From: "Robert A. Costner" <pooh@efga.org>
Date: Thu, 18 Dec 1997 02:40:19 +0800
To: Ray Arachelian <sunder@brainlink.com>
Subject: Re: Clinton signs draconian antipiracy law, from the Netly News
In-Reply-To: <Pine.GSO.3.95.971217073940.7460P-100000@well.com>
Message-ID: <3.0.3.32.19971217133345.032b4d48@mail.atl.bellsouth.net>
MIME-Version: 1.0
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At 12:37 PM 12/17/97 -0500, Ray Arachelian wrote:
>Where does Fair Use fall into this?  Do you have the actual wording of
>this law?

Here is a copy of the law.

No Electronic Theft (NET) Act (Enrolled Bill (Sent to President)) 
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 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.

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'.