so we're going to go right into the flee three presents. we'll first here from joe storch. >> thank you senator and my fellow panelists. thank you so much for having me. i'm going to tell you a story about three sets of two years, '98 '09, 2018 and 2019. it's a true honor to be here representing the state university of new york and i really appreciate you having sunni is one of largest comprehensive universities in the world. it is an honor to serve my alma mater and an honor to be here speak together attorneys general. let me start with a word about fair use. as an intellectual property attorney who spends his days

with academics, i tend to make some use of content under fair use. hopefully we can make copy right law, which some find a little bit dry, to be a little more entertaining. i see some yawning in the back already so let's get to it. if you feel it isn't fair use, feel free to speak to my lawyer, he's a very good lawyer. and if i may just pause for a second, in new york as in many other states, our office of attorneys general handle sunn's litigation. i'm not always counsel but i'm often a client as well. in new york i'm routinely bowled over by the kreeftivity, thoughtfulness and proficiency of our assistances attorneys general. speakings a somewhat frequent client, i'm a zealous part of our community. i recall the words carved in the

bench at orlaw school that the law must be stable yet it cannot stand still. i think back to my job at the movie theater. i made $5.15 an hour, the minimum wage. i'd been a music fan as a young child and spent a percentage of my take home made on cds and concerts. i had to direct people down the hall last theater on the right are down the hall to second theater, ma'am, could you please ask your son to stop spilling soda into the carpet for three or four hours just to listen to a single song and there were millions of fans in the same boat. it was only a year later that shawn fanning released the first version of napster on the web.

it led millions to upload and download copy righted music. these were not hardened criminals. they would never think of stealing a cd or dvd from a store. this is not to justify their behavior only to attempt to explain economically what happened. some us understood the moral issues. there are many people, including members of my family who make their living by making music and i found myself signing up for columbia house and bmg while my classmates were down loading from napster. even the media was changing at that time. "cosmo girl" featured a section that advised readers how to swap cds, upload songs and share your movie with a friend. a magaziand of course, there's office ". >> have any of you ever faced any ethical dilemmas in the

workplace? >> anybody? this is a chance for you to say something without any repercussions. stanley? oscar. anybody else? >> sometimes i download pirated music on to my work computer. >> who hasn't? >> good, good. what else? >> i'd like to hear more about that. >> around the same time congress passed the digital millennium copy right act. the dmca created an administrative effort to send take down notice to take down copy righted material. there was a process, though complicated and rarely used for those had material legislately to make that argument and have their content restored.

isps must register a copy right agent and comply plooi with takedown notices. skipping ten years ahead to 2008 and 2009, we saw congress pass the higher education opportunity act already referenced. among the requirements for colleges and universities are two concerning peer-to-peer file sharing, one my co-author heidi wax of georgetown refer to as the notice provision and written plan provision. the notice element was not burdensome. it required institutions publish a statement that unauthorized distribution of copy righted material may violate sfl and criminal law, the penalties of addressing piracy. the written plan component is more involved. there are six elements to the written plan. i want to key in on three. you have to have a written policy and it must include an education component. colleges have addressed this in different and creative ways.

cornell and ucla have created videos available on the web. several develop skits used during orientation. the legislation is clear that active monitoring is not required but rather as with the dmca institutions must take action when notified of a violation. finally the policy must include potential use of the disciplinary process for student violators. it must include the use of one or more technology based deterrents. institutions need not purchase anything but they may. t each institution may choose for itself an appropriate technology including package shaping and content and the university of michigan has developed an

intriguing program call bayou, beaware you're uploading. and colleges may offer legal alternatives as they deem appropriate. higher education has had some difficulty for some time now finding successful legal alternatives to offer to students at appropriate prices, although recent events lead me to believe we may be moving in a good direction on that front. let me spend a minute or two on the present to show where we may be going in the future. those of you who follow basketball may have heard a wore or two recently called linsanity. we hadn't seen a really talented knicks team since the days when i was back taking tickets at the movie theet. so here we are in 2012 and literally out of the blue drops jeremy lin, a harvard graduate, harvard in the nba, cut by two other teams who finally makes --

knicks fans, who are a naturally pessimistic bunch, believe again. knicks fans across new york including new minted knicks fans turned on only to see when they tuned in msg. msg and time warner settled their dispute and there were many, many happy knicks fans to have the attorney general to thank. but prior to his involvement, what is a desperate knicks fan to do when faced with the situation. even with one called up time warner and offered to pay more to see the game, they couldn't do so. the "new york times" had coverage of what is calls the

linsanity piracy issue. there were many of those who never dreamed of stealing a dvd or cdc or going online and uploading movies, they certainly violated copy right laws in doing so. these law abiding systems could not have accessed them legally on their cable system. what's correct is clear. streaming from an illegal site is against the law. as for what's the right answer, it's a little more complicated. efforts now on going with likely bring about significant, positive changes in this area. a few weeks ago suni's general counsel met to discuss ways to resolve these complicated issues. i got to the meeting room a little early. one of the things that impressed

me most is we sat around the round table for a constructive discussion. there's a different feeling of sitting it the a round table. it set a nice tone. my hope is by continuing to work together we can find creative and efficient methods for higher education. suni understands this all too well. our university does more than $1 billion efr year in sponsored research and our faculty and students -- intellectual property is as crucial to the mission and future of the state university of new york as it is to the entertainment industry. the law must be stable and yet it cannot stand still. society has changed and copy right law must be strong but it must advance.

you as the chief law enforcement officers have a role to play in assisting and encouraging such advancement. technological change need to breed fear. let's seize the opportunity provided by new technologies to forge a 2018 where college students access entertaining, legal constant tent at an appropriate price that protects and encourages artistic crease. i look forward to seeing you there. thank you. >> thank you, joe. [ applause ] >> next we'll hear from rick cotton, executive vice president and general counsel for nbc universal. rick? >> thank you very much. i appreciate the opportunity to be here. i come before you certainly with in my day job as general counsel of nbc universal but i also have served for the lastify year as the chair the coalition against piracy and counterfeiting in the

u.s. chamber of commerce. in that coalition we have more than 700 trade associations and companies representing roughly 24 of the highest growth sectors of the u.s. economy. i'd like to put in context the discussion we're having about universities and the role of universities in addressing what i think of as the rule of law on the internet. what i can report to you is that every single sector of the 24 sectors represented in that coalition has indicated that the problem of stolen digital content and the distribution of counterfeit goods on the internet is getting worse, not better, every single sector. so the framework here i think in fairness of what we're discussing, is truly the question of hough does a rule of law come to the broad band internet. everyone is familiar with the fact that in virtually every aspect of modern, 21st century

society, the internet is visualized as a key pillar. whether that's information, whether that's commerce and on and on. in that framework i think everyone and this team would agree that we cannot have a vision of the broadband internet as the wild west, as somalia, where anything goes. what i would say is there's a certain degree of which the broadband internet did begin with this notion of it should be light live regulated, it drives growth. it in fact does bring huge positives. but what we're talking about here is not the notion of economic regulation but it is the basic regulation of lawful, civilized behavior, which starts with theft. it certainly extends way beyond that to child pornography and to other issues where we cannot be the ultimate outcome where there is simply no rule of law on the internet.

i would put that framework around the fact that in terms of talking about stolen digital content and the distribution of counterfeit goods, it is one element of a much broader challenge to assure that in fact our formal day-to-day laws that apply in the physical world are applied in a sensible and effective way on the internet. the second is just to stress the importance of the issue. i would say and i don't mean this as a criticism but this is not a nuisance crime. what has happened over the last 20 years is that we've gone from you-from-and i would quote the former head of the world's customs organization to where the distribution goods has gone from what he called a cottage industry. this is in the time of his 20 years, to what he called the second industrial revolution. and simply the scale of counterfeiting and stolen digital theft is out of control, this is growing larger and it is

huge. nouts only that a quarter of the broad band band width is utilized but if you look at the number, the quantity of activity. that same envisional study found that if you just go to the normal come score, which is like the kneelen of the internet. you have 250 million visits a month to torrance sites, which are overwhelmingly for the purpose of asquaring stolen digital content. before mega upload was indicted and shut down, it had more than 90 million visits a year. pirate bay has more than 35 million visits a year. the u.s. chamber of commerce did a study which included 138 sites, which included digital goods as well as stolen content and found that year there are are more than 50 billion.

that's more than any individual site that can you name with the highest number of visits. we had a set of activities on the broad bant internet, which is truly astonishing in kites scale. and final point with respect to that, as everyone in this room understan understands, we aspire to have high growth, high value ad sectors of our economy, which are different by our economic benefits are those qualities which are almost unique to the us economic society in terms of their strength, we compromise seriously both the economy's economic future but i think exactly the economic constitutier of the students that we're talking about today. so point number three is in terms of talking about the university efforts with respect

to reducing the amount of accessing stolen digital content, i'd just like to point out that we're talking about in the context of multiple sectors that support the broadband internet. my own view is that unless we affect the activities of the sectors that create the broad band internet and support it and build in technical legislate call crews, we won't make forward progress. but if you look at the video sharing sites let by youtube, the fact is they have put in filtering technology that prevents the easy upload of copy rided it's it's. >> i have agreed to forward on a very substantial scale notices received from constant companies

about individual if the payment process. credit card companies enter into a agreement which was promoted by the white house in which they have agreed not to do business with the foreign sites mentioned by the senator which are dedicated to infringing activity. there are similar conversations going on with the advertising networks and the framework here is that the sectors that create the internet that are the basis of either the traffic or the funding that flows to participants within the ecosystem really have to become part of the solution. and that is the framework. this is not an exclusive focus on universities. it is that they are a very important element. i would actually say in terms of the demographic of the students and the demographic of the age group that primarily engages in this kind of conduct that they are really critical.

it is really important for the younger generation growing up to understand both on a technological basis as well as an educational basis as to what is acceptable and what is not acceptable. so here joe laid out the framework of the legal obligations in terms of kmks and a written plan. it is really critical that he not only be the technological, which come from the what is acceptable conduct and what is not? we're talking about bo ef them leading by company. and really critically engaging in the educational task of educating the younger gener

generation. thanks very much. >> next we're hear from larry conrad, vice chancellor for i.t. and the coe for the university of north carolina. >> good afternoon. and thanks for the opportunity to come and speak on this topic, which i think i can speak on buy half of my colleagues across the country in higher education. we do take this very seriously. as any rate, as i was talking with my panel of colleagues, we thought it would be great to work our way down, if you will, a hierarchy, which leaves me batting clean-up. so we've heard lots of things about the problem, lots of things about the challenges. so colleges and universities all this stuff comes down to someone like me who has to figure out what do we do about it, what can

we do about it? the good news for unc chapel hill, we've come up with what we think is a multi-facetted approach to the thing. while we certainly have technology at the base, our fundamental idea is not really a technological idea. what we're trying to do, as they've heard i think from everyone here, is our goal is to change people's behavior. it's a terrible analogy, i guess, but it's like trying to work with the mexican government to cut down drug smuggling. well, you got to work on the demand side of that, not just the supply side. at any rate, let me go to -- speaking of technology, if this is working. is this the right one? ah, good. great. okay. so from my standpoint as the cio, this is how the landscape roughly looked to me. so we were receiving hundreds of

these, notices every year from content providers and reporting these detections with problems of users on our campus. it's not a mystery. for the most part our cancer researchers are not doing illegal file sharing, it's the students. in our case we have a large resident population. the vast -- certainly a large majority of those were coming out of our resident arena. this is a serious problem and we want our students to come to campus and to be educated, to help discover new knowledge. as a former colleague of mine at yale once said, we want our students to leave with a degree, not with a rap sheet. soap we're very interested in trying to address this.

obviously the complaints the students to potential negative issues. it also exposes the university as well. and the university has a responsibility to try to minimize their exposure. i mean, the hope of all of us here is if we can get our students to fundamentally change their behavior, at least in the time that they're with us, before they go out and hopefully become gainfully employed we'll make a substantive and permanent difference in people's behavior over time. next. so let me run through quickly the concepts of the hall pass program. the basic program is to comply with the higher education opportunity act of 2008. and you heard the three components that were involved with that. the hall pass program is focused on number one and number two. the number three issue i think

as joe pointed out, there's promising developments. those go on beyond what cils can necessarily address. we decided to pilot the program in spring of 2011 and we implemented sort of in full form in the residents halls for last fall. so the fundamentals of how this work is when a user connects in the resident dense halls now mind you, they are required to have an agent downloaded on their computer. in our particular case the company is product assistance network access control. if the user does not have the agent, they can't get on the network. they don't have to install the agent. but if they want to be connected to the network, they do have to install that. the agent runs test cases that we develop looking for pdp, program signatures. if we find a pdp program, the

user is automatically -- first of all, the network connection is automatically restricted, the use ser automatically contacted and prompted to either remove the offending software or if they believe that they have some legitimate reason for running that p2p software and there are some legitimate uses of the software, then they can accept the so-called hall pass program and we will let them continue to run that program and have access to the network. i guess there's a little bit of a delay here. but if they do that, if they choose to join the hall pass program and if we get another copy right notice on them, then again this is all automated,

users directly referred to the dean of students and that typically results in honor cord charges. so previous to that this had been a fairly time intensive activity, time my staff spent on this, even though it was mainly a student affairs issue, we would have to do the contacting of students, we would schedule an appointment, bring them in, give them a lecture, hand them material about the problem and then they were sent off to hopefully do good. sometimes they did, sometimes they didn't. but at any rate, it didn't get referred to the dean of students unless it became an egregious kind of problem. so some of the tidbits who have had it detected chose to remove the software.

the passwords are reset in the fall. for last fall we had 40 out of our nominal 8,000, 9,000 residence hall students who elected to the hall pass program. so far at least in preparing for this presentation for spring semester 2012, 15. so you can see it's just very, very rarely does somebody actually join the program. interestingly enough to me we had a couple of hundred students who just, you know, they have to digitally accept this offer and i guess there' east some people who are against the idea of agreeing to anything online. they refused to agree to our automated program. but they still uninstalled the software so we got the result we were looking for. there's a bit of a challenge involved in this. we do have a-to-archwatch the signatures. there's a little bit of

maintenance. it's not terribly onerous but it does have to be done. and one of the issues i got or question do we do band width shaping or any restrictions for residence halls? no. we decided early on, just squeezing down a pipe. she wasn't changing. all would you do is sort of move the point where they'll do the crime if you will. we believe students should have free and open access to the internet. we want them to change their behavior. technology is the main piece i want to talk about. we did implement a multi-facetted, mutt point communication process. as they're admitted, we send letters to their homes, to their parents. we get them during oren station,

we get when they come in to we try to keep that message out there and repeat, repeat, repeat. >> all right, so, what have we seen? so the results, these aren't huge numbers. they're very meaning full nms, so the fall of 2012, we found that one in seven computers that we skabd in residence software. >> we detected the program, sent them a message saying we detected they were have an impact. and this changed from 1 to 12 to 1 to 7. but if you will pull the trigger for fall of