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It refers to foreign-hosted sites that sell to US-based customers, or who use US-based advertising agencies, or US banks. The idea is that the largest audience for US-made IP is in America, so blocking US users would cripple foreign pirates who traffic in US IP.

First step: create "online borders" around US (they tried to do this in Europe) to "protect our jobs" and all that.

Second step: filter the information you get in US. Make the Internet more like TV. (http://www.youtube.com/watch?v=A2XPiqhN_Ns)

I think crippling foreign pirates isn't even the biggest goal, the biggest goal is that US customers can't benefit from foreign pirates. They'll care much less about that Russian/wherever site hosting their content if everyone in America has already paid for it.

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