Are they saying that this act allows companies to watermark their content to prevent other companies from generating secondary content on their content?
How exactly does this act work?
I think it is DMCA for images, tools and derivative works, along as all logging needed to track the creator, the tool and the publisher.
As I said though, I just skimmed the text.
It allows anyone to provide a complaint without any evidence, about any content hosted anywhere, and puts the legal onus on the person hosting that content to prove the negative (that it isn't a "fake"), with the legal requirement to remove the content as soon as is technically feasible (ie, instantly).
So, similarly abusable to the DMCA, but with even broader requirements and even more-impossible-to-prove legitimacy, since it creates a whole new ill-defined class of legal ownership over content.
TLDR: it's a great reason to move hosting outside of the US