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Dialogue: 0,0:00:00.00,0:00:09.10,Default,,0000,0000,0000,,[Music]
Dialogue: 0,0:00:09.10,0:00:11.68,Default,,0000,0000,0000,,[HON. HOWARD COBLE] The Subcommittee on Courts, Intellectual Property and the Internet
Dialogue: 0,0:00:11.68,0:00:15.38,Default,,0000,0000,0000,,will come to order without objection. The Chair is authorized to declare to declare ? recesses
Dialogue: 0,0:00:15.38,0:00:18.27,Default,,0000,0000,0000,,of the Subcommittee at any time. We welcome all of our witnesses
Dialogue: 0,0:00:18.27,0:00:22.89,Default,,0000,0000,0000,,today, and at the outset I want to again reiterate our
Dialogue: 0,0:00:22.89,0:00:26.99,Default,,0000,0000,0000,,apologies for the delay. The votes take precedence sometimes
Dialogue: 0,0:00:26.99,0:00:34.51,Default,,0000,0000,0000,,and I;m sorry - appreciate your patience.
Dialogue: 0,0:00:34.51,0:00:39.80,Default,,0000,0000,0000,,I'll give my opening statement then call on Mr. Watt afterwards.
Dialogue: 0,0:00:39.80,0:00:43.21,Default,,0000,0000,0000,,This afternoon's hearing is an initial step for the Subcommittee's effort
Dialogue: 0,0:00:43.21,0:00:47.28,Default,,0000,0000,0000,,to undertake a comprehensive review of our copyright laws.
Dialogue: 0,0:00:47.28,0:00:50.45,Default,,0000,0000,0000,,Last month when Registrar Pallante
Dialogue: 0,0:00:50.45,0:00:53.32,Default,,0000,0000,0000,,testified before this Subcommittee, she illustrated
Dialogue: 0,0:00:53.32,0:00:56.68,Default,,0000,0000,0000,,the mutual interests of the authors and the public.
Dialogue: 0,0:00:56.68,0:01:00.93,Default,,0000,0000,0000,,As she accurately and eloquently explained,
Dialogue: 0,0:01:00.93,0:01:05.13,Default,,0000,0000,0000,,quote - As the first beneficiaries of the copuright law
Dialogue: 0,0:01:05.13,0:01:08.87,Default,,0000,0000,0000,,they are not a counterweight to the public but instead
Dialogue: 0,0:01:08.87,0:01:11.67,Default,,0000,0000,0000,,are at the very center of the equation.
Dialogue: 0,0:01:11.67,0:01:14.28,Default,,0000,0000,0000,,As such the copyright law must start with
Dialogue: 0,0:01:14.28,0:01:16.74,Default,,0000,0000,0000,,the creator at the center of the equation.
Dialogue: 0,0:01:16.74,0:01:20.14,Default,,0000,0000,0000,,As Ms. Pallante concluded: A law that does not provide
Dialogue: 0,0:01:20.14,0:01:24.62,Default,,0000,0000,0000,,for authors would be illogical. Hardly a copyright law
Dialogue: 0,0:01:24.62,0:01:28.13,Default,,0000,0000,0000,,at all. Central to any review is identifying
Dialogue: 0,0:01:28.13,0:01:31.36,Default,,0000,0000,0000,,what has worked and is working within the law.
Dialogue: 0,0:01:31.36,0:01:36.07,Default,,0000,0000,0000,,Our copyright law is well rooted with 200 years of precedent that has
Dialogue: 0,0:01:36.07,0:01:39.74,Default,,0000,0000,0000,,produced a level of creativity and innovation
Dialogue: 0,0:01:39.74,0:01:44.17,Default,,0000,0000,0000,,that is the envy of the worls. Our consumers enjoy an incredible
Dialogue: 0,0:01:44.17,0:01:47.45,Default,,0000,0000,0000,,selection of high quality content that is available
Dialogue: 0,0:01:47.45,0:01:51.68,Default,,0000,0000,0000,,on an array of technology platforms.
Dialogue: 0,0:01:51.68,0:01:55.18,Default,,0000,0000,0000,,Meanwhile we continue to lead the world with new ideas
Dialogue: 0,0:01:55.18,0:01:58.95,Default,,0000,0000,0000,,and creations. These achievements are stunning and
Dialogue: 0,0:01:58.95,0:02:03.52,Default,,0000,0000,0000,,should not in my opinion be overlooked. That being said
Dialogue: 0,0:02:03.52,0:02:07.26,Default,,0000,0000,0000,,I commend Chairman Goodlatte and Registrar Pallante
Dialogue: 0,0:02:07.26,0:02:10.96,Default,,0000,0000,0000,,for recognizing the need for a comprehensive review.
Dialogue: 0,0:02:10.96,0:02:14.40,Default,,0000,0000,0000,,Piracy is an enormous piracy (?) or threat
Dialogue: 0,0:02:14.40,0:02:18.04,Default,,0000,0000,0000,,- the terms are synonymous in my opinion -
Dialogue: 0,0:02:18.04,0:02:20.77,Default,,0000,0000,0000,,is an enormous problem that must be addressed.
Dialogue: 0,0:02:20.77,0:02:24.04,Default,,0000,0000,0000,,Licensing (?) is a periodic battle that oftentimes leaves consumers
Dialogue: 0,0:02:24.04,0:02:25.98,Default,,0000,0000,0000,,with the short end of the stick.
Dialogue: 0,0:02:25.98,0:02:29.01,Default,,0000,0000,0000,,We should take the time to consider whether there are other options.
Dialogue: 0,0:02:29.01,0:02:33.69,Default,,0000,0000,0000,,Our high-tech innovators, who are also helping to drive creativity,
Dialogue: 0,0:02:33.69,0:02:36.85,Default,,0000,0000,0000,,are frustrated by all of the above.
Dialogue: 0,0:02:36.85,0:02:41.60,Default,,0000,0000,0000,,Our policy should incentivise innovation not frustrate it.
Dialogue: 0,0:02:41.60,0:02:45.51,Default,,0000,0000,0000,,These are some of the many issues I hope we will have the opportunity to review,
Dialogue: 0,0:02:45.51,0:02:49.04,Default,,0000,0000,0000,,to deternine whether the law is meeting its constitutionally ordained
Dialogue: 0,0:02:49.04,0:02:53.64,Default,,0000,0000,0000,,purpose. I'm interested in hearing how this witness
Dialogue: 0,0:02:53.64,0:02:57.71,Default,,0000,0000,0000,,panel of diverse perspectives on copyright law
Dialogue: 0,0:02:57.71,0:03:02.52,Default,,0000,0000,0000,,was able to put aside their differences in an effort to work together.
Dialogue: 0,0:03:02.52,0:03:06.29,Default,,0000,0000,0000,,Such efforts and others like them should be applauded.
Dialogue: 0,0:03:06.29,0:03:10.32,Default,,0000,0000,0000,,This committee has often heard from witnesses who were better at talking
Dialogue: 0,0:03:10.32,0:03:13.69,Default,,0000,0000,0000,,at each other rather than wuith each other.
Dialogue: 0,0:03:13.69,0:03:17.85,Default,,0000,0000,0000,,Of course that does not mean that anyone should retreat from his or her views
Dialogue: 0,0:03:17.85,0:03:21.80,Default,,0000,0000,0000,,on any subject. It should come as no surprise
Dialogue: 0,0:03:21.80,0:03:25.14,Default,,0000,0000,0000,,that the ranking member Mr. Watt and I do not agree on every issue
Dialogue: 0,0:03:25.14,0:03:28.71,Default,,0000,0000,0000,,that the full Judiciary Committee considers, but we try to serve the prople
Dialogue: 0,0:03:28.71,0:03:33.58,Default,,0000,0000,0000,,of our great state, and by the way I'm glad to see that one of our witnesses
Dialogue: 0,0:03:33.58,0:03:38.59,Default,,0000,0000,0000,,this afternoon is from the University of North Carolina. Efforts to make (?)
Dialogue: 0,0:03:38.59,0:03:42.60,Default,,0000,0000,0000,,the copyright world to recognize where consensus can and
Dialogue: 0,0:03:42.60,0:03:44.36,Default,,0000,0000,0000,,cannot be reached are helpful
Dialogue: 0,0:03:44.36,0:03:47.63,Default,,0000,0000,0000,,as we undertake a comprehensive review. I have no doubt
Dialogue: 0,0:03:47.63,0:03:51.56,Default,,0000,0000,0000,,That Chairman Goodlatte and I and other members of the Subcommittee
Dialogue: 0,0:03:51.56,0:03:54.84,Default,,0000,0000,0000,,will hear from intrested - interesting creators over the months ahead
Dialogue: 0,0:03:54.84,0:03:59.74,Default,,0000,0000,0000,,on how copyright is and is not working
Dialogue: 0,0:03:59.74,0:04:04.21,Default,,0000,0000,0000,,for them. The Registrar has already highlighted some problems with copyright
Dialogue: 0,0:04:04.21,0:04:07.66,Default,,0000,0000,0000,,law, especially for the ability of copyright owners
Dialogue: 0,0:04:07.66,0:04:11.52,Default,,0000,0000,0000,,to protect their works. The report generated by the Copyright
Dialogue: 0,0:04:11.52,0:04:15.02,Default,,0000,0000,0000,,Principles Project, and the testimony submitted today,
Dialogue: 0,0:04:15.02,0:04:19.12,Default,,0000,0000,0000,,have also highlighted problems that need to be addressed.
Dialogue: 0,0:04:19.12,0:04:23.17,Default,,0000,0000,0000,,It seems to me that those who believe everything should be free
Dialogue: 0,0:04:23.17,0:04:27.30,Default,,0000,0000,0000,,fundamentally disrespect the creators, who have put so much effort
Dialogue: 0,0:04:27.30,0:04:32.45,Default,,0000,0000,0000,,into their works, and improve our nation's
Dialogue: 0,0:04:32.45,0:04:35.42,Default,,0000,0000,0000,,culture as a result. And again
Dialogue: 0,0:04:35.42,0:04:38.85,Default,,0000,0000,0000,,I thank the witnesses for your presence today, your willingness
Dialogue: 0,0:04:38.85,0:04:43.28,Default,,0000,0000,0000,,to spend so much tiem working in a collegial manner with those whose views
Dialogue: 0,0:04:43.28,0:04:46.72,Default,,0000,0000,0000,,they may not always embrace or agree with.
Dialogue: 0,0:04:46.72,0:04:51.05,Default,,0000,0000,0000,,Their willingness to listen to others in such a manner is
Dialogue: 0,0:04:51.05,0:04:54.73,Default,,0000,0000,0000,,one that I urge everyone to follow. I now recognize
Dialogue: 0,0:04:54.73,0:04:58.43,Default,,0000,0000,0000,,the distinguished member from North Carolina, the ranking member Mr. Mel Watt.
Dialogue: 0,0:04:58.43,9:59:59.99,Default,,0000,0000,0000,,[Hon. Melvin L. Watt] Thank you Mr. Chairman, and thank you for convening the hearing,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,For those of you who showed up today expecting
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,my grandson Nico,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I have to extend my regrets.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,After yesterday's performance went viral
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,only a number of outlets
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,including Good Morning America this morning and others
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,he said he was giving me no more exposure without royalties.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,(Laughter)
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,So, he's not here with me today,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,although he;s still here in Washingtom for those of you who want to sign him up
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Anyway, um, let me be serious.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Earlier this week I attended
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the 'We Write the Songs' event at the Library of Congress.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The auditorium was packed with an audience transfixed
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,on the skillfully crafted lyrics and the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the astonshing performances
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,including the electrifying performance that earned the electrifying performance that earned the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,standing ovation from the audience for a group out of my home
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,state of North Carolina, the Carolina Chocolate Drops.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Bearing in mind the Chairman's call for a comprehensive review
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of copyright law in the digital era,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I left the event with an even more passionate view that our copyright
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,system must preserve and protect the rights of the creators
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the music, books,games, movies, and other forms
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of intellectual ingenuity that enrich each of us
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,individually, and all of us collectively as a nation.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I start with this observation because it seems
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that over the past few years there has been a shift
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in public discourse about copyright, away
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,from the people who actually devote their talent to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,create works for the benefit of society, and those
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,who invest in them, toward the users of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,those works and the financial interests of those companies eager
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to commercially exploit them.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That shift has often been accompanied by assertions of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,lofty principles and constitutional values.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,But as I have said in the specific
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,context of online theft, free speech
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,does not mean free stuff, and
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the free flow of information, even through legitimate channels
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,doesn't mean that information - the substance of
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,what is flowing - should be free. It simply
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,cannot be the case that digital age turns creators
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,into content servants for the rest of us.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,That said, I am neither hard line nor
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,hard-headed about the realities of today's marketplace.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,or the complexity of the task before us.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,The digital enevironment is replete with both
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,challenges and opportunities, but currently
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,uncertainty abounds for all stakeholders.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Companies that invest in, and develop individual talent
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,must be secure in their expectation that strong
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,copyright exists and mechanisms to enforce
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,those rights effectively is in place.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Consumers deserve cl;arity about legitimate uses.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,And Internet and tech companies should have
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,clear rules to help them to develop sustainable
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,business models that fairly compensate authors.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Companies that invest in creative talent
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,may have to adjust their business models
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,to accomodate the digital revolution, and many
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,have. But the digital companies, some of whom
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,have taken to exalting their disruptive power,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,well, they are not exempt from the need to adjust their practices
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,either. Keeping our focus on creators
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,while hardly novel or radical
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,is seemingly controversial in some quarters.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Some of that controversy is eveident in the copyright
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Principle Project report and process that we will hear about
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,today. Some is also eveident in the reaction to the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,report, for example, the op-ed authored by musician
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,David Lowery that was published earlier this week
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,which I ask unanimous consent to offer for the record.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Chair] Without Objection.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Mr. Watt] As Chairman Goodlatte has made clear
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the Committee does not endorse the specific recommendations
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the Copyright Principles Project, atill the project
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,does contain some background and useful insight into how
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,parties with divergent views might be able to engage
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in a constructive and respectful dialog.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,I'm particularly intrigued by the recommendation to
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,strengthen the exclusive right
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of copyright holders to control communications of their
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,works to the public, which I beleive more closely aligns with the
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,principle that aims to preserve and protect
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,the creator's rights. A report from this Committee
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,in the 21st Congress observed, quote,
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,It cannot be for the interest or honor of our country
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,that intellectual labor should be depreciated, and
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,a life devoted to research and laborious study
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,terminate in disappointment and poverty, close quote
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,As we reveiw copyright law and policy in the digital
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,era this committee should work to secure the rights
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,of the creators who enhance our lives and grow our economy
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,while balancing the interest of the public.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Let me be clear that I beleive that the global appetite for intellectual
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,property will benefit best from a robust
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,copyright regime that protects the individual
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,expressive rights of creators and authors.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,Mr. Chairman, I thank you for the time and I yield back.
Dialogue: 0,9:59:59.99,9:59:59.99,Default,,0000,0000,0000,,[Chair] I thank the gentleman from North Carolina, and other members' opening statements will be made