Sen. Orrin G. Hatch (R-Utah), last week introduced the INDUCE Act, which critics say would prohibit so-called peer-to-peer networks like Kaaza, and some consumer electronics devices like the popular Apple iPod.

The bill, Inducing Infringement of Copyrights Act of 2004, would in the senator’s words, allow creative artists to sue corporations that profit by encouraging children, teenagers and others to commit illegal or criminal acts of copyright infringement.

“Tragically, some corporations now seem to think that they can legally profit by inducing children to steal,” said Hatch. “Some think they can legally lure children into breaking the law with false promises of ‘free music.’”

But critics like the Electronic Frontier Foundation believe the Induce Act, which would make it illegal to ‘induce’ people to infringe copyright, could potentially outlaw everything from CD burners to the iPod.

In a prepared statement EFF said: [Because the Induce Act defines “intent” as being “determined by a reasonable person taking into account all relevant facts,” it’s unlikely that a technology company like Apple would be able to easily dismiss any lawsuit brought against it, EFF said in a statement posted on its web site. It would face the prospect of an expensive trial, with all the attendant legal fees and negative publicity.]

The INDUCE Act is the latest bill introduced by Sen. Hatch that is favorable to influential copyright holders. In the past five years, Hatch has received $158,000 in campaign contributions from music, television and movie industries, according to the Center for Responsive Politics.

(via U.S. Senator Orrin G. Hatch)