicious 
    prosecution claim.  The evidence that is gathered through an improper 
    subpoena can be subject to evidentiary exclusions.  The lawyers who are 
    prosecuting that lawsuit are subject to ethics complaints before their 
    state bar.  There are specific Rule Eleven sanctions that the court can 
    award.  And in a copyright infringement case, our government and our courts 
    have deemed the free expression and the free exchange of materials to be so 
    important, that if a copyright infringement lawsuit is filed and the 
    plaintiff is wrong and the defendant has the right to do what he is doing, 
    he can recover his attorney’s fees in defending against that law suit.  It 
    is these protections that the RIAA would rather not be bothered with.  I 
    understand what they want and why they want it.  I think anybody in their 
    position is going to want to have free reign without any judicial 
    oversight.  To unmask their perceived foes, or to go after somebody that 
    they think has violated their rights.  But this country does not permit 
    that sort of unhindered and unsupervised use of judicial tools.  This is 
    not a Big Brother state where the ISPs function as the agent of the 
    copyright industry to identify anybody that supposedly has violated their 
    rights.  What we don’t want to have on the internet is this chilling 
    effect.  Where you can be identified at whim.  And that is the crux of our 
    amicus brief.
    
    Thanks.
    
    ANDREW SCHWARTZMAN:   Jon.
    
    JON LARIMORE:  I am Jon Larimore. Thank you for this opportunity to present 
    our side of this issue.  I am president of a very small, non-profit, 
    community supported organization which provides communications resources in 
    ways not offered by others.  One of the ways we currently do that is by 
    awarding one year internet access grants to selected qualifying individuals 
    who suffer terminal or long term illnesses or extended periods of 
    unemployment.  People who could improve their lives through access to the 
    internet.  Some of these folks are living with HIV/Aids or terminal cancer 
    or they’ve been unemployed for several years.  The internet access we 
    provide allows these grant recipients, some of whom are severely physically 
    challenged, to get outside of themselves and interact with the world which 
    would otherwise be totally unreachable.  To chat with other folks dealing 
    with similar issues, to obtain crucial health or employment information, 
    but mostly just to try to live as normally as possible in whatever time 
    they might have left.
    
    Our sole source of income is derived from offering low priced dial up 
    internet access to the general public through our internet service called 
    Zzapp! For every ten new subscribers who join us we make one free account 
    grant available.  We call this our One For Ten program. Obviously, we 
    receive far more applications for free accounts then are ever 
    available.  So this process of awarding them is a compassionately selective 
    procedure.  The way we are able to make these compassionate selections is 
    by asking our grant applicants to share their most private health and 
    employment information with us, extremely personal information which public 
    knowledge could prove devastating.  They do that because we strongly assure 
    them that short of us being presented with a subpoena in each specific 
    case, we pledge to never divulge anything about them to anyone, ever.  That 
    is why our legal system requires and our organization is protected by the 
    existing subpoena process.  Bypassing it could not only prove disastrous 
    for the individual involved.  It could expose our organization and in fact 
    any small ISP like us to litigation far beyond our ability to handle.  Like 
    hundreds of other ISPs across the country, Zzapp! operates on a very small 
    margin.  In fact, in our case, at the end of the year, no profit at all.
    
    Zzapp! Internet Services is literally a one-man band.  While our Board of 
    Directors provides very necessary guidance, day-to-day operations are 
    entirely run by one unpaid volunteer, me.  I’m assisted by a roomful of 
    automated computers.  One of which is, literally, designed to supervise all 
    the others.   The [inaudible] reason we can do that, and the reason I can 
    be here with you right now, is that we’ve been able to design our system in 
    such a way as to require an absolute minimum of human intervention.
    
    This then leads us to the second major issue this RIAA suit presents:  the 
    likely possibility that, were this sort of thing to become legally 
    permissible, ISPs everywhere could be inundated with such requests.  Where 
    I, as the one man who runs our entire operation, were to receive one such 
    order, the research and log analysis necessary to comply would literally 
    shut us down.  We have nobody available to fulfill any volume of such 
    requests and no money to pay anyone else to do it.  It would be easy to 
    view this as a battle between goliaths, but in this particular case, little 
    David most definitely weighs in.  If you’re an internet user, this issue 
    has the potential to positively or negatively affect your personal privacy 
    and either help or hinder the efforts of several thousand small ISPs, who 
    try to protect your privacy every day.
    
    Thank you.
    
    DAVE MCCLURE:  Well, good morning.  I’m Dave McClure and I’m President of 
    the U.S. Internet Industry Association.  The USIIA is the oldest and 
    largest trade association for companies engaged in Internet commerce, 
    content, and connectivity.  We were founded in 1994 to advocate for 
    effective public policy for the Internet and we have members virtually 
    every size and every facet of the Internet working to craft a business 
    environment in which Internet companies can thrive.  We are here today to 
    voice our opposition to the lawsuit filed by RIAA.  We filed an amicus 
    brief also in this matter, which I believe is in your packet, and I’d ask 
    you to take a look at it very carefully.  But I wanted to make just a 
    couple of brief comments about our opposition and also about the amicus 
    brief.
    
    This case is not about right or wrong.  It’s not about whether peer-to-peer 
    file sharing, which incidentally has a number of applications from the SETI 
    Search for Extraterrestrial Intelligence to a massive effort in the battle 
    against cancer.  This is not about whether that technology should be 
    allowed to exist or not.  Rather, it’s whether or not the RIAA should be 
    allowed to expand its powers beyond the scope of anything ever intended by 
    the Congress, and gain power so broad and so chilling that they threaten 
    the integrity of Internet and Internet Service Providers.  We examine, 
    specifically, three points that we oppose.
    
    First, the subpoena served by the RIAA against Verizon, originally, is an 
    invalid subpoena.  The long-standing traditions of American justice, 
    reaching all the way back to the U.S. Constitution, hold that such a 
    subpoena may only be served if there is pending or imminently pending 
    litigation.  In this case, there is no evidence of such litigation and, 
    therefore, it fails to meet even this most basic test.
    
    Second, the subpoena represents a violation of due process.  The RIAA is 
    looking to gain the right to pry into the private information of Internet 
    subscribers and even demand the termination of that subscribers account 
    with no opportunity for recourse.  There’s not even someone you can 
    call.  In fact, you may not even be able to determine easily from the ISP 
    why your account was terminated.  It would be done automatically, blindly, 
    with no knowledge; no chance to respond.  This is a gross violation of due 
    process, but it’s also a violation of the contractual relationship that 
    exists between ISPs and their subscribers, and it places the ISPs 
    potentially in the position of having to violate privacy laws, including 
    those enacted this year by the state of Minnesota.
    
    Finally, it places a substantial and unfair burden on ISPs.  You’ve heard 
    John Larimore describe, just a moment ago, that even one such subpoena 
    served on his service, a very valuable community service, would literally 
    shut them down from the manpower requirements.  The Digital Millennium 
    Copyright Act balanced the need of copyright holders against those of ISPs 
    in insuring that ISPs who merely act as conduits are not tasked with the 
    burden of investigation for potential acts of copyright infringement.  This 
    is very important because, while the Copyright Act did not specifically 
    address a technology that had not, at that point, come into widespread use, 
    it had, by the way, been invented.  Peer-to-peer file sharing’s been around 
    since the seventies.  It’s just in a slightly different form now.  But the 
    point is that the Copyright Act did make provisions for such technologies 
    and what it clearly states is that in those cases where the ISP merely acts 
    as a conduit, certain procedures must be followed.  They have not been 
    followed in this case.  The action by the RIAA is an effort to impose new 
    and substantial burdens requiring that the ISP devote an almost unlimited 
    amount of resources to comply with vague and invalid demands that meet any 
    of the requirements of the Copyright Act.
    
    We believe that on the strength of these three points alone, this lawsuit 
    needs to be opposed, and it need to be overcome.  For all of the other 
    issues at hand, and you’ll hear many from all of the other speakers 
    here.  The first and foremost issue in our minds is that this does not meet 
    the test of law.
    
    Thank you.
    
    GIGI SOHN:  These podiums are not made for people who are five feet tall. 
    [laughter].  Well, good morning.  My name is Gigi Sohn.  I’m the President 
    and Co-Founder of Public Knowledge, which I think most of you know who we 
    are.  We’re now just a little bit over a year old and we’re a public 
    interest organization that seeks to represent citizens’ rights in the 
    battles over copyright policy and technology policy.  So, I’m very pleased 
    to be here, and Public Knowledge is proud to be a signatory to the amicus 
    curia brief that Megan has so wonderfully drafted and we are really proud 
    to support Verizon in this case.
    
    This case clearly demonstrates that, in the content industries war on 
    piracy, and I put that in quotes: “War on Piracy,” citizens’ right and 
    expectations will be the first casualty.  Since the early days of Ma Bell, 
    citizens have freely given their personal info to telephone companies and 
    their successors with the expectation that their right to privacy will be 
    secure.  But now comes the recording industry, which is seeking to force 
    the telephone companies and their successors to break that sacred pact, 
    based only on the mere allegation that the individuals, whose names they 
    are requesting, are engaging in illegal conduct.  So the first, but 
    certainly not the last, casualty in the “War on Piracy” is the right to 
    privacy.  Now the recording industry could use their sophisticated robot 
    technology to find massive illegal file traders, and it could file a John 
    Doe lawsuit and get the names of those traders, if it satisfied a judge 
    that its allegations had evidentiary support.  I think you’ve heard that 
    many times today.  So why isn’t it doing so?  Well, let me posit a 
    guess.  What if they sue one these massive illegal file traders under a 
    John Doe lawsuit, and she is the daughter of a Senator, or a 12-year-old 
    honor student, or one of its own recording artists, that would be really 
    bad.  But what if they could just get a whole lot of names and addresses 
    and other information about a whole lot of people that they think are 
    engaging in illegal conduct?  That would be better, right?  They could 
    conduct investigations of potential defendants and engage in surveillance 
    over a period of days, weeks, months, maybe even years, hoping to find the 
    least attractive defendants; perhaps a former convict, a Hell’s Angels, and 
    maybe an Enron executive.  So, even if the recording industry loses this 
    suit, again I think they will, to me, there’s no dispute that Verizon 
    clearly has the winning case here, and I think it’s kind of curious that 
    it’s so clear.  So, I don’t think this suit was brought necessarily to win 
    it.  OK.  I do believe they’ll win this suit.  But even if the recording 
    industry loses this suit, they can complain to Congress that they have no 
    remedies, and they can seek even more remedies than they’re already 
    seeking.  And, I don’t know if you got my press release  it’s in the back, 
    I detail how this lawsuit is just one of a piece.  You know, I feel like I 
    have to have seventeen arms to try to combat all the initiatives that the 
    content industry, and it’s not just the recording industry, it’s obviously 
    their pals in the motion picture industry and in the publishing industries; 
    all the initiatives in Congress, and the FCC, and in the courts, that 
    they’re using really to try to maintain control over their intellectual 
    property.
    
    So, just in closing, I just want to say that my organization actually 
    supports enforcement of existing laws to curb illegal file trading on 
    peer-to-peer networks.  Again, the emphasis is on enforcing existing 
    laws.  The problem is, that’s not what the recording industry wants to 
    do.  What they want to do is shift the burden of enforcing those laws on to 
    ISPs, like Verizon, at the cost of citizens’ rights to privacy and 
    anonymity.  Thank you.
    
    ANDREW SCHWARTZMAN: Hands are already up.  Knowing you people, this is an 
    amazing time for reporters to remain quiet, and I’m sure there will be 
    questions.  You can start.  Please identify yourself and your publication, 
    use the microphone, and, if you’ve got a specific person you’re addressing, 
    please so state.
    
    DREW CLARK:  Ok, Drew Clark, National Journalist Tech Daily.  I guess I 
    have a two-part question.  You identified some of the reasons why they’d 
    prefer this approach than the John Doe suits, and you kind of put it in the 
    most cynical light, but couldn’t the argument just as equally be that there 
    would be less a burden on individuals if the RIAA could simply send 
    peer-to-peer users warning letters instead of suing them?  They don’t 
    necessarily want to sue them -- haul them into court.  They just want to 
    stop their problem of piracy, and, if they could find out who’s engaging in 
    peer-to-peer file trading, they could let them know this is illegal and, 
    basically, encourage them to stop.  So, I guess, Gigi, if you could respond 
    to that, and anyone else.
    
    The second part of the question is, you know, I mean, you’ve all presented 
    the parade of horribles for this suit, but really, aren’t all of these same 
    things applicable to the DMCA notice and take-down provisions as-is.  I 
    mean, isn’t that really what you’re objecting to?  I mean what is all of 
    the due process concerns that you have about this could just as easily 
    apply to DMCA general notice and take-down provisions.
    
    GIGI SOHN:  I’ll take this on. I’ll take the first part of that 
    question.  For some odd reason, everybody has sort of lost sight of what 
    the content industries do in the real world, and I think this digital world 
    is such a different thing, and it really isn’t.  OK.  So, just as the 
    recording industry is not going to go to the guy in Metro Center who’s 
    selling, you know, phony CDs and, you know, give them a cease and desist 
    letter.  They’re not going to go after, you know, every single person with 
    six illegal, you know, files on their hard drive and give them a cease and 
    desist letter.  They know.  They have a good sense.  I mean, robot 
    technologies are not perfect and Dave gave those examples, some of which 
    were also mentioned in the peer-to-peer hearing that I testified in last 
    week.  They have a pretty good sense of who their massive file traders are, 
    and Kerry Sherman told me that, basically, every single day they get a list 
    of people. You know, who’s got two thousand, you know, copyrighted 
    files.  Who’s got one thousand?  They know.  OK.  So, why, they don’t need 
    to waste their time sending them cease and desist letters.  These are the 
    type of people who are akin to the folks on Taiwan who are pirating 
    thousands of CDs.  They know who the bad people are, they just have to go 
    after them.  It’s more cost effective for them to send cease and desist 
    letters to thousands of people, some of whom may have, you know, a small 
    number of files, illegal files, on their hard drives.
    
    ANDREW SCHWARTZMAN:  There’s another part.  Dave, you want to take the 
    legal question?
    
    DAVE BAKER:  Yeah.  Let me sort of follow up on Gigi’s comments.  You know, 
    I mean, an example of RIAA going after the folks who are really causing the 
    trouble, was when they went after, last month, went after 
    listenforever.com.  If you saw the site before it went down, I mean, this 
    thing was slick.  It was very professionally done.  This was not some…this 
    was not a couple of college students just sharing a few files here.  But 
    the point is, they went after the cause.  They went after the real 
    problem.  And that site is now gone.  That’s a more proper way to do it 
    than to try to sort of impress ISPs into service, saying, “We don’t know 
    who these folks are, but we want you to divulge all their 
    identity.”  Again, if it were a question of…  I mean, we have to draw the 
    line at the first instance, because we’ve already seen examples of where 
    ISPs will be served with hundreds and thousands of these requests.  And the 
    difference, there’s a very real distinction here between the personal 
    identity of peer-to-peer file sharers and the notice and take-down 
    provisions under 512C.  The whole point of notice and take-down is the 
    copyright owner saying to the ISP, “Hey ISP, this is a website you 
    host.  Here is clearly identifiable information on that website that 
    infringes our copyright.”  Whether it’s a song, a movie, a book, 
    whatever.  And, there’s a provision there for notification, taking down the 
    website, a counter-notification, all done in good-faith showings.  Again, 
    we’ve got we and Verizon, and all other ISPs cooperating, just about.  ISPs 
    cooperate with the copyright owners in, and other intellectual property 
    owners, cooperate with the copyright owners in protecting them.  So, 
    there’s no dispute under the 512C provision.  Here, you have a situation 
    again where the RIAA taken the subpoena provisions under section H, which 
    specifically refer to 512C.  The subpoenas talk about a notice and takedown 
    provision, and instead they’re trying to apply that in a situation where it 
    does not apply.  The DMCA is silent as to peer-to-peer file 
    sharing.  That’s something that may need to be addressed, but it cannot be 
    done in this context.
    
    ANDREW SCHWARTZMAN:  The other David has something to say.
    
    DAVE MCCLURE:  Let me address, specifically, your question about 
    notification and takedown.  Emphatically, no!  This is not the same as the 
    procedures that were set forth.  We probably have been engaged in 
    notification and takedown procedures as long as anyone.  We negotiated the 
    first set of notification and takedown procedures with the Software 
    Publishers Association back in the spring of ’97.  And I can tell you that 
    all of those procedures have been based on the intervention of some form of 
    judicial review.  In a previous life, I also worked tracking down software 
    pirates online on behalf of copyright holders, so I’m very familiar with 
    the fact we’ve always had to verify the contents of those files.  We had to 
    verify that a copyright violation had taken place.  That’s the heart and 
    sole of the notification and takedown procedures.  If you circumvent all of 
    those safeguards, then what you have is not the procedures set forth in the 
    Copyright Act.  What you have then is a wholesale effort to place at risk 
    the entire population of the Internet.  We’re talking about an estimated 40 
    million American subscriber accounts that can be summarily terminated with 
    no recourse whatsoever.  That’s not what the copyright law provides 
    for.  That’s not the notification and takedown procedure.  This is a far 
    different animal.  By the way, we strongly support the notification and 
    takedown procedures.
    
    MEGAN GRAY:  I was, just a couple points on this claim from the copyright 
    holders, like RIAA, that “oh, we just want to send a letter.”  Well, if 
    that’s all they want to do, they can still do that after filing the John 
    Doe lawsuit.  It is again, very easy to dismiss the lawsuit.  It is a form 
    that the lawyer signs.  There’s no complicated procedure here.  So, if 
    that’s all they want to do, after they’ve learned the identity through the 
    court supervised John Doe lawsuit, they can still do that.  And then, as to 
    your question about whether our opposition to RIAA’s move here is in fact 
    opposition to the DMCA in its totality.  We’re not raising that argument, 
    that’s separate.  Our problem, in this case, is that the copyright holders 
    are trying to expand the DMCA.  Whatever problems we may have with the 
    DMCA, is separate and apart from this case.  We just want t make sure that 
    it’s not expanded impermissibly like RIAA is seeking here.
    
    ANDREW SCHWARTZMAN:  I think that you’ve got to go.
    
    DAVE BAKER:  Yeah, I’ve got to…
    
    ANDREW SCHWARTZMAN:  Any last questions for Dave Baker?
    
    SUSAN DECKER:  Susan Decker, Bloomberg News.  Could either of the Dave’s 
    kind of walk through the procedure for a takedown procedure compared to how 
    it would work per user?
    
    DAVE BAKER:  I don’t have the statute in front of me, so I’m going to be a 
    bit vague.  But, basically, what we do is, the ISP receives a notice and 
    takedown procedure in the process, and the ISP receives a letter that, you 
    know, says all the magic words.  There are specific things we need to be 
    laid out.  Maybe I ought to let Dave handle it, but just very quick 
    overview.  Says. “ISP, you host a website that we claim had material that 
    infringes our copyright,” and there is a provision whereby the ISP then has 
    to disable that site for ten business days.  At the same time, give a 
    notification to their subscriber, the website owner.  The website owner 
    can, if they want, using the proper incantations, file a 
    counter-notification, stating that no, it does not, and gets it back 
    up.  One element that comes into play is that in all of this, the ISP is, 
    and this goes back Section 2, the ISP is not, and could not, be liable for 
    the billions of bits of information that transit its network everyday.  The 
    only exception to that is if an ISP just sort of says, you know, shrugs it 
    off, doesn’t do what their supposed to under it; doesn’t take down sites, 
    then the ISP could be liable under the repeat infringer policy.  So, it’s 
    not a situation that ISPs, you know, don’t have a stake in this; don’t have 
    to abide by it.  We very much do, and we do.  Again, at the risk of 
    repeating myself, we’ve got a long history of cooperating with the 
    copyright owners to protect copyrights, and that’s something that ISPs take 
    seriously.  But here we have a situation where the RIAA is just trying to 
    stretch the DMCA to do something that it was not designed to do.
    
    SUSAN DECKER:  Could you use that same procedure for the user?
    
    DAVE MCCLURE:  Not really, and, thanks Dave, that was a very good 
    explanation.  The notification and takedown procedures were a tool designed 
    for an environment in which you have a static place to go and 
    download.  Something akin to Napster, for example, or a website, for 
    example, that features music.  It was not intended to address what happens 
    when users share networks with one another, with no intervention whatsoever 
    by the ISP.  No intervention, actually, with the companies that make 
    peer-to-peer software.  They have no control over what you do, or how you 
    share information.  They have no way to stop you.  So’ it’s not really 
    a….  The discussion of notification and takedown, I think, is probably 
    inappropriate, but I’ll repeat again, that the Copyright Act did address 
    this issue when it clearly stated that in those situations where the ISP 
    acts as a conduit, then there is no responsibility to take these actions, 
    except in the face of a legally obtained subpoena, John Doe subpoena, which 
    is one of the avenues open to them.  And I’ll go back again.  What they’re 
    asking for is not simply the right to say, “Gee, tell us who this person 
    is, so we can send them a letter.”  That’s not what this is about at 
    all.  This is about scooping up a million IP addresses, sending them to the 
    ISPs that are associated with those IP addresses, and demanding that those 
    users have their accounts permanently terminated.  Now, I don’t know about 
    your house, but my house, about eight people use my computer.  That means, 
    all eight people, seven of whom may be completely innocent, in fact, all 
    eight of whom may be completely innocent.  My kid sends a book report that 
    has Harry Potter’s name in it and we permanently lose our Internet 
    account.  No recourse, no way to call them back.  How does that 
    happen?  How does that happen under the law?  We say, well, It doesn’t, it 
    shouldn’t, not in this country.
    
    ANDREW SCHWARTZMAN:  Let me, briefly, give from the perspective of the 
    user.  As journalists, the fair use rights are incredibly important to you 
    as journalists, and you have colleagues, like Declan McCullagh, who post a 
    lot of content, quote letters, quote articles, and speeches.  In this kind 
    of blunderbuss approach, you could well have a site that had your own 
    personal journalism, or excerpts of your own stories, challenged by the 
    copyright owner, and you would have under the, even under the inadequate 
    protection of the Digital Millennium Copyright Act, an opportunity to go 
    back and say, no, don’t shut down my site, I’m a journalist exercising 
    First Amendment rights, and I’m excerpting something that’s of public 
    interest, because I’m writing about it from the standpoint of a journalist 
    exercising my First Amendment rights, I have a fair-use right to do this 
    quote.  That’s the kind of thing that we’re talking about and the kind of 
    problem that happens with this blunderbuss approach.  Now, having said all 
    that, there are moments when I’d like to see Declan’s site taken down, but 
    that’s another discussion.  Other Questions?
    
    Seeing no other questions, I’ll count to three and consider this exercise 
    terminated.  One, two, three.  Thank you very much.
    
    
    
    
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