New technology is "encouraging large-scale criminal enterprises to get involved in intellectual-property theft," Gonzales said, adding that proceeds from the illicit businesses are used, "quite frankly, to fund terrorism activities."

Willful attempts at piracy, even if they fail, could be punished by up to 10 years in prison.

But one of the more controversial sections may be the changes to the DMCA. Under current law, Section 1201 of the law generally prohibits distributing or trafficking in any software or hardware that can be used to bypass copy-protection devices. (That section already has been used against a Princeton computer science professor, Russian programmer Dmitry Sklyarov and a toner cartridge remanufacturer.)

Smith's measure would expand those civil and criminal restrictions. Instead of merely targeting distribution, the new language says nobody may "make, import, export, obtain control of, or possess" such anticircumvention tools if they may be redistributed to someone else.

When the Attorney General raises the specter of terrorism in the context of laws which primarily related to p2p file trading networks, its time to stop taking the Attorney General seriously. He is obviously not a serious person.

As for Lamar Smith, he is responsible for 2004's round of rock stupid DNS WHOIS legislation.