U.S. tax reform bill would benefit manufacturers - C&EN Global

2 is an “important step toward modernizing our nation's tax code,” says the American Chemistry Council, the chemical industry's largest U.S. lobby...
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ACS prevails over SciHub in copyright suit Internet pirate site is ordered to stop distributing the society’s content—but will likely continue its ways The American Chemical Society won its lawsuit against the internet pirate site SciHub for illegally distributing its copyrighted content. Federal Judge Leonie M. Brinkema on Nov. 3 ordered Sci-Hub to stop distributing ACS content and imitating the society’s trademark. She also ruled that internet service providers, such as search engines, domain name registries, or web hosting services, stop distributing ACS content on Sci-Hub’s site. ACS was awarded $4.8 million in damages. “The ruling is a victory for copyright law and the entire publishing enterprise,” ACS said in a statement. “It was clear from the outset that Sci-Hub has pirated copyright-

ed and trademarked content on a massive scale.” ACS publishes C&EN. Likely headquartered in Russia, Sci-Hub bypasses publishers’ paywalls to distribute millions of research papers and news articles for free, often while mimicing the publishers’ own websites. The organization never appeared in court to defend itself in the case so ACS won the case by default. Sci-Hub likely won’t change its behavior because of this ruling—it has ignored a similar judgment in a case brought by the publisher Elsevier. ACS also likely won’t ever get the millions of dollars it was awarded. But the lawsuit does allow ACS to legally pursue companies that host SciHub content.

Screen shots taken on June 27 show how closely a Sci-Hub web page (right) mimics that of ACS Publications (left). ACS spokesperson Glenn Ruskin says the society will start identifying companies that are “currently hosting copied or spoofed versions of the ACS website.” Then ACS will challenge these hosts. ACS originally filed its lawsuit against Sci-Hub in June. A preliminary judgment was issued last month. The society has also joined several other scientific publishers in a lawsuit against the scientific networking site ResearchGate asking it to remove copyrighted material. Ruskin says the Sci-Hub ruling shows that “organizations cannot take the law into their own hands. ACS takes copyright law seriously and will continue to take action as needed to protect its copyrighted material.”—ANDREA WIDENER

LEGISLATION

U.S. tax reform bill would benefit manufacturers Measure would kill breaks for higher education

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C&EN | CEN.ACS.ORG | NOVEMBER 13, 2017

operations would have a one-time opportunity to bring home trillions of dollars in foreign income currently sheltered in overseas subsidiaries at reduced tax rates. Higher education groups, meanwhile, say several provisions in the bill, such as a new tax on wealthy college endowments, will harm students and their families. To raise revenue to help fund the tax cuts, private colleges and universities would face a 1.4% excise tax on investment earnings from their endowments. The proposal would affect schools with assets of more than $100,000 per student and would raise an estimated $3 billion over a decade. “Endowments support substantial student aid and student service programs, and provide funding for instruction, research, and for building and maintaining classrooms, labs, libraries, and other facilities,” says Mary Sue Coleman, president of the Association of American Universi-

Yale’s endowment helps fund student financial aid and research at the university. Republicans want to tax interest earned by college endowments and eliminate deductions for student loans. ties, which represents 62 institutions. The bill would also eliminate the interest deduction on student loans, which affects about a third of Americans with student debt. And it would tax the tuition waivers that graduate students often receive when they work as teaching assistants or researchers. Supporters hope to send a final bill to President Donald J. Trump by the end of the year. The Senate released a similar proposal on Nov. 9.—GLENN HESS, special

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Tax reform legislation proposed by Republicans in the U.S. House of Representatives would boost large chemical companies and other U.S.-based multinationals. But research universities, teaching assistants, and those with student loans would lose key benefits under the plan to enact the first major overhaul of the U.S. tax system in more than 30 years. The introduction of the bill (H.R. 1) on Nov. 2 is an “important step toward modernizing our nation’s tax code,” says the American Chemistry Council, the chemical industry’s largest U.S. lobbying group. The GOP blueprint includes numerous provisions sought by manufacturers, such as a sharp cut in the current corporate tax rate of 35%, one of the highest in the world, to 20%. The change is designed to make taxes on U.S.-based multinationals more competitive in global markets. In addition, companies with worldwide