We have previously covered several aspects of the recently approved pandemic stimulus package passed by Congress, including provisions for expanding broadband access and supporting new energy programs.

However, the legislation contains additional clauses that may significantly affect the technology and media sectors. Specifically, the bill incorporates a measure proposed by Senator Thom Tillis (a Republican representing North Carolina) that would elevate illegal streaming conducted for financial benefit to a felony offense (as opposed to its current status as a misdemeanor), carrying potential penalties of up to a decade in prison.

Following the release of an early version of this proposal earlier this month, the non-profit organization Public Knowledge, which advocates for an open internet and intellectual property rights, issued a statement asserting that additional criminal penalties for copyright violations are unnecessary. They also indicated that the bill appears “carefully defined and avoids the criminalization of users” and “does not make illegal the act of streamers including copyrighted material in their broadcasts,” instead concentrating on individuals who engage in piracy for commercial purposes.

The bill also includes the CASE Act, establishing a new Copyright Claims Board within the U.S. Copyright Office. This system has been likened to small claims court, providing a venue for resolving copyright disputes and awarding damages of up to $30,000.

During discussions in the House of Representatives regarding the CASE Act last year, supporters presented it as a means for independent creators to more easily pursue copyright infringement claims. Conversely, organizations such as the American Civil Liberties Union and the Electronic Frontier Foundation expressed concerns that it could adversely affect individual internet users. Mike Masnick of Techdirt commented yesterday that the Act will “significantly increase copyright trolling at a time when legal reforms are needed to reduce such activity.”

With approval from both the House and Senate, the bill is now awaiting President Donald Trump’s signature. Given that the complete text was only made available yesterday, further discussion regarding its ramifications is anticipated in the coming weeks and months.

Update: Senator Tillis also released a press statement highlighting that the legislation was jointly led by Senator Patrick Leahy (a Democrat from Vermont) and clarifying that it will only be applicable to “large-scale, for-profit streaming piracy operations.”

“The increasing popularity of online streaming has led to criminal streaming services illegally distributing copyrighted content, costing the U.S. economy approximately $30 billion annually and hindering the creation of creative works enjoyed by Americans,” stated Tillis. “I am pleased that this sensible legislation, developed with input from creators, user groups, and technology companies, will become law, allowing us to target criminal enterprises and reassure individual streamers that they will not face the threat of prosecution.”