No Electronic Theft (NET) Act


 * Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

{{SECTION|SEC. 1.|SECTION 1}}. SHORT TITLE.

 * This Act may be cited as the ``No Electronic Theft (NET) Act´´.

{{SECTION|SEC. 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:


 * (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:


 * (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:


 * (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:


 * (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.

{{SECTION|SEC. 3.|SEC. 3}}. INFRINGEMENT OF 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

 * HOUSE REPORTS:
 * (Comm. on the Judiciary)
 * CONGRESSIONAL RECORD, Vol. 143 (1997):
 * Nov. 4, considered and passed House.
 * Nov. 13, considered and passed Senate.
 * Nov. 13, considered and passed Senate.

