The proposed “plurilateral” Anti-Counterfeiting Trade Agreement (ACTA)intends to effectively “re-balance” the rights between intellectual property right (hereinafter as IPR) owners and consumers, as copyright, trademark and even patent holders believe. Yet, once the ACTA goes too far, the multinationals who wish for a double windfall, may be disappointed later when the adverse outcomes follow contrary to their expectations. More specifically, the criminal enforcement provision in the earlier leaked text of the ACTA, makes it clear that the Japan - U.S. joint proposal would like the ACTA to go well beyond cases of commercial counterfeiting and piracy. Arguably, non-commercial activities that take place through internet distribution and information technology such as peer-to-peer (P2P) file sharing would be captured by this provision, which would likely result in unprecedented impacts to an information society in two aspects. First, such proposed ACTA would be inconsistent with Article 61 of the TRIPS Agreement, or, more accurately, has expanded the scope of the TRIPS Agreement; in addition to the clash with the TRIPS Agreement, the ACTA would contradict the Electronic Communications Privacy Act of 1986 (ECPA) and the Digital Millennium Copyright Act (DMCA) as well, owing to the omission of subpoena provisions that protect ISPs from liability of privacy violations. Second, the imposition of criminal sanctions in cases of IP infringements would highly possibly to bring about thefallouts of anti-innovation and anti-competition and thus may not turn out as the ACTA purported, rather, such approach would conversely encourage motivation to piracy and counterfeiting conducts, arising from market forces. As a convincing rebuttal against the criminal enforcement provision in the proposed ACTA, Oberholzer-Gee and Strumpf’s empirical study found that illegal music downloads have had no noticeable effects on the sale of music, contrary to the claims of the recording industry. Stated another way, over-strict criminal sanctions on non-commercial file-sharing users should not be the way to effectively deter infringement; instead, while prosecutions will not stop illegal file trading altogether, what IPR owners need to do, economically, is to reduce infringement enough that they can make a return on their investment. Therefore, this article aims to provide a new paradigm that both re-allocates the marginal costs inherent in the production and distribution of digital content, and lowers enforcement costs burdened on IPR owners, to maintain the equilibrium of IPR holders and the general public.