While piracy hurts media producing companies, both bills will seriously hurt the 46 billion dollar hosting industry, which is increasing by 20% per year, and creates about 15,000 jobs per year. PIPA would put all but the largest hosting companies out of business, due to the additional legal expenses, since hosting companies will be held responsible for any copyright infringement on any domains they host. The damage done to the hosting industry would cause thousands of jobs to be lost, and put companies out of business. It would also stifle technological innovation. Internet technology makes up 7% of the annual GDP of the United States. Any sort of limitation on the internet will be detrimental to both the U.S. and global economy.
Thursday, January 19, 2012
SOPA/PIPA's Impact on the Economy
This article discusses some of the possible economic impacts impacts of the Stop Online Piracy Bill (SOPA), and the Protect IP Act (PIPA). Fortunantly, SOPA has been put on hold until next month in the House of Representatives, but the Senate version of the bill (PIPA) still has a chance of passing. Both are supposed to prevent piracy, and improve copyright enforcement. But they will also give copyright holding corporations and the government to effectively censor the internet, in the name of fighting piracy.