SECTION 1. SHORT TITLE.

    This Act may be cited as the ``NII Copyright Protection Act of 
1995''.

SEC. 2. TRANSMISSION OF COPIES.

    (a) Distribution.--Section 106(3) of title 17, United States Code, 
is amended by striking ``or by rental, lease, or lending'' and 
inserting ``by rental, lease, or lending, or by transmission''.
    (b) Definitions.--Section 101 of title 17, United States Code, is 
amended--
            (1) in the definition of ``publication'' by striking ``or 
        by rental, lease, or lending'' in the first sentence and insert 
        ``by rental, lease, or lending, or by transmission''; and
            (2) in the definition of ``transmit'' by inserting at the 
        end thereof the following: ``To `transmit' a reproduction is to 
        distribute it by any device or process whereby a copy or 
        phonorecord of the work is fixed beyond the place from which it 
        was sent.''.
    (c) Importation.--Section 602 of title 17, United States Code, is 
amended by inserting ``whether by carriage of tangible goods or by 
transmission,'' after ``importation into the United States,''.

SEC. 3. EXEMPTIONS FOR LIBRARIES AND THE VISUALLY IMPAIRED.

    (a) Libraries.--Section 108 of title 17, United States Code, is 
amended--
            (1) in subsection (a) by deleting ``one copy or 
        phonorecord'' and inserting in lieu thereof ``three copies or 
        phonorecords'';
            (2) in subsection (a) by deleting ``such copy or 
        phonorecord'' and inserting in lieu thereof ``no more than one 
        of such copies or phonorecords'';
            (3) by inserting at the end of subsection (a)(3) ``if such 
        notice appears on the copy or phonorecord that is reproduced 
        under the provisions of this section'';
            (4) in subsection (b) by inserting ``or digital'' after 
        ``facsimile'' and by inserting ``in facsimile form'' before 
        ``for deposit for research use''; and
            (5) in subsection (c) by inserting ``or digital'' after 
        ``facsimile''.
    (b) Visually Impaired.--Title 17, United States Code, is amended by 
adding the following new section:
``Sec. 108A. Limitations on exclusive rights: Reproduction for the 
              Visually Impaired
    ``Notwithstanding the provision of section 106, it is not an 
infringement of copyright for a non-profit organization to reproduce 
and distribute to the visually impaired, at cost, a Braille, large 
type, audio or other edition of a previously published literary work in 
a form intended to be perceived by the visually impaired, provided 
that, during a period of at least one year after the first publication 
of a standard edition of such work in the United States, the owner of 
the exclusive right to distribute such work in the United States has 
not entered the market for editions intended to be perceived by the 
visually impaired.''.

SEC. 4. COPYRIGHT PROTECTION SYSTEMS AND COPYRIGHT MANAGEMENT 
              INFORMATION.

    Title 17, United States Code, is amended by adding the following 
new chapter:

       ``CHAPTER 12.--COPYRIGHT PROTECTION AND MANAGEMENT SYSTEMS

``Sec.
``1201. Circumvention of copyright protection systems.
``1202. Integrity of copyright management information.
``1203. Civil remedies.
``1204. Criminal offenses and penalties.
``Sec. 1201. Circumvention of copyright protection systems
    ``No person shall import, manufacture or distribute any device, 
product, or component incorporated into a device or product, or offer 
or perform any service, the primary purpose or effect of which is to 
avoid, bypass, remove, deactivate, or otherwise circumvent, without the 
authority of the copyright owner or the law, any process, treatment, 
mechanism or system which prevents or inhibits the violation of any of 
the exclusive rights of the copyright owner under section 106.
``Sec. 1202. Integrity of copyright management information
    ``(a) False Copyright Management Information.--No person shall 
knowingly provide copyright management information that is false, or 
knowingly publicly distribute or import for public distribution 
copyright management information that is false.
    ``(b) Removal or Alteration of Copyright Management Information.--
No person shall, without authority of the copyright owner or the law, 
(i) knowingly remove or alter any copyright management information, 
(ii) knowingly distribute or import for distribution copyright 
management information that has been altered without authority of the 
copyright owner or the law, or (iii) knowingly distribute or import for 
distribution copies or phonorecords from which copyright management 
information has been removed without authority of the copyright owner 
or the law.
    ``(c) Definition.--As used in this chapter, ``copyright management 
information'' means the name and other identifying information of the 
author of a work, the name and other identifying information of the 
copyright owner, terms and conditions for uses of the work, and such 
other information as the Register of Copyrights may prescribe by 
regulation.
``Sec. 1203. Civil remedies
    ``(a) Civil Actions.--Any person injured by a violation of Sec. 
1201 or 1202 may bring a civil action in an appropriate United States 
district court for such violation.
    ``(b) Powers of the Court.--In an action brought under subsection 
(a), the court--
            ``(1) may grant temporary and permanent injunctions on such 
        terms as it deems reasonable to prevent or restrain a 
        violation;
            ``(2) at any time while an action is pending, may order the 
        impounding, on such terms as it deems reasonable, of any device 
        or product that is in the custody or control of the alleged 
        violator and that the court has reasonable cause to believe was 
        involved in a violation;
            ``(3) may award damages under subsection (c);
            ``(4) in its discretion may allow the recovery of costs by 
        or against any party other than the United States or an officer 
        thereof;
            ``(5) in its discretion may award reasonable attorney's 
        fees to the prevailing party; and
            ``(6) may, as part of a final judgment or decree finding a 
        violation, order the remedial modification or the destruction 
        of any device or product involved in the violation that is in 
        the custody or control of the violator or has been impounded 
        under subsection (2).
    ``(c) Award of Damages.--
            ``(1) In general.--Except as otherwise provided in this 
        chapter, a violator is liable for either (i) the actual damages 
        and any additional profits of the violator, as provided by 
        subsection (2) or (ii) statutory damages, as provided by 
        subsection (3).
            ``(2) Actual damages.--The court shall award to the 
        complaining party the actual damages suffered by him or her as 
a result of the violation, and any profits of the violator that are 
attributable to the violation and are not taken into account in 
computing the actual damages, if the complaining party elects such 
damages at any time before final judgment is entered.
            ``(3) Statutory damages.--
                    ``(A) At any time before final judgment is entered, 
                a complaining party may elect to recover an award of 
                statutory damages for each violation of section 1201 in 
                the sum of not less than $200 or more than $2,500 per 
                device, product, offer or performance of service, as 
                the court considers just.
                    ``(B) At any time before final judgment is entered, 
                a complaining party may elect to recover an award of 
                statutory damages for each violation of section 1202 in 
                the sum of not less than $2,500 or more than $25,000.
            ``(4) Repeated violations.--In any case in which the 
        injured party sustains the burden of proving, and the court 
        finds, that a person has violated section 1201 or 1202 within 
        three years after a final judgment was entered against that 
        person for another such violation, the court may increase the 
        award of damages up to triple the amount that would otherwise 
        be awarded, as the court considers just.
            ``(5) Innocent violations.--The court in its discretion may 
        reduce or remit altogether the total award of damages in any 
        case in which the violator sustains the burden of proving, and 
        the court finds, that the violator was not aware and had no 
        reason to believe that its acts constituted a violation.
``Sec. 1204. Criminal offenses and penalties
    ``Any person who violates section 1202 with intent to defraud shall 
be fined not more than $500,000 or imprisoned for not more than 5 
years, or both.''.

SEC. 5. CONFORMING AMENDMENTS.

    (a) Table of Sections.--The table of sections for chapter 1 of 
title 17, United States Code, is amended by inserting after the item 
relating to section 108 the following:

``108A. Limitations on exclusive rights: Reproduction for the Visually 
                            Impaired.''
    (b) Table of Chapters.--The table of chapters for title 17, United 
States Code, is amended by adding at the end the following:

``12. Copyright Protection and Management Systems...........    1201''.

SEC. 6. EFFECTIVE DATE.

    This Act, and the amendments made by this Act, shall take effect on 
the date of the enactment of this Act.
NII Copyright Protection Act of 1995 - Amends Federal copyright law to grant exclusive rights to the owner of a copyrighted work to provide public distribution of copies or phonorecords of such work by transmission. 
Revises the definition of:  (1) "publication" to include transmission as a means by which copies and phonorecords of a work may be distributed to the public; and (2) "transmit" to include distribution by any device or process whereby a copy or phonorecord of the work is fixed beyond the place from which it was sent. 
Makes importation in the United States, whether by carriage of tangible goods or by transmission, of copies or phonorecords of work acquired outside of the United States an infringement of the exclusive right to distribute such work unless done with the owner's consent. 
(Sec. 3) Increases from one to three the limit on copies or phonorecords of a work a library or archive is allowed to reproduce. Limits the number of such copies or phonorecords that may be distributed to one.  Revises the conditions of such reproduction or distribution to require that a copyright notice must appear on the copy or phonorecord that is reproduced under the provisions of this Act. 
Allows a library or archive to reproduce or distribute a copy or phonorecord of an unpublished work duplicated in a digital form solely for purposes of:  (1) preservation and security; and (2) replacement of a copy or phonorecord that is damaged, deteriorating, lost, or stolen, if the library or archive determines that an unused replacement cannot be obtained at a fair price. 
Exempts a non-profit organization from copyright infringement for reproducing and distributing to the visually impaired, at cost, a Braille, large type, audio or other edition of a previously published literary work in a form intended to be perceived by the visually impaired if, during at least a one-year period after the first publication of a standard edition of such work in the United States, the owner of the exclusive right to distribute such work in the United States has not entered the market for editions intended to be perceived by the visually impaired. 
(Sec. 4) Prohibits any person from importing, manufacturing, or distributing any device or product, or from offering or performing any service, the primary purpose or effect of which is to circumvent any process, treatment, mechanism, or system which prevents or inhibits the violation of any of the exclusive rights of the copyright owner, without the authority of such owner or the law. 
Prohibits a person from knowingly:   (1) providing, publicly distributing, or importing for public distribution false copyright management information; (2) removing or altering any copyright management information, without the authority of the copyright owner or the law; or (3) distributing or importing for distribution such unauthorized altered information or copies or phonorecords from which such information has been removed without authorization.  Defines "copyright management information" to mean the name and other identifying information of the author of a work, the name and other identifying information of the copyright owner, terms and conditions for uses of the work, and such other information as the Register of Copyrights may prescribe by regulation. 
Sets forth civil remedies and criminal penalties for violation of this section.
NII Copyright Protection Act of 1995