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                                                 Union Calendar No. 198

105th CONGRESS

  1st Session

                               H. R. 2265

                          [Report No. 105-339]

_______________________________________________________________________

                                 A BILL

  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.

_______________________________________________________________________

                            October 23, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 198
105th CONGRESS
  1st Session
                                H. R. 2265

                          [Report No. 105-339]

  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.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 25, 1997

Mr. Goodlatte (for himself, Mr. Coble, Mr. Frank of Massachusetts, and 
 Mr. Cannon) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

                            October 23, 1997

    Additional sponsors: Mr. Delahunt, Mr. Gallegly, and Mr. Clement

                            October 23, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
                               25, 1997]

_______________________________________________________________________

                                 A BILL


 
  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 paragraph:
            ``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.''.
    (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
                            (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--
            ``(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
            ``(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 statements), 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 additional 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''.

SEC. 4. CLARIFICATION OF LIABILITY FOR COPYRIGHT INFRINGEMENT.

    Except as expressly provided in this Act, nothing in this Act or 
the amendments made by this Act modifies liability for copyright 
infringement, including the standard of willfulness for criminal 
infringement.

Pages: 1

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