The Speech Act (Securing the Protection of our Enduring and Established Constitutional Heritage) aims to protect writers and journalists from 'libel tourists' who use courts in other jurisdictions with weaker freedom of expression laws, such as the UK, to bring defamation cases.
Libel reform campaigners in the UK say this should now send a "clear message" to the government that its own law needs reform, or else see London remain the "libel capital of the world".
According to the Associated Press, the US bill outlines that federal courts would be prevented from recognising or enforcing a foreign judgment for defamation when "inconsistent with the free speech guarantee in the constitution". Defendants can enforce the bill abroad by making a court order that the judgement against them would not be enforceable under the US constitution.
Director of English PEN, part of a libel reform campaign coalition in the UK, Jonathan Heawood told Journalism.co.uk that the Congress vote stems from a "fear" of weak English libel law.
"The American moves to uphold their high standards of free speech are not just political game-playing, as some on this side of the Atlantic have suggested," he said. "They are based on a well-grounded fear that English libel law will silence the kinds of political journalism and commentary that the First Amendment is designed to protect. Unless we're happy for London to remain the libel capital of the world, it's time for the government to take action. Their proposed Libel Reform Bill should not simply fiddle around the edges of the law: it's time for a root-and-branch reform."
John Kampfner, the CEO of fellow campaigner Index on Censorship agreed that the government must follow the US and make changes.
"This law should present a clear message to the UK coalition government," he said in a release. "When Britain's closest ally feels the need to create new laws to protect itself from the High Court in London, it's clear the status quo cannot continue. The government should deliver radical proposals for reform of English libel law in the draft bill promised for early 2011."
Justice Minister Lord McNally told the House of Lords the government will be drafting its own bill over the next few months, following the second hearing of Lord Lester's Private Members defamation bill.
Watch Congressman Steve Cohen speak on the US bill below:
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