I don't think there's any over reaction, really. I know people can blow things out of proportion, particularly as soon as people start speculating. Okay, what 'may' happen is speculation, however, these speculations are what the law
could mean, whether it results in that entirely depends on how it is enforced and what companies decide to do as a result of the law. These speculations I don't feel are an over reaction because they are things people don't want to happen as a result of SOPA/PIPA but can happen under the law. There shouldn't be any loopholes or gaps where the system could be abused and it
could really hurt honest people who don't like piracy, who don't pirate themselves and would in no way encourage it and also hurt a number of businesses who rely on the internet, not just on US soil but globally, as the US has a large number of consumers.
Laws are already abused by businesses when it suits them. For example: Viacom has already tried multiple legal hits against YouTube, who's to say they're not going to try it under SOPA/PIPA?
Example.
Imagine giving your government and even rich businesses the power to censor the media, like newspapers, TV, radio and so on. Yes, they might not use the media for personal interests - it's always possible they won't abuse this power, but there'd be nothing in place to stop them if they decided to do it. So why just not give them that power in the first place? Media should be about freedom of journalism and freedom of expression.
I bring the comparison because SOPA/PIPA gives power to the US government to censor the internet and if fully enforced
could seriously harm internet economy, not just within the US, but outside. I think the example of TGC is an excellent one, because if copyrighting material were found on the TGC forums and the new laws were enacted then in the eyes of US law it's TGC's responsibility therefore TGC could be blocked to US citizens (goodbye business with the US), their server (in the US) taken down. TGC could just complete censor their site and delete the forums because it'd be impossible to prevent copyright material being posted.
The propaganda for the bill is that it'll stop online piracy...which is a load of twoddle. Because it's not a fool proof system and there's a way to work around it. Plus, I am sure people who are annoyed by SOPA/PIPA will just start pirating out of protest, possibly downloaded media owned by companies who support SOPA/PIPA.