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How will new startups be effected by SOPA?
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1 Answer
I think the biggest impact will be in funding. As we mentioned on the roundtable, VCs are likely to be more cautious/hesitant in investing in companies that hold the potential to be in violation of SOPA-based laws, even if that violation is inadvertent. Another aspect will be that startups will have to invest in systems, methods, tools and processes to help ensure compliance, which will raise the COGS.
Now, on the other side of the coin... even if SOPA/PIPA pass, I don't think the MPAA/RIAA will go after every company that might be in violation. In the end, it's just too expensive for everybody involved. But if you're one of the unlucky ones they do target, then under the current language of the bill(s) it could be a very expensive and painful process - even if you're innocent...
I also think that while there's a lot of "gorilla dust" from the likes of Ruper Murdock, I don't think the media giants will go after Google, Yahoo!, MSN, et al. While there is no doubt that they are "channels" for the dissemination of infringed content, they are also the primary means by which the media giants reach the global community to advertise and promote their products. If the MPAA and RIAA don't like the way things work on the internet, then let them go build their own version of it - and see how many people adopt it...
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