Something similar was briefly discussed here in 2003. Sen. Orrin Hatch wanted to develop software that would destroy people's computers on the third offense.
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http://www.cbsnews.com/stories/2003/...in551969.shtml
"If we can find some way to do this without destroying their machines, we'd be interested in hearing about that," Hatch said. "If that's the only way, then I'm all for destroying their machines. If you have a few hundred thousand of those, I think people would realize" the seriousness of their actions.
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I am not in favor of the government getting involved to this degree. I think citizens can handle this on our own. There are some major ISP's in the US who have a two strikes and you're out rule. On the second complaint from the RIAA or whoever your service is terminated.
But for the most part as it stands right now you can have P2P software running 24/7 and upload 1000 videos to YouTube and nothing is going to happen.
The copyright owners either don't care, are daunted by the task of stopping individual users or they feel like it's bad PR to go after anyone other than a large company.
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