IB 

Union Calendar No. 428 

108TH CONGRESS 

2D SESSION H. R. 4077 

[Report No. 108–700] 

To enhance criminal enforcement of the copyright laws, to educate the public 

about the application of copyright law to the Internet, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 31, 2004 

Mr. SMITH of Texas (for himself, Mr. BERMAN, and Mr. CONYERS) introduced 

the following bill; which was referred to the Committee on the Judiciary 

SEPTEMBER 24, 2004 

Additional sponsors: Mr. OTTER, Mr. HOYER, Mr. COBLE, Mrs. BONO, and 

Mr. MEEHAN

SEPTEMBER 24, 2004 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 

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

[For text of the introduced bill, see bill as introduced on March 31, 2004] 

A BILL 

To enhance criminal enforcement of the copyright laws, to 

educate the public about the application of copyright 

law to the Internet, and for other purposes. 

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

2 This Act may be cited as the ‘‘Piracy Deterrence and 

3 Education Act of 2004’’. 

4 SEC. 2. FINDINGS. 

5 The Congress finds as follows: 

6 (1) The Internet, while changing the way our so7 ciety communicates, has also changed the nature of 

8 many crimes, including the theft of intellectual prop9 erty. 

10 (2) Trafficking in infringing copyrighted works 

11 through increasingly sophisticated electronic means, 

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

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

14 income for creators, lower tax revenue, and higher 

15 prices for honest purchasers. 

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

17 software programs have been downloaded by computer 

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

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

20 one of these services. Each month, on average, over 

21 2,300,000,000 digital-media files are transferred 

22 among users of peer-to-peer systems. 

23 (4) Many computer users simply believe that 

24 they will not be caught or prosecuted for their con25 duct. 
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1 (5) The security and privacy threats posed by 

2 certain peer-to-peer networks extend beyond users in3 advertently enabling a hacker to access files. Millions 

4 of copies of one of the most popular peer-to-peer net5 works contain software that could allow an inde6 pendent company to take over portions of users’ com7 puters and Internet connections and has the capacity 

8 to keep track of users’ online habits. 

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

10 enforcement agencies should actively pursue criminals 

11 who steal the copyrighted works of others, and prevent 

12 such activity through enforcement and awareness. The 

13 public should be educated about the security and pri14 vacy risks associated with being connected to certain 

15 peer-to-peer networks. 

16 SEC. 3. VOLUNTARY PROGRAM OF DEPARTMENT OF JUS17 TICE. 

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

19 authorized to establish a program under which the Depart20 ment of Justice, in cases where persons who are subscribers 

21 of Internet service providers appear to be engaging in copy22 right infringing conduct in the course of using that Internet 

23 service, would send to the Internet Service providers notices 

24 that warn such persons of the penalties for such copyright 
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1 infringement. The Internet service providers may forward 

2 the notices to such persons. 

3 (b) LIMITATIONS ON PROGRAM.— 

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

5 program under subsection (a) shall terminate at the 

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

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

8 more than 10,000 notices. 

9 (2) PRIVACY PROTECTIONS.—No Internet service 

10 provider that receives a notice from the Department 

11 of Justice under subsection (a) may disclose to the 

12 Department any identifying information about the 

13 subscriber that is the subject of the notice except pur14 suant to court order or other applicable legal process 

15 that requires such disclosure. 

16 (c) REIMBURSEMENT OF INTERNET SERVICE PRO17 VIDERS.—The Department of Justice shall reimburse Inter18 net Service providers for all reasonable costs incurred by 

19 such service providers in forwarding notices under sub20 section (a). 

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

22 shall submit to the Congress a report on the program estab23 lished under subsection (a) both at the time the program 

24 is initiated and at the conclusion of the program. 
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1 SEC. 4. DESIGNATION AND TRAINING OF AGENTS IN COM2 PUTER HACKING AND INTELLECTUAL PROP3 ERTY UNITS. 

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

5 Attorney General shall ensure that any unit in the Depart6 ment of Justice responsible for investigating computer hack7 ing or responsible for investigating intellectual property 

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

9 for the purpose of investigating crimes relating to the theft 

10 of intellectual property. 

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

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

13 training in the investigation and enforcement of intellectual 

14 property crimes. 

15 SEC. 5. EDUCATION PROGRAM. 

16 (a) ESTABLISHMENT.—There shall be established with17 in the Office of the Associate Attorney General of the United 

18 States an Internet Use Education Program. 

19 (b) PURPOSE.—The purpose of the Internet Use Edu20 cation Program shall be to— 

21 (1) educate the general public concerning the 

22 value of copyrighted works and the effects of the theft 

23 of such works on those who create them; and 

24 (2) educate the general public concerning the pri25 vacy, security, and other risks of using the Internet 

26 to obtain illegal copies of copyrighted works. 
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1 (c) SECTOR SPECIFIC MATERIALS.—The Internet Use 

2 Educational Program shall, to the extent appropriate, de3 velop materials appropriate to Internet users in different 

4 sectors of the general public where criminal copyright in5 fringement is a concern. The Attorney General shall consult 

6 with appropriate interested parties in developing such sec7 tor-specific materials. 

8 (d) CONSULTATIONS.—The Attorney General shall con9 sult with the Register of Copyrights and the Secretary of 

10 Commerce in developing the Internet Use Education Pro11 gram under this section. 

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

13 program created under this section shall not use funds or 

14 resources of the Department of Justice allocated for crimi15 nal investigation or prosecution. 

16 (f) ADDITIONAL PROHIBITION ON THE USE OF

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

18 use any funds or resources of the Department of Justice al19 located for the Civil Rights Division of the Department, in20 cluding any funds allocated for the enforcement of civil 

21 rights or the Voting Rights Act of 1965. 

22 SEC. 6. ACTIONS BY THE GOVERNMENT OF THE UNITED 

23 STATES. 

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

25 amended in the first sentence by striking ‘‘Except for’’ and 
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1 inserting ‘‘Except for an action brought by the Government 

2 of the United States or by any agency or instrumentality 

3 thereof, or’’ . 

4 SEC. 7. AUTHORIZED APPROPRIATIONS. 

5 There are authorized to be appropriated to the Depart6 ment of Justice for fiscal year 2005 not less than 

7 $15,000,000 for the investigation and prosecution of viola8 tions of title 17, United States Code. 

9 SEC. 8. CRIMINAL PENALTIES FOR UNAUTHORIZED RE10 CORDING OF MOTION PICTURES IN A MOTION 

11 PICTURE EXHIBITION FACILITY. 

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

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

14 following new section: 

15 ‘‘§ 2319B. Unauthorized recording of motion pictures 

16 in a motion picture exhibition facility 

17 ‘‘(a) OFFENSE.—Any person who, without the author18 ization of the copyright owner, knowingly uses or attempts 

19 to use an audiovisual recording device to transmit or make 

20 a copy of a motion picture or other audiovisual work pro21 tected under title 17, or any part thereof, from a perform22 ance of such work in a motion picture exhibition facility, 

23 shall— 

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

25 fined under this title, or both; or 
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1 ‘‘(2) if the offense is a second or subsequent of2 fense, be imprisoned for no more than 6 years, fined 

3 under this title, or both. 

4 The possession by a person of an audiovisual recording de5 vice in a motion picture exhibition facility may be consid6 ered as evidence in any proceeding to determine whether 

7 that person committed an offense under this subsection, but 

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

9 that person for such offense. 

10 ‘‘(b) FORFEITURE AND DESTRUCTION.—When a per11 son is convicted of an offense under subsection (a), the court 

12 in its judgment of conviction shall, in addition to any pen13 alty provided, order the forfeiture and destruction or other 

14 disposition of all unauthorized copies of motion pictures or 

15 other audiovisual works protected under title 17, or parts 

16 thereof, and any audiovisual recording devices or other 

17 equipment used in connection with the offense. 

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

19 prevent any lawfully authorized investigative, protective, or 

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

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

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

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

24 ‘‘(d) IMMUNITY FOR THEATERS AND AUTHORIZED

25 PERSONS.—With reasonable cause, the owner or lessee of 
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1 a motion picture facility where a motion picture is being 

2 exhibited, the authorized agent or employee of such owner 

3 or lessee, the licensor of the motion picture being exhibited, 

4 or the agent or employee of such licensor— 

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

6 for a reasonable time, any person suspected of com7 mitting an offense under this section for the purpose 

8 of questioning that person or summoning a law en9 forcement officer; and 

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

11 criminal action by reason of a detention under para12 graph (1). 

13 ‘‘(e) VICTIM IMPACT STATEMENT.— 

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

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

16 Rules of Criminal Procedure, victims of an offense 

17 under this section shall be permitted to submit to the 

18 probation officer a victim impact statement that iden19 tifies the victim of the offense and the extent and 

20 scope of the injury and loss suffered by the victim, in21 cluding the estimated economic impact of the offense 

22 on that victim. 

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

24 submitted under this subsection shall include— 
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1 ‘‘(A) producers and sellers of legitimate 

2 works affected by conduct involved in the offense; 

3 ‘‘(B) holders of intellectual property rights 

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

5 ‘‘(C) the legal representatives of such pro6 ducers, sellers, and holders. 

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

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

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

10 picture’, and ‘transmit’ have, respectively, the mean11 ings given those terms in section 101 of title 17. 

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

13 term ‘audiovisual recording device’ means a digital or 

14 analog photographic or video camera, or any other 

15 technology or device capable of enabling the recording 

16 or transmission of a copyrighted motion picture or 

17 other audiovisual work, or any part thereof, regard18 less of whether audiovisual recording is the sole or 

19 primary purpose of the device. 

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

21 The term ‘motion picture exhibition facility’ means a 

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

23 being used primarily for the exhibition of a copy24 righted motion picture, if such exhibition is open to 

25 the public or is made to an assembled group of view-
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1 ers outside of a normal circle of a family and its so2 cial acquaintances. 

3 ‘‘(g) STATE LAW NOT PREEMPTED.—Nothing in this 

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

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

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

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

8 is amended by inserting after the item relating to section 

9 2319A the following: 

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

facility.’’. 

10 SEC. 9. SENSE OF THE CONGRESS ON NEED TO TAKE STEPS 

11 TO PREVENT ILLEGAL ACTIVITY ON PEER-TO12 PEER SERVICES. 

13 (a) FINDINGS.—The Congress finds as follows: 

14 (1) The most popular publicly accessible peer-to15 peer file sharing software programs combined have 

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

17 (2) The vast majority of software products, in18 cluding peer-to-peer technology, do not pose an inher19 ent risk. Responsible persons making software prod20 ucts should be encouraged and commended for the due 

21 diligence and reasonable care they take including by 

22 providing instructions, relevant information in the 

23 documentation, disseminating patches, updates, and 

24 other appropriate modifications to the software. 
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1 (3) Massive volumes of illegal activity, including 

2 the distribution of child pornography, viruses, and 

3 confidential personal information, and copyright in4 fringement occur on publicly accessible peer-to-peer 

5 file sharing services every day. Some publicly acces6 sible peer-to-peer file sharing services expose con7 sumers, particularly children, to serious risks, includ8 ing legal liability, loss of privacy, threats to computer 

9 security, and exposure to illegal and inappropriate 

10 material. 

11 (4) Several studies and reports demonstrate that 

12 pornography, including child pornography, is preva13 lent on publicly available peer-to-peer file sharing 

14 services, and children are regularly exposed to por15 nography when using such peer-to-peer file sharing 

16 services. 

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

18 to benefit consumers has yet to be realized and will 

19 not be achieved until these problems are adequately 

20 addressed. 

21 (6) To date, the businesses that run publicly ac22 cessible file-sharing services have refused or failed to 

23 voluntarily and sufficiently address these problems. 
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1 (7) Many users of publicly available peer-to-peer 

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

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

4 (8) While some users use parental controls to 

5 protect children from pornography available on the 

6 Internet and search engines, not all such controls 

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

8 (9) Businesses that run publicly accessible peer9 to-peer file sharing services have openly acknowledged, 

10 and numerous studies and reports have established, 

11 that these services facilitate and profit from massive 

12 amounts of copyright infringement, causing enormous 

13 damage to the economic well-being of the copyright 

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

15 and downloaded. 

16 (10) The legitimate digital music marketplace of17 fers consumers a wide and growing array of choices 

18 for obtaining music legally, without exposure to the 

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

20 sharing services. 

21 (11) The Federal Trade Commission issued a 

22 Consumer Alert in July of 2003 warning consumers 

23 that some file-sharing services contain damaging vi24 ruses and worms and, without the computer user’s 

25 knowledge or consent, install spyware to monitor a 
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1 user’s browsing habits and send data to third parties 

2 or automatically open network connections. 

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

4 services can and should adopt reasonable business 

5 practices and use technology in the marketplace to ad6 dress the existing risks posed to consumers by their 

7 services and facilitate the legitimate use of peer-to8 peer file sharing technology and software. 

9 (b) SENSE OF CONGRESS.—It is the sense of the Con10 gress that— 

11 (1) responsible software developers should be 

12 commended, recognized, and encouraged for their ef13 forts to protect consumers; 

14 (2) currently the level of ongoing and persistent 

15 illegal and dangerous activity on publicly accessible 

16 peer-to-peer file sharing services is harmful to con17 sumers, minors, and the economy; and 

18 (3) therefore, the Congress and the executive 

19 branch should consider all appropriate measures to 

20 protect consumers and children, and prevent such ille21 gal activity. 

22 SEC. 10. ENHANCEMENT OF CRIMINAL COPYRIGHT IN23 FRINGEMENT. 

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

25 17, United States Code, is amended— 
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1 (1) by amending subsection (a) to read as fol2 lows: 

3 ‘‘(a) CRIMINAL INFRINGEMENT.—Any person who— 

4 ‘‘(1) infringes a copyright willfully and for pur5 poses of commercial advantage or private financial 

6 gain, 

7 ‘‘(2) infringes a copyright willfully by the repro8 duction or distribution, including by the offering for 

9 distribution to the public by electronic means, during 

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

11 phonorecords of 1 or more copyrighted works, which 

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

13 ‘‘(3) infringes a copyright by the knowing dis14 tribution, including by the offering for distribution to 

15 the public by electronic means, with reckless disregard 

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

17 day period, of— 

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

19 of 1 or more copyrighted works, 

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

21 or more copyrighted works with a total retail 

22 value of more than $10,000, or 

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

24 or more copyrighted pre-release works, 
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1 shall be punished as provided under section 2319 of title 

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

3 or distribution of a copyrighted work, by itself, shall not 

4 be sufficient to establish the necessary level of intent under 

5 this subsection.’’; and 

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

7 ‘‘(g) LIMITATION ON LIABILITY OF SERVICE PRO8 VIDERS.—No legal entity shall be liable for a violation of 

9 subsection (a)(3) by reason of performing any function de10 scribed in subsection (a), (b), (c), or (d) of section 512 if 

11 such legal entity would not be liable for monetary relief 

12 under section 512 by reason of performing such function. 

13 Except for purposes of determining whether an entity quali14 fies for the limitation on liability under subsection (a)(3) 

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

16 qualifies for a limitation on liability under section 512 

17 shall not be considered in a judicial determination of wheth18 er the entity violates subsection (a) of this section. 

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

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

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

22 has a commercial and economic value and which, at 

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

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

25 knew or should have known had not yet been made 
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1 available by the copyright owner to individual mem2 bers of the general public in copies or phonorecords 

3 for sale, license, or rental. 

4 ‘‘(2) RETAIL VALUE.—The ‘retail value’ of a 

5 copyrighted work is the retail price of that work in 

6 the market in which it is sold. In the case of an in7 fringement of a copyright by distribution, if the retail 

8 price does not adequately reflect the economic value of 

9 the infringement, then the retail value may be deter10 mined using other factors, including but not limited 

11 to suggested retail price, wholesale price, replacement 

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

13 fees.’’. 

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

15 States Code, is amended— 

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

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

18 (2) by inserting after subsection (c) the fol19 lowing: 

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

21 506(a)(3) of title 17— 

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

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

24 or, if the offense was committed for purposes of com25 mercial advantage or private financial gain, impris-
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1 oned for not more than 5 years, or fined in the 

2 amount set forth in this title, or both; and 

3 ‘‘(2) shall, if the offense is a second or subsequent 

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

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

6 title, or both, or, if the offense was committed for pur7 poses of commercial advantage or private financial 

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

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

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

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

12 after the semicolon; 

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

14 and inserting ‘‘; and’’; and 

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

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

17 given that term in section 101 (relating to defini18 tions) of title 17.’’. 

19 (c) CIVIL REMEDIES FOR INFRINGEMENT OF A COM20 MERCIAL PRE-RELEASE COPYRIGHTED WORK.—Section 

21 504(b) of title 17, United States Code, is amended— 

22 (1) by striking ‘‘The copyright owner’’ and in23 serting the following: 

24 ‘‘(1) IN GENERAL.—The copyright owner’’; and 

25 (2) by adding at the end the following: 
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1 ‘‘(2) DAMAGES FOR PRE-RELEASE INFRINGE2 MENT.— 

3 ‘‘(A) IN GENERAL.—In the case of any pre4 release work, actual damages shall be presumed 

5 conclusively to be no less than $10,000 per in6 fringement, if a person— 

7 ‘‘(i) distributes such work by making it 

8 available on a computer network accessible 

9 to members of the public; and 

10 ‘‘(ii) knew or should have known that 

11 the work was intended for commercial dis12 tribution. 

13 ‘‘(B) DEFINITION.—For purposes of this 

14 subsection, the term ‘pre-release work’ has the 

15 meaning given that term in section 506(h).’’. 

16 SEC. 11. AMENDMENT OF FEDERAL SENTENCING GUIDE17 LINES REGARDING THE INFRINGEMENT OF 

18 COPYRIGHTED WORKS AND RELATED CRIMES. 

19 (a) AMENDMENT TO THE SENTENCING GUIDELINES.— 

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

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

22 the United States Sentencing Commission shall review and, 

23 if appropriate, amend the sentencing guidelines and policy 

24 statements applicable to persons convicted of intellectual 

25 property rights crimes, including sections 2318, 2319, 
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1 2319A, 2319B, 2320 of title 18, United States Code, and 

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

3 (b) FACTORS.—In carrying out this section, the Sen4 tencing Commission shall— 

5 (1) take all appropriate measures to ensure that 

6 the sentencing guidelines and policy statements appli7 cable to the offenses described in subsection (a) are 

8 sufficiently stringent to deter and adequately reflect 

9 the nature of such offenses; 

10 (2) consider whether to provide a sentencing en11 hancement for those convicted of the offenses described 

12 in subsection (a) when the conduct involves the dis13 play, performance, publication, reproduction, or dis14 tribution of a copyrighted work before the time when 

15 the copyright owner has authorized the display, per16 formance, publication, reproduction, or distribution of 

17 the original work, whether in the media format used 

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

19 (3) consider whether the definition of 

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

21 Guideline 2B5.3 is adequate to address the loss attrib22 utable to people broadly distributing copyrighted 

23 works over the Internet without authorization; and 

24 (4) consider whether the sentencing guidelines 

25 and policy statements applicable to the offenses de-
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1 scribed in subsection (a) adequately reflect any harm 

2 to victims from infringement in circumstances where 

3 law enforcement cannot determine how many times 

4 copyrighted material is reproduced or distributed. 

5 (c) PROMULGATION.—The Commission may promul6 gate the guidelines or amendments under this section in ac7 cordance with the procedures set forth in section 21(a) of 

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

9 that Act had not expired. 

10 SEC. 12. EXEMPTION FROM INFRINGEMENT FOR SKIPPING 

11 AUDIO CONTENT IN MOTION PICTURES. 

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

13 ‘‘Family Movie Act of 2004’’. 

14 (b) EXEMPTION FROM COPYRIGHT AND TRADEMARK

15 INFRINGEMENT FOR SKIPPING OF AUDIO OR VIDEO CON16 TENT OF MOTION PICTURES.—Section 110 of title 17, 

17 United States Code, is amended— 

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

19 semicolon at the end; 

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

21 the end and inserting ‘‘; and’’; and 

22 (3) by inserting after paragraph (10) the fol23 lowing: 

24 ‘‘(11)(A) the making of limited portions of audio 

25 or video content of a motion picture imperceptible by 
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1 or for the owner or other lawful possessor of an au2 thorized copy of that motion picture in the course of 

3 viewing of that work for private use in a household, 

4 by means of consumer equipment or services that— 

5 ‘‘(i) are operated by an individual in that 

6 household; 

7 ‘‘(ii) serve only such household; and 

8 ‘‘(iii) do not create a fixed copy of the al9 tered version; and 

10 ‘‘(B) the use of technology to make such audio or 

11 video content imperceptible, that does not create a 

12 fixed copy of the altered version.’’. 

13 (c) EXEMPTION FROM TRADEMARK INFRINGEMENT.— 

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

15 is amended by adding at the end the following: 

16 ‘‘(3)(A) Any person who engages in the conduct de17 scribed in paragraph (11) of section 110 of title 17, United 

18 States Code, and who complies with the requirements set 

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

20 conduct for a violation of any right under this Act. 

21 ‘‘(B) A manufacturer, licensee, or licensor of tech22 nology that enables the making of limited portions of audio 

23 or video content of a motion picture imperceptible that is 

24 authorized under subparagraph (A) is not liable on account 

25 of such manufacture or license for a violation of any right 
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1 under this Act, if such manufacturer, licensee, or licensor 

2 ensures that the technology provides a clear and con3 spicuous notice that the performance of the motion picture 

4 is altered from the performance intended by the director or 

5 copyright holder of the motion picture. 

6 ‘‘(C) Any manufacturer, licensee, or licensor of tech7 nology described in subparagraph (B) who fails to comply 

8 with the requirement under subparagraph (B) to provide 

9 notice with respect to a motion picture shall be liable in 

10 a civil action brought by the copyright owner of the motion 

11 picture that is modified by the technology in an amount 

12 not to exceed $1,000 for each such motion picture. 

13 ‘‘(D) The requirement under subparagraph (B) to pro14 vide notice, and the provisions of subparagraph (C), shall 

15 apply only with respect to technology manufactured after 

16 the end of the 180-day period beginning on the date of the 

17 enactment of the Family Movie Act of 2004.’’. 

18 (d) DEFINITION.—In this section, the term ‘‘Trade19 mark Act of 1946’’ means the Act entitled ‘‘An Act to pro20 vide for the registration and protection of trademarks used 

21 in commerce, to carry out the provisions of certain inter22 national conventions, and for other purposes’’, approved 

23 July 5, 1946 (15 U.S.C. 1051 et seq.). 
Union Calendar No. 428 

108TH CONGRESS 

2D SESSION H. R. 4077 

[Report No. 108–700] 

A BILL 

To enhance criminal enforcement of the copyright 

purposes. of copyright law to the Internet, and for other laws, to educate the public about the application 

SEPTEMBER 24, 2004 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,