The American people now have a censor—North Korean dictator Kim Jong Un, and they can thank President Obama's failure to defend their rights to free speech and privacy.

After hacking Sony's computer network and subjecting its employees to identity theft and public embarrassment, North Korean hackers threatened theater chains with a 9-11 attack if they exhibited a satirical comedy about a plot to assassinate Kim Jong Un.

Sony (SNE), unable to find theaters or pay TV and digital platforms to carry the movie, was forced to cancel its December 25 release. And Hollywood studios are now shelving other projects that might offend North Korea.

For months, the Administration has been aware of the movie and warned Sony North Korea might attempt to shake down U.S. targets, but did little to protect the studio or its exhibitors.

U.S. policy on cyber attacks is to protect private-sector assets vital to U.S. infrastructure—for example, the power grid, banking and internet—but the administration has repeatedly failed to act effectively when other private businesses and citizens are threatened.

For example, the Chinese government and army have hacked U.S. firms, seeking to steal vital corporate secrets, but the best the Obama Administration has been willing to muster are protests and criminal indictments of Chinese military officials, which are meaningless if they don't travel to the United States.

Washington could mount counter attacks. However, the Obama Administration's response, whether regarding China's bullying of U.S. allies in the China Sea or its harboring North Korean hackers operating within its borders, has been to plead for relief. And to seek new areas of cooperation with China in the spheres of economics and defense that could one day reduce America to Beijing's client state.

Now, no one should be surprised that North Korea has concluded it can destroy Sony's internal communication system, subject its employees to peril and bully all of Hollywood at its whim.