Hitting rogue websites where it hurts

The Ultimate Fighting Championship is known for providing world-class entertainment and athletics. What we may be lesser known for, however, is our desire to fight real-world criminal activity.

No, these criminals aren't lurking in the dark corners of alleys. Instead, they're skulking behind their computer screens. Foreign criminal networks are abusing the Internet with the illegal sale of counterfeit products such as electronics, prescription drugs, clothing and -- in our case -- illicit downloads and streaming of our matches.

One of the worst things about this hidden problem is the American consumer is being snookered. These criminal sites look legitimate. Deceptive and sophisticated, rogue websites carry legitimate-looking logos and seals of approval.

It's often almost impossible to know what is real and what is fake ... often until it is too late.

What harm is done by these sites? Foreign criminal websites cost legitimate U.S. businesses more than $200 billion a year, siphoning off American jobs, hurting businesses and dampening our economy. Some websites sell fake prescription drugs that have sickened innocent people and resulted in death. Others sell defective electronics that don't work properly, are shoddy and create fire hazards. Websites that offer illegal content streaming and downloads, furthermore, have been known to expose consumers to malware and facilitate identity theft.

Like other American sports and entertainment companies (such as the NFL, NBA, Major League Baseball and ESPN), UFC creates thousands of jobs, adds hundreds of millions of dollars to a struggling economy, and -- specifically -- brings many visitors to Nevada who would not otherwise come here and spend their money. All of this is evidenced by an independent analysis that we invited in 2009 to report on the UFC's economic and fiscal contributions to Nevada.

The UFC itself is an example of American innovation. The Fertitta brothers, who are Las Vegas natives, along with their friend, Dana White, co-founded today's UFC by rescuing a dying company from bankruptcy. They cleaned up the sport by inviting clear, enforceable regulation of fighting events, put their own livelihoods on the line and created a new market (with thousands of jobs) where none existed prior. That is exactly the kind of entrepreneurial engine that our country needs, especially now.

All told, UFC's contribution to the economy is well more than $300 million each year, but as with so many American businesses and employers, the UFC's economic activity, its success, survival and contributions depend in large measure on the rule of law, clear protections for innovation and investments -- investments in people, investments in products, investments in intellectual property. When thieves steal broadcasts from the UFC, the NBA or the NFL -- broadcasts that law-abiding citizens pay for -- and then share them with impunity over the Internet -- it undermines UFC's investment, its profits and its ability to employ people and to help grow the economy.

Stealing is not innovation, contrary to what some commentators might imply. Stealing is stealing, and it hurts innovators, it hurts the economy, it kills jobs and it hurts Las Vegas and America.

One of the most fundamental roles of government is to protect its citizens from theft and fraud. Illegal sites operated in other countries are outside the reach of U.S. law enforcement agencies. New legislation would provide the tools to protect Americans from these criminals by cutting them off from the American market in the same accepted and effective way we cut off websites that exploit children or distribute malware.

Thanks to the support of Nevada's own Sen. Harry Reid, the U.S. Senate is working toward passage of the Protect IP Act. A procedural vote scheduled for this week was cancelled so Sen. Reid can enter more negotiations with House leaders and their bill, the Stop Online Piracy Act.

When it comes to Internet thievery, some want to throw up their hands and admit defeat. Others argue that the Internet is better without rules. Both these arguments are wrong and shortsighted. There is a better way, and it is within our reach.

Lawrence Epstein is executive vice president and general counsel for the Ultimate Fighting Championship. He writes from Las Vegas.

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Comments

Note: Comments made by reporters and editors of the Las Vegas Review-Journal are presented with a yellow background.

1. Stuart.Armstrong Jan. 26, 2012 | 7:05 a.m. Report Abuse

   I support copyright laws (obviously) but petty copyright infringement isn't the horrific travesty some are making it out to be.
   
   I particularly disagree with the term "stealing". If you download a copyrighted work without permission, you are not stealing. You are engaging in copyright infringement. If it was stealing, they'd call it stealing. According to US law, it's not even a criminal offense. For it to be so, you'd have to financially gain from the infringement, or pirate over a certain amount of goods. Conversely, stealing is generally always a criminal offense.
   
   I support copyright laws, since they provide an incentive to produce creative works and make them available cheaply. However, the endless hyperbole and demonising of file sharing only turns people off. It'd be more rational to say "this is something that could be a problem and concerns us", rather than "this is theft, it's stealing, you're all evil".

2. Summerlin_Slick Jan. 22, 2012 | 8:51 p.m. Report Abuse

   Let me start with a little recrimination; the UFC has overvalued its content and continually charges for lackluster fights in what is no longer an exotic sport. They accomplish this by buying the competition and burying them. These practices, driven by greed are illegal and the UFC should be punished for their monopolistic activities. Back to SOPA.....this piece is an open ended rant Mr. Epstein. I'll help you finish it......There is a better way, use existing copywrite laws to punish those violating them. Don't push broad laws that have the ability to hinder legitimate businesses and censor the greatest deciminator of information in history. Backing the language in SOPA is shortsighted and dangerous.

3. Squires.Bond Jan. 22, 2012 | 8:16 p.m. Report Abuse

   Try not having the government do your work counselor. Just because the UFC and the Fertitas can give Harry lots of money doesn't mean we should lose a free internet, due process and the freedom of speech to protect the likes of the despicable UFC. Litigation should be funded by those claiming a loss in such piracy. Stop trying to squelch free speech and the internet by having the government do your dirty work. Try actually practicing law for a change. Prosecute the counterfeiters if you have the talent.

4. TBrady Jan. 22, 2012 | 3:48 p.m. Report Abuse

   Inform yourself! Watch this video on the truth about SOPA and PIPA:
   
   http://www.youtube.com/watch?v=oHj2djD1130

5. TBrady Jan. 22, 2012 | 3:39 p.m. Report Abuse

   Nice SOPA and PIPA propaganda piece, Epstein. Keep selling your violent drivel to the lowest common denominator and keep your stinking hands off the Internet.

6. mrs ed Jan. 22, 2012 | 8:49 a.m. Report Abuse

   You can lead the invasion of China and Rissia to spot it.

7. John F Jan. 22, 2012 | 6:17 a.m. Report Abuse

   Mr. Epstein: Nobody wants to take away your right to protect your property. Yhe SOPA and PIPA bills, however, give private entities and the government the power to punish the innocent along with the guilty. In fact, they make it far easier to punish the innocent. They would allow the government the power to shut down a business and seize its assets prior to the filing of any criminal charges. And since the large majority of this illicit content is sourced overseas, and our government has enforcement powers only within the US, these bills don't even use a sledgehammer to kill a fly; they use a sledgehammer to kill a raisin you thought was a fly. If someone is straming your content without permission, sue them for damages. You're a lwayer. You know how to do that.

8. homointercourserules Jan. 22, 2012 | 4:01 a.m. Report Abuse

   STOP SOPA AND PIPA they're trying to destroy our ability to instantly pass information to millions of people I.E. Police beating the crap out of someone in handcuffs on the ground in a submissive pose while being filmed by camera phone of on looker. If SOPA and PIPA pass, we are in BIG TROUBLE as far as independent distribution of news that is not being covered and unregulated information being passed without an intermediary. STOP SOPA and PIPA before they hatch and deal a devastating blow to our freedom of speech, expression and lots of other freedoms that fall under this dark umbrella