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*U.S. Department of Justice*
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*PL 105-147 (HR 2265)*
*December 16, 1997*
*NO ELECTRONIC THEFT (NET) ACT*
* 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,*
<< 18 USCA § 2311 NOTE >>
SECTION 1. SHORT TITLE.
This Act may be cited as the "No Electronic Theft (NET) Act".
SEC. 2. CRIMINAL INFRINGEMENT OF COPYRIGHTS.
<< 17 USCA § 101 >>
(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.".
<< 17 USCA § 506 >>
(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.".
<< 17 USCA § 507 >>
(c) LIMITATION ON CRIMINAL PROCEEDINGS.--Section 507(a) of title
17, United States Code, is amended by striking "three" and inserting
"5".
<< 18 USCA § 2319 >>
(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
*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 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.".
<< 18 USCA § 2319A >>
(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.".
<< 18 USCA § 2320 >>
(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:
*2680 "(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.".
<< 28 USCA § 994 NOTE >>
(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.
<< 28 USCA § 1498 >>
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".
* # # #*
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