Intellectual property, this is about two hours. Come to order. Well im disappointed we cant all be together in person today, im grateful to the chairman graham, and our clerk for facilitating this through web apps. I want to be clear that this subCommittee Hearing is not distracting from the full committee. Congress must address issues of Police Brutality and horrific circumstances that led to the murder of george floyd, and the senseless deaths of so many of our African American brothers and sisters. Thats why im grateful to senator graham for holding eight full Committee Hearing until the sink in america and i fully support that effort. We also have to continue to address the covid19 crisis in the impact its had on millions of americans and livelihoods. Just this morning the full Committee Held a conference on covid19 and its impact on tension. Centers im also glad mcconnell and several republican senators will take up the protection program. We are going to continue to address this crisis. Its also crucial that Congress Continues its important work. Im glad that we have technology that helps us to do that. When we started the review in february, we had no idea of the economic challenges that would soon grip our nation. The Creative Industry has shouldered outside losses as the country deals with the coronavirus pandemic. Small, craters independent artists, creators, and musicians have suffered terribly during this pandemic. Life venues have been shuttered, many may never. Reopen retail sales have plummeted, and yet the Creative Work online has not slowed down. Now more than ever, these small creators are dependent on the internet he cosystem. Strong efforts to combat policy to sustain their livelihood must move forward. Moving forward we should figure out how to ensure that these Small Business owners get adequate compensation for their work. For those men and women, those creative individuals who are being decimated by the twin hammers of covid19, and at equated copyright law that lets policy run rampant. That said, this is the subcommittee on the dmca. Our first two hearings were more academic and it focused on how are our foreign counterparts handled copyright material. Today were to talk about it more practical and invasive aspect of the dmca. Section five notice of provisions and takedowns, when the dmca was initially enacted, it was a in exchange for receiving infringing activities from their users, Online Platforms are supposed to follow certain criteria to curb online piracy. This includes making reasonable efforts to remove pirated material once they received notice that it was online. Unfortunately, as the Copyright Office recently noted in its report on section five, 12 that grand bargain is no longer working, and the notice and takedown system isnt achieving the policy goals that congress intended. Technology is continuing to advance. Paris is becoming easier and faster and much much more common. Every year, copyright owners have to send hundreds of thousands of takedown notices only to see infringing pirated material reappear on the same website, sometimes just minutes later. At the same time, Internet Service providers, Tech Companies of all sizes, and members of the general public have to spent countless hours replying to take down notices. Instead of having that time to develop new and Innovative Products and services have to do that. So clearly for the content crater and content user perspective, the Current System is failing, and its failing badly in my opinion. The Copyright Offices report is informative about the problems in the Current System, and what can be done to rebalance and correct the current framework. But i dont think fixing the current framework is, enough i think we might be at a point where we need to design a new system to combat online piracy. One that captures, recapture is the balance that congress intended and modernizes the internet ecosystem for the 21st century. Thats why last friday we sent a letter to the Copyright Office and asked them how they would design a anti piracy system if they had to start from scratch. I want to thank the senator for leading with me on this effort. Also for his interest in this reform. He was a leader on this issue before i was in politics. Im grateful to him and his team for their engagement during this year long review. What we wait for the corporate offices to reply, im hoping that our panel of witnesses and experts will provide us with information about whether the consistent works or doesnt for. Them one of the things that i learned in this process is that the dmca reform bill will have to answer to questions of scale. As rebecca noted in our first hearing, if we designed dmca reform around market participants, all were going to do is ensure that those individuals and Companies Continue their market dominance. Thats why todays hearing is going to hear from both content creators and users that operate on stale, and those who dont. I want to understand the differences among the types of craters and Tech Companies whose actions are guided by section 5 12 and how this affects our ability to send and respond to takedown requests. I think understanding this difference will be helpful as we draft the dmca reform measures and acknowledge the issues of scale faced by many in the internet ecosystem. Im excited to hear from our experts and, witnesses it should be a fascinating discussion. Senator, thank you for allowing me to deliver the longest Opening Statement ive ever made. I think it speaks to how seriously i think this topic should be taken. Thank you. As you noted in your opening, were convening this hearing at a moment when our nation is driven by deep anger over the murder of george floyd. Protests on the long standing griefs is that relate to policing, racial inequalities in the country. I appreciate your opening comments mister chairman that recognize that its critical and urgent work we need to get to us both the senate and country. We also had a constructive full Committee Hearing to talk about the tension and incarceration and how the pandemic is impacting. That i agree with you that even in these challenging times we have to find a way to Work Together on issues that as are not as perhaps visible to the whole country, but play a Critical Role and whether or not we continue to be a vibrant and Critical Role in society. Thank you to the witnesses testifying remotely. I also want to thank the great work of the people that published a report after studying multiple round tables and more than 90,000 Public Comments made. I was struck by the reports conclusion that congress is original intended balance has been tilted askew. Takedown notices have not remedied the issue of piracy. Chairman i look forward to a production discussion about whether we need to look at the dmca again, i know we have a lot of experts on that heavy. Topic i look forward to todays conversation. Thank you. Thank you. I will now introduce our panelists. Witnesses for the first panel. Mr. Don henley is a record, producer and former drummer for the eagles. Hes given lead vocals on hotel california. I told him earlier today that eagles was the first Live Performance that i saw back when i lived in nashville, tennessee. Who knew that we would end up at a Senate Chamber to do what we can for the creators. Hes also spent many years advocating on behalf of artists and music related. Issues it is our honor to have you before. Us mr. John, it is interim president and ceo of the Internet Association where hes also general counsel. He leads regulatory initiatives for the association whose members include, amazon facebook, google, microsoft, and twitter. Hes a publisher. Mister president has taught nonfiction writing at princeton university, and contributed signs articles to the new yorker and other magazines. In 2019 he was elected president of the authors killed. Americas oldest and largest professional organization freighters. Mr. David hansen is an associate University Librarian and lead policy officer at Duke University. He is responsible for duke universities library General Services and collections. The development of the Library Collections and the support of creating and disseminating research and establishing its real world impacts. Well go through the order of witnesses in terms of Opening Statements, in the our order that i introduce. You may present your Opening Statement. Chairman, members of the subcommittee, thank you for inviting me to participate in todays hearing. My name is don henley. I come here today with a heavy heart. Im aware of the chaos and pain that has engulfed this nation. Im aware that people in my industry have decided to contemplate today. I mean no disrespect to those who have chosen to set aside this day. I wish to state for the record that i stand in solidarity with my brothers and sisters in the Creative Community who seek a better and more just world. As a 55year veteran of the Music Industry, i was asked by the chairman of this subcommittee to testify today on behalf of the Creative Community. Some, risers musicians, all of whom who are known today as content providers. Im present today not to be contrary, not to advance or push an agenda, at age 73 and indefinitely homebound by the covid19 pandemic im in the final chapter of my career. When i come here i have a sense of duty and obligation to those artists and creators who paved the road for myself and my contemporaries for those who will travel the road after us. Its patently unfair and unfortunate that the Music Industry is perceived only in terms of its most successful and wealthy celebrities, when in fact there are millions of people working in the industry, struggling in relative obscurity. People whose voices would never be heard if not for the hearing held today. Im compelled to csis opportunity to discuss the discuss aspects issues that are for most in the National Conversation at the. Moment i have been targeted by the digital gatekeepers. Its began last friday in a newspaper that belongs to jeff bezos, behind a pay. Wall it continues today. Big tech was probably hoping that this hearing would be canceled and that i would be intimidated to the stent that i wouldnt testify. I will not be silent on this issue. I want to do everything in my power to strip them of Property Rights of all ages, races and creeds, all styles of music. Rhythm and blues to jazz and folk to heavy metal. I want to change or improve outdated laws or regulations that have been abused for over 20 years by big tech. The enormous digital platforms that facilitate millions of copyright infringements monthly. Let me answer the question at hand, the notice and takedown system of the dmca doesnt work for artists and songwriters. When a simple Online Research for a song returns a endless list of options, never passed a penny to the artist for the use of their music, the system isnt working. Today when the marketplace has matured, the digital platforms continue to use section 512 as negotiating leverage to pay license fees well below market, the system isnt working. Would coffee infringements on platforms, who own and operate the platforms, the system isnt working. The system is antiquated and badly operating, the community is think a steep price. I worked hard to establish my career and reputation and ive enjoyed success, but for me this is a matter of principle. Im speaking out for those some writers and recording artists who are struggling to make a living. Particularly now, as our industry has been decimated by the pandemic. We need equitable compensation for the rights guaranteed to all those under the constitution. Given the correct ban on large gatherings and definite ban on Live Performances, could be the only real source of revenue artist can rely on for the foreseeable future. So the devaluation of music which is a direct result of dmca needs to seize. As a result graders are paid a fair market rate for the music across all platforms. At the dawn of the internet age dmca was supposed to provide platforms with safe harbor from liability and protection of creators works. It was meant to provide a proper bounds and symbiotic relationship that benefited all parties. And strengthened the legitimate online marketplace. Two decades later that balance is decidedly off. In a world were more than 500 hours of video are uploaded to youtube every, minute would billion videos on tiktok are viewed every day. And there are 5 million active users on instagram daily. Its clear that the massive Online Services are flourishing, will artists have no control over the rampant infringement that occurs align. The Balance Congress intended when it established section 512 is a skew. Content owners pay hundreds of millions in notices. Often for each infringing link taken down a dozen more will pop up in its place. Even worse due to the antiquated procedures dictated by the dmca Internet Services with clear oversight and control of content posted on their website are continuing to monetize and collect advertising revenue on media including music, even one flagged as infringement. How is that fair . The astronomical number of infringement notices sent by artist isnt a sign that the system is working as some defenders of the dmca suggest. That would be i can instead we need to seek out the real causes of the fires and implement preventative measures to ensure they dont reignite. They had the tools to do just that. They had the tools, they had the capability to monitor infringement on their platforms and provide enhanced protections to their clients. They are capable of tracking individual likes and dislikes, and fans to visit the platform with frightening accuracy. And we are event to believe that the lack of protection to content is beyond the control . Decreasing traffic decreases their ad revenue. They rely on copyrighted material whether licensed or not to keep consumers engaged. Those companies have no incentive to improve technological safety measures. The courts have facilitated this world view watering down obligations rant Online Services and eliminating consequences. The result is a and the make takedown system that still allows big tech to rake and revenue by monetizing access to unlicensed work, despite being notified of the infringements, or even repeat infringements. We simply cant continue like this. I applaud and thank the subcommittee for shining a light on the damage caused by the unfulfilled promise. Craters need recourse for the illicit use of their work online. The dmca is not providing that to them. Like a classic song, classic album or band, some creations stand the test of time, resonating across generations. Other products are best left in the past were updated to reflect a modern world. The the dmca has shown its age. The dmca is a relic from the my space air in a tiktok world. Most Small Businesses deserve a better system that recognizes clients. Only then can we truly achieve the trump proper balance and legitimate thriving this institution invasion many years ago. Thank you. Thank you mr. Henley, please correct me if i mispronounce your name. I knew i butchered it on the opening. Youre welcome. Please present your testimony. Members of the subcommittee, the chairman, thank you for giving me the opportunity to testify today. I am the Internet Associations interim president and ceo. Before i saw my opening remarks i think i need to acknowledge that our nation is yet again trying to understand the unconscious sable killing of george floyd and many others. Raising awareness of this issue is critical because until we collectively acknowledge, understand, and prayer ties meaning full steps to and racism in this country history will repeat itself. This is something that we our elected leaders need to work to address. Turning to the topic at hand here, we represent diverse business models. They are distributors and licensees of all types of content. They are committed to working with the rest of the internet. Im grateful to testify before the subcommittee not just as a representative of these Innovative Companies but also as a attorney who spent much of the last decade protecting hundreds of software from infringement. Personal outreach, personal discourse, and good faith collaboration were all utilized to achieve success. Its my opinion that section 5 12 isnt being used as intended. First the dmca allows rights holders to take down infringement content. Second it hosts User Generated Content and the incentive to collaborate with other rights holders to combat infringement. Third, users can enjoy and create a wealth of legal content thanks to advances in technology that have been increasingly embraced by the content industry. The 512 report recognizes many of the contributions of the platforms to the commu