The Senate considers the Induce Act
C|Net is reporting that the Senate is considering moving forward with the Induce Act. Such legislation would result in P2P networks being banned, among other things.
The Induce Act, which enjoys broad support in the music industry and from a handful of software companies, is designed to overturn an April 2003 ruling from a California judge that said StreamCast Networks, which distributes Morpheus, and Grokster were not liable for copyright infringements that took place using their software. Critics of the bill warn that it could make hardware makers like Apple and Toshiba--and even journalists--liable for products and reviews that could "induce" the public to violate copyright law.
So the legislation is sure to find opposition. Many are taking issue with a clause in the Induce Act stating that "whoever intentionally induces any violation" of copyright law would be legally liable for those violations. In fact, a letter signed by more than forty trade associations and sent to the Senate on July 6 claimed that the proposed legislation "would chill innovation and drive investment in technology" overseas. We'll try to update this story as things continue to develop.