Let's give more on the No Electronic Theft
(NET) Act...
http://www.gseis.ucla.edu/iclp/hr2265.html
" On December 16, 1997, President Clinton
signed HR 2265 -- the 'No Electronic Theft'
Act -- into law. The act, sponsored by
Representative Goodlatte (R-Virginia), was
passed in the House on 11/4/97 and in the
Senate on 11/13/97.
HR 2265 was viewed as "closing a loophole"
in the criminal law. Under the old statutory
scheme, people who intentionally distributed
copied software over the Internet did not
face criminal penalties if they did not
profit from their actions.
PUBLIC LAW 105-147 [H.R. 2265]
DECEMBER 16, 1997
105 P.L. 147; 111 Stat. 2678; 1997 Enacted
H.R. 2265; 105 Enacted H.R. 2265
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 ,
[*1] SECTION 1. SHORT TITLE.
This Act may be cited as the 'No Electronic
Theft (NET) Act'.
[*2] 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, United States
Code. For purposes of this subsection,
evidence of reproduction 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
(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
"(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.
[*3] 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'.
and....
"The No Electronic Theft ("NET") Act
Relevant portions of 17 U.S.C. and 18
U.S.C. as amended (redlined)
---------------------------------------------
-----------------------------------
17 U.S.C. § 101
§ 101. Definitions
Add the following between "display" and
"fixed":
The term "financial gain" includes receipt,
or expectation of receipt, of anything of
value, including the receipt of other
copyrighted works.
17 U.S.C. §§ 506 & 507
§ 506. Criminal offenses
(a) Criminal Infringement.--Any person who
infringes a copyright willfully and for
purposes of commercial advantage or private
financial gain shall be punished as provided
in section 2319 of title 18. either--
for purposes of commercial advantage or
private financial gain, or
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. For purposes of
this subsection, evidence of reproduction or
distribution of a copyrighted work, by
itself, shall not be sufficient to establish
willful infringement.
(b) Forfeiture and Destruction.--When any
person is convicted of any violation of
subsection (a), the court in its judgment of
conviction shall, in addition to the penalty
therein prescribed, order the forfeiture and
destruction or other disposition of all
infringing copies or phonorecords and all
implements, devices, or equipment used in
the manufacture of such infringing copies or
phonorecords.
(c) Fraudulent Copyright Notice.--Any person
who, with fraudulent intent, places on any
article a notice of copyright or words of
the same purport that such person knows to
be false, or who, with fraudulent intent,
publicly distributes or imports for public
distribution any article bearing such notice
or words that such person knows to be false,
shall be fined not more than $2,500.
(d) Fraudulent Removal of Copyright
Notice.--Any person who, with fraudulent
intent, removes or alters any notice of
copyright appearing on a copy of a
copyrighted work shall be fined not more
than $2,500.
(e) False Representation.--Any person who
knowingly makes a false representation of a
material fact in the application for
copyright registration provided for by
section 409, or in any written statement
filed in connection with the application,
shall be fined not more than $2,500.
(f) Rights of Attribution and
Integrity.--Nothing in this section applies
to infringement of the rights conferred by
section 106A(a).
§ 507. Limitations on actions
(a) Criminal Proceedings.--No criminal
proceeding shall be maintained under the
provisions of this title unless it is
commenced within three five years after the
cause of action arose.
(b) Civil Actions.--No civil action shall be
maintained under the provisions of this
title unless it is commenced within three
years after the claim accrued.
18 U.S.C. § 2319
§ 2319. Criminal infringement of a copyright
(a) Whoever violates section 506(a)
(relating to criminal offenses) of title 17
shall be punished as provided in subsections
(b) and (c) of this section and such
penalties shall be in addition to any other
provisions of title 17 or any other law.
(b) Any person who commits an offense under
subsection (a) of this section section
506(a)(1) of title 17--
shall be imprisoned not more than 5 years,
or fined in the amount set forth in this
title, or both, if the offense consists of
the reproduction or distribution including
by electronic means, during any 180-day
period, of at least 10 copies or
phonorecords, of 1 or more copyrighted
works, with a which have a total retail
value of more than $2,500;
shall be imprisoned not more than 10 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
shall be imprisoned not more than 1 year, or
fined in the amount set forth in this title,
or both, in any other case.
(c) Any person who commits an offense under
section 506(a)(2) of title 17--
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;
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
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)
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.
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.
(c) (e) As used in this section--
the terms "phonorecord" and "copies" have,
respectively, the meanings set forth in
section 101 (relating to definitions) of
title 17; and
the terms "reproduction" and "distribution"
refer to the exclusive rights of a copyright
owner under clauses (1) and (3) respectively
of section 106 (relating to exclusive rights
in copyrighted works), as limited by
sections 107 through 120, of title 17.
18 U.S.C. § 2319A
§ 2319A. Unauthorized fixation of and
trafficking in sound recordings and music
videos of live musical performances
(a) Offense.--Whoever, without the consent
of the performer or performers involved,
knowingly and for purposes of commercial
advantage or private financial gain--
fixes the sounds or sounds and images of a
live musical performance in a copy or
phonorecord, or reproduces copies or
phonorecords of such a performance from an
unauthorized fixation;
transmits or otherwise communicates to the
public the sounds or sounds and images of a
live musical performance; or
distributes or offers to distribute, sells
or offers to sell, rents or offers to rent,
or traffics in any copy or phonorecord fixed
as described in paragraph (1), regardless of
whether the fixations occurred in the United
States; shall be imprisoned for not more
than 5 years or fined in the amount set
forth in this title, or both, or if the
offense is a second or subsequent offense,
shall be imprisoned for not more than 10
years or fined in the amount set forth in
this title, or both.
(b) Forfeiture and destruction.--When a
person is convicted of a violation of
subsection (a), the court shall order the
forfeiture and destruction of any copies or
phonorecords created in violation thereof,
as well as any plates, molds, matrices,
masters, tapes, and film negatives by means
of which such copies or phonorecords may be
made. The court may also, in its discretion,
order the forfeiture and destruction of any
other equipment by means of which such
copies or phonorecords may be reproduced,
taking into account the nature, scope, and
proportionality of the use of the equipment
in the offense.
(c) Seizure and forfeiture.--If copies or
phonorecords of sounds or sounds and images
of a live musical performance are fixed
outside of the United States without the
consent of the performer or performers
involved, such copies or phonorecords are
subject to seizure and forfeiture in the
United States in the same manner as property
imported in violation of the customs laws.
The Secretary of the Treasury shall, not
later than 60 days after the date of the
enactment of the Uruguay Round Agreements
Act, issue regulations to carry out this
subsection, including regulations by which
any performer may, upon payment of a
specified fee, be entitled to notification
by the United States Customs Service of the
importation of copies or phonorecords that
appear to consist of unauthorized fixations
of the sounds or sounds and images of a live
musical performance.
(d) Victim impact statement.--
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.
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.
(d) (e) Definitions.--As used in this
section--
the terms "copy", "fixed", "musical work",
"phonorecord", "reproduce", "sound
recordings", and "transmit" mean those terms
within the meaning of title 17; and
the term "traffic in" means transport,
transfer, or otherwise dispose of, to
another, as consideration for anything of
value, or make or obtain control of with
intent to transport, transfer, or dispose
of.
(e) (f) Applicability.--This section shall
apply to any Act or Acts that occur on or
after the date of the enactment of the
Uruguay Round Agreements Act.
18 U.S.C. § 2320
§ 2320. Trafficking in counterfeit goods or
services
(a) Whoever intentionally traffics or
attempts to traffic in goods or services and
knowingly uses a counterfeit mark on or in
connection with such goods or services
shall, if an individual, be fined not more
than $2,000,000 or imprisoned not more than
10 years, or both, and, if a person other
than an individual, be fined not more than
$5,000,000. In the case of an offense by a
person under this section that occurs after
that person is convicted of another offense
under this section, the person convicted, if
an individual, shall be fined not more than
$5,000,000 or imprisoned not more than 20
years, or both, and if other than an
individual, shall be fined not more than
$15,000,000.
(b) Upon a determination by a preponderance
of the evidence that any articles in the
possession of a defendant in a prosecution
under this section bear counterfeit marks,
the United States may obtain an order for
the destruction of such articles.
(c) All defenses, affirmative defenses, and
limitations on remedies that would be
applicable in an action under the Lanham Act
shall be applicable in a prosecution under
this section. In a prosecution under this
section, the defendant shall have the burden
of proof, by a preponderance of the
evidence, of any such affirmative defense.
(d)
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.
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.
(d) (e) For the purposes of this section--
the term "counterfeit mark" means--
(A) a spurious mark--
(i) that is used in connection with
trafficking in goods or services;
(ii) that is identical with, or
substantially indistinguishable from, a mark
registered for those goods or services on
the principal register in the United States
Patent and Trademark Office and in use,
whether or not the defendant knew such mark
was so registered; and
(iii) the use of which is likely to cause
confusion, to cause mistake, or to deceive;
or
(B) a spurious designation that is identical
with, or substantially indistinguishable
from, a designation as to which the remedies
of the Lanham Act are made available by
reason of section 110 of the Olympic Charter
Act; but such term does not include any mark
or designation used in connection with goods
or services of which the manufacturer or
producer was, at the time of the manufacture
or production in question authorized to use
the mark or designation for the type of
goods or services so manufactured or
produced, by the holder of the right to use
such mark or designation;
the term "traffic" means transport,
transfer, or otherwise dispose of, to
another, as consideration for anything of
value, or make or obtain control of with
intent so to transport, transfer, or dispose
of;
the term "Lanham Act" means the Act entitled
"An Act to provide for the registration and
protection of trademarks used in commerce,
to carry out the provisions of certain
international conventions, and for other
purposes", approved July 5, 1946 (15 U.S.C.
1051 et seq.); and
the term "Olympic Charter Act" means the Act
entitled "An Act to incorporate the United
States Olympic Association", approved
September 21, 1950 (36 U.S.C. 371 et seq.).
(e) (f) Beginning with the first year after
the date of enactment of this subsection,
the Attorney General shall include in the
report of the Attorney General to Congress
on the business of the Department of Justice
prepared pursuant to section 522 of title
28, an accounting, on a district by district
basis, of the following with respect to all
actions taken by the Department of Justice
that involve trafficking in counterfeit
labels for phonorecords, copies of computer
programs or computer program documentation
or packaging, copies of motion pictures or
other audiovisual works (as defined in
section 2318 of title 1

, criminal
infringement of copyrights (as defined in
section 2319 of title 1

, unauthorized
fixation of and trafficking in sound
recordings and music videos of live musical
performances (as defined in section 2319A of
title 1

, or trafficking in goods or services
bearing counterfeit marks (as defined in
section 2320 of title 1

:
The number of open investigations.
The number of cases referred by the United
States Customs Service.
The number of cases referred by other
agencies or sources.
The number and outcome, including
settlements, sentences, recoveries, and
penalties, of all prosecutions brought under
sections 2318, 2319, 2319A, and 2320 of
title 18. "