H. R. 2265
One Hundred Fifth Congress
of the
United States of America
AT THE FIRST SESSION
Begun and held at the City of Washington on Tuesday,
the seventh day of January, one thousand nine hundred and ninety-seven
An Act
To amend the provisions of titles 17 and 18, United States Code, to provide greater
copyright protection by amending criminal copyright infringement provisions, and
for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
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 para-
graph:
‘‘The term ‘financial gain’ includes receipt, or expectation
of receipt, of anything of value, including 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 infringes a
copyright willfully either—
‘‘(1) for purposes of commercial advantage or private
financial gain, or
‘‘(2) by the reproduction or distribution, including 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, United
States Code. 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.—Section 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 amended—
(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)—
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(i) by inserting ‘‘including by electronic means,’’
after ‘‘if the offense consists 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 subsection (e) and
inserting after subsection (b) the following:
‘‘(c) Any person who commits an offense under section 506(a)(2)
of title 17, United States Code—
‘‘(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 distribution 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 distribution 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 producers, 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 following:
‘‘(d) VICTIM IMPACT STATEMENT.—(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
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‘‘(C) the legal representatives of such producers, sellers,
and holders.’’.
(f ) TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.—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 following:
‘‘(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 offense;
‘‘(B) holders of intellectual property rights in such goods
or services; and
‘‘(C) the legal representatives of such producers, 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 (including 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 addi-
tional considerations 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 property 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 copyright shall be by
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action’’ and inserting ‘‘action which may be brought for such
infringement shall be an action by the copyright owner’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.