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The Story Behind S.978, the Controversial Streaming Bill

A look at whether everyone should really be freaking out about this new piece of legislation.

Based on what the Interent's been saying about S.978, this is an accurate representation of this bill's passage. I'm joking. A little bit.
Based on what the Interent's been saying about S.978, this is an accurate representation of this bill's passage. I'm joking. A little bit.

There have been some apocalyptic responses to S.978, a bill currently working its way through the U.S. Senate. The bill would make the online streaming of copyrighted content a felony.

The current version of the law only impacts peer-to-peer transfers and web downloads, with this wrinkle adding "online streaming" to the mix.

The response from gamers has been akin to the sky is falling.

Nothing in the law mentions video games. This bill is primarily intended to target music and movies, with organizations like the Motion Picture Association of America and Recording Industry Association of America giving the bill a thumbs up as it lumbers forward.

Just because there's no mention of games, however, doesn't mean games aren't (or couldn't be) affected, but to what extent? The heated rhetoric has lead to proclamations as grand the end of Giant Bomb (which isn't happening), prompting me to investigate the issue.

"The legislation is worded far too broadly and can easily apply to video games as a result," said Hal Halpin, president of the Entertainment Consumers Association, fresh off the Supreme Court victory. "Part of the problem that we have in educating the public, and gamers in particular, is that they don’t see games called out specifically and therefore feel that they’re excluded. In fact, it’s the opposite--because there is no explicit exclusion for video games in the bill, they are included."

The Entertainment Software Association, representing the industry's publishers, did not return a request for comment.

The bill is sponsored by Minnesota Democratic Senator Amy Klobuchar and co-sponsored by Delaware Democratic Senator Chris Coons and Texas Republican Senator John Cornyn.

One worry is the effect on stream-heavy events like EVO. As EVO is sanctioned by Capcom, there's not much to be concerned about.
One worry is the effect on stream-heavy events like EVO. As EVO is sanctioned by Capcom, there's not much to be concerned about.

At a Senate Judiciary Committee meeting about the bill on June 9 (you can watch the entire hearing over here), Klobuchar said the bill wasn't targeting ordinary individuals but egregious offenders. Her analogy involved a street peddler selling pirated CDs and DVDs. If their inventory's worth more than $2500, it's a felony. Someone doing the same thing through streaming is limited to a misdemeanor.

"The bill is not intended nor does it allow law enforcement to prosecute people who may stream videos and other copyrighted works to their friends without intending to profit from the work of the copyright owner," she said. "It also does not allow prosecutors to go after individuals that innocently post links on their blogs to copyrighted protected works."

"For this bill to affect someone, the person would have to be already committing a crime under current law," she continued. "This bill just makes the worst of those crimes and makes them a felony."

Klobuchar appears to be targeting individuals solely profiting off streaming content they didn't create. The key word is "profit," as Klobuchar claims some illegal streaming websites are already make $40 million per year without producing a thing.

Have you ever watched a stream of an NFL game through a decidedly shady looking website? She's talking about places like that. The scope of the bill, however, means it could be applied elsewhere.

"Is the passage of S.978 a catastrophe waiting to happen?" posed Andrew Ehmke, an attorney at Texas-based Haynes and Boone, LLP. "Catastophe is probably too strong of a word, but a lot of the commentary and concern about the scope and breadth of the law is legitimate."

Uncertainty strikes at the heart of this. It's why you see videos like the one embedded below showing up, where the consequences of this bill coming into law have suddenly become taking down half of YouTubes's video game content and largely diminishing the coverage coming out of events like E3.

Game videos are enormously popular on YouTube and other video services. Live streaming new games on launch day are incredibly common. Ehmke doesn't foresee those people having any problems.

"For it to be criminal copyright," he explained, "one of the elements is 'for purposes of commercial advantage or private financial gain.' I would hope that the FBI would not view a random YouTube user as somehow falling within the definition of 'for purposes of ... private financial gain.' However, if someone posts to YouTube with a link back to a web site, which contains banner ads that pay-per-view, that seems to move closer to 'for purposes of ... private financial gain.'"

It's hard to see anything happening on the scale of what the video suggests, but as a result of the vague wording, people speculate, with advocates like Halpin fueling the fire, suggesting that people aren't blowing this out of proportion.

"We’ve taken grief from naysayers as well," he said. "As consumer advocates, our job is not to worry about the best case scenarios, but rather the worst case ones. We ran the bill past internal and external legal experts and all agree that it’s very dangerous as presently crafted."

Some counterarguments fall back on "fair use," which allows appropriation of copyrighted content. In order to qualify for "fair use," the person must first prove the content's being used for "criticism, comment, news reporting, teaching, scholarship, or research." Proving that will be difficult for some.

S.978 is largely intended to combat websites streaming content like NFL games.
S.978 is largely intended to combat websites streaming content like NFL games.

"If the law passes, the real issue will be whether the FBI chooses to enforce the law in a given scenario, and in what manner," explained Ehmke. "While possible under the wording of the law, it seems unlikely that the FBI has the time, effort, or inclination to start arresting every poster to YouTube who gets 10 hits on his achievement guide video. That being said, the lack of willingness by the FBI to enforce probably does not give comfort to those who do not want the law passed at all."

If.

Right now, hearings on the law are over. Congress is scheduled for a month-long recess in August, unless a deal on the debt limit isn't reached and the session is extended. S.978 will either come up in the next two weeks or get pushed back until when Congress resumes in September.

Halpin said he's been in contact with the three legislators involved with the bill, but would not disclose the nature of the conversations.

"I can say that conversations are ongoing, for now," he said. "If and when things progress beyond that point, we’ll certainly keep [everyone] in the loop."

You can keep tabs on the bill through govtrack.us, a tool for monitoring bills as they slowly but surely move through our legislative bodies. Tools to contact each legislator are available on congress.org.

Patrick Klepek on Google+

213 Comments

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GiantAlston

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While people can say that they don't like DSP for this-and-that reasons is fine but, in my personal perspective what does that really have to do with this bill? Okay, so you believe that he is an “idiot,” while others (including me), enjoy him; but again, what does any of that personally have to do with this bill? Sure, this bill may get dismissed, or maybe it won’t; the main thing that bothers me, is how many people will actually put effort to make sure that this bill in its current state isn’t passed? Don’t just rely on this bill to get rejected because of certainty or presumption. Whether the bill doesn’t pass still that leaves a large contradiction to our government based on how many people actually take part in rejecting or accepting these bills. Small pieces of this bill could be used in another one and cause this to actually become copyrighted with different restrictions. This is just an example, but, let’s just say it gets rejected they create this new bill involving a federal law where games cost can only reach a maximum of $40.00 dollars. Anything above this amount would cause an additional 20% tax on the company annually. That’s a hard thing to just look at and say “nah, I like my current amount,” making interest in this new bill rise without reading between the lines. This is just an example of my thesis so I will say that it could result in 2 ways (that can think of at the moment):

 

 

1.)     The bill can contain parts of the original bills intentional actions; but, it only counts as a “misdemeanor,” this time. Depending on the amount of videos you contain on your account, stream, website, ECT will add up, counting them as a felony. Also, depending on the country you are living in this could also result in committing an international crime and a consequence by your countries laws may lead towards being transferred to the United States to serve the crime until completion.

2.)     Companies that make these games are losing profit. So, they prepare a proposal for the government that bans the use of their game to be recorded without direct consent (or licensing) of the publisher. Depending on if it gets passed or not and what the bills consequences will be varies. This can involve in a very bad situation for the people who posted it and the companies who are partnered/associated these people. If the publishing company who made the game wanted to sue everyone involved with the video they could; regardless of the amendment. A decisive lawyer can alter any case (just ask Casey Anthony).

 

So, these actions may seem unorthodox; but it can still lead to more problematic matters that could affect our rights, in a different situation.

 

P.s. (my personal opinion feel free to disagree) You have the right to defend your reasons for disliking DSP, I also contain the rights to defend him by saying that he’s funny and I don’t think he’s an idiot. Regarding what you feel is humorous or tolerable is your opinion; but questioning a person’s true intellect from a video is unconscionable if you haven’t interacted with this person in any way besides comments and post.

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swoxx

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Edited By swoxx

Thanks for the info pat!

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MajorToms

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Edited By MajorToms

I my opinion, breaking video game copyright would be supplying someone with a copy of the game to PLAY. Just footage should be fine I think. The viewer isn't playing the game but watching someone else. What's the harm in that?

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sonicdm

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Edited By sonicdm

Do Not Want :(

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AxleBro

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lol people bitching at an embedded video. whats this community coming to.

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deactivated-5a1d45de5ef23

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@DarksydePhil said:

Back on topic (since the trolls are just going to keep trolling if I address things further), this bill changes three major things: -It now covers STREAMING media (streaming coverage of video games in general, which by definition would include any video you stream on YouTube, or a live stream of tournament gameplay, etc.) -It changes the penalties of existing law to include up to 5 years in jail and a felony on your record, which is a CRIMINAL offense So what's the real impact of the bill? 1. Up to now, streaming wasn't officially called out in law, which would have made it a gray area if it ever went to trial. Now, you can't make the defense of "well I knew it was illegal to download/upload movies, but I had no idea I couldn't stream them!" 2. The bill changes the penalties from civil to criminal. Meaning, REGARDLESS if a copyright holder comes after you for making videos of their game (which no companies besides Rockstar Games have done so far), the government can still seek to imprison you up to 5 years if you've made more than 10 videos, regardless of if you are making money on them or not. 3. The bill sets the estimated value of copyrights violated at $2500; so if the copyright holder feels the copyright to inFAMOUS 2 is worth $2500 or more, they can come after you for BOTH civil and criminal damages. Again, I've done extensive research on this story, spoke to UltraDavid directly about it, and other lawyers as well. And yes, I did break the story to the YouTube community; its why my video has over 500k total views and is dated June 30th, while most other videos were just responses to the public outrage that ensued after the issue passed by word of mouth. The bottom line is that the bill is far too broadly worded and as StarvingGamer has said, it will only take 1 crusading idiot in the Senate or Congress to misconstrue what the bill is intended for, and totally go to war against YouTube. In addition, Google may totally flip out and end all video game footage on YouTube in reaction to a criminal threat, whether or not the government ever pursues it or not. One common misconception: there is nothing whatsoever in US law OR in US case history stating that Let's Plays are covered under US fair use law. It is a commonly accepted belief by companies such as Machinima, TheGameStation, blip.tv, YouTube, etc., but that doesn't mean it's a correct belief. The reason that there is a major risk with this bill passing is that until now, no major copyright holders have ever complained about Let's Plays besides Rockstar Games. After the bill is passed, that won't matter anymore - you WILL be considered a criminal by the US Federal Government if you post more than 10 videos. Are you willing to play Russian Roulette in order to get your playthrough of Ocarina of Time on the internet?

They should just get WONDERWAFFLES on the case.

He would double perfect the bill in no time.

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heeheex2

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Edited By heeheex2

"Doomsday, everyone hide! "
 
~People on youtube.

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jobs

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Cool!!!

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Scrubiii

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@Darkstorn said:

If the key word here is 'profit,' then youtube videos of game footage will not be included. This bill may be flawed, but it's probably for the best.

The problem is that for many people, e.g. employees of Machinima and The Game Station, Youtube gaming videos are how they make their income.
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Ares42

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@GiantAlston said:

While people can say that they don't like DSP for this-and-that reasons is fine but, in my personal perspective what does that really have to do with this bill? Okay, so you believe that he is an “idiot,” while others (including me), enjoy him; but again, what does any of that personally have to do with this bill? 

P.s. (my personal opinion feel free to disagree) You have the right to defend your reasons for disliking DSP, I also contain the rights to defend him by saying that he’s funny and I don’t think he’s an idiot. Regarding what you feel is humorous or tolerable is your opinion; but questioning a person’s true intellect from a video is unconscionable if you haven’t interacted with this person in any way besides comments and post.

Nop, it has absolutely nothing to do with the bill, but it has something to do with this article. People complained because they didn't like that DSP was being used as a reference/source. Whatever their motivation for not liking it doesn't really matter, they're just (as I've explained earlier in the thread) commenting on the part of the content they don't like.
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Agent47

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Edited By Agent47

And now there is a broader and much worse bill now.So what now?

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lockwoodx

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@Agent47 said:

And now there is a broader and much worse bill now.So what now?

The broader and worse it gets, the harder it will be to pass.

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napalm

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@Buzzkill said:

@Agent47 said:

And now there is a broader and much worse bill now.So what now?

The broader and worse it gets, the harder it will be to pass.

Is there a link to this new bill?