INDUCE Act (IICA) = Patent Extortion, but for Copyrights?

WIRED reports on the launch of EFF's Patent Busting Project (EFF Publishes Patent Hit List). Slashdot discussion here: EFF, PubPat Each Seeking Some Patent Sanity. This is a much needed project, as patent abuse has become a rampant problem. EFF explains it this way:

Unlike most technologies, software and the Internet have attracted a vast number of small business, non-profit, and individual users – each of whom has adopted and built upon these resources as part of their daily interaction with computers and the online world. From open source programming to online journaling to political campaigning, the average citizen is using new technology online and on her desktop as often as any traditional company.

With this increased visibility, however, comes increased vulnerability. Previously, patent holders had only targeted competing companies. These companies have established legal departments and outside counsel and are thus able to defend against illegitimate patent threats. Now some patent holders have begun to set their sights on the new class of technology users–small organizations and individuals who cannot afford to retain lawyers. Faced with million-dollar legal demands, they have no choice but to capitulate and pay license fees – fees that often fund more threat letters and lawsuits. And because these patents have become cheaper and easier to obtain, the patentee’s costs can be spread out quickly amongst the many new defendants. Our patent system has historically relied on the resources of major corporate players to defeat bad patents; now it leaves these new defendants with few if any options to defend themselves.

Illegitimate patents can also threaten free expression. More and more people are using software and Internet technology to express themselves online. Website and blogging tools are increasingly popular. Video and audio streaming technology is ubiquitous. E-mail and Instant Messaging have reached users of all ages. Yet because patents can be anywhere and everywhere in these technologies, the average user has no way of knowing whether his or her tools are subject to legal threats. Patent owners who claim control over these means of community discourse can threaten anyone who uses them, even for personal non-commercial purposes. We lose much if we allow overreaching patent claims to reduce the tremendous benefits that software and technology bring to freedom of expression.

Hmmm...I wonder what would happen if you put a law similar to the patent law (only more flawed) into the hands of just about anyone who wants to abuse it (copyrights being even easier to obtain than patents)? Imagine a small team of lawyers company that put together a portfolio of copyrighted works that are shared (at least somewhat) via various networks and then start going after individuals and companies who didn't infringe the works, but "induced" infringement by numerous, unknown others. Even if the case is winnable, defending it will be very costly. Small organizations and individuals who cannot afford to retain lawyers will have no choice but to capitulate and pay license fees – fees that often fund more threat letters and lawsuits.

Yes, the INDUCE Act (née IICA) would have yet another unintended consequence.