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under this section, the plaintiff shall be entitled to recover
any damages sustained by the plaintiff and defendant’s
profits not taken into account in computing the damages
sustained by the plaintiff. The court shall assess such
profits or damages or cause the same to be assessed under
its direction. In assessing profits the plaintiff shall be re-
quired to prove defendant’s gross revenue only; defendant
must prove all elements of cost or deduction claims. In
assessing damages the court may enter judgment, accord-
ing to the circumstances of the case, for any sum above
the amount found as actual damages, not exceeding three
times such amount. The court in its discretion may award
reasonable costs and attorney’s fees to the prevailing party
and shall award such costs and fees where it determines
that an action was brought under this chapter in bad faith
against a nonprofit educational, scientific, or research in-
stitution, library, or archives, or an employee or agent of
such an entity, acting within the scope of his or her em-
ployment.
‘‘(e) REDUCTION OR REMISSION OF MONETARY RE-
LIEF
FOR NONPROFIT EDUCATIONAL, SCIENTIFIC, OR
RESEARCH INSTITUTIONS.—The court shall reduce or
remit entirely monetary relief under subsection (d) in any
case in which a defendant believed and had reasonable
grounds for believing that his or her conduct was permis-
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sible under this chapter, if the defendant was an employee
or agent of a nonprofit educational, scientific, or research
institution, library, or archives acting within the scope of
his or her employment.
‘‘(f) ACTIONS AGAINST UNITED STATES GOVERN-
MENT.—Subsections (b) and (c) shall not apply to any ac-
tion against the United States Government.
‘‘(g) RELIEF AGAINST STATE ENTITIES.—The relief
provided under this section shall be available against a
State governmental entity to the extent permitted by ap-
plicable law.
‘‘§ 1207. Criminal offenses and penalties
‘‘(a) VIOLATION.—
‘‘(1) IN
GENERAL.—Any person who violates
section 1202 willfully, and—
‘‘(A) does so for direct or indirect commer-
cial advantage or financial gain; or
‘‘(B) causes loss or damage aggregating
$10,000 or more in any 1-year period to the
person who gathered, organized, or maintained
the information concerned,
shall be punished as provided in subsection (b).
‘‘(2) INAPPLICABILITY.—This section shall not
apply to an employee or agent of a nonprofit edu-
cational, scientific, or research institution, library, or
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archives acting within the scope of his or her em-
ployment.
‘‘(b) PENALTIES.—An offense under subsection (a)
shall be punishable by a fine of not more than $250,000
or imprisonment for not more than 5 years, or both. A
second or subsequent offense under subsection (a) shall
be punishable by a fine of not more than $500,000 or im-
prisonment for not more than 10 years, or both.
‘‘§ 1208. Limitations on actions
‘‘(a) CRIMINAL PROCEEDINGS.—No criminal pro-
ceeding shall be maintained under this chapter unless it
is commenced within three years after the cause of action
arises.
‘‘(b) CIVIL ACTIONS.—No civil action shall be main-
tained under this chapter unless it is commenced within
three years after the cause of action arises or claim ac-
crues.
‘‘(c) ADDITIONAL LIMITATION.—No criminal or civil
action shall be maintained under this chapter for the ex-
traction or use of all or a substantial part of a collection
of information that occurs more than 15 years after the
investment of resources that qualified the portion of the
collection of information for protection under this chapter
that is extracted or used.’’.
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SEC. 3. CONFORMING AMENDMENT.
The table of chapters for title 17, United States
Code, is amended by adding at the end the following:
‘‘12. Misappropriation of Collections of Information .......... 1201’’.
SEC. 4. CONFORMING AMENDMENTS TO TITLE 28, UNITED
STATES CODE.
(a) DISTRICT COURT JURISDICTION.—Section 1338
of title 28, United States Code, is amended—
(1) in the section heading by inserting ‘‘mis-
appropriations of collections of informa-
tion,’’ after ‘‘trade-marks,’’; and
(2) by adding at the end the following:
‘‘(d) The district courts shall have original jurisdic-
tion of any civil action arising under chapter 12 of title
17, relating to misappropriation of collections of informa-
tion. Such jurisdiction shall be exclusive of the courts of
the States, except that any action against a State govern-
mental entity may be brought in any court that has juris-
diction over claims against such entity.’’.
(b) CONFORMING AMENDMENT.—The item relating
to section 1338 in the table of sections for chapter 85 of
title 28, United States Code, is amended by inserting
‘‘misappropriations of collections of information,’’ after
‘‘trade-marks,’’.
(c) COURT OF FEDERAL CLAIMS JURISDICTION.—
Section 1498(e) of title 28, United States Code, is amend-
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ed by inserting ‘‘and to protections afforded collections of
information under chapter 12 of title 17’’ after ‘‘chapter
9 of title 17’’.
SEC. 5. EFFECTIVE DATE.
(a) IN GENERAL.—This Act and the amendments
made by this Act shall take effect on the date of the enact-
ment of this Act, and shall apply to acts committed on
or after that date.
(b) PRIOR ACTS NOT AFFECTED.—No person shall
be liable under chapter 12 of title 17, United States Code,
as added by section 2 of this Act, for the use of informa-
tion lawfully extracted from a collection of information
prior to the effective date of this Act, by that person or
by that person’s predecessor in interest.
Passed the House of Representatives May 19, 1998.
Attest:
ROBIN H. CARLE,
Clerk.