SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Criminal Copyright Improvement Act 
of 1997''.

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 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 10 or more 
        copies, of 1 or more copyrighted works, and the total retail 
        value of the copyrighted work or the total retail value of the 
        copies of such work is $5,000 or more,
shall be punished as provided under section 2319 of title 18.''.
    (c) Limitation on Criminal Proceedings.--Section 507(a) of title 
17, United States Code, is amended by striking ``three'' and inserting 
``five''.
    (d) Criminal Infringement of a Copyright.--Section 2319 of title 
18, United States Code, is amended--
            (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``subsection (a) of this section'' and 
                inserting ``section 506(a)(1) of title 17'';
                    (B) in paragraph (1)--
                            (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 $5,000''; and
                    (C) in paragraph (3) by inserting before the 
                semicolon ``under this subsection''; and
            (2) 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--
            ``(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, including by 
        electronic means, during any 180-day period, of 10 or more 
        copies of 1 or more copyrighted works, and the total retail 
        value of the copyrighted work or the total retail value of the 
        copies of such work is $10,000 or more;
            ``(2) 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, including by 
        electronic means during any 180-day period, of 10 or more 
        copies of 1 or more copyrighted works, and the total retail 
        value of the copyrighted works or the total retail value of the 
        copies of such works is $5,000 or more; and
            ``(3) 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 felony offense under paragraph (1).
    ``(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 subsection (d) as subsection (f) and 
        transferring such subsection to the end of the section;
            (2) by redesignating subsection (e) as subsection (d); and
            (3) by inserting after subsection (d) (as redesignated by 
        paragraph (2) of this subsection) the following:
    ``(e)(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) In general.--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)--
                    (A) is sufficiently stringent to deter such a 
                crime;
                    (B) adequately reflects the additional 
                considerations set forth in paragraph (2) of this 
                subsection; and
                    (C) takes into account more than minimal planning 
                and other aggravating factors.
            (2) Implementation.--In implementing paragraph (1), the 
        Sentencing Commission shall ensure that the guidelines provide 
        for consideration of the retail value of the legitimate items 
        that are infringed upon and the quantity of items so infringed.
Criminal Copyright Improvement Act of 1997 - Amends Federal copyright law to define "financial gain" to include the receipt of anything of value, including the receipt of other copyrighted works. 
Sets penalties for willfully infringing a copyright by reproducing or distributing, including by electronic means, during any 180-day period, ten or more copies of one or more copyrighted works where such works or copies have a total retail value of $5,000 or more. 
Extends the statute of limitations for criminal copyright infringement from three to five years. 
Revises Federal criminal code provisions regarding criminal copyright infringement to provide for a fine and up to five years' imprisonment for infringing a copyright for purposes of commercial advantage or private financial gain, by reproducing or distributing, including by electronic means, during any 180-day period, at least ten copies or phonorecords of one or more copyrighted works which have a total retail value of more than $5,000. 
Provides for:  (1) up to three years' imprisonment and fines in any other such infringement case (without commercial gain intent), based on the retail value of the works; and (2) up to six years' imprisonment and a fine for a second or subsequent felony offense in such cases. 
Requires, during preparation of the presentence report in cases of criminal copyright infringement, unauthorized fixation and trafficking of live musical performances, and trafficking in counterfeit goods or services, that victims of the offense be permitted to submit, and the probation officer receive, a victim impact statement that identifies the victim and the extent and scope of the victim's injury and loss, including the estimated economic impact of the offense on that victim. 
Directs the U.S. Sentencing Commission to ensure that the applicable guideline range for a defendant convicted of a crime against intellectual property is sufficiently stringent to deter such a crime, adequately reflects consideration of the retail value of the legitimate items that are infringed upon and the quantity of items so infringed, and takes into account more than minimal planning and other aggravating factors.
Criminal Copyright Improvement Act of 1997