By Tom Risen | National Journal | April 2, 2010

In the wake of high-profile Internet censorship cases overseas, some in Congress are renewing their calls for U.S. regulation. But some companies are continuing to call for self-regulation, fearing possible restrictions on doing business in the future.

New Jersey Republican Chris Smith, a member of the House Foreign Affairs Committee, reintroduced the Global Online Freedom Act last month to support companies like Google as they face censorship pressure in foreign markets. He first introduced the bill in 2006.

Since then, Google’s defiance against Chinese censorship and Secretary of State Hillary Rodham Clinton’s Internet freedom platform have built momentum on the issue and helped lawmakers reach consensus, according to Jeff Sagnip, Smith’s press secretary.

Smith’s bill would establish an Office of Global Internet Freedom in the State Department to identify repressive countries, and it would make U.S. companies answerable to the attorney general if they collaborate with requests to take part in censorship or divulge personally identifying information.

“By creating an independent office in the State Department that focuses on Internet freedoms, it would simplify the question ‘who do I call?’” Sagnip said. “There’s a lot of momentum on it this year, as opposed to 2006, when there weren’t as many cases of censorship. The bill’s goal is not to inhibit companies seeking work overseas but to give them a legal foundation.”

The degree of violations that could merit punishment under the bill include the allegations made against Cisco Systems of modifying equipment to be used for Chinese censorship. Sagnip said this bill or another may be amended to deal with European-based Nokia Siemens Networks, which has been accused of supplying Iran with equipment also meant for censorship.

When Smith first introduced the bill four years ago, companies like Yahoo were monitoring abuse independent of the government. Yahoo and other Internet heavyweights co-founded the Global Network Initiative in 2008 along with other corporations, nonprofits and universities. Today, the company is wary of potential restrictions on what countries it could or couldn’t do business with, and to what extent.

“While the goals set forth by the sponsors of GOFA are noble, the bill’s scope could ultimately mean that companies will have to cease providing information services in some countries,” said Yahoo spokeswoman Amber Allman. “Yahoo will continue working with Congress on this legislation, to ensure that its goals can be achieved and that companies can continue to bring transformative technology to people in all parts of the world.”

Sagnip said China’s hack of Google and Iran’s suppression of protesters last summer were signs that self-regulation is not enough.

“Everyone was resistant to intervening with legislative effort,” Sagnip said. “Unfortunately, we walked away from 2009 thinking, ‘OK, it’s even worse now.’ Hence, they might need teeth — or that could be the wrong word. Rather ‘legs,’ or ’standing.’”

Smith recently partnered with Rep. David Wu, D-Ore., to form the Global Internet Freedom Caucus, a bipartisan group of lawmakers who will advocate for Internet freedom laws. The Senate followed about two weeks later, creating a similar bipartisan group led by Sens. Sam Brownback, R-Kan., and Ted Kaufman, D-Del.

“What I see is that both sides of the aisle are looking for an avenue, and that could be a path for some congressional action,” Sagnip said.