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15387 1 (2011)

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                                                          Calendar No. 70

                   112TH CONGRESS             SEAEREPORT
                      1st Session             SENATE                  112-39






                   PREVENTING REAL ONLINE THREATS TO ECONOMIC
                     CREATIVITY AND THEFT OF INTELLECTUAL PROPERTY
                     ACT OF 2011



                                    JULY 22, 2011.-Ordered to be printed



                           Mr. LEAHY, from the Committee on the Judiciary,
                                       submitted the following


                                          REPORT

                                          [To accompany S. 968]

                     The Committee on the Judiciary, to which was referred the bill
                   (S. 968), to prevent online threats to economic creativity and theft
                   of intellectual property, and for other purposes, having considered
                   the same, reports favorably thereon, with an amendment in the na-
                   ture of a substitute, and recommends that the bill, as amended, do
                   pass.

                                             CONTENTS
                                                                              Page
                     I. Background and Purpose of the Preventing Real Online Threats to
                         Economic Creativity and Theft of Intellectual Property Act of 2011  1
                    II. History of the Bill and  Committee Consideration  .......................................  11
                    III. Section-by-Section  Summary  of the Bill  .....................................................  16
                    IV. Congressional Budget Office Cost Estimate  ................................................  21
                    V. Regulatory  Im pact Evaluation  ......................................................................  21
                    V I.  C onclusion  ..................................................................................................... .  21
                    VII. Changes to Existing Law Made by the Bill, as Reported ...........................  22

                    I. BACKGROUND AND PURPOSE OF THE PREVENTING REAL ONLINE
                    THREATS TO ECONOMIC CREATIVITY AND THEFT OF INTELLECTUAL
                    PROPERTY ACT OF 2011

                                           A. BACKGROUND

                     Intellectual property is the engine of the American economy and
                   critical for job growth. According to independent studies, IP-reliant
                   companies account in America for more than $7.7 trillion and em-

                      99-010

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