First, the new law would allow the Attorney General to cut off sites from the Internet, essentially “blacklisting” companies from doing business on the web. Under section 102, the Attorney General can seek a court order that would force search engines, DNS providers, servers, payment processors, and advertisers to stop doing business with allegedly infringing websites.
Second, the bill encourages private corporations to create a literal target list—a process that is ripe for abuse. Under Section 103 (cleverly entitled the “market based” approach), IP rightsholders can take action by themselves, by sending notices directly to payment processors—like Visa, Mastercard, and PayPal—demanding that they cut off all payments to the website. Once notice is delivered to the payment processor, that processor has only five days to act.1 The payment processor, and not the rightsholder, is then responsible for notifying the targeted website. So by the time Visa or Mastercard—who will no doubt be receiving many of these notices—processes the notice, informs the website, and the website decides whether to file a counter notice, the five days will almost certainly have elapsed. The website will then be left without a revenue source even if it did nothing wrong.
Third, section 104 of SOPA also allows payment processors to cut websites off voluntarily—even if they haven’t received a notice."
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