The authors of this article claim that the battle over SOPA and PIPA comes down to conflict between companies whose interests are served by innovating, and those who seek to preserve the status quo. They argue that the companies that pushing the bills are attempting to stifle the free market by muzzling innovation, and using political connections to do it:
SOPA and PIPA are prime examples of big companies trying to do everything they can to stop new competitors from innovating. They're also examples of how lobbying in the United States has become one of the most effective ways of limiting this sort of competition.
. . . If you take a look at many of the largest backers of SOPA or PIPA — the Business of Software Alliance, Comcast, Electronic Arts, Ford, L'Oreal, Scholastic, Sony, Disney — you'll see that they represent a wide range of businesses. Some are technology companies, some are content companies, some are historic innovators, and some are not. But one characteristic is the same across all of SOPA's supporters — they all have an interest in preserving the status quo. If there is meaningful innovation by startups in content creation and delivery, the supporters of SOPA and PIPA are poised to lose.
Even for those SOPA supporters that are historic innovators, their organizations focus on improving products in the pursuit of profit. They innovate to increase prices and limit production cost. Even when new models and technologies give rise to huge businesses, these incumbent firms reject meaningful innovation.
On the other side of the debate, you'll see a few the most successful companies in recent history. Wikipedia. Google. Twitter. Zynga. What these firms have in common is they have upended entire industries — and many are still in the process of doing so. Each of these businesses has roots in embracing new technologies and building models to deliver value to customers at the lowest cost. They're fighting this legislation because they're aware it will tip the finely tuned balance of creative destruction against startups and very much in favor of companies unwilling to embrace change.
So Congress is dealing with a conflict between business interests - which is what it was designed to do from the beginning. Its not uncommon for business who normally promote market competition to use their political power to place restrictions on it in order to preserve their status. The authors are concerned about what this means for future American competitiveness:
SOPA is a legislative attempt by big companies with vested interests to protect their downside. And unfortunately, these companies have conscripted Congress to help them. What's worse is that even though limiting start-up innovation might help big content in the short run, it's not going to do them in favors in the long run. Nor is going to do America any favors. In the midst of one of the worst recessions in living memory, passage of legislation like this is just going to result in innovators moving to geographies where the regulatory environment is more favorable. Start-ups will be less competitive in the United States and we'll have effectively disabled one of the few remaining growth engines of the economy.
