Huge IP Changes Buried In COVID-19 Stimulus Bill
The House, Senate, and Whitehouse have been locked in a fierce battle over the past several months, with the Senate and Whitehouse opposing efforts by the House to provide relief via direct assistance and loans to address the impact of COVID-19. The sides reached an agreement on Monday, which will send immediate aid to individuals and businesses. The COVID relief bill was merged with a massive omnibus spending bill worth a total of more than $2.3 trillion. Buried in this legislation are some huge changes to U.S. intellectual property law, including controversial measures previously introduced as the CASE Act, the Trademark Modernization Act, and a felony streaming proposal — all significantly expanding the rights and powers of IP owners.
Most controversially, the CASE Act would create a quasi-judicial tribunal of “Copyright Claims Officers” who would work to adjudicate alleged infringement claims. Copyright holders could be awarded up to $30,000 if they can prove their creative work was being shared online. Advocates have long sought to give copyright owners some recourse to infringement outside of the expensive federal court system, though this framework has generated significant complaints from those afraid of granting essentially unlimited power to a pro-industry agency. Other critics have argued that the alternative dispute system is unconstitutional, though by making the system non-mandatory, advocates hope that it will survive legal challenges and ultimately lead to swifter resolution over takedown notices for copyright material posted online. The CASE Act previously passed the House by a 410-6 vote before being blocked in the Senate by Ron Wyden (D-Ore.).
Also included in the spending bill is the Trademark Modernization Act, which would allow third parties to request that the Patent and Trademark Office reject trademark applications in an effort to combat “trademark trolls” who make money off of trademarks they never planned to use. The multitrillion-dollar package also includes a provision authored by Sen. Thom Tillis (R-NC) that would allow the Justice Department to charge business with felony copyright infringement if they intentionally stream copyrighted material online.
The relief legislation, totaling 5,593 pages — by far the longest bill ever — was announced Monday afternoon, then proceeded through the House and Senate in a matter of hours. How anyone managed to read more than 5,500 pages before voting is anyone’s guess. Next stop, the Resolute Desk.