--H.R.2265--
H.R.2265
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To amend the provisions of titles 17 and 18, United States Code, to
provide greater copyright protection by amending criminal copyright infringement
provisions, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the `No Electronic Theft (NET) Act'.
SEC. 2. CRIMINAL INFRINGEMENT OF COPYRIGHTS.
(a) DEFINITION OF FINANCIAL GAIN- Section 101 of title 17, United States
Code, is amended by inserting after the undesignated paragraph relating to the
term `display', the following new paragraph:
`The term `financial gain' includes receipt, or expectation of receipt,
of anything of value, including the receipt of other copyrighted
works.'.
(b) CRIMINAL OFFENSES- Section 506(a) of title 17, United States Code, is
amended to read as follows:
`(a) CRIMINAL INFRINGEMENT- Any person who infringes a copyright willfully
either--
`(1) for purposes of commercial advantage or private financial gain,
or
`(2) by the reproduction or distribution, including by electronic means,
during any 180-day period, of 1 or more copies or phonorecords of 1 or more
copyrighted works, which have a total retail value of more than
$1,000,
shall be punished as provided under section 2319 of title 18, United
States Code. For purposes of this subsection, evidence of reproduction or
distribution of a copyrighted work, by itself, shall not be sufficient to
establish willful infringement.'.
(c) LIMITATION ON CRIMINAL PROCEEDINGS- Section 507(a) of title 17, United
States Code, is amended by striking `three' and inserting `5'.
(d) CRIMINAL INFRINGEMENT OF A COPYRIGHT- Section 2319 of title 18, United
States Code, is amended--
(1) in subsection (a), by striking `subsection (b)' and inserting
`subsections (b) and (c)';
(A) in the matter preceding paragraph (1), by striking `subsection (a)
of this section' and inserting `section 506(a)(1) of title 17';
and
(i) by inserting `including by electronic means,' after `if the
offense consists of the reproduction or distribution,'; and
(ii) by striking `with a retail value of more than $2,500' and
inserting `which have a total retail value of more than $2,500';
and
(3) by redesignating subsection (c) as subsection (e) and inserting
after subsection (b) the following:
`(c) Any person who commits an offense under section 506(a)(2) of title
17, United States Code--
`(1) shall be imprisoned not more than 3 years, or fined in the amount
set forth in this title, or both, if the offense consists of the
reproduction or distribution of 10 or more copies or phonorecords of 1 or
more copyrighted works, which have a total retail value of $2,500 or
more;
`(2) shall be imprisoned not more than 6 years, or fined in the amount
set forth in this title, or both, if the offense is a second or subsequent
offense under paragraph (1); and
`(3) shall be imprisoned not more than 1 year, or fined in the amount
set forth in this title, or both, if the offense consists of the
reproduction or distribution of 1 or more copies or phonorecords of 1 or
more copyrighted works, which have a total retail value of more than
$1,000.
`(d)(1) During preparation of the presentence report pursuant to Rule
32(c) of the Federal Rules of Criminal Procedure, victims of the offense shall
be permitted to submit, and the probation officer shall receive, a victim
impact statement that identifies the victim of the offense and the extent and
scope of the injury and loss suffered by the victim, including the estimated
economic impact of the offense on that victim.
`(2) Persons permitted to submit victim impact statements shall
include--
`(A) producers and sellers of legitimate works affected by conduct
involved in the offense;
`(B) holders of intellectual property rights in such works; and
`(C) the legal representatives of such producers, sellers, and
holders.'.
(e) UNAUTHORIZED FIXATION AND TRAFFICKING OF LIVE MUSICAL PERFORMANCES-
Section 2319A of title 18, United States Code, is amended--
(1) by redesignating subsections (d) and (e) as subsections (e) and (f),
respectively; and
(2) by inserting after subsection (c) the following:
`(d) VICTIM IMPACT STATEMENT- (1) During preparation of the presentence
report pursuant to Rule 32(c) of the Federal Rules of Criminal Procedure,
victims of the offense shall be permitted to submit, and the probation officer
shall receive, a victim impact statement that identifies the victim of the
offense and the extent and scope of the injury and loss suffered by the
victim, including the estimated economic impact of the offense on that
victim.
`(2) Persons permitted to submit victim impact statements shall
include--
`(A) producers and sellers of legitimate works affected by conduct
involved in the offense;
`(B) holders of intellectual property rights in such works; and
`(C) the legal representatives of such producers, sellers, and
holders.'.
(f) TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES- Section 2320 of title
18, United States Code, is amended--
(1) by redesignating subsections (d) and (e) as subsections (e) and (f),
respectively; and
(2) by inserting after subsection (c) the following:
`(d)(1) During preparation of the presentence report pursuant to Rule
32(c) of the Federal Rules of Criminal Procedure, victims of the offense shall
be permitted to submit, and the probation officer shall receive, a victim
impact statement that identifies the victim of the offense and the extent and
scope of the injury and loss suffered by the victim, including the estimated
economic impact of the offense on that victim.
`(2) Persons permitted to submit victim impact statements shall
include--
`(A) producers and sellers of legitimate goods or services affected by
conduct involved in the offense;
`(B) holders of intellectual property rights in such goods or services;
and
`(C) the legal representatives of such producers, sellers, and
holders.'.
(g) DIRECTIVE TO SENTENCING COMMISSION- (1) Under the authority of the
Sentencing Reform Act of 1984 (Public Law 98-473; 98 Stat. 1987) and section
21 of the Sentencing Act of 1987 (Public Law 100-182; 101 Stat. 1271; 18
U.S.C. 994 note) (including the authority to amend the sentencing guidelines
and policy statements), the United States Sentencing Commission shall ensure
that the applicable guideline range for a defendant convicted of a crime
against intellectual property (including offenses set forth at section 506(a)
of title 17, United States Code, and sections 2319, 2319A, and 2320 of title
18, United States Code) is sufficiently stringent to deter such a crime and to
adequately reflect the additional considerations set forth in paragraph (2) of
this subsection.
(2) In implementing paragraph (1), the Sentencing Commission shall ensure
that the guidelines provide for consideration of the retail value and quantity
of the items with respect to which the crime against intellectual property was
committed.
SEC. 3. INFRINGEMENT BY UNITED STATES.
Section 1498(b) of title 28, United States Code, is amended by striking
`remedy of the owner of such copyright shall be by action' and inserting
`action which may be brought for such infringement shall be an action by the
copyright owner'.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
END
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