The amended bill by Committee Chairman Patrick Leahy would authorise the US attorney general and IP owners to pursue web sites facilitating access to pirated and copyrighted works.
The amended version attempts to address concerns the bill was lacking sufficient due process and calls for more congressional oversight.
Wyden, who placed a hold on a similar bill in the last Congress, said the changes were insufficient, and that the legislation was well-intended in its pursuit of IP infringement but would "muzzle speech and stifle innovation and economic growth to achieve this objective”. He said it would be dangerous to cede "control of the Internet to corporations through a private right of action, and to government agencies that do not sufficiently understand and value the Internet".
In contrast, House Judiciary Committee Chairman Lamar Smith, Republican of Texas, welcomed the bill's passage and said he planned to introduce "similar legislation in the coming weeks".
The amended bill authorises the Attorney General as well as IP owners to bring action first against the owner or registrant of a domain name before pursuing action against the domain name itself. A safe harbour would exist for cooperating domain name registries, registrars, search engines, payment processors, and ad networks.
The new version requires the Attorney General and rightsholders to follow a formal notification process for those targeted, and to identify parties compelled to act in pursuit of a rogue site. Any entity that could be required to take action could seek to modify, suspend or vacate an order.
The Attorney General would also be required to provide an annual report to Congress detailing each action taken under the new law. The Register of Copyrights would prepare a study not only on the law's effectiveness but the possible need for reimbursement for intermediaries compelled to act.
Stripped from the bill was instruction that the Attorney general provide guidance for IP owners on how to provide information to law enforcement before or during a legal action.
A second amendment by Leahy and Committee ranking Republican Charles Grassley of Iowa also passed by voice vote. That amendment permits the US Customs and Border Protection to share information on seized materials with copyright and trade mark owners to ensure they are in fact counterfeit.
The PROTECT-IP Act's Committee passage was praised by the US Chamber of Commerce's Global IP Center and the Motion Picture Association of America, with opposition voiced by public-interest group Public Knowledge.
By Senate tradition, the Senate Majority Leader withholds a floor vote on any bill on which a Senator places a hold, although he has the authority to press forward with a vote anyway. Wyden publicly announces all of his holds, but senators are not required to do so.