Members of the U.S. House of Representatives reaffirmed those sentiments earlier this week by unanimously passing H.R. 1580, legislation reiterating U.S. policy “to preserve and advance the successful multistakeholder model that governs the Internet.”

The bill was sponsored by Rep. Greg Walden (R-OR) and comes in anticipation of the International Telecommunications Union (ITU) in Geneva, where Internet governance will be one of the main debates. As we saw at the ITU’s 2012 World Conference on International Telecommunications in Dubai last December, a multistakeholder model is needed to engage in any substantive discussion about the future of the Internet.

We applaud House members for their unanimous, bipartisan support of this important legislation and look forward to continuing to work with members of Congress in support of an inclusive process in which all stakeholders participate to ensure an open and free Internet.

Graphic courtesy of i2Coalition member Rackspace.

Christian Dawson, Co-Founder and Board Chairman of the Internet Infrastructure Coalition (i2Coalition), sent a letter to Bob Goodlatte, Chairman of the House Committee on the Judiciary, urging amendment of the U.S. Patent Act. The current version of the act does not protect small to medium-sized businesses from victimization and frivolous lawsuits by Patent Assertion Entities (“patent trolls”) and threatens to stifle an industry that generates an estimated $46 billion in annual direct and indirect revenue. Read an excerpt from the letter below:

According to a recent study, Patent Assertion Entities (PAEs) cost defendants and licensees $29 billion in 2011. Small to medium sized businesses have borne the brunt of PAEs’ efforts, making up 90% of defendants sued by PAEs and bearing 37% of the aggregate costs from 2005-2011. 

This is particularly troubling to our industry and to our membership because we are often the target of these frivolous lawsuits which can cost a single company millions of dollars to litigate. Many tech companies – specifically startup companies – are particularly susceptible to extortion by PAEs because they know that the company cannot afford the high costs of patent litigation and, thus, has no choice but to settle. Some go out of business altogether. As a result, the broader effect is to hamper innovation, which is exactly the opposite of what the patent system was designed to encourage.   

Any proposed amendment to the U.S. Patent Act should protect end users from patent infringement claims. This protection is needed because PAEs harass the numerous end users of a common product or service rather than sue its manufacturer or provider – all of which drives up the cost of settling lawsuits. Further we need to clearly define an “end user item” to encompass any product that is sold publicly and that is used without modification and as intended by the manufacturer or provider, as well as any processes that those products use. The end user should not be required to pay for damages for using this kind of product or risk being enjoined from using the product. And finally the amendment should be narrowly focused to protect the true end user.

i2Coalition looks forward to working with Chairman Goodlatte on reforming the U.S. Patent Act in such a way that will promote innovation in the United States and restore customer confidence in patent systems. Read the full letter here.

Senator Patrick J. Leahy (D-VT)

Remember SOPA and PIPA?  Of course you do.  While defeating this bad legislation was a great victory for the Internet and one that should not be undervalued, the bill’s defeat didn’t magically teach Congress how the Internet worked. A lack of Internet education continued to threaten the Internet’s future.  Fast forward nine short months to September 2012 and our group sought to fill that void with the formal launch of the Internet Infrastructure Coalition (i2Coalition). We founded i2Coalition to bring together the companies that build the Internet and provide a unified voice in the ongoing fight for Internet freedom.

While our goals are clear, to preserve and promote a free and open Internet, we knew that there would be a lot of hard work and long hours to achieve sustainable success.  We embraced a collaborative approach with our members to educate lawmakers about how the Internet works. Who better to educate Congress about the Internet than the industry that builds it, right?

In the eight months since our launch, the i2Coalition has made educating Congress a top priority and has cemented our public policy goals. We’ve educated elected officials and staff members during many meetings, briefings, and of course through our successful Internet Advocacy Day on Capitol Hill. Our goal of filling the Internet knowledge gap on Capitol Hill is one we can see working!

With that in mind, I was watching U.S. Senate Judiciary Committee Chairman Patrick J. Leahy (D-VT) handle the markup last week of the Electronic Communications Privacy Act (ECPA) and was impressed. Remember: Sen. Leahy was the primary sponsor of PIPA! The difference between the way that Sen. Leahy handled PIPA vs. ECPA is remarkable.  ECPA reform is essential to a free and open Internet, and Senator Leahy’s efforts showed in the markup that he can be a capable Internet freedom fighter. He has clearly taken the time to better understand the Internet and the needs of its users. We have tried to be a resource in this through our own engagement with his office, and the offices of more than 50 other Congressional leaders in the past eight months. It further underscores our need to continue to educate legislators about the Internet, because it seems to be working.

Though Senator Leahy was on the other side of us when it came to PIPA, I don’t believe that he was trying to hurt the Internet. He undoubtedly had intellectual property interests engaging him constantly, and he was trying to solve problems with the information he had available at the time.

He didn’t have the Internet industry engaged in the conversation and didn’t understand the unintended consequences that would have occurred from the legislation. Now we are showing up too and making our voices heard as well. The credibility we have been able to generate in short order has been incredibly encouraging. Nowhere can this be seen more clearly than in ECPA reform. The i2Coalition has directly worked with legislators including Sen. Leahy’s staff on ECPA, and we can directly see the result.

With both PIPA and ECPA, Sen. Leahy may have been attempting to bring needed reform and be a champion for the Internet, but on ECPA he really got it right. It just goes to show that he can only solve problems effectively when the right knowledge is presented and the right problem solvers are at the table, which is why the work of the i2Coalition is so important.

If you share our passion for the Internet and believe that education and innovation is vital for its continued growth, we invite you to join us! Consider registering for our May 7th webinar from 2:00-3:00 p.m. EST in partnership with The Web Host Industry Review about “12 Reasons to Join the Internet Infrastructure Coalition (i2Coalition): What You Get and Why it Matters.” Please register today and learn how you can help preserve Internet freedom!

Columbus, OH based dedicated server provider XLHost joins the Internet Infrastructure Coalition.

XLHost (http://www.xlhost.com), a leading dedicated server provider based in Columbus, OH announced today that it has joined the Internet Infrastructure Coalition (i2Coalition), a group of global Internet infrastructure providers and technology firms who support the growth of the Internet.

“The best services being built on the Internet today allow the user to forget that there is a massive network of networks between the user and the service provider,” said Drew Weaver, XLHost Chief Technology Officer. “Instead, the user is able to spend more time focusing on entertainment or productivity. Creating better and frictionless user experiences will require a higher level of cooperation and understanding from industry participants, public policy makers, and the general public. This is why XLHost is thrilled to be a part of the I2Coalition”.

The i2Coalition’s more than 50 members worldwide include domain registrars, datacenter operators, software companies, media companies, and cloud service providers such as XLHost.

“i2Coalition welcomes XLHost to the team as we continue to educate policy makers about the nuts and bolts of the Internet,” said Christian Dawson, i2Coalition co-founder and Board Chair. “XLHost’s expertise in cloud service providing as well as other areas brings another experienced voice to the table as we advocate for an open Internet, and we are excited to have them join us as we continue to discuss the important issues facing our industry and the Internet in general.”

About I2 Coalition
The Internet Infrastructure Coalition (i2Coalition) supports those who build the nuts and bolts of the Internet, and we treat it like the noble profession that it is. We believe the continued growth of the Internet is vital for growing an environment of innovation and seek to engage in ways to foster success of the Internet and Internet infrastructure industry. We seek to influence decision makers to weigh decisions on whether they are good or bad for the Internet economy and its foundational industries. In short, we seek to foster growth within the Internet infrastructure industry by driving others to harness the Internet’s full potential. To learn more about i2Coalition, visit http://www.i2Coalition.com.

About XLHost
XLHost (http://www.xlhost.com) has been a leader in providing internet infrastructure services to companies in more than 130 countries since 2000. XLHost offers dedicated servers, co-location, virtual private servers, cloud

“i2Coalition is pleased that Chairman Leahy’s and Senator Lee’s ECPA Amendments Act, S. 607, a piece of bipartisan legislation that will bring ECPA into the Internet age through the establishment of consistent privacy protections for all types of electronic communications, will now be moving to the full Senate.

The Constitutional right of due process is one that is guaranteed to all Americans, and this law will bring legislation from 1986 up-to-date to ensure that right.  At the same time, judicial procedures that are currently confusing would be clarified, making it easier for law enforcement to do their job effectively.

As referenced in Chairman Leahy’s remarks from this morning, i2Coalition and nearly one hundred industry groups and top tech companies echoed these thoughts in a letter addressed to Senate Judiciary lawmakers on Monday. We encourage the full Senate to move on these common-sense changes as quickly as we saw the Senate Judiciary Committee move on them today.”

“i2Coalition fully supports Chairman Leahy’s and Senator Lee’s bipartisan amendment that will bring ECPA into the Internet age through the establishment of consistent privacy protections for all types of electronic communications. We urge members of the Senate Judiciary Committee to support the amendment and move the bill forward so that it can be considered by the full Senate as swiftly as possible.

“The reforms proposed by Senators Leahy and Lee will require law enforcement to obtain a warrant before accessing private information that has been stored in the cloud for longer than 180 days. This essential provision will ensure the Constitutional right of due process guaranteed to all Americans and clarify muddled judicial procedures to make it easier for law enforcement officials to do their job effectively.”

On Monday, i2Coalition and nearly one hundred other industry associations and top tech companies signed a letter addressed to Senate Judiciary lawmakers urging the committee to adopt the Leahy-Lee amendment so that law enforcement officials “can obtain electronic communications in all appropriate cases while protecting Americans’ constitutional rights.”

Register for the Webinar!

The Internet Infrastructure Coalition supports those who build the nuts and bolts of the Internet, and we treat it like the noble profession that it is. We believe the continued growth of the Internet is vital for growing an environment of innovation in America and seek to engage in ways to foster success of the Internet and Internet infrastructure industry. We seek to influence decision makers to weigh decisions on whether they are good or bad for the Internet economy and its foundational industries. In short, we seek to foster growth within the Internet infrastructure industry by driving others to harness the Internet’s full potential.

Benefits for attendees:

The i2Coalition is a trade association of companies from the Internet infrastructure industry with key demographics in web hosting, data centers and registrars, formed to undertake the following key initiatives:

• Represent the interests of our industry on Capitol Hill and relevant regulatory agencies;
• Educate members of Congress and other key legislative and regulatory stakeholders on the complexities and workings of the Internet;
• Develop & share best business practices with fellow members;
• Educate the media about the Industry; and
• Promote the Industry’s messages to internal & external constituencies.

When: Tuesday, May 7, 2013 2:00 PM – 3:00 PM EDT

Presenters:

Christian Dawson, i2Coalition Co-Founder & Board Chairman

Aaron Phillips, cPanel Vice President of Operations

Moderator:

Nicole Henderson, Editor in Chief, Web Host Industry Review

Register for the Webinar!

About theWHIR.com:
Since 2000, The Web Host Industry Review has made a name for itself as the foremost authority of the Web hosting industry providing reliable, insightful and comprehensive news, interviews and resources to the hosting community. TheWHIR is an iNET Interactive property. For more information on iNET Interactive, visit http://www.inetinteractive.com

“It’s exciting to be a part of a coalition that will help us provide our industry expertise to policymakers as they make industry-shaping decisions,” said Vidya Ravichandran, President of GlowTouch Technologies. “With a unified voice, we can have a significant impact on the issues that affect the openness and potential of the Internet.”

“When the opportunity arose to join the i2Coalition, the choice was very easy. Looking at the board and the members, it was plain to see that this was an organization already built around the web-hosting family that we’ve been a part of for over a decade,” Jude Augusta, Vice President of Business Development, said.

“i2Coalition looks forward to working with GlowTouch as we educate policy makers about the potential of the open Internet and the many companies that keep it running smoothly,” said Christian Dawson, i2Coalition co-founder and Board Chair. “GlowTouch adds a wealth of knowledge and experience to our coalition and we are excited to have them with us as we address the important issues facing our industry and the Internet in general.”

In the future GlowTouch will focus on finding ways to promote cooperation between the government and the webhosting industry through education. Enhancing the visibility and understanding of the Internet’s “nuts and bolts” is critical to the growth of our industry and has been a principle objective of i2Coalition.

Yesterday, the House Rules Committee refused to even consider a number of amendments to the bill that would have gone a long way to alleviate some of these concerns. For example, if the bill focused on de-identified aggregate data, instead of personal information, CISPA could be meaningful legislation. That hasn’t happened, despite all the last minute amendments.

The House Intelligence Committee passed CISPA in a closed door hearing last week. Any discussions on privacy and accessibility must be transparent and include all stakeholders involved in the process to build consensus.

Earlier this week, the White House issued a threat to veto CISPA if it passes the House over privacy concerns. Thousands of groups and individuals have spoken out against this legislation. The i2Coalition urges members of Congress to reject CISPA in its current form. If you share our privacy concerns, contact your Representative today and ask him/her to vote no on CISPA!

The US District Court for the Southern District of New York recently handed down a decision that reflects the difficulty adapting laws designed for the physical age to the Internet era. In Capitol Records LLC v. ReDigi, Inc., the US District Court was asked to rule on the applicability of the “first sale” doctrine to digital music.  The court determined that the first sale doctrine did not apply to digital music. The court’s decision was based on its determination that in the law establishing the first sale doctrine, Congress had made the choice to limit its application to physical goods. Because digital music is not physically converted, the court determined that the law did not apply.

The first sale doctrine is set out in the Copyright Act. Because of the doctrine, once you purchase something, the owner of the copyright cannot control your resale or use of it. This means that the entity holding the copyright in a recording cannot prohibit your giving it to your father. Nor can the holder prohibit you from selling it to a used record store who then resells it. The purpose of the doctrine is to balance the rights of the copyright holder with those of the purchaser.

In ReDigi, the court was called upon to determine whether ReDigi’s business model fell within the first sale doctrine. ReDigi created a service where you uploaded music you had purchased into a digital locker. The service did not discriminate based on whether you had downloaded the music, or purchased it as a CD and ripped it to your computer.  Once you had uploaded the music, it was erased from your hard drive and you could only stream it from ReDigi’s servers. If you wanted, you could offer the music for sale.  Once sold, the purchaser would have access to it, and you would no longer have access to it. In essence, ReDigi created a digitial used record store.

The court, however, felt differently. The court held that when Congress drafted the law, they used words making the doctrine applicable only to tangible items. The court stated that it could not: “of its own accord, condone the wholesale application of the first sale defense to the digital sphere, particularly when Congress itself has declined to take that step.”

In essence, the court determined that in creating the first sale defense, and not including digital copies in the law, Congress made an affirmative determination that the defense should not apply to digital copies. This decision corresponds with the Copyright Office’s interpretation as well.

This decision illustrates the continued struggle courts have using current laws to interpret challenges created by the transition to a digital society. In this case, it is difficult to imagine that Congress had further distribution of digital copies in mind when it last reviewed the Copyright Act. More likely, even if this was a consideration, distribution models had not yet evolved in a sophisticated enough fashion to merit consideration. In this case, it appears that the judge used the “strict construction” legal philosophy to create an outcome he believed best.  This philosophy holds that courts should not attempt to “read outside” the black and white text of a law. While the philosophy has a satisfying intellectual appeal, it creates a legal system unable to adapt to new technologies and challenges.

While I believe the struggle that the courts, and legislatures, continue to have adapting intellectual property law to the digital age is necessary to resolve these issues, the use of philosophies like strict construction will not lead to a resolution of these issues; it will only kick the can further down the road. This delays the ability of Internet businesses to innovate. More importantly, it removes a tool, robust judicial debate of laws, which is necessary to create clarity on these issues for both Internet businesses and intellectual property interests alike.