New Study From Booz & Co. Shows That SOPA/PROTECT IP Will Chill Investment In Innovation
from the indeed dept
Booz & Co., which is one of the most respected consulting/research firms around, has come out with the results of a new study, looking into how venture capital and angel investors will respond to new laws like PROTECT IP and SOPA, and found that a large majority of them would avoid investing in user generated content sites over fear concerning the liability.
- A large majority of the angel investors and venture capitalists who took part in a Booz & Company study say they will not put their money in digital content intermediaries (DCIs) if governments pass tough new rules allowing websites to be sued or fined for pirated digital content posted by users.
- More than 70% of angel investors reported they would be deterred from investing if anti-piracy regulations against “user uploaded” websites were increased.
- More than 80 percent of the angel investors would prefer to invest in a risky, weak economy (with the current internet regulations) vs. a strong economy (but with the new, more stringent proposed regulations on copyright infringement).
- If the legal framework for digital content was clarified, and penalties on copyright infringement were limited for content providers acting in good faith, the pool of angels interested in investing would increase by nearly 115 percent.