1 00:00:00,000 --> 00:00:09,104 [Music] 2 00:00:09,104 --> 00:00:11,683 [HON. HOWARD COBLE] The Subcommittee on Courts, Intellectual Property and the Internet 3 00:00:11,683 --> 00:00:15,382 will come to order without objection. The Chair is authorized to declare to declare ? recesses 4 00:00:15,382 --> 00:00:18,266 of the Subcommittee at any time. We welcome all of our witnesses 5 00:00:18,266 --> 00:00:22,888 today, and at the outset I want to again reiterate our 6 00:00:22,888 --> 00:00:26,993 apologies for the delay. The votes take precedence sometimes 7 00:00:26,993 --> 00:00:34,509 and I;m sorry - appreciate your patience. 8 00:00:34,509 --> 00:00:39,804 I'll give my opening statement then call on Mr. Watt afterwards. 9 00:00:39,804 --> 00:00:43,210 This afternoon's hearing is an initial step for the Subcommittee's effort 10 00:00:43,210 --> 00:00:47,282 to undertake a comprehensive review of our copyright laws. 11 00:00:47,282 --> 00:00:50,454 Last month when Registrar Pallante 12 00:00:50,454 --> 00:00:53,319 testified before this Subcommittee, she illustrated 13 00:00:53,319 --> 00:00:56,683 the mutual interests of the authors and the public. 14 00:00:56,683 --> 00:01:00,929 As she accurately and eloquently explained, 15 00:01:00,929 --> 00:01:05,132 quote - As the first beneficiaries of the copuright law 16 00:01:05,132 --> 00:01:08,870 they are not a counterweight to the public but instead 17 00:01:08,870 --> 00:01:11,671 are at the very center of the equation. 18 00:01:11,671 --> 00:01:14,281 As such the copyright law must start with 19 00:01:14,281 --> 00:01:16,741 the creator at the center of the equation. 20 00:01:16,741 --> 00:01:20,145 As Ms. Pallante concluded: A law that does not provide 21 00:01:20,145 --> 00:01:24,620 for authors would be illogical. Hardly a copyright law 22 00:01:24,620 --> 00:01:28,127 at all. Central to any review is identifying 23 00:01:28,127 --> 00:01:31,358 what has worked and is working within the law. 24 00:01:31,358 --> 00:01:36,069 Our copyright law is well rooted with 200 years of precedent that has 25 00:01:36,069 --> 00:01:39,740 produced a level of creativity and innovation 26 00:01:39,740 --> 00:01:44,173 that is the envy of the worls. Our consumers enjoy an incredible 27 00:01:44,173 --> 00:01:47,447 selection of high quality content that is available 28 00:01:47,447 --> 00:01:51,678 on an array of technology platforms. 29 00:01:51,678 --> 00:01:55,181 Meanwhile we continue to lead the world with new ideas 30 00:01:55,181 --> 00:01:58,952 and creations. These achievements are stunning and 31 00:01:58,952 --> 00:02:03,523 should not in my opinion be overlooked. That being said 32 00:02:03,523 --> 00:02:07,259 I commend Chairman Goodlatte and Registrar Pallante 33 00:02:07,259 --> 00:02:10,963 for recognizing the need for a comprehensive review. 34 00:02:10,963 --> 00:02:14,403 Piracy is an enormous piracy (?) or threat 35 00:02:14,403 --> 00:02:18,040 - the terms are synonymous in my opinion - 36 00:02:18,040 --> 00:02:20,773 is an enormous problem that must be addressed. 37 00:02:20,773 --> 00:02:24,040 Licensing (?) is a periodic battle that oftentimes leaves consumers 38 00:02:24,040 --> 00:02:25,978 with the short end of the stick. 39 00:02:25,978 --> 00:02:29,014 We should take the time to consider whether there are other options. 40 00:02:29,014 --> 00:02:33,688 Our high-tech innovators, who are also helping to drive creativity, 41 00:02:33,688 --> 00:02:36,854 are frustrated by all of the above. 42 00:02:36,854 --> 00:02:41,599 Our policy should incentivise innovation not frustrate it. 43 00:02:41,599 --> 00:02:45,514 These are some of the many issues I hope we will have the opportunity to review, 44 00:02:45,514 --> 00:02:49,042 to deternine whether the law is meeting its constitutionally ordained 45 00:02:49,042 --> 00:02:53,640 purpose. I'm interested in hearing how this witness 46 00:02:53,640 --> 00:02:57,709 panel of diverse perspectives on copyright law 47 00:02:57,709 --> 00:03:02,516 was able to put aside their differences in an effort to work together. 48 00:03:02,516 --> 00:03:06,287 Such efforts and others like them should be applauded. 49 00:03:06,287 --> 00:03:10,318 This committee has often heard from witnesses who were better at talking 50 00:03:10,318 --> 00:03:13,692 at each other rather than wuith each other. 51 00:03:13,692 --> 00:03:17,850 Of course that does not mean that anyone should retreat from his or her views 52 00:03:17,850 --> 00:03:21,802 on any subject. It should come as no surprise 53 00:03:21,802 --> 00:03:25,137 that the ranking member Mr. Watt and I do not agree on every issue 54 00:03:25,137 --> 00:03:28,708 that the full Judiciary Committee considers, but we try to serve the prople 55 00:03:28,708 --> 00:03:33,580 of our great state, and by the way I'm glad to see that one of our witnesses 56 00:03:33,580 --> 00:03:38,590 this afternoon is from the University of North Carolina. Efforts to make (?) 57 00:03:38,590 --> 00:03:42,596 the copyright world to recognize where consensus can and 58 00:03:42,596 --> 00:03:44,361 cannot be reached are helpful 59 00:03:44,361 --> 00:03:47,627 as we undertake a comprehensive review. I have no doubt 60 00:03:47,627 --> 00:03:51,563 That Chairman Goodlatte and I and other members of the Subcommittee 61 00:03:51,563 --> 00:03:54,841 will hear from intrested - interesting creators over the months ahead 62 00:03:54,841 --> 00:03:59,739 on how copyright is and is not working 63 00:03:59,739 --> 00:04:04,210 for them. The Registrar has already highlighted some problems with copyright 64 00:04:04,210 --> 00:04:07,656 law, especially for the ability of copyright owners 65 00:04:07,656 --> 00:04:11,517 to protect their works. The report generated by the Copyright 66 00:04:11,517 --> 00:04:15,020 Principles Project, and the testimony submitted today, 67 00:04:15,020 --> 00:04:19,123 have also highlighted problems that need to be addressed. 68 00:04:19,123 --> 00:04:23,174 It seems to me that those who believe everything should be free 69 00:04:23,174 --> 00:04:27,297 fundamentally disrespect the creators, who have put so much effort 70 00:04:27,297 --> 00:04:32,446 into their works, and improve our nation's 71 00:04:32,446 --> 00:04:35,424 culture as a result. And again 72 00:04:35,424 --> 00:04:38,850 I thank the witnesses for your presence today, your willingness 73 00:04:38,850 --> 00:04:43,280 to spend so much tiem working in a collegial manner with those whose views 74 00:04:43,280 --> 00:04:46,715 they may not always embrace or agree with. 75 00:04:46,715 --> 00:04:51,054 Their willingness to listen to others in such a manner is 76 00:04:51,054 --> 00:04:54,734 one that I urge everyone to follow. I now recognize 77 00:04:54,734 --> 00:04:58,432 the distinguished member from North Carolina, the ranking member Mr. Mel Watt. 78 00:04:58,432 --> 99:59:59,999 [Hon. Melvin L. Watt] Thank you Mr. Chairman, and thank you for convening the hearing, 79 99:59:59,999 --> 99:59:59,999 For those of you who showed up today expecting 80 99:59:59,999 --> 99:59:59,999 my grandson Nico, 81 99:59:59,999 --> 99:59:59,999 I have to extend my regrets. 82 99:59:59,999 --> 99:59:59,999 After yesterday's performance went viral 83 99:59:59,999 --> 99:59:59,999 only a number of outlets 84 99:59:59,999 --> 99:59:59,999 including Good Morning America this morning and others 85 99:59:59,999 --> 99:59:59,999 he said he was giving me no more exposure without royalties. 86 99:59:59,999 --> 99:59:59,999 (Laughter) 87 99:59:59,999 --> 99:59:59,999 So, he's not here with me today, 88 99:59:59,999 --> 99:59:59,999 although he;s still here in Washingtom for those of you who want to sign him up 89 99:59:59,999 --> 99:59:59,999 Anyway, um, let me be serious. 90 99:59:59,999 --> 99:59:59,999 Earlier this week I attended 91 99:59:59,999 --> 99:59:59,999 the 'We Write the Songs' event at the Library of Congress. 92 99:59:59,999 --> 99:59:59,999 The auditorium was packed with an audience transfixed 93 99:59:59,999 --> 99:59:59,999 on the skillfully crafted lyrics and the 94 99:59:59,999 --> 99:59:59,999 the astonshing performances 95 99:59:59,999 --> 99:59:59,999 including the electrifying performance that earned the electrifying performance that earned the 96 99:59:59,999 --> 99:59:59,999 standing ovation from the audience for a group out of my home 97 99:59:59,999 --> 99:59:59,999 state of North Carolina, the Carolina Chocolate Drops. 98 99:59:59,999 --> 99:59:59,999 Bearing in mind the Chairman's call for a comprehensive review 99 99:59:59,999 --> 99:59:59,999 of copyright law in the digital era, 100 99:59:59,999 --> 99:59:59,999 I left the event with an even more passionate view that our copyright 101 99:59:59,999 --> 99:59:59,999 system must preserve and protect the rights of the creators 102 99:59:59,999 --> 99:59:59,999 of the music, books,games, movies, and other forms 103 99:59:59,999 --> 99:59:59,999 of intellectual ingenuity that enrich each of us 104 99:59:59,999 --> 99:59:59,999 individually, and all of us collectively as a nation. 105 99:59:59,999 --> 99:59:59,999 I start with this observation because it seems 106 99:59:59,999 --> 99:59:59,999 that over the past few years there has been a shift 107 99:59:59,999 --> 99:59:59,999 in public discourse about copyright, away 108 99:59:59,999 --> 99:59:59,999 from the people who actually devote their talent to 109 99:59:59,999 --> 99:59:59,999 create works for the benefit of society, and those 110 99:59:59,999 --> 99:59:59,999 who invest in them, toward the users of 111 99:59:59,999 --> 99:59:59,999 those works and the financial interests of those companies eager 112 99:59:59,999 --> 99:59:59,999 to commercially exploit them. 113 99:59:59,999 --> 99:59:59,999 That shift has often been accompanied by assertions of 114 99:59:59,999 --> 99:59:59,999 lofty principles and constitutional values. 115 99:59:59,999 --> 99:59:59,999 But as I have said in the specific 116 99:59:59,999 --> 99:59:59,999 context of online theft, free speech 117 99:59:59,999 --> 99:59:59,999 does not mean free stuff, and 118 99:59:59,999 --> 99:59:59,999 the free flow of information, even through legitimate channels 119 99:59:59,999 --> 99:59:59,999 doesn't mean that information - the substance of 120 99:59:59,999 --> 99:59:59,999 what is flowing - should be free. It simply 121 99:59:59,999 --> 99:59:59,999 cannot be the case that digital age turns creators 122 99:59:59,999 --> 99:59:59,999 into content servants for the rest of us. 123 99:59:59,999 --> 99:59:59,999 That said, I am neither hard line nor 124 99:59:59,999 --> 99:59:59,999 hard-headed about the realities of today's marketplace. 125 99:59:59,999 --> 99:59:59,999 or the complexity of the task before us. 126 99:59:59,999 --> 99:59:59,999 The digital enevironment is replete with both 127 99:59:59,999 --> 99:59:59,999 challenges and opportunities, but currently 128 99:59:59,999 --> 99:59:59,999 uncertainty abounds for all stakeholders. 129 99:59:59,999 --> 99:59:59,999 Companies that invest in, and develop individual talent 130 99:59:59,999 --> 99:59:59,999 must be secure in their expectation that strong 131 99:59:59,999 --> 99:59:59,999 copyright exists and mechanisms to enforce 132 99:59:59,999 --> 99:59:59,999 those rights effectively is in place. 133 99:59:59,999 --> 99:59:59,999 Consumers deserve cl;arity about legitimate uses. 134 99:59:59,999 --> 99:59:59,999 And Internet and tech companies should have 135 99:59:59,999 --> 99:59:59,999 clear rules to help them to develop sustainable 136 99:59:59,999 --> 99:59:59,999 business models that fairly compensate authors. 137 99:59:59,999 --> 99:59:59,999 Companies that invest in creative talent 138 99:59:59,999 --> 99:59:59,999 may have to adjust their business models 139 99:59:59,999 --> 99:59:59,999 to accomodate the digital revolution, and many 140 99:59:59,999 --> 99:59:59,999 have. But the digital companies, some of whom 141 99:59:59,999 --> 99:59:59,999 have taken to exalting their disruptive power, 142 99:59:59,999 --> 99:59:59,999 well, they are not exempt from the need to adjust their practices 143 99:59:59,999 --> 99:59:59,999 either. Keeping our focus on creators 144 99:59:59,999 --> 99:59:59,999 while hardly novel or radical 145 99:59:59,999 --> 99:59:59,999 is seemingly controversial in some quarters. 146 99:59:59,999 --> 99:59:59,999 Some of that controversy is eveident in the copyright 147 99:59:59,999 --> 99:59:59,999 Principle Project report and process that we will hear about 148 99:59:59,999 --> 99:59:59,999 today. Some is also eveident in the reaction to the 149 99:59:59,999 --> 99:59:59,999 report, for example, the op-ed authored by musician 150 99:59:59,999 --> 99:59:59,999 David Lowery that was published earlier this week 151 99:59:59,999 --> 99:59:59,999 which I ask unanimous consent to offer for the record. 152 99:59:59,999 --> 99:59:59,999 [Chair] Without Objection. 153 99:59:59,999 --> 99:59:59,999 [Mr. Watt] As Chairman Goodlatte has made clear 154 99:59:59,999 --> 99:59:59,999 the Committee does not endorse the specific recommendations 155 99:59:59,999 --> 99:59:59,999 of the Copyright Principles Project, atill the project 156 99:59:59,999 --> 99:59:59,999 does contain some background and useful insight into how 157 99:59:59,999 --> 99:59:59,999 parties with divergent views might be able to engage 158 99:59:59,999 --> 99:59:59,999 in a constructive and respectful dialog. 159 99:59:59,999 --> 99:59:59,999 I'm particularly intrigued by the recommendation to 160 99:59:59,999 --> 99:59:59,999 strengthen the exclusive right 161 99:59:59,999 --> 99:59:59,999 of copyright holders to control communications of their 162 99:59:59,999 --> 99:59:59,999 works to the public, which I beleive more closely aligns with the 163 99:59:59,999 --> 99:59:59,999 principle that aims to preserve and protect 164 99:59:59,999 --> 99:59:59,999 the creator's rights. A report from this Committee 165 99:59:59,999 --> 99:59:59,999 in the 21st Congress observed, quote, 166 99:59:59,999 --> 99:59:59,999 It cannot be for the interest or honor of our country 167 99:59:59,999 --> 99:59:59,999 that intellectual labor should be depreciated, and 168 99:59:59,999 --> 99:59:59,999 a life devoted to research and laborious study 169 99:59:59,999 --> 99:59:59,999 terminate in disappointment and poverty, close quote 170 99:59:59,999 --> 99:59:59,999 As we reveiw copyright law and policy in the digital 171 99:59:59,999 --> 99:59:59,999 era this committee should work to secure the rights 172 99:59:59,999 --> 99:59:59,999 of the creators who enhance our lives and grow our economy 173 99:59:59,999 --> 99:59:59,999 while balancing the interest of the public. 174 99:59:59,999 --> 99:59:59,999 Let me be clear that I beleive that the global appetite for intellectual 175 99:59:59,999 --> 99:59:59,999 property will benefit best from a robust 176 99:59:59,999 --> 99:59:59,999 copyright regime that protects the individual 177 99:59:59,999 --> 99:59:59,999 expressive rights of creators and authors. 178 99:59:59,999 --> 99:59:59,999 Mr. Chairman, I thank you for the time and I yield back. 179 99:59:59,999 --> 99:59:59,999 [Chair] I thank the gentleman from North Carolina, and other members' opening statements will be made