Several states have enacted versions of a "model" law that imposes harsh criminal and civil damage penalties for activities considered to be a "theft" of the services provided over digital networks; such "model law" provisions are pending in several other states and threaten to become a national, harsher alternative to copyright law.

HRRC, the Consumer Electronics Association (CEA), library associations, and several others, have criticized pending proposals as overly broad, injurious to law-abiding consumers, and threatening to the development and marketing of entirely legitimate products. Essentially, such laws put at risk any device whose use on a home network may be considered, by the service provider, to be inconsistent with the rights purchased by the consumer. The oppressive civil and criminal penalties are such that no business or individual could afford to risk a controversy, even if they are confident of the lawful nature of their own devices and conduct.