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, includ-
ing 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 in-
fringes a copyright willfully either—
‘‘(1) for purposes of commercial advantage or
private financial gain, or
‘‘(2) by the reproduction or distribution, includ-
ing 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. For purposes of this subsection, evidence of reproduc-
tion or distribution of a copyrighted work, by itself, shall
not be sufficient to establish willful infringement.’’.
(c) LIMITATION ON CRIMINAL PROCEEDINGS.—Sec-
tion 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 amend-
ed—
(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 elec-
tronic means,’’ after ‘‘if the offense con-
sists 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 sub-
section (e) and inserting after subsection (b) the fol-
lowing:
‘‘(c) Any person who commits an offense under sec-
tion 506(a)(2) of title 17—
‘‘(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 dis-
tribution 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 dis-
tribution 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 produc-
ers, 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 follow-
ing:
‘‘(d) VICTIM IMPACT STATEMENT.—(1) During prep-
aration 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 identi-
fies 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 vic-
tim.
‘‘(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 produc-
ers, sellers, and holders.’’.
(f) TRAFFICKING IN COUNTERFEIT GOODS OR SERV-
ICES.—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 follow-
ing:
‘‘(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 of-
fense;
‘‘(B) holders of intellectual property rights in
such goods or services; and
‘‘(C) the legal representatives of such produc-
ers, 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 state-
ments), the United States Sentencing Commission shall
ensure that the applicable guideline range for a defendant
convicted of a crime against intellectual property (includ-
ing 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 con-
siderations 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 prop-
erty 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 copy-
right shall be by action’’ and inserting ‘‘action which may
be brought for such infringement shall be an action by
the copyright owner’’.
Passed the House of Representatives November 4,
1997.
Attest:
Clerk.