The Lawbringer: The odd future of bill S. 978

The machinima and streaming communities built around World of Warcraft are filled with some of the most talented and creative people in gaming, from awesome musicians to dedicated streamcasters. The first time I ever got to experience the WoW beta back in 2004, I was watching someone stream footage of their human warlock messing up mobs in (if I remember correctly) Westfall. Streaming is beneficial to gaming, MMOs, and e-sports because of video games' competitive nature and spectator-oriented design.
You've probably heard of Senate bill S.978 already, most likely from many video game blogs and news outlets or YouTube campaigns fighting against the passage of this bill. Bill S.978 aims to institute a "10 strikes" policy, making the unauthorized streaming of content a felony, resulting in potential jail time. The main purpose of the bill is to strengthen the law and punishments available to organizations such as the MPAA and other content conglomerates to stop illegal streaming of millions upon millions of dollars in stolen entertainment. As is the way of things, gamers might be caught in the crossfire.
Some of you fine readers sent me a few messages on Twitter asking me to weigh in on the 10 strikes streaming bill and maybe give a basic analysis of the thing, so I shall oblige. Lawbringer this week is all about the odd future of bill S. 978 and what it could mean for MMOs and WoW.
How does this bill affect streaming?
It is obvious from reading the bill (and you can, too, by checking out this link to OpenCongress, a public resource featuring all of your favorite goings-on in the U.S. Congress) that the measure is all about adding a blanket ramp-up of punishment to streamers without any type of content specification. While the bill was probably written with movies and television in mind -- because let's face it, I don't know how many of our congressmen here in the United States watch a vodka live stream of new Firelands bosses -- the text of the bill is all-inclusive. No mention is made about the media or medium, only a change to the punishment.
Where the bill hits on streaming is the "public performance" aspect of the changes proposed to title 18 section 2319, the criminal infringement of a copyright. The right to publicly perform works is one of the rights a copyright holder is entitled to, and streaming these works on the internet falls under that right. Bill S.978 aims to put the public performance right alongside reproduction of a copyrighted work and distribution of a copyrighted work.
In essence, the bill aims to make streaming unauthorized works carry a heftier punishment than it did in the past.
Unauthorized streaming only
The bill specifically targets streaming unauthorized content -- the stuff that you don't have a right to stream. The problem then becomes twofold: How do you know if you have the right to stream something, and do game companies want to give full-reaching, blanket streaming rights to gamers?
Unauthorized streaming is, of course, streaming you are unauthorized to display. Movies on DVD, for example, are not allowed to be publicly displayed or broadcast unless the rights holder allows you to do so. You are allowed to host a movie party with you and your friends because the value of the performance is not high enough to kick the law into action, and it probably falls under fair use of the content license you've purchased. Try opening up your own theater, selling tickets and popcorn, and you might have a problem. The first issue is that you need to know what rights the copyright holder has allowed you to use when dealing with their content.
Blizzard, for instance, could put in the Terms of Use or the EULA a rights grant for streaming. Players would then be authorized, in whatever capacity Blizzard describes, to stream content under that set of guidelines. This bill doesn't really make streaming illegal, per se, but specifies unauthorized streaming. If this bill passes, all game companies have to do, really, is authorize streaming implicitly. But how do players know what rights they have to streaming? Will there be a standard?
E-sports already have special "for-profit" licenses and public performance rights attributed to them by game companies, allowing them to broadcast championship matches and other game-related visuals and commentary. If Blizzard or any other game company that had a thriving streaming community like Blizzard wanted to give players the right to stream, it could. This bill would not change that.

Here's the problem for Blizzard and other game companies: What rights to streaming do you want to give to players that you otherwise would want to reserve for e-sports or other uses? If the law needs some sort of blanket rights grant, and Blizzard isn't willing to make that part of the EULA, then you're out of luck. We know players don't actually read EULAs, so that rights granting exactly what you are allowed to do with streaming could be buried deep in paragraphs of words you really don't care about or want to glance over. (You probably should, but that's just me.)
The moral of the story is that game companies live and die by the rights that they possess with their copyrighted material. The intellectual property is, essentially, all that they've got, and they have every right to protect it. The scope of the rights that would be required to sidestep the law might turn out to be too broad for game companies to want to grant, potentially losing some income from other streaming licenses.
To be fair, game companies can just not prosecute. If a game company doesn't have a specific license grant for streaming, but doesn't care if you stream, then they just won't come after you. After all, it does cost a fair bit of money to sue someone. However, this leaves gamers in a tough spot -- how much is too much to not invoke the wrath of a game company's law firm? If I stream our Firelands raid, Blizzard probably won't get all excited about it. If I stream unreleased beta footage from the next expansion, there might be different consequences.
It is quite clear, however, that S.978 is not really aimed at video game streaming or the popular Let's Play genre of videos, but it hits them pretty hard in the back-and-forth fight between content creators and streamers who display pirated, unauthorized materials.
The games industry will need a standard
The only way that we, as an industry, can live in a post-S.978 world would be to come to a consensus on a standard streaming right grant that the major publishers would adhere to -- a fair use for video game streaming/capture, if you will. Let's Play videos are not exactly commentary and may or may not fall under the already available fair use provisions in the copyright code. The problem with laws like this that are so vague is that they have a chilling effect -- you don't know if you're allowed to do something or not, so you err on the side of caution, and nothing ever gets made.
I hear you saying already, "Mathew, the bill already has monetary retail values of performances that will warrant jail time. Why can't that be the standard?" You are right, observant reader. The bill does in fact give monetary values to what constitutes the imprisonment aspect:
How is the simple Let's Play YouTube or WoW raid streamer going to know or understand the fair market value of licenses for streaming video games in a for-profit setting like YouTube channels with high views that revenue share? The burden to understand these complicated numbers and the amount of guesswork completely stifles the average user from making content that acts like free advertising, in many cases, for the games being shown.(A) the offense consists of 10 or more public performances by electronic means, during any 180-day period, of 1 or more copyrighted works; and
(B)(i) the total retail value of the performances, or the total economic value of such public performances to the infringer or to the copyright owner, would exceed $2,500; or
(ii) the total fair market value of licenses to offer performances of those works would exceed $5,000;
The problem with laws like S.978 is that their vagueness with regard to industries and actions that it had no intention of legislating leave people confused about what is acceptable. We have laws, court case precedent, clearly defined statutes, and well-thought out rules for the purpose of being predictive and consistent. We need a standard in the games industry so that we can be predictive.
We need a standard. Perhaps the Entertainment Merchants Association, coming off of an astounding victory at the Supreme Court, could lead the way with the help of the ESRB, which have been proven self-regulators by the highest court in the land. Bill S.978 probably isn't aimed at you. Really. It probably isn't. But with things as they are, there are always gray areas and interpretation issues. Streaming video games happens to be a big one this time around. With a standard in place that publishers and rights holders can agree to, as well as the simple understanding that games are a spectator medium with immense appeal to the demographic that loves to watch gaming-related everything on their computers, from streamed WoW raids to StarCraft II casts, we can easily skirt the harsh provisions of S.978 as an industry.
You know, if the bill even passes.
Filed under: Analysis / Opinion, The Lawbringer






Reader Comments (Page 1 of 3)
Sleutel Jul 8th 2011 7:14PM
Ah, yes, more gradual erosion of our rights and freedoms. Thanks, Senators! Bang-up job there.
Sleutel Jul 8th 2011 7:33PM
For a really interesting analysis of modern copyright law in the U.S. that will make you very, very angry, check out Free Culture by Lawrence Lessig. (That's "free culture" in the same sense as "free trade," not "free beer.")
http://en.wikipedia.org/wiki/Free_Culture_(book)
http://www.amazon.com/Free-Culture-Technology-Control-Creativity/dp/1594200068
Naruke Jul 8th 2011 7:29PM
Screw the law! Im still gonna stream. I wanna see if they actually catch me and send cops to my house to arrest me!
Arrohon Jul 8th 2011 7:31PM
How else are the people on welfare supposed to watch episode 172 of Doctor Who?
Arrohon Jul 8th 2011 7:30PM
This bill seems too extreme. I wonder how they would really enforce this though. There's already a hefty fine for pirating movies and it's still fairly commonplace. They either can't or aren't willing to enforce that so why should we believe they would enforce this? I just hope it doesn't pass. America the land of freedom has been losing too many of those freedoms over the years.
Matthew Jul 8th 2011 7:33PM
Back when limewire was around you could use limewire to find a copy of the non-free deluxe version of limewire.
I thought that was poetic justice.
dukrous Jul 8th 2011 7:33PM
Nilay Patel wrote a wonderful piece at ThisIsMyNext.com explaining how this bill was much ado about nothing for the Let's Play crowd. Taken in a vacuum it seems bad, but since its just amending some existing copyright law, its got a pretty strict laundry list few, if any, Let's Play or machinema creators would meet.
vendeurfrancais Jul 8th 2011 10:09PM
i believe you're probably talking about the clause wherein it says you need to be making at least 2500 off the stream or video. the problem is that profit is not defined in the bill, so youtubers in youtubes partner program could get in trouble, as could anyone with ads anywhere on their site. this bill is just something to put on the books so that federal agencies can have something to point to when they crack down on john smith who posted a video using a copyrighted song on youtube.
dukrous Jul 8th 2011 10:14PM
How to judge financial gain is in the original law this bill will modify. Its false thinking to think of this as a standalone bill and that's where all the confusion is. Reading this outside of the context of the already existing law its amending is misreading the intent of this bill.
steve23094 Jul 8th 2011 7:38PM
TLDR, which is probably not the right way to go about a legal argument. But...
You Americans crack me up. You're so keen to throw everyone in prison (three strikes) and have the largest prison population in the world (per capita), yet minorities are disproportionately represented in the US penal system and you have one of the most violent and dangerous societies in the world.
So I guess you fail on the law and order exam.
Matthew Jul 8th 2011 7:57PM
I'm still proud to be an American.
Bernie Roscoe Jul 8th 2011 8:02PM
On the other hand:
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_%28nominal%29
Chmee Jul 8th 2011 8:30PM
The claim that the US is "one of the most violent and dangerous countries in the world" is bull.
I will grant you that our various "wars" on this and that are ill-advised. In some cases I would even say unConstitutional (OTOH, I'm not an expert on Constitutional law, I just read the words).
Tunahead Jul 9th 2011 6:10AM
Speaking of three strikes, I like how the courts in America hold the ordinary person in so little regard that they feel the need to name various concepts in their legal system after sports (three strikes) and game shows (double jeopardy) to make them more "relatable" to the average man who is apparently considered by law to be an idiot.
Also, the reason they want to throw everyone in jail is because jails have a thriving slave labor thing going on. They manufacture a lot of furniture, traffic signs, license plates and that sort of thing there. I believe they annually make a profit from convicts that's in the billions. It's all about them dolla, dolla bills, y'all.
Also I've used my magical powers of "pattern recognition" and "remembering past events" to notice that there's a bill exactly like this every year, probably since around 2002. Sometimes several per year. Senatorial response is always "hahaha, get out". So yeah I'll be sure to quake in my boots at this dreaded bill that will totally pass this time. Totally.
Sleutel Jul 9th 2011 9:51AM
@Tunahead:
If you think that the concept of "double jeopardy" is named after the game show, then anyone who assumes you're an idiot is probably correct.
Per Merriam-Webster (I miss you, free OED access), the first known occurrence of the word is 1862. Jeopardy! premiered in 1964. In case you're as bad at math as you are as etymology, that means the legal term predates the TV show by 102 years. The concept and the game simply share a common origin in the word jeopardy, which means "exposure to or imminence of death, loss, or injury." So, in the case of "double jeopardy," it refers to the danger that a person faces when they're accused of a crime; and in the game show, it presumably refers to both the fact that a contestant risks having their total winnings reduced every time they answer a question and that they can wager any amount of their total on the last question of the game.
Side note: jeopardy doesn't look like a word to me now, I've been thinking about it so much for the past five minutes.
ashtin Jul 9th 2011 11:33AM
I don't play wow anymore but I still read these articles from time to time and you are correct Steve-o. The united states does seem to enjoy putting people in prison especially here in texas. They love arresting people and executing them. The term proud to be an american doesn't really mean much anymore when we have the political figures and the super wealthy in our country running ou country to benefit themselves and not our country as a whole. No wonder every other nation on earth is laughing at us.
Badgelooter Jul 12th 2011 12:37PM
@ Sleutel
"the first known occurrence of the word is 1862"
Hogwash. Jeopardy, as a legal concept, has its roots in Ancient Greece. It was codified by Justinian and continued through the Dark Ages into English common law. The word itself derives from Middle English, which in turn comes from Old French, which we all know has it's linguistic roots in Latin. It's used in the Bill of Rights amending the U.S. Constitution (you know, the one adopted in 1787?).
Tunahead may also be a nimrod, but "anyone who assumes you're an idiot is probably correct" as well.
Oakraven Jul 8th 2011 7:38PM
Sleu, your leagal right to make a replica Rolex watch ends the second you try to sell it as a Rolex watch, untill that point you can make literaly all the fake Rolex watches you want.
unlike a lot of people who see no problem with the theft of Intelectual property, the Law does not recognise the diference between a car built by a car company or a perfomace created by a Movie Company or a Song published by a music company like motown.
by and large the law also does not recognise the diference between a counterfit good like a high quality but still fake Rollex watch produced in Canada by a skilled craftsman or a CD pirated by someone useing a CD burner and sold in a "fleamarket" for a couple of bucks.
why should content that is copied on one computer and sent out to dozens if not hundreds of people online without the copyrights owner be treated any diferently
librariankay Jul 8th 2011 9:08PM
The problem here is that you must not only change the law, but you must convince the people of the law. While some of us are watching this quite closely, in most of the dark corners of the internet this will go mostly unnoticed, and I think that downloading will most likely go unabated with barely a speedbump. They won't be able to enforce it on the scale that it happens, and so we might again see a few token convictions as we again sacrifice up a few people's lives to the law to "make an example" to the rest. We stuff our prisons fuller, and the true problem goes unsolved; we're repeating the pattern of the 'war on drugs' all over again.
Notice that I still say there's a problem and it is still unsolved. I'm not in favor of piracy, I'm not in favor of drugs. But misguided legislature like this only serves to put money in the pockets of certain companies while not actually solving the problem itself.
(Wasn't there a movie that recently was shown to stand to gain more money from 1/10th of the infringement charges on downloaders than the movie itself made at box office? This is not the way to adapt and create new markets...)
Sleutel Jul 9th 2011 9:54AM
@Oakraven:
The answer to your question is a complex one that can't be easily answered in a five-word comment. I really suggest that you read the book I linked after my comment (you'll have to go to the main comments page for this article and scroll up to the top, since you didn't actually reply to it, so it's in a separate thread from this one).
But if you want that sound-bite answer, it's this: copyright law in the U.S. has been twisted and perverted beyond the farthest reaches of its original intentions by those with money and influence to the concrete and demonstrable detriment of our culture and technology.