II 

Calendar No. 781 

108TH CONGRESS 

2D SESSION H. R. 2391 

IN THE SENATE OF THE UNITED STATES 

MARCH 11, 2004 

Received; read twice and referred to the Committee on the Judiciary 

OCTOBER 7, 2004 

Reported by Mr. HATCH, with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

AN ACT 

To amend title 35, United States Code, to promote cooperative research involving universities, the public sector, and 

private enterprises. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Cooperative Research 

5 and Technology Enhancement (CREATE) Act of 2004’’. 
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1 SEC. 2. COLLABORATIVE EFFORTS ON CLAIMED INVEN2 TIONS. 

3 Section 103(c) of title 35, United States Code, is 

4 amended to read as follows: 

5 ‘‘(c)(1) Subject matter developed by another person, 

6 which qualifies as prior art only under one or more of sub7 sections (e), (f), and (g) of section 102 of this title, shall 

8 not preclude patentability under this section where the 

9 subject matter and the claimed invention were, at the time 

10 the claimed invention was made, owned by the same per11 son or subject to an obligation of assignment to the same 

12 person. 

13 ‘‘(2) For purposes of this subsection, subject matter 

14 developed by another person and a claimed invention shall 

15 be deemed to have been owned by the same person or sub16 ject to an obligation of assignment to the same person if— 

17 ‘‘(A) the claimed invention was made by or on 

18 behalf of parties to a joint research agreement that 

19 was in effect on or before the date the claimed in20 vention was made; 

21 ‘‘(B) the claimed invention was made as a re22 sult of activities undertaken within the scope of the 

23 joint research agreement; and 

24 ‘‘(C) the application for patent for the claimed 

25 invention discloses or is amended to disclose the 
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1 names of the parties to the joint research agree2 ment. 

3 ‘‘(3) For purposes of paragraph (2), the term ‘joint 

4 research agreement’ means a written contract, grant, or 

5 cooperative agreement entered into by two or more per6 sons or entities for the performance of experimental, devel7 opmental, or research work in the field of the claimed in8 vention.’’. 

9 SEC. 3. EFFECTIVE DATE. 

10 (a) IN GENERAL.—The amendments made by this 

11 Act shall apply to any patent granted on or after the date 

12 of the enactment of this Act. 

13 (b) SPECIAL RULE.—The amendments made by this 

14 Act shall not affect any final decision of a court or the 

15 United States Patent and Trademark Office rendered be16 fore the date of the enactment of this Act, and shall not 

17 affect the right of any party in any action pending before 

18 the United States Patent and Trademark Office or a court 

19 on the date of the enactment of this Act to have that par20 ty’s rights determined on the basis of the provisions of 

21 title 35, United States Code, in effect on the day before 

22 the date of the enactment of this Act. 

23 SECTION 1. SHORT TITLE. 

24 This Act may be cited as the ‘‘Intellectual Property 

25 Protection Act of 2004’’. 
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1 TITLE I—COOPERATIVE RE2 SEARCH AND TECHNOLOGY 

3 ENHANCEMENT 

4 SEC. 101. SHORT TITLE. 

5 This title may be cited as the ‘‘Cooperative Research 

6 and Technology Enhancement (CREATE) Act of 2004’’. 

7 SEC. 102. COLLABORATIVE EFFORTS ON CLAIMED INVEN8 TIONS. 

9 Section 103(c) of title 35, United States Code, is 

10 amended to read as follows: 

11 ‘‘(c)(1) Subject matter developed by another person, 

12 which qualifies as prior art only under one or more of sub13 sections (e), (f), and (g) of section 102 of this title, shall 

14 not preclude patentability under this section where the sub15 ject matter and the claimed invention were, at the time the 

16 claimed invention was made, owned by the same person or 

17 subject to an obligation of assignment to the same person. 

18 ‘‘(2) For purposes of this subsection, subject matter de19 veloped by another person and a claimed invention shall 

20 be deemed to have been owned by the same person or subject 

21 to an obligation of assignment to the same person if— 

22 ‘‘(A) the claimed invention was made by or on 

23 behalf of parties to a joint research agreement that 

24 was in effect on or before the date the claimed inven25 tion was made; 
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1 ‘‘(B) the claimed invention was made as a result 

2 of activities undertaken within the scope of the joint 

3 research agreement; and 

4 ‘‘(C) the application for patent for the claimed 

5 invention discloses or is amended to disclose the 

6 names of the parties to the joint research agreement. 

7 ‘‘(3) For purposes of paragraph (2), the term ‘joint 

8 research agreement’ means a written contract, grant, or co9 operative agreement entered into by two or more persons 

10 or entities for the performance of experimental, develop11 mental, or research work in the field of the claimed inven12 tion.’’. 

13 SEC. 103. EFFECTIVE DATE. 

14 (a) IN GENERAL.—The amendments made by this title 

15 shall apply to any patent granted on or after the date of 

16 the enactment of this Act. 

17 (b) SPECIAL RULE.—The amendments made by this 

18 title shall not affect any final decision of a court or the 

19 United States Patent and Trademark Office rendered before 

20 the date of the enactment of this Act, and shall not affect 

21 the right of any party in any action pending before the 

22 United States Patent and Trademark Office or a court on 

23 the date of the enactment of this Act to have that party’s 

24 rights determined on the basis of the provisions of title 35, 
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1 United States Code, in effect on the day before the date of 

2 the enactment of this Act. 

3 TITLE II—PIRACY DETERRENCE 

4 IN EDUCATION 

5 SEC. 201. SHORT TITLE. 

6 This title may be cited as the ‘‘Piracy Deterrence and 

7 Education Act of 2004’’. 

8 SEC. 202. FINDINGS. 

9 Congress finds as follows: 

10 (1) The Internet, while changing the way our so11 ciety communicates, has also changed the nature of 

12 many crimes, including the theft of intellectual prop13 erty. 

14 (2) Trafficking in infringing copyrighted works 

15 through increasingly sophisticated electronic means, 

16 including peer-to-peer file trading networks, Internet 

17 chat rooms, and news groups, threatens lost jobs, lost 

18 income for creators, lower tax revenue, and higher 

19 prices for honest purchasers. 

20 (3) The most popular peer-to-peer file trading 

21 software programs have been downloaded by computer 

22 users over 600,000,000 times. At any one time there 

23 are over 3,000,000 users simultaneously using just 

24 one of these services. Each month, on average, over 
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1 2,300,000,000 digital-media files are transferred 

2 among users of peer-to-peer systems. 

3 (4) Many computer users simply believe that 

4 they will not be caught or prosecuted for their con5 duct. 

6 (5) The security and privacy threats posed by 

7 certain peer-to-peer networks extend beyond users in8 advertently enabling a hacker to access files. Millions 

9 of copies of one of the most popular peer-to-peer net10 works contain software that could allow an inde11 pendent company to take over portions of users’ com12 puters and Internet connections and has the capacity 

13 to keep track of users’ online habits. 

14 (6) In light of these considerations, Federal law 

15 enforcement agencies should actively pursue criminals 

16 who steal the copyrighted works of others, and prevent 

17 such activity through enforcement and awareness. The 

18 public should be educated about the security and pri19 vacy risks associated with being connected to certain 

20 peer-to-peer networks. 

21 SEC. 203. VOLUNTARY PROGRAM OF DEPARTMENT OF JUS22 TICE. 

23 (a) VOLUNTARY PROGRAM.—The Attorney General is 

24 authorized to establish a program under which the Depart25 ment of Justice, in cases where persons who are subscribers 
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1 of Internet service providers appear to the Department of 

2 Justice to be engaging in copyright infringing conduct in 

3 the course of using such Internet service, would send to the 

4 Internet service providers warning letters that warn such 

5 persons of the penalties for such copyright infringement. 

6 The Internet service providers may forward the warning let7 ters to such persons. 

8 (b) LIMITATIONS ON PROGRAM.— 

9 (1) EXTENT AND LENGTH OF PROGRAM.—The 

10 program under subsection (a) shall terminate at the 

11 end of the 18-month period beginning on the date of 

12 the enactment of this Act and shall be limited to not 

13 more than 10,000 warning letters. 

14 (2) PRIVACY PROTECTIONS.—No Internet service 

15 provider that receives a warning letter from the De16 partment of Justice under subsection (a) may disclose 

17 to the Department any identifying information about 

18 the subscriber that is the subject of the warning letter 

19 except pursuant to court order or other applicable 

20 legal process that requires such disclosure. 

21 (c) REIMBURSEMENT OF INTERNET SERVICE PRO22 VIDERS.—The Department of Justice shall reimburse Inter23 net service providers for all reasonable direct costs incurred 

24 by such service providers in identifying the proper recipi-
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1 ents of the warning letters under subsection (a) and for2 warding the letters. 

3 (d) REPORTS TO CONGRESS.—The Attorney General 

4 shall submit to Congress a report on the program estab5 lished under subsection (a) both at the time the program 

6 is initiated and at the conclusion of the program. 

7 (e) INADMISSIBILITY OF EVIDENCE.—The fact that an 

8 Internet service provider participated in the program under 

9 subsection (a), received a warning letter from the Depart10 ment of Justice, was aware of the contents of the warning 

11 letter, or forwarded the warning letter to a subscriber, shall 

12 not be admissible in any legal proceeding brought against 

13 the Internet service provider. 

14 (f) CONSTRUCTION.—Nothing in this section shall be 

15 construed to affect the ability of a court to consider, in a 

16 legal proceeding brought against an Internet service pro17 vider, notifications of claimed infringement as described in 

18 section 512(c)(3) of title 17, United States Code, or any 

19 other relevant evidence, other than that described in sub20 section (e). 

21 SEC. 204. DESIGNATION AND TRAINING OF AGENTS IN COM22 PUTER HACKING AND INTELLECTUAL PROP23 ERTY UNITS. 

24 (a) DESIGNATION OF AGENTS IN CHIPS UNITS.—The 

25 Attorney General shall ensure that any unit in the Depart-
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1 ment of Justice responsible for investigating computer hack2 ing or responsible for investigating intellectual property 

3 crimes is assigned at least one agent to support such unit 

4 for the purpose of investigating crimes relating to the theft 

5 of intellectual property. 

6 (b) TRAINING.—The Attorney General shall ensure 

7 that each agent assigned under subsection (a) has received 

8 training in the investigation and enforcement of intellectual 

9 property crimes. 

10 SEC. 205. EDUCATION PROGRAM. 

11 (a) ESTABLISHMENT.—There shall be established with12 in the Office of the Associate Attorney General of the United 

13 States an Internet Use Education Program. 

14 (b) PURPOSE.—The purpose of the Internet Use Edu15 cation Program shall be to— 

16 (1) educate the general public concerning the 

17 value of copyrighted works and the effects of the theft 

18 of such works on those who create them; and 

19 (2) educate the general public concerning the pri20 vacy, security, and other risks of using the Internet 

21 to obtain illegal copies of copyrighted works. 

22 (c) SECTOR SPECIFIC MATERIALS.—The Internet Use 

23 Educational Program shall, to the extent appropriate, de24 velop materials appropriate to Internet users in different 

25 sectors of the general public where criminal copyright in-
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1 fringement is a concern. The Attorney General shall consult 

2 with appropriate interested parties in developing such sec3 tor-specific materials. 

4 (d) CONSULTATIONS.—The Attorney General shall con5 sult with the Register of Copyrights and the Secretary of 

6 Commerce in developing the Internet Use Education Pro7 gram under this section. 

8 (e) PROHIBITION ON USE OF CERTAIN FUNDS.—The 

9 program created under this section shall not use funds or 

10 resources of the Department of Justice allocated for crimi11 nal investigation or prosecution. 

12 (f) ADDITIONAL PROHIBITION ON THE USE OF

13 FUNDS.—The program created under this section shall not 

14 use any funds or resources of the Department of Justice al15 located for the Civil Rights Division of the Department, in16 cluding any funds allocated for the enforcement of civil 

17 rights or the Voting Rights Act of 1965. 

18 SEC. 206. ACTIONS BY THE GOVERNMENT OF THE UNITED 

19 STATES. 

20 Section 411(a) of title 17, United States Code, is 

21 amended in the first sentence by striking ‘‘Except for’’ and 

22 inserting ‘‘Except for an action brought by the Government 

23 of the United States or by any agency or instrumentality 

24 thereof, or’’ . 
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1 SEC. 207. AUTHORIZED APPROPRIATIONS. 

2 There are authorized to be appropriated to the Depart3 ment of Justice for fiscal year 2005 not less than 

4 $15,000,000 for the investigation and prosecution of viola5 tions of title 17, United States Code. 

6 SEC. 208. CRIMINAL PENALTIES FOR UNAUTHORIZED RE7 CORDING OF MOTION PICTURES IN A MOTION 

8 PICTURE EXHIBITION FACILITY. 

9 (a) IN GENERAL.—Chapter 113 of title 18, United 

10 States Code, is amended by adding after section 2319A the 

11 following new section: 

12 ‘‘§ 2319B. Unauthorized recording of motion pictures 

13 in a motion picture exhibition facility 

14 ‘‘(a) OFFENSE.—Any person who, without the author15 ization of the copyright owner, knowingly uses or attempts 

16 to use an audiovisual recording device to transmit or make 

17 a copy of a motion picture or other audiovisual work pro18 tected under title 17, or any part thereof, from a perform19 ance of such work in a motion picture exhibition facility, 

20 shall— 

21 ‘‘(1) be imprisoned for not more than 3 years, 

22 fined under this title, or both; or 

23 ‘‘(2) if the offense is a second or subsequent of24 fense, be imprisoned for no more than 6 years, fined 

25 under this title, or both. 
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1 The possession by a person of an audiovisual recording de2 vice in a motion picture exhibition facility may be consid3 ered as evidence in any proceeding to determine whether 

4 that person committed an offense under this subsection, but 

5 shall not, by itself, be sufficient to support a conviction of 

6 that person for such offense. 

7 ‘‘(b) FORFEITURE AND DESTRUCTION.—When a per8 son is convicted of an offense under subsection (a), the court 

9 in its judgment of conviction shall, in addition to any pen10 alty provided, order the forfeiture and destruction or other 

11 disposition of all unauthorized copies of motion pictures or 

12 other audiovisual works protected under title 17, or parts 

13 thereof, and any audiovisual recording devices or other 

14 equipment used in connection with the offense. 

15 ‘‘(c) AUTHORIZED ACTIVITIES.—This section does not 

16 prevent any lawfully authorized investigative, protective, or 

17 intelligence activity by an officer, agent, or employee of the 

18 United States, a State, or a political subdivision of a State, 

19 or by a person acting under a contract with the United 

20 States, a State, or a political subdivision of a State. 

21 ‘‘(d) IMMUNITY FOR THEATERS AND AUTHORIZED

22 PERSONS.—With reasonable cause, the owner or lessee of 

23 a motion picture facility where a motion picture is being 

24 exhibited, the authorized agent or employee of such owner 
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1 or lessee, the licensor of the motion picture being exhibited, 

2 or the agent or employee of such licensor— 

3 ‘‘(1) may detain, in a reasonable manner and 

4 for a reasonable time, any person suspected of com5 mitting an offense under this section for the purpose 

6 of questioning that person or summoning a law en7 forcement officer; and 

8 ‘‘(2) shall not be held liable in any civil or 

9 criminal action by reason of a detention under para10 graph (1). 

11 ‘‘(e) VICTIM IMPACT STATEMENT.— 

12 ‘‘(1) IN GENERAL.—During the preparation of 

13 the presentence report under rule 32(c) of the Federal 

14 Rules of Criminal Procedure, victims of an offense 

15 under this section shall be permitted to submit to the 

16 probation officer a victim impact statement that iden17 tifies the victim of the offense and the extent and 

18 scope of the injury and loss suffered by the victim, in19 cluding the estimated economic impact of the offense 

20 on that victim. 

21 ‘‘(2) CONTENTS.—A victim impact statement 

22 submitted under this subsection shall include— 

23 ‘‘(A) producers and sellers of legitimate 

24 works affected by conduct involved in the offense; 
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1 ‘‘(B) holders of intellectual property rights 

2 in the works described in subparagraph (A); and 

3 ‘‘(C) the legal representatives of such pro4 ducers, sellers, and holders. 

5 ‘‘(f) DEFINITIONS.—In this section: 

6 ‘‘(1) AUDIOVISUAL WORK, COPY, ETC.—The terms 

7 ‘audiovisual work’, ‘copy’, ‘copyright owner’, ‘motion 

8 picture’, and ‘transmit’ have, respectively, the mean9 ings given those terms in section 101 of title 17. 

10 ‘‘(2) AUDIOVISUAL RECORDING DEVICE.—The 

11 term ‘audiovisual recording device’ means a digital or 

12 analog photographic or video camera, or any other 

13 technology or device capable of enabling the recording 

14 or transmission of a copyrighted motion picture or 

15 other audiovisual work, or any part thereof, regard16 less of whether audiovisual recording is the sole or 

17 primary purpose of the device. 

18 ‘‘(3) MOTION PICTURE EXHIBITION FACILITY.— 

19 The term ‘motion picture exhibition facility’ means a 

20 movie theater, screening room, or other venue that is 

21 being used primarily for the exhibition of a copy22 righted motion picture, if such exhibition is open to 

23 the public or is made to an assembled group of view24 ers outside of a normal circle of a family and its so25 cial acquaintances. 
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1 ‘‘(g) STATE LAW NOT PREEMPTED.—Nothing in this 

2 section may be construed to annul or limit any rights or 

3 remedies under the laws of any State.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections at 

5 the beginning of chapter 113 of title 18, United States Code, 

6 is amended by inserting after the item relating to section 

7 2319A the following: 

‘‘2319B. Unauthorized recording of motion pictures in a motion picture exhibition 

facility.’’. 

8 SEC. 209. SENSE OF CONGRESS ON NEED TO TAKE STEPS 

9 TO PREVENT ILLEGAL ACTIVITY ON PEER-TO10 PEER SERVICES. 

11 (a) FINDINGS.—Congress finds as follows: 

12 (1) The most popular publicly accessible peer-to13 peer file sharing software programs combined have 

14 been downloaded worldwide over 600,000,000 times. 

15 (2) The vast majority of software products, in16 cluding peer-to-peer technology, do not pose an inher17 ent risk. Responsible persons making software prod18 ucts should be encouraged and commended for the due 

19 diligence and reasonable care they take including by 

20 providing instructions, relevant information in the 

21 documentation, disseminating patches, updates, and 

22 other appropriate modifications to the software. 

23 (3) Massive volumes of illegal activity, including 

24 the distribution of child pornography, viruses, and 
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1 confidential personal information, and copyright in2 fringement occur on publicly accessible peer-to-peer file 

3 sharing services every day. Some publicly accessible 

4 peer-to-peer file sharing services expose consumers, 

5 particularly children, to serious risks, including legal 

6 liability, loss of privacy, threats to computer security, 

7 and exposure to illegal and inappropriate material. 

8 (4) Several studies and reports demonstrate that 

9 pornography, including child pornography, is preva10 lent on publicly available peer-to-peer file sharing 

11 services, and children are regularly exposed to por12 nography when using such peer-to-peer file sharing 

13 services. 

14 (5) The full potential of peer-to-peer technology 

15 to benefit consumers has yet to be realized and will 

16 not be achieved until these problems are adequately 

17 addressed. 

18 (6) To date, the businesses that run publicly ac19 cessible file-sharing services have refused or failed to 

20 voluntarily and sufficiently address these problems. 

21 (7) Many users of publicly available peer-to-peer 

22 file-sharing services are drawn to these systems by the 

23 lure of obtaining ‘‘free’’ music and movies. 

24 (8) While some users use parental controls to 

25 protect children from pornography available on the 
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1 Internet and search engines, not all such controls 

2 work on publicly accessible peer-to-peer networks. 

3 (9) Businesses that run publicly accessible peer4 to-peer file sharing services have openly acknowledged, 

5 and numerous studies and reports have established, 

6 that these services facilitate and profit from massive 

7 amounts of copyright infringement, causing enormous 

8 damage to the economic well-being of the copyright 

9 industries whose works are being illegally ‘‘shared’’ 

10 and downloaded. 

11 (10) The legitimate digital music marketplace of12 fers consumers a wide and growing array of choices 

13 for obtaining music legally, without exposure to the 

14 risks posed by publicly accessible peer-to-peer file 

15 sharing services. 

16 (11) The Federal Trade Commission issued a 

17 Consumer Alert in July of 2003 warning consumers 

18 that some file-sharing services contain damaging vi19 ruses and worms and, without the computer user’s 

20 knowledge or consent, install spyware to monitor a 

21 user’s browsing habits and send data to third parties 

22 or automatically open network connections. 

23 (12) Publicly available peer-to-peer file-sharing 

24 services can and should adopt reasonable business 

25 practices and use technology in the marketplace to ad-
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1 dress the existing risks posed to consumers by their 

2 services and facilitate the legitimate use of peer-to3 peer file sharing technology and software. 

4 (b) SENSE OF CONGRESS.—It is the sense of Congress 

5 that— 

6 (1) responsible software developers should be 

7 commended, recognized, and encouraged for their ef8 forts to protect consumers; 

9 (2) currently the level of ongoing and persistent 

10 illegal and dangerous activity on publicly accessible 

11 peer-to-peer file sharing services is harmful to con12 sumers, minors, and the economy; and 

13 (3) therefore, Congress and the executive branch 

14 should consider all appropriate measures to protect 

15 consumers and children, and prevent such illegal ac16 tivity. 

17 SEC. 210. ENHANCEMENT OF CRIMINAL COPYRIGHT IN18 FRINGEMENT. 

19 (a) CRIMINAL INFRINGEMENT.—Section 506 of title 

20 17, United States Code, is amended— 

21 (1) by amending subsection (a) to read as fol22 lows: 

23 ‘‘(a) CRIMINAL INFRINGEMENT.—Any person who— 
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1 ‘‘(1) infringes a copyright willfully and for pur2 poses of commercial advantage or private financial 

3 gain, 

4 ‘‘(2) infringes a copyright willfully by the repro5 duction or distribution, including by the offering for 

6 distribution to the public by electronic means, during 

7 any 180-day period, of 1 or more copies or 

8 phonorecords of 1 or more copyrighted works, which 

9 have a total retail value of more than $1,000, or 

10 ‘‘(3) infringes a copyright by the knowing dis11 tribution, including by the offering for distribution to 

12 the public by electronic means, with reckless disregard 

13 of the risk of further infringement, during any 180- 

14 day period, of— 

15 ‘‘(A) 1,000 or more copies or phonorecords 

16 of 1 or more copyrighted works, 

17 ‘‘(B) 1 or more copies or phonorecords of 1 

18 or more copyrighted works with a total retail 

19 value of more than $10,000, or 

20 ‘‘(C) 1 or more copies or phonorecords of 1 

21 or more copyrighted pre-release works, 

22 shall be punished as provided under section 2319 of title 

23 18. For purposes of this subsection, evidence of reproduction 

24 or distribution of a copyrighted work, by itself, shall not 
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1 be sufficient to establish the necessary level of intent under 

2 this subsection.’’; and 

3 (2) by adding at the end the following: 

4 ‘‘(g) LIMITATION ON LIABILITY OF SERVICE PRO5 VIDERS.—No legal entity shall be liable for a violation of 

6 subsection (a)(3) by reason of performing any function de7 scribed in subsection (a), (b), (c), or (d) of section 512 if 

8 such legal entity would not be liable for monetary relief 

9 under section 512 by reason of performing such function. 

10 Except for purposes of determining whether an entity quali11 fies for the limitation on liability under subsection (a)(3) 

12 of this section, the legal conclusion of whether an entity 

13 qualifies for a limitation on liability under section 512 

14 shall not be considered in a judicial determination of wheth15 er the entity violates subsection (a) of this section. 

16 ‘‘(h) DEFINITIONS.—In this section: 

17 ‘‘(1) PRE-RELEASE WORK.—The term ‘pre-release 

18 work’ refers to a work protected under this title which 

19 has a commercial and economic value and which, at 

20 the time of the act of infringement that is the basis 

21 for the offense under subsection (a)(3), the defendant 

22 knew or should have known had not yet been made 

23 available by the copyright owner to individual mem24 bers of the general public in copies or phonorecords 

25 for sale, license, or rental. 
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1 ‘‘(2) RETAIL VALUE.—The ‘retail value’ of a 

2 copyrighted work is the retail price of that work in 

3 the market in which it is sold. In the case of an in4 fringement of a copyright by distribution, if the retail 

5 price does not adequately reflect the economic value of 

6 the infringement, then the retail value may be deter7 mined using other factors, including but not limited 

8 to suggested retail price, wholesale price, replacement 

9 cost of the item, licensing, or distribution-related 

10 fees.’’. 

11 (b) PENALTIES.—Section 2319 of title 18, United 

12 States Code, is amended— 

13 (1) by redesignating subsections (d) and (e) as 

14 subsections (e) and (f), respectively; 

15 (2) by inserting after subsection (c) the fol16 lowing: 

17 ‘‘(d) Any person who commits an offense under section 

18 506(a)(3) of title 17— 

19 ‘‘(1) shall be imprisoned not more than 3 years, 

20 or fined in the amount set forth in this title, or both, 

21 or, if the offense was committed for purposes of com22 mercial advantage or private financial gain, impris23 oned for not more than 5 years, or fined in the 

24 amount set forth in this title, or both; and 
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1 ‘‘(2) shall, if the offense is a second or subsequent 

2 offense under paragraph (1), be imprisoned not more 

3 than 6 years, or fined in the amount set forth in this 

4 title, or both, or, if the offense was committed for pur5 poses of commercial advantage or private financial 

6 gain, imprisoned for not more than 10 years, or fined 

7 in the amount set forth in this title, or both.’’; and 

8 (3) in subsection (f), as so redesignated— 

9 (A) in paragraph (1), by striking ‘‘and’’ 

10 after the semicolon; 

11 (B) in paragraph (2), by striking the period 

12 and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following: 

14 ‘‘(3) the term ‘financial gain’ has the meaning 

15 given that term in section 101 (relating to defini16 tions) of title 17.’’. 

17 (c) CIVIL REMEDIES FOR INFRINGEMENT OF A WORK

18 BEING PREPARED FOR COMMERCIAL DISTRIBUTION.— 

19 (1) PREREGISTRATION.—Section 408 of title 17, 

20 United States Code, is amended by adding at the end 

21 the following: 

22 ‘‘(f) PREREGISTRATION OF WORKS BEING PREPARED

23 FOR COMMERCIAL DISTRIBUTION.— 

24 ‘‘(1) RULEMAKING.—Not later than 180 days 

25 after the date of enactment of this subsection, the Reg-
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1 ister of Copyrights shall issue regulations to establish 

2 procedures for preregistration of a work that is being 

3 prepared for commercial distribution and has not 

4 been published. 

5 ‘‘(2) CLASS OF WORKS.—The regulations estab6 lished under paragraph (1) shall permit 

7 preregistration for any work that is in a class of 

8 works that the Register determines has had a history 

9 of infringement prior to authorized commercial dis10 tribution. 

11 ‘‘(3) APPLICATION FOR REGISTRATION.—Not 

12 later than 3 months after the first publication of the 

13 work, the applicant shall submit to the Copyright Of14 fice— 

15 ‘‘(A) an application for registration of the 

16 work; 

17 ‘‘(B) a deposit; and 

18 ‘‘(C) the applicable fee. 

19 ‘‘(4) EFFECT OF UNTIMELY APPLICATION.—An 

20 action for infringement under this chapter shall be 

21 dismissed, and no award of statutory damages or at22 torney fees shall be made for a preregistered work, if 

23 the items described in paragraph (3) are not sub24 mitted to the Copyright Office in proper form within 

25 the earlier of— 
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1 ‘‘(A) 3 months after the first publication of 

2 the work; or 

3 ‘‘(B) 1 month after the copyright owner has 

4 learned of the infringement.’’. 

5 (2) INFRINGEMENT ACTIONS.—Section 411(a) of 

6 title 17, United States Code, is amended by inserting 

7 ‘‘preregistration or’’ after ‘‘shall be instituted until’’. 

8 (3) EXCLUSION.—Section 412 of title 17, United 

9 States Code, is amended by inserting ‘‘, an action for 

10 infringement of the copyright of a work that has been 

11 preregistered under section 408(f) before the com12 mencement of the infringement,’’ after ‘‘section 

13 106A(a)’’. 

14 SEC. 211. AMENDMENT OF FEDERAL SENTENCING GUIDE15 LINES REGARDING THE INFRINGEMENT OF 

16 COPYRIGHTED WORKS AND RELATED CRIMES. 

17 (a) AMENDMENT TO THE SENTENCING GUIDELINES.— 

18 Pursuant to its authority under section 994 of title 28, 

19 United States Code, and in accordance with this section, 

20 the United States Sentencing Commission shall review and, 

21 if appropriate, amend the sentencing guidelines and policy 

22 statements applicable to persons convicted of intellectual 

23 property rights crimes, including sections 2318, 2319, 

24 2319A, 2319B, 2320 of title 18, United States Code, and 

25 sections 506, 1201, and 1202 of title 17, United States Code. 
26 

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1 (b) FACTORS.—In carrying out this section, the Sen2 tencing Commission shall— 

3 (1) take all appropriate measures to ensure that 

4 the sentencing guidelines and policy statements appli5 cable to the offenses described in subsection (a) are 

6 sufficiently stringent to deter and adequately reflect 

7 the nature of such offenses; 

8 (2) consider whether to provide a sentencing en9 hancement for those convicted of the offenses described 

10 in subsection (a) when the conduct involves the dis11 play, performance, publication, reproduction, or dis12 tribution of a copyrighted work before the time when 

13 the copyright owner has authorized the display, per14 formance, publication, reproduction, or distribution of 

15 the original work, whether in the media format used 

16 by the infringing good or in any other media format; 

17 (3) consider whether the definition of 

18 ‘‘uploading’’ contained in Application Note 3 to 

19 Guideline 2B5.3 is adequate to address the loss attrib20 utable to people broadly distributing copyrighted 

21 works over the Internet without authorization; and 

22 (4) consider whether the sentencing guidelines 

23 and policy statements applicable to the offenses de24 scribed in subsection (a) adequately reflect any harm 

25 to victims from infringement in circumstances where 
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1 law enforcement cannot determine how many times 

2 copyrighted material is reproduced or distributed. 

3 (c) PROMULGATION.—The Commission may promul4 gate the guidelines or amendments under this section in ac5 cordance with the procedures set forth in section 21(a) of 

6 the Sentencing Act of 1987, as though the authority under 

7 that Act had not expired. 

8 SEC. 212. EXEMPTION FROM INFRINGEMENT FOR SKIPPING 

9 AUDIO AND VIDEO CONTENT IN MOTION PIC10 TURES. 

11 (a) SHORT TITLE.—This section may be cited as the 

12 ‘‘Family Movie Act of 2004’’. 

13 (b) EXEMPTION FROM COPYRIGHT AND TRADEMARK

14 INFRINGEMENT FOR SKIPPING OF AUDIO OR VIDEO CON15 TENT OF MOTION PICTURES.—Section 110 of title 17, 

16 United States Code, is amended— 

17 (1) in paragraph (9), by striking ‘‘and’’ after the 

18 semicolon at the end; 

19 (2) in paragraph (10), by striking the period at 

20 the end and inserting ‘‘; and’’; 

21 (3) by inserting after paragraph (10) the fol22 lowing: 

23 ‘‘(11) the making imperceptible, by or at the di24 rection of a member of a private household, of limited 

25 portions of audio or video content of a motion pic-
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•HR 2391 RS 

1 ture, during a performance in or transmitted to that 

2 household for private home viewing, from an author3 ized copy of the motion picture, or the creation or 

4 provision of a computer program or other technology 

5 that enables such making imperceptible and that is 

6 designed and marketed for such use at the direction 

7 of a member of a private household, if— 

8 ‘‘(A) no fixed copy of the altered version of 

9 the motion picture is created by such computer 

10 program or other technology; and 

11 ‘‘(B) no changes, deletions or additions are 

12 made by such computer program or other tech13 nology to commercial advertisements, or to net14 work or station promotional announcements, 

15 that would otherwise be performed or displayed 

16 before, during or after the performance of the 

17 motion picture.’’; and 

18 (4) by adding at the end the following: 

19 ‘‘For purposes of paragraph (11), the term ‘making 

20 imperceptible’ does not include the addition of audio or 

21 video content that is performed or displayed over or in place 

22 of existing content in a motion picture.’’. 

23 (c) EXEMPTION FROM TRADEMARK INFRINGEMENT.— 

24 Section 32 of the Trademark Act of 1946 (15 U.S.C. 1114) 

25 is amended by adding at the end the following: 
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1 ‘‘(3)(A) Any person who engages in the conduct de2 scribed in paragraph (11) of section 110 of title 17, United 

3 States Code, and who complies with the requirements set 

4 forth in that paragraph is not liable on account of such 

5 conduct for a violation of any right under this Act. This 

6 subparagraph does not preclude liability of a person for 

7 conduct not described in paragraph (11) of section 110 of 

8 title 17, United States Code, even if that person also engages 

9 in conduct described in paragraph (11) of section 110 of 

10 such title. 

11 ‘‘(B) A manufacturer, licensee, or licensor of tech12 nology that enables the making of limited portions of audio 

13 or video content of a motion picture imperceptible as de14 scribed in subparagraph (A) is not liable on account of such 

15 manufacture or license for a violation of any right under 

16 this Act, if such manufacturer, licensee, or licensor ensures 

17 that the technology provides a clear and conspicuous notice 

18 at the beginning of each performance that the performance 

19 of the motion picture is altered from the performance in20 tended by the director or copyright holder of the motion pic21 ture. The limitations on liability in subparagraphs (A) and 

22 (B) shall not apply to a manufacturer, licensee, or licensor 

23 of technology that fails to comply with this paragraph. 

24 ‘‘(C) The requirement under subparagraph (B) to pro25 vide notice shall apply only with respect to technology man-
30 

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1 ufactured after the end of the 180-day period beginning on 

2 the date of the enactment of the Family Movie Act of 2004.’’. 

3 (d) DEFINITION.—In this section, the term ‘‘Trade4 mark Act of 1946’’ means the Act entitled ‘‘An Act to pro5 vide for the registration and protection of trademarks used 

6 in commerce, to carry out the provisions of certain inter7 national conventions, and for other purposes’’, approved 

8 July 5, 1946 (15 U.S.C. 1051 et seq.). 

9 TITLE III—PROTECTING INTEL10 LECTUAL RIGHTS AGAINST 

11 THEFT AND EXPROPRIATION 

12 SEC. 301. SHORT TITLE. 

13 This title may be cited as the ‘‘Protecting Intellectual 

14 Rights Against Theft and Expropriation Act of 2004’’. 

15 SEC. 302. AUTHORIZATION OF CIVIL COPYRIGHT ENFORCE16 MENT BY ATTORNEY GENERAL. 

17 (a) IN GENERAL.—Chapter 5 of title 17, United States 

18 Code, is amended by inserting after section 506 the fol19 lowing: 

20 ‘‘§ 506a. Civil penalties for violations of section 506 

21 ‘‘(a) IN GENERAL.—In lieu of a criminal action under 

22 section 506, the Attorney General may commence a civil 

23 action in the appropriate United States district court 

24 against any person who engages in conduct constituting an 

25 offense under section 506. Upon proof of such conduct by 
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1 a preponderance of the evidence, such person shall be subject 

2 to a civil penalty under section 504 which shall be in an 

3 amount equal to the amount which would be awarded under 

4 section 3663(a)(1)(B) of title 18 and restitution to the copy5 right owner aggrieved by the conduct. 

6 ‘‘(b) OTHER REMEDIES.— 

7 ‘‘(1) IN GENERAL.—Imposition of a civil penalty 

8 under this section does not preclude any other crimi9 nal or civil statutory, injunctive, common law or ad10 ministrative remedy, which is available by law to the 

11 United States or any other person. 

12 ‘‘(2) OFFSET.—Any restitution received by a 

13 copyright owner as a result of a civil action brought 

14 under this section shall be offset against any award 

15 of damages in a subsequent copyright infringement 

16 civil action by that copyright owner for the conduct 

17 that gave rise to the civil action brought under this 

18 section.’’. 

19 (b) DAMAGES AND PROFITS.—Section 504 of title 17, 

20 United States Code, is amended— 

21 (1) in subsection (b)— 

22 (A) in the first sentence— 

23 (i) by inserting ‘‘, or the Attorney Gen24 eral in a civil action,’’ after ‘‘The copyright 

25 owner’’; and 
32 

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1 (ii) by striking ‘‘him or her’’ and in2 serting ‘‘the copyright owner’’; and 

3 (B) in the second sentence by inserting ‘‘, or 

4 the Attorney General in a civil action,’’ after 

5 ‘‘the copyright owner’’; and 

6 (2) in subsection (c)— 

7 (A) in paragraph (1), by inserting ‘‘, or the 

8 Attorney General in a civil action,’’ after ‘‘the 

9 copyright owner’’; and 

10 (B) in paragraph (2), by inserting ‘‘, or the 

11 Attorney General in a civil action,’’ after ‘‘the 

12 copyright owner’’. 

13 (c) TECHNICAL AND CONFORMING AMENDMENT.—The 

14 table of sections for chapter 5 of title 17, United States 

15 Code, is amended by inserting after the item relating to 

16 section 506 the following: 

‘‘506a. Civil penalties for violation of section 506.’’. 

17 SEC. 303. AUTHORIZATION OF FUNDING FOR TRAINING 

18 AND PILOT PROGRAM. 

19 (a) TRAINING AND PILOT PROGRAM.—Not later than 

20 180 days after enactment of this Act, the Attorney General 

21 shall develop a program to ensure effective implementation 

22 and use of the authority for civil enforcement of the copy23 right laws by— 

24 (1) establishing training programs, including 

25 practical training and written materials, for quali-
33 

•HR 2391 RS 

1 fied personnel from the Department of Justice and 

2 United States Attorneys Offices to educate and inform 

3 such personnel about— 

4 (A) resource information on intellectual 

5 property and the legal framework established 

6 both to protect and encourage creative works as 

7 well as legitimate uses of information and rights 

8 under the first amendment of the United States 

9 Constitution; 

10 (B) the technological challenges to pro11 tecting digital copyrighted works from online pi12 racy; 

13 (C) guidance on and support for bringing 

14 copyright enforcement actions against persons 

15 engaging in infringing conduct, including model 

16 charging documents and related litigation mate17 rials; 

18 (D) strategic issues in copyright enforce19 ment actions, including whether to proceed in a 

20 criminal or a civil action; 

21 (E) how to employ and leverage the exper22 tise of technical experts in computer forensics; 

23 (F) the collection and preservation of elec24 tronic data in a forensically sound manner for 

25 use in court proceedings; 
34 

•HR 2391 RS 

1 (G) the role of the victim copyright owner 

2 in providing relevant information for enforce3 ment actions and in the computation of dam4 ages; and 

5 (H) the appropriate use of injunctions, im6 poundment, forfeiture, and related authorities in 

7 copyright law; 

8 (2) designating personnel from at least 4 United 

9 States Attorneys Offices to participate in a pilot pro10 gram designed to implement the civil enforcement au11 thority of the Attorney General under section 506a of 

12 title 17, United States Code, as added by this title; 

13 and 

14 (3) reporting to Congress annually on— 

15 (A) the use of the civil enforcement author16 ity of the Attorney General under section 506a 

17 of title 17, United States Code, as added by this 

18 title; and 

19 (B) the progress made in implementing the 

20 training and pilot programs described under 

21 paragraphs (1) and (2) of this subsection. 

22 (b) ANNUAL REPORT.—The report under subsection 

23 (a)(3) may be included in the annual performance report 

24 of the Department of Justice and shall include— 
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•HR 2391 RS 

1 (1) with respect to civil actions filed under sec2 tion 506a of title 17, United States Code, as added 

3 by this title— 

4 (A) the number of investigative matters re5 ceived by the Department of Justice and United 

6 States Attorneys Offices; 

7 (B) the number of defendants involved in 

8 those matters; 

9 (C) the number of civil actions filed and the 

10 number of defendants involved; 

11 (D) the number of civil actions resolved or 

12 terminated; 

13 (E) the number of defendants involved in 

14 those civil actions; 

15 (F) the disposition of those civil actions, in16 cluding whether the civil actions were settled, 

17 dismissed, or resolved after a trial; 

18 (G) the dollar value of any civil penalty 

19 imposed and the amount remitted to any copy20 right owner; and 

21 (H) other information that the Attorney 

22 General may consider relevant to inform Con23 gress on the effective use of the civil enforcement 

24 authority; 
36 

•HR 2391 RS 

1 (2) a description of the training program and 

2 the number of personnel who participated in the pro3 gram; and 

4 (3) the locations of the United States Attorneys 

5 Offices designated to participate in the pilot program. 

6 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

7 authorized to be appropriated $2,000,000 for fiscal year 

8 2005 to carry out this section. 

9 TITLE IV—NATIONAL FILM 

10 PRESERVATION ACT OF 2004 

11 Subtitle A—Reauthorization of the 

12 National Film Preservation Board 

13 SEC. 401. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘National Film Pres15 ervation Act of 2004’’. 

16 SEC. 402. REAUTHORIZATION AND AMENDMENT. 

17 (a) DUTIES OF THE LIBRARIAN OF CONGRESS.—Sec18 tion 103 of the National Film Preservation Act of 1996 (2 

19 U.S.C. 179m) is amended— 

20 (1) in subsection (b)— 

21 (A) by striking ‘‘film copy’’ each place that 

22 term appears and inserting ‘‘film or other ap23 proved copy’’; 
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•HR 2391 RS 

1 (B) by striking ‘‘film copies’’ each place 

2 that term appears and inserting ‘‘film or other 

3 approved copies’’; and 

4 (C) in the third sentence, by striking ‘‘copy5 righted’’ and inserting ‘‘copyrighted, mass dis6 tributed, broadcast, or published’’; and 

7 (2) by adding at the end the following: 

8 ‘‘(c) COORDINATION OF PROGRAM WITH OTHER COL9 LECTION, PRESERVATION, AND ACCESSIBILITY ACTIVI10 TIES.—In carrying out the comprehensive national film 

11 preservation program for motion pictures established under 

12 the National Film Preservation Act of 1992, the Librarian, 

13 in consultation with the Board established pursuant to sec14 tion 104, and in accordance with title 17, United States 

15 Code, shall— 

16 ‘‘(1) carry out activities to make films included 

17 in the National Film registry more broadly accessible 

18 for research and educational purposes, and to gen19 erate public awareness and support of the Registry 

20 and the comprehensive national film preservation 

21 program; 

22 ‘‘(2) review the comprehensive national film 

23 preservation plan, and amend it to the extent nec24 essary to ensure that it addresses technological ad-
38 

•HR 2391 RS 

1 vances in the preservation and storage of, and access 

2 to film collections in multiple formats; and 

3 ‘‘(3) wherever possible, undertake expanded ini4 tiatives to ensure the preservation of the moving 

5 image heritage of the United States, including film, 

6 videotape, television, and born digital moving image 

7 formats, by supporting the work of the National 

8 Audio-Visual Conservation Center of the Library of 

9 Congress, and other appropriate nonprofit archival 

10 and preservation organizations.’’. 

11 (b) NATIONAL FILM PRESERVATION BOARD.—Section 

12 104 of the National Film Preservation Act of 1996 (2 

13 U.S.C. 179n) is amended— 

14 (1) in subsection (a)(1), by striking ‘‘20’’ and in15 serting ‘‘22’’; 

16 (2) in subsection (a)(2), by striking ‘‘three’’ and 

17 inserting ‘‘5’’; 

18 (3) in subsection (d), by striking ‘‘11’’ and in19 serting ‘‘12’’; and 

20 (4) by striking subsection (e) and inserting the 

21 following: 

22 ‘‘(e) REIMBURSEMENT OF EXPENSES.—Members of the 

23 Board shall serve without pay, but may receive travel ex24 penses, including per diem in lieu of subsistence, in accord-
39 

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1 ance with sections 5702 and 5703 of title 5, United States 

2 Code.’’. 

3 (c) NATIONAL FILM REGISTRY.—Section 106 of the 

4 National Film Preservation Act of 1996 (2 U.S.C. 179q) 

5 is amended by adding at the end the following: 

6 ‘‘(e) NATIONAL AUDIO-VISUAL CONSERVATION CEN7 TER.—The Librarian shall utilize the National Audio-Vis8 ual Conservation Center of the Library of Congress at 

9 Culpeper, Virginia, to ensure that preserved films included 

10 in the National Film Registry are stored in a proper man11 ner, and disseminated to researchers, scholars, and the pub12 lic as may be appropriate in accordance with— 

13 ‘‘(1) title 17 of the United States Code; and 

14 ‘‘(2) the terms of any agreements between the Li15 brarian and persons who hold copyrights to such 

16 audiovisual works.’’. 

17 (d) USE OF SEAL.—Section 107 (a) of the National 

18 Film Preservation Act of 1996 (2 U.S.C. 179q) is amend19 ed— 

20 (1) in paragraph (1), by inserting ‘‘in any for21 mat’’ after ‘‘or any copy’’; and 

22 (2) in paragraph (2), by striking ‘‘or film copy’’ 

23 and inserting ‘‘in any format’’. 

24 (e) AUTHORIZATION OF APPROPRIATIONS.—Section 

25 112 of the National Film Preservation Act of 1996 (2 
40 

•HR 2391 RS 

1 U.S.C. 179v) is amended by striking ‘‘$250,000’’ and in2 serting ‘‘$200,000’’. 

3 (f) EFFECTIVE DATE.—Section 113 of the National 

4 Film Preservation Act of 1996 (2 U.S.C. 179w) is amended 

5 by striking ‘‘7’’ and inserting ‘‘11’’. 

6 Subtitle B—Reauthorization of the 

7 National Film Preservation 

8 Foundation 

9 SEC. 411. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘National Film Pres11 ervation Foundation Reauthorization Act of 2004’’. 

12 SEC. 412. REAUTHORIZATION AND AMENDMENT. 

13 (a) BOARD OF DIRECTORS.—Section 151703 of title 

14 36, United States Code, is amended— 

15 (1) in subsection (b)(2)(A), by striking ‘‘nine’’ 

16 and inserting ‘‘12’’; and 

17 (2) in subsection (b)(4), by striking the second 

18 sentence and inserting ‘‘There shall be no limit to the 

19 number of terms to which any individual may be ap20 pointed.’’. 

21 (b) POWERS.—Section 151705 of title 36, United 

22 States Code, is amended in subsection (b) by striking ‘‘Dis23 trict of Columbia’’ and inserting ‘‘the jurisdiction in which 

24 the principal office of the corporation is located’’. 
41 

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1 (c) PRINCIPAL OFFICE.—Section 151706 of title 36, 

2 United States Code, is amended by inserting ‘‘, or another 

3 place as determined by the board of directors’’ after ‘‘Dis4 trict of Columbia’’. 

5 (d) AUTHORIZATION OF APPROPRIATIONS.—Section 

6 151711 of title 36, United States Code, is amended by strik7 ing subsections (a) and (b) and inserting the following: 

8 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to the Library of Con10 gress amounts necessary to carry out this chapter, not to 

11 exceed $250,000 for each of the fiscal years 2005 and 2006, 

12 and not to exceed $400,000 for fiscal year 2007. These 

13 amounts are to be made available to the corporation to 

14 match any private contributions (whether in currency, serv15 ices, or property) made to the corporation by private per16 sons and State and local governments. 

17 ‘‘(b) LIMITATION RELATED TO ADMINISTRATIVE EX18 PENSES.—Amounts authorized under this section may not 

19 be used by the corporation for management and general or 

20 fundraising expenses as reported to the Internal Revenue 

21 Service as part of an annual information return required 

22 under the Internal Revenue Code of 1986.’’. 
42 

•HR 2391 RS 

1 TITLE V—PRESERVATION OF 

2 ORPHAN WORKS 

3 SEC. 501. SHORT TITLE. 

4 This title may be cited as the ‘‘ Preservation of Orphan 

5 Works Act’’. 

6 SEC. 502. REPRODUCTION OF COPYRIGHTED WORKS BY LI7 BRARIES AND ARCHIVES. 

8 Section 108(i) of title 17, United States Code, is 

9 amended by striking ‘‘(b) and (c)’’ and inserting ‘‘(b), (c), 

10 and (h)’’. 

11 TITLE VI—ENHANCING FEDERAL 

12 OBSCENITY REPORTING AND 

13 COPYRIGHT ENFORCEMENT 

14 SEC. 601. SHORT TITLE. 

15 This title may be cited as the ‘‘Enhancing Federal Ob16 scenity Reporting and Copyright Enforcement Act of 2004’’. 

17 SEC. 602. HARMLESS ERRORS IN REGISTRATION CERTIFI18 CATES. 

19 (a) IN GENERAL.—Section 411 of title 17, United 

20 States Code, is amended— 

21 (1) by redesignating subsection (b) as subsection 

22 (c); and 

23 (2) inserting after subsection (a) the following: 
43 

•HR 2391 RS 

1 ‘‘(b)(1) A certificate of registration shall satisfy the re2 quirements of this section and section 412 irrespective of 

3 any inaccurate information therein, unless— 

4 ‘‘(A) the inaccurate information was included on 

5 the application for copyright registration with knowl6 edge that it was inaccurate; and 

7 ‘‘(B) the inaccuracy of the information, if 

8 known, would have caused the Register of Copyrights 

9 to refuse registration. 

10 ‘‘(2) In any case in which inaccuracies described under 

11 paragraph (1) are alleged, the court shall request the Reg12 ister of Copyrights to advise the court whether the inaccu13 racy of the information, if known, would have caused the 

14 Register of Copyrights to refuse registration.’’. 

15 (b) TECHNICAL AND CONFORMING AMENDMENT.—Sec16 tion 412 of title 17, United States Code, is amended by 

17 striking ‘‘section 411(b)’’ and inserting ‘‘section 411(c)’’. 

18 SEC. 603. COMPUTATION OF STATUTORY DAMAGES. 

19 Section 504(c)(1) of title 17, United States Code, is 

20 amended in the second sentence by inserting before the pe21 riod ‘‘, except that the court in its discretion may determine 

22 that such parts are separate works if the court concludes 

23 that they are distinct works having independent economic 

24 value’’. 
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1 SEC. 604. REPORT TO CONGRESS. 

2 The Attorney General shall include in the report of the 

3 Attorney General to Congress on the business of the Depart4 ment of Justice, prepared under section 522 of title 28, 

5 United States Code, the number of misdemeanor prosecu6 tions and the number of felony prosecutions under sections 

7 1462, 1464, 1465, 1466, 1466A, 1470, 2252, 2252A, 2252B, 

8 2260, 2318, 2319, 2319A, and 2320 of title 18, United 

9 States Code, commenced and concluded during the last pre10 ceding fiscal year, including, in the case of those offenses 

11 where applicable, detailed information concerning— 

12 (1) the types of works involved; 

13 (2) the tangible media of expression and means 

14 of reproduction and distribution involved; and 

15 (3) in the case of prosecutions concluded, the dis16 position of such prosecutions, such as the number of 

17 convictions and acquittals, and the sentences imposed. 

Calendar No. 781 

108TH CONGRESS 

2D SESSION H. R. 2391 

AN ACT 

To amend title 35, United States Code, to promote 

public sector, and private enterprises. cooperative research involving universities, the 

OCTOBER 7, 2004 

Reported with an amendment