ing efforts such as those constituting ‘‘verifiable pa-
rental consent’’ under the Children’s Online Privacy 
Protection Act of 1998; 
(6) the term ‘‘verification of majority’’ means 
any reasonable effort (taking into consideration 
available technology) to ensure that a recipient of 
peer-to-peer file trading software is not a juvenile, 
including efforts such as accepting and verifying a 
credit card number in connection with a distribution 
of peer-to-peer file trading software; and 
(7) the term ‘‘person’’ means any individual, 
partnership, corporation, trust, estate, cooperative, 
association, or other entity. 
SEC. 4. REGULATION OF JUVENILE ACCESS TO PEER-TO-
PEER NETWORKS. 
(a) ACTS PROHIBITED.—It is unlawful for any per-
son to distribute peer-to-peer file trading software, or to 
authorize or cause peer-to-peer file trading software to be 
distributed by another person, in interstate commerce in 
a manner that violates the regulations prescribed under 
subsection (b)(2). 
(b) REGULATIONS.—Not later than 1 year after the 
date of the enactment of this Act, the Commission shall 
promulgate regulations that—
(1) define the term ‘‘peer-to-peer file trading 
software’’ for purposes of this Act, with such defini-
tion to encompass computer software that enables 
the transmission of computer files or data over the 
Internet or any other public network of computers 
and that has as its primary function the capability 
to do all of the following—
(A) enable a computer on which such soft-
ware is used to transmit files or data to another 
such computer; 
(B) enable the user of one such computer 
to request the transmission of files or data from 
another such computer; and 
(C) enable the user of one such computer 
to designate files or data available for trans-
mission to another such computer, but which 
definition excludes, to the extent otherwise in-
cluded, software products legitimately marketed 
and distributed primarily for the operation of 
business and home networks, the networks of 
Internet access providers, or the Internet itself; 
and 
(2) require any person who distributes, or au-
thorizes or causes another person to distribute, peer-
to-peer file trading software in interstate commerce 
to—
(A) provide clear and prominent notice to 
each recipient of peer-to-peer file trading soft-
ware, before the peer-to-peer file trading soft-
ware is provided to the recipient, that use 
thereof may expose the user to pornography, il-
legal activities, and security and privacy 
threats; 
(B) check for the do-not-install beacon de-
scribed in subsection (c)(1) and not transmit 
peer-to-peer file trading software to any com-
puter with such beacon; 
(C) obtain verification of majority, or if a 
recipient is a juvenile obtain verifiable parental 
consent, before the peer-to-peer file trading 
software is provided to the recipient; 
(D) ask whether or not each juvenile re-
cipient of peer-to-peer file trading software is a 
child under the age of 13; 
(E) comply with the provisions of the Chil-
dren’s Online Privacy Protection Act of 1998 
(15 U.S.C. 6501 et seq.) as to all information 
collected from children in connection with the
distribution of peer-to-peer file trading soft-
ware; 
(F) ensure that the peer-to-peer file trad-
ing software has the capability to be readily dis-
abled or uninstalled by a user thereof, and 
prominent means to access clear information 
concerning the availability and use of that capa-
bility; 
(G) if the peer-to-peer file trading software 
has the capability of automatically causing a 
user’s computer to function as a supernode or 
other focal point for the transmission of files or 
data, or information about the availability of 
files or data, among other computers on which 
such software is used, ensure that such soft-
ware does not exercise that capability unless the 
user receives clear and prominent notice thereof 
and thereafter takes affirmative steps to enable 
that capability; 
(H) if the peer-to-peer file trading software 
has the capability of disabling or circumventing 
security or other protective software on, or fea-
tures of, the user’s computer or network, in-
cluding a firewall, software that protects 
against viruses or other malicious code or a do-
not-install beacon or other parental control, en-
sure that such peer-to-peer file trading software 
does not exercise that capability unless the user 
receives clear and prominent notice thereof and 
thereafter takes affirmative steps to enable that 
capability; 
(I) if such person does not reside in the 
United States, designate a resident agent for 
service of process in the United States, and file 
with the Commission such designation and the 
address of the office or usual place of residence 
of the agent; 
(J) maintain reasonable records of its com-
pliance with the requirements set forth in this 
paragraph; and 
(K) establish and maintain reasonable pro-
cedures to protect the confidentiality, security, 
and integrity of personal information contained 
in such records. 
(c) TECHNOLOGICAL MEASURES.—The Commission 
shall—
(1) not later than 1 year after the date of the 
enactment of this Act, in consultation with the 
Under Secretary for Technology of the Department 
of Commerce, develop and make readily available to
the public functional requirements for standard ‘‘do-
not-install’’ beacons that provide an effective techno-
logical means for parents to record on their com-
puters their desire that users not install or use peer-
to-peer file trading software on those computers; 
(2) make available to the public a list of do-not-
install beacon products that have been certified by 
their producers as conforming to such functional re-
quirements; and 
(3) if in any study required by section 6, it ap-
pears to the Commission that any commonly-used 
peer-to-peer file trading software does not have the 
capability required by subsection (b)(2)(F), promptly 
make readily available to the public information nec-
essary to enable parents to disable or uninstall such 
software on their computers, and if necessary to 
allow parents to do so readily, develop and make 
available technological means for parents to disable 
or uninstall such software on their computers. 
(d) ENFORCEMENT.—A violation of the regulations 
prescribed under subsection (b)(2) shall be treated as a 
violation of a rule defining an unfair or deceptive act or 
practice prescribed under section 18(a)(1)(B) of the Fed-
eral Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). In 
the case of any action arising under this Act against a
SEC. 6. ACTIONS BY STATES. 
(a) IN GENERAL.—
(1) CIVIL ACTIONS.—In any case in which the 
attorney general or other appropriate authority of a 
State has reason to believe that an interest of the 
residents of that State has been or is threatened or 
adversely affected by the engagement of any person 
in a practice that violates the regulations of the 
Commission prescribed under section 3(b)(2), the 
State, as parens patriae, may bring a civil action on 
behalf of the residents of the State in a district 
court of the United States of appropriate jurisdic-
tion to—
(A) enjoin that practice; 
(B) enforce compliance with the regula-
tions; 
(C) obtain damages, restitution, or other 
compensation on behalf of residents of the 
State; or 
(D) obtain such other relief as the court 
may consider to be appropriate. 
(2) NOTICE.—
(A) IN GENERAL.—Before filing an action 
under paragraph (1), the attorney general or 
other authority of the State involved shall pro-
vide to the Commission—
(i) written notice of that action; and 
(ii) a copy of the complaint for that 
action. 
(B) EXEMPTION.—
(i) IN GENERAL.—Subparagraph (A) 
shall not apply with respect to the filing of 
an action by an attorney general or other 
authority of a State under this subsection, 
if the attorney general or other authority 
determines that it is not feasible to provide 
the notice described in that subparagraph 
before the filing of the action. 
(ii) NOTIFICATION.—In an action de-
scribed in clause (i), the attorney general 
or other authority of a State shall provide 
notice and a copy of the complaint to the 
Commission at the same time as the attor-
ney general or other authority files the ac-
tion. 
(b) INTERVENTION.—
(1) IN GENERAL.—On receiving notice under 
subsection (a)(2), the Commission shall have the 
right to intervene in the action that is the subject 
of the notice.
(2) EFFECT OF INTERVENTION.—If the Com-
mission intervenes in an action under subsection (a), 
it shall have the right—
(A) to be heard with respect to any matter 
that arises in that action; and 
(B) to file a petition for appeal. 
(c) CONSTRUCTION.—For purposes of bringing any 
civil action under subsection (a), nothing in this Act shall 
be construed to prevent an attorney general or other au-
thority of a State from exercising the powers conferred 
on the attorney general or other authority by the laws of 
that State to—
(1) conduct investigations; 
(2) administer oaths or affirmations; or 
(3) compel the attendance of witnesses or the 
production of documentary and other evidence. 
(d) ACTIONS BY THE COMMISSION.—In any case in 
which an action is instituted by or on behalf of the Com-
mission for violation of any of the regulations of the Com-
mission prescribed under section 3(b)(2), no State may, 
during the pendency of that action, institute an action 
under subsection (a) against any defendant named in the 
complaint in that action for violation of that regulation. 
(e) VENUE; SERVICE OF PROCESS.—
(1) VENUE.—Any action brought under sub-
section (a) may be brought in the district court of 
the United States that meets applicable require-
ments relating to venue under section 1391 of title 
28, United States Code. 
(2) SERVICE
OF
PROCESS.—In an action 
brought under subsection (a), process may be served 
in any district in which the defendant—
(A) is an inhabitant; or 
(B) may be found. 
SEC. 7. STUDY. 
The Commission shall conduct an annual study con-
cerning peer-to-peer file trading software, including the 
availability of child pornography and other pornographic 
images and videos using such software, security and pri-
vacy threats posed by such software, use of such software 
by juveniles, the ability of parents to control access to and 
use of such software by juveniles, the degree of compliance 
with and the effectiveness of this Act, and any legislative 
recommendations that may be warranted. The Commis-
sion shall submit a report to the Congress setting forth 
the results of each such study. The Under Secretary for 
Technology of the Department of Commerce shall provide 
to the Commission such staff and resources as necessary
for the Commission to perform its duty efficiently and in 
accordance with this section. 
SEC. 8. EFFECTIVE DATE. 
Sections 4(a), 5, and 6 of this Act take effect on the 
date that is 18 months after the date of enactment of this 
Act.
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