No Electronic Theft (NET) Act
PL 105-147 (H.R.2265), enacted 12/16/1997

I l l STAT. 2678 
PUBLIC LAW 105-147—DEC. 16, 1997 
Public Law 105-147 
105th Congress 
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 
[H.R. 2265] 
for other purposes. 
Be it enacted by the Senate and House of Representatives 
of 
No Electronic 
the United States of America in Congress assembled, 
Theft (NET) Act. 
18 u s e 2311 
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)— 
(i) by inserting "including by electronic means," 
after "if the offense consists of the reproduction or 
distribution,"; and 
PUBLIC LAW 105-147—DEC. 16, 1997 
111 STAT. 2679 
(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 eifter subsection (b) the following: 
"(c) Any person who commits an offense under section 506(a)(2) 
of title 17, United States Code— 
"(1) shcdl 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 £ind 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.". 
(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: 
I l l STAT. 2680 
PUBLIC LAW 105-147—DEC. 16, 1997 
"(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 
(Pubhc 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 
action" and inserting "action which may be brought for such 
infringement shall be an action by the copyright owner". 
Approved December 16, 1997. 
LEGISLATIVE HISTORY—H.R. 2265: 
HOUSE REPORTS: No. 105-339 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 143 (1997): 
Nov. 4, considered and passed House. 
Nov. 13, considered and passed Senate.