No Electronic Theft (NET) Act

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)'';
        (2) 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''; and
            (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 $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.

Summary: No Electronic Theft (NET) Act - 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: (1) for purposes of commercial advantage or private financial gain. Or (2) by reproducing or distributing, including by electronic means, during any 180-day period, one or more copies of one or more copyrighted works with a total retail value of more than $1,000. Provides that evidence of reproduction or distribution of a copyrighted work, by itself, shall not be sufficient to establish willful infringement. 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 $2,500. Provides for: (1) up to three years' imprisonment and fines in infringement cases described above. (2) up to six years' imprisonment and a fine for a second or subsequent felony offense under (1). And (3) up to one year's imprisonment and a fine for the reproduction or distribution of one or more copies or phonorecords of one or more copyrighted works with a total retail value of more than $1,000. 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 US 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 and adequately reflects consideration of the retail value and quantity of items with respect to which the crime against intellectual property was committed.