Gratis de volledige en complete tekst van Piracy Deterrence and Education Act of 2004

IB

Union Calendar No. 428

108TH CONGRESS

2D SESSION H. R. 4077

[Report No. 108–700]

To enhance criminal enforcement of the copyright laws, to educate the public

about the application of copyright law to the Internet, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

MARCH 31, 2004

Mr. SMITH of Texas (for himself, Mr. BERMAN, and Mr. CONYERS) introduced

the following bill; which was referred to the Committee on the Judiciary

SEPTEMBER 24, 2004

Additional sponsors: Mr. OTTER, Mr. HOYER, Mr. COBLE, Mrs. BONO, and

Mr. MEEHAN

SEPTEMBER 24, 2004

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 the introduced bill, see bill as introduced on March 31, 2004]

A BILL

To enhance criminal enforcement of the copyright laws, to

educate the public about the application of copyright

law to the Internet, and for other purposes.

1 Be it enacted by the Senate and House of Representa2

tives of the United States of America in Congress assembled,

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1 SECTION 1. SHORT TITLE.

2 This Act may be cited as the ‘‘Piracy Deterrence and

3 Education Act of 2004’’.

4 SEC. 2. FINDINGS.

5 The Congress finds as follows:

6 (1) The Internet, while changing the way our so7

ciety communicates, has also changed the nature of

8 many crimes, including the theft of intellectual prop9

erty.

10 (2) Trafficking in infringing copyrighted works

11 through increasingly sophisticated electronic means,

12 including peer-to-peer file trading networks, Internet

13 chat rooms, and news groups, threatens lost jobs, lost

14 income for creators, lower tax revenue, and higher

15 prices for honest purchasers.

16 (3) The most popular peer-to-peer file trading

17 software programs have been downloaded by computer

18 users over 600,000,000 times. At any one time there

19 are over 3,000,000 users simultaneously using just

20 one of these services. Each month, on average, over

21 2,300,000,000 digital-media files are transferred

22 among users of peer-to-peer systems.

23 (4) Many computer users simply believe that

24 they will not be caught or prosecuted for their con25

duct.

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1 (5) The security and privacy threats posed by

2 certain peer-to-peer networks extend beyond users in3

advertently enabling a hacker to access files. Millions

4 of copies of one of the most popular peer-to-peer net5

works contain software that could allow an inde6

pendent company to take over portions of users’ com7

puters and Internet connections and has the capacity

8 to keep track of users’ online habits.

9 (6) In light of these considerations, Federal law

10 enforcement agencies should actively pursue criminals

11 who steal the copyrighted works of others, and prevent

12 such activity through enforcement and awareness. The

13 public should be educated about the security and pri14

vacy risks associated with being connected to certain

15 peer-to-peer networks.

16 SEC. 3. VOLUNTARY PROGRAM OF DEPARTMENT OF JUS17

TICE.

18 (a) VOLUNTARY PROGRAM.—The Attorney General is

19 authorized to establish a program under which the Depart20

ment of Justice, in cases where persons who are subscribers

21 of Internet service providers appear to be engaging in copy22

right infringing conduct in the course of using that Internet

23 service, would send to the Internet Service providers notices

24 that warn such persons of the penalties for such copyright

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1 infringement. The Internet service providers may forward

2 the notices to such persons.

3 (b) LIMITATIONS ON PROGRAM.—

4 (1) EXTENT AND LENGTH OF PROGRAM.—The

5 program under subsection (a) shall terminate at the

6 end of the 18-month period beginning on the date of

7 the enactment of this Act and shall be limited to not

8 more than 10,000 notices.

9 (2) PRIVACY PROTECTIONS.—No Internet service

10 provider that receives a notice from the Department

11 of Justice under subsection (a) may disclose to the

12 Department any identifying information about the

13 subscriber that is the subject of the notice except pur14

suant to court order or other applicable legal process

15 that requires such disclosure.

16 (c) REIMBURSEMENT OF INTERNET SERVICE PRO17

VIDERS.—The Department of Justice shall reimburse Inter18

net Service providers for all reasonable costs incurred by

19 such service providers in forwarding notices under sub20

section (a).

21 (d) REPORTS TO CONGRESS.—The Attorney General

22 shall submit to the Congress a report on the program estab23

lished under subsection (a) both at the time the program

24 is initiated and at the conclusion of the program.

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1 SEC. 4. DESIGNATION AND TRAINING OF AGENTS IN COM2

PUTER HACKING AND INTELLECTUAL PROP3

ERTY UNITS.

4 (a) DESIGNATION OF AGENTS IN CHIPS UNITS.—The

5 Attorney General shall ensure that any unit in the Depart6

ment of Justice responsible for investigating computer hack7

ing or responsible for investigating intellectual property

8 crimes is assigned at least one agent to support such unit

9 for the purpose of investigating crimes relating to the theft

10 of intellectual property.

11 (b) TRAINING.—The Attorney General shall ensure

12 that each agent assigned under subsection (a) has received

13 training in the investigation and enforcement of intellectual

14 property crimes.

15 SEC. 5. EDUCATION PROGRAM.

16 (a) ESTABLISHMENT.—There shall be established with17

in the Office of the Associate Attorney General of the United

18 States an Internet Use Education Program.

19 (b) PURPOSE.—The purpose of the Internet Use Edu20

cation Program shall be to—

21 (1) educate the general public concerning the

22 value of copyrighted works and the effects of the theft

23 of such works on those who create them; and

24 (2) educate the general public concerning the pri25

vacy, security, and other risks of using the Internet

26 to obtain illegal copies of copyrighted works.

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1 (c) SECTOR SPECIFIC MATERIALS.—The Internet Use

2 Educational Program shall, to the extent appropriate, de3

velop materials appropriate to Internet users in different

4 sectors of the general public where criminal copyright in5

fringement is a concern. The Attorney General shall consult

6 with appropriate interested parties in developing such sec7

tor-specific materials.

8 (d) CONSULTATIONS.—The Attorney General shall con9

sult with the Register of Copyrights and the Secretary of

10 Commerce in developing the Internet Use Education Pro11

gram under this section.

12 (e) PROHIBITION ON USE OF CERTAIN FUNDS.—The

13 program created under this section shall not use funds or

14 resources of the Department of Justice allocated for crimi15

nal investigation or prosecution.

16 (f) ADDITIONAL PROHIBITION ON THE USE OF

17 FUNDS.—The program created under this section shall not

18 use any funds or resources of the Department of Justice al19

located for the Civil Rights Division of the Department, in20

cluding any funds allocated for the enforcement of civil

21 rights or the Voting Rights Act of 1965.

22 SEC. 6. ACTIONS BY THE GOVERNMENT OF THE UNITED

23 STATES.

24 Section 411(a) of title 17, United States Code, is

25 amended in the first sentence by striking ‘‘Except for’’ and

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1 inserting ‘‘Except for an action brought by the Government

2 of the United States or by any agency or instrumentality

3 thereof, or’’ .

4 SEC. 7. AUTHORIZED APPROPRIATIONS.

5 There are authorized to be appropriated to the Depart6

ment of Justice for fiscal year 2005 not less than

7 $15,000,000 for the investigation and prosecution of viola8

tions of title 17, United States Code.

9 SEC. 8. CRIMINAL PENALTIES FOR UNAUTHORIZED RE10

CORDING OF MOTION PICTURES IN A MOTION

11 PICTURE EXHIBITION FACILITY.

12 (a) IN GENERAL.—Chapter 113 of title 18, United

13 States Code, is amended by adding after section 2319A the

14 following new section:

15 ‘‘§ 2319B. Unauthorized recording of motion pictures

16 in a motion picture exhibition facility

17 ‘‘(a) OFFENSE.—Any person who, without the author18

ization of the copyright owner, knowingly uses or attempts

19 to use an audiovisual recording device to transmit or make

20 a copy of a motion picture or other audiovisual work pro21

tected under title 17, or any part thereof, from a perform22

ance of such work in a motion picture exhibition facility,

23 shall—

24 ‘‘(1) be imprisoned for not more than 3 years,

25 fined under this title, or both; or

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1 ‘‘(2) if the offense is a second or subsequent of2

fense, be imprisoned for no more than 6 years, fined

3 under this title, or both.

4 The possession by a person of an audiovisual recording de5

vice in a motion picture exhibition facility may be consid6

ered as evidence in any proceeding to determine whether

7 that person committed an offense under this subsection, but

8 shall not, by itself, be sufficient to support a conviction of

9 that person for such offense.

10 ‘‘(b) FORFEITURE AND DESTRUCTION.—When a per11

son is convicted of an offense under subsection (a), the court

12 in its judgment of conviction shall, in addition to any pen13

alty provided, order the forfeiture and destruction or other

14 disposition of all unauthorized copies of motion pictures or

15 other audiovisual works protected under title 17, or parts

16 thereof, and any audiovisual recording devices or other

17 equipment used in connection with the offense.

18 ‘‘(c) AUTHORIZED ACTIVITIES.—This section does not

19 prevent any lawfully authorized investigative, protective, or

20 intelligence activity by an officer, agent, or employee of the

21 United States, a State, or a political subdivision of a State,

22 or by a person acting under a contract with the United

23 States, a State, or a political subdivision of a State.

24 ‘‘(d) IMMUNITY FOR THEATERS AND AUTHORIZED

25 PERSONS.—With reasonable cause, the owner or lessee of

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1 a motion picture facility where a motion picture is being

2 exhibited, the authorized agent or employee of such owner

3 or lessee, the licensor of the motion picture being exhibited,

4 or the agent or employee of such licensor—

5 ‘‘(1) may detain, in a reasonable manner and

6 for a reasonable time, any person suspected of com7

mitting an offense under this section for the purpose

8 of questioning that person or summoning a law en9

forcement officer; and

10 ‘‘(2) shall not be held liable in any civil or

11 criminal action by reason of a detention under para12

graph (1).

13 ‘‘(e) VICTIM IMPACT STATEMENT.—

14 ‘‘(1) IN GENERAL.—During the preparation of

15 the presentence report under rule 32(c) of the Federal

16 Rules of Criminal Procedure, victims of an offense

17 under this section shall be permitted to submit to the

18 probation officer a victim impact statement that iden19

tifies the victim of the offense and the extent and

20 scope of the injury and loss suffered by the victim, in21

cluding the estimated economic impact of the offense

22 on that victim.

23 ‘‘(2) CONTENTS.—A victim impact statement

24 submitted under this subsection shall include—

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1 ‘‘(A) producers and sellers of legitimate

2 works affected by conduct involved in the offense;

3 ‘‘(B) holders of intellectual property rights

4 in the works described in subparagraph (A); and

5 ‘‘(C) the legal representatives of such pro6

ducers, sellers, and holders.

7 ‘‘(f) DEFINITIONS.—In this section:

8 ‘‘(1) AUDIOVISUAL WORK, COPY, ETC.—The terms

9 ‘audiovisual work’, ‘copy’, ‘copyright owner’, ‘motion

10 picture’, and ‘transmit’ have, respectively, the mean11

ings given those terms in section 101 of title 17.

12 ‘‘(2) AUDIOVISUAL RECORDING DEVICE.—The

13 term ‘audiovisual recording device’ means a digital or

14 analog photographic or video camera, or any other

15 technology or device capable of enabling the recording

16 or transmission of a copyrighted motion picture or

17 other audiovisual work, or any part thereof, regard18

less of whether audiovisual recording is the sole or

19 primary purpose of the device.

20 ‘‘(3) MOTION PICTURE EXHIBITION FACILITY.—

21 The term ‘motion picture exhibition facility’ means a

22 movie theater, screening room, or other venue that is

23 being used primarily for the exhibition of a copy24

righted motion picture, if such exhibition is open to

25 the public or is made to an assembled group of view11

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1 ers outside of a normal circle of a family and its so2

cial acquaintances.

3 ‘‘(g) STATE LAW NOT PREEMPTED.—Nothing in this

4 section may be construed to annul or limit any rights or

5 remedies under the laws of any State.’’.

6 (b) CLERICAL AMENDMENT.—The table of sections at

7 the beginning of chapter 113 of title 18, United States Code,

8 is amended by inserting after the item relating to section

9 2319A the following:

‘‘2319B. Unauthorized recording of motion pictures in a motion picture exhibition

facility.’’.

10 SEC. 9. SENSE OF THE CONGRESS ON NEED TO TAKE STEPS

11 TO PREVENT ILLEGAL ACTIVITY ON PEER-TO12

PEER SERVICES.

13 (a) FINDINGS.—The Congress finds as follows:

14 (1) The most popular publicly accessible peer-to15

peer file sharing software programs combined have

16 been downloaded worldwide over 600,000,000 times.

17 (2) The vast majority of software products, in18

cluding peer-to-peer technology, do not pose an inher19

ent risk. Responsible persons making software prod20

ucts should be encouraged and commended for the due

21 diligence and reasonable care they take including by

22 providing instructions, relevant information in the

23 documentation, disseminating patches, updates, and

24 other appropriate modifications to the software.

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1 (3) Massive volumes of illegal activity, including

2 the distribution of child pornography, viruses, and

3 confidential personal information, and copyright in4

fringement occur on publicly accessible peer-to-peer

5 file sharing services every day. Some publicly acces6

sible peer-to-peer file sharing services expose con7

sumers, particularly children, to serious risks, includ8

ing legal liability, loss of privacy, threats to computer

9 security, and exposure to illegal and inappropriate

10 material.

11 (4) Several studies and reports demonstrate that

12 pornography, including child pornography, is preva13

lent on publicly available peer-to-peer file sharing

14 services, and children are regularly exposed to por15

nography when using such peer-to-peer file sharing

16 services.

17 (5) The full potential of peer-to-peer technology

18 to benefit consumers has yet to be realized and will

19 not be achieved until these problems are adequately

20 addressed.

21 (6) To date, the businesses that run publicly ac22

cessible file-sharing services have refused or failed to

23 voluntarily and sufficiently address these problems.

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1 (7) Many users of publicly available peer-to-peer

2 file-sharing services are drawn to these systems by the

3 lure of obtaining ‘‘free’’ music and movies.

4 (8) While some users use parental controls to

5 protect children from pornography available on the

6 Internet and search engines, not all such controls

7 work on publicly accessible peer-to-peer networks.

8 (9) Businesses that run publicly accessible peer9

to-peer file sharing services have openly acknowledged,

10 and numerous studies and reports have established,

11 that these services facilitate and profit from massive

12 amounts of copyright infringement, causing enormous

13 damage to the economic well-being of the copyright

14 industries whose works are being illegally ‘‘shared’’

15 and downloaded.

16 (10) The legitimate digital music marketplace of17

fers consumers a wide and growing array of choices

18 for obtaining music legally, without exposure to the

19 risks posed by publicly accessible peer-to-peer file

20 sharing services.

21 (11) The Federal Trade Commission issued a

22 Consumer Alert in July of 2003 warning consumers

23 that some file-sharing services contain damaging vi24

ruses and worms and, without the computer user’s

25 knowledge or consent, install spyware to monitor a

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1 user’s browsing habits and send data to third parties

2 or automatically open network connections.

3 (12) Publicly available peer-to-peer file-sharing

4 services can and should adopt reasonable business

5 practices and use technology in the marketplace to ad6

dress the existing risks posed to consumers by their

7 services and facilitate the legitimate use of peer-to8

peer file sharing technology and software.

9 (b) SENSE OF CONGRESS.—It is the sense of the Con10

gress that—

11 (1) responsible software developers should be

12 commended, recognized, and encouraged for their ef13

forts to protect consumers;

14 (2) currently the level of ongoing and persistent

15 illegal and dangerous activity on publicly accessible

16 peer-to-peer file sharing services is harmful to con17

sumers, minors, and the economy; and

18 (3) therefore, the Congress and the executive

19 branch should consider all appropriate measures to

20 protect consumers and children, and prevent such ille21

gal activity.

22 SEC. 10. ENHANCEMENT OF CRIMINAL COPYRIGHT IN23

FRINGEMENT.

24 (a) CRIMINAL INFRINGEMENT.—Section 506 of title

25 17, United States Code, is amended—

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1 (1) by amending subsection (a) to read as fol2

lows:

3 ‘‘(a) CRIMINAL INFRINGEMENT.—Any person who—

4 ‘‘(1) infringes a copyright willfully and for pur5

poses of commercial advantage or private financial

6 gain,

7 ‘‘(2) infringes a copyright willfully by the repro8

duction or distribution, including by the offering for

9 distribution to the public by electronic means, during

10 any 180-day period, of 1 or more copies or

11 phonorecords of 1 or more copyrighted works, which

12 have a total retail value of more than $1,000, or

13 ‘‘(3) infringes a copyright by the knowing dis14

tribution, including by the offering for distribution to

15 the public by electronic means, with reckless disregard

16 of the risk of further infringement, during any 180-

17 day period, of—

18 ‘‘(A) 1,000 or more copies or phonorecords

19 of 1 or more copyrighted works,

20 ‘‘(B) 1 or more copies or phonorecords of 1

21 or more copyrighted works with a total retail

22 value of more than $10,000, or

23 ‘‘(C) 1 or more copies or phonorecords of 1

24 or more copyrighted pre-release works,

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1 shall be punished as provided under section 2319 of title

2 18. For purposes of this subsection, evidence of reproduction

3 or distribution of a copyrighted work, by itself, shall not

4 be sufficient to establish the necessary level of intent under

5 this subsection.’’; and

6 (2) by adding at the end the following:

7 ‘‘(g) LIMITATION ON LIABILITY OF SERVICE PRO8

VIDERS.—No legal entity shall be liable for a violation of

9 subsection (a)(3) by reason of performing any function de10

scribed in subsection (a), (b), (c), or (d) of section 512 if

11 such legal entity would not be liable for monetary relief

12 under section 512 by reason of performing such function.

13 Except for purposes of determining whether an entity quali14

fies for the limitation on liability under subsection (a)(3)

15 of this section, the legal conclusion of whether an entity

16 qualifies for a limitation on liability under section 512

17 shall not be considered in a judicial determination of wheth18

er the entity violates subsection (a) of this section.

19 ‘‘(h) DEFINITIONS.—In this section:

20 ‘‘(1) PRE-RELEASE WORK.—The term ‘pre-release

21 work’ refers to a work protected under this title which

22 has a commercial and economic value and which, at

23 the time of the act of infringement that is the basis

24 for the offense under subsection (a)(3), the defendant

25 knew or should have known had not yet been made

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1 available by the copyright owner to individual mem2

bers of the general public in copies or phonorecords

3 for sale, license, or rental.

4 ‘‘(2) RETAIL VALUE.—The ‘retail value’ of a

5 copyrighted work is the retail price of that work in

6 the market in which it is sold. In the case of an in7

fringement of a copyright by distribution, if the retail

8 price does not adequately reflect the economic value of

9 the infringement, then the retail value may be deter10

mined using other factors, including but not limited

11 to suggested retail price, wholesale price, replacement

12 cost of the item, licensing, or distribution-related

13 fees.’’.

14 (b) PENALTIES.—Section 2319 of title 18, United

15 States Code, is amended—

16 (1) by redesignating subsections (d) and (e) as

17 subsections (e) and (f), respectively;

18 (2) by inserting after subsection (c) the fol19

lowing:

20 ‘‘(d) Any person who commits an offense under section

21 506(a)(3) of title 17—

22 ‘‘(1) shall be imprisoned not more than 3 years,

23 or fined in the amount set forth in this title, or both,

24 or, if the offense was committed for purposes of com25

mercial advantage or private financial gain, impris18

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1 oned for not more than 5 years, or fined in the

2 amount set forth in this title, or both; and

3 ‘‘(2) shall, if the offense is a second or subsequent

4 offense under paragraph (1), be imprisoned not more

5 than 6 years, or fined in the amount set forth in this

6 title, or both, or, if the offense was committed for pur7

poses of commercial advantage or private financial

8 gain, imprisoned for not more than 10 years, or fined

9 in the amount set forth in this title, or both.’’; and

10 (3) in subsection (f), as so redesignated—

11 (A) in paragraph (1), by striking ‘‘and’’

12 after the semicolon;

13 (B) in paragraph (2), by striking the period

14 and inserting ‘‘; and’’; and

15 (C) by adding at the end the following:

16 ‘‘(3) the term ‘financial gain’ has the meaning

17 given that term in section 101 (relating to defini18

tions) of title 17.’’.

19 (c) CIVIL REMEDIES FOR INFRINGEMENT OF A COM20

MERCIAL PRE-RELEASE COPYRIGHTED WORK.—Section

21 504(b) of title 17, United States Code, is amended—

22 (1) by striking ‘‘The copyright owner’’ and in23

serting the following:

24 ‘‘(1) IN GENERAL.—The copyright owner’’; and

25 (2) by adding at the end the following:

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1 ‘‘(2) DAMAGES FOR PRE-RELEASE INFRINGE2

MENT.—

3 ‘‘(A) IN GENERAL.—In the case of any pre4

release work, actual damages shall be presumed

5 conclusively to be no less than $10,000 per in6

fringement, if a person—

7 ‘‘(i) distributes such work by making it

8 available on a computer network accessible

9 to members of the public; and

10 ‘‘(ii) knew or should have known that

11 the work was intended for commercial dis12

tribution.

13 ‘‘(B) DEFINITION.—For purposes of this

14 subsection, the term ‘pre-release work’ has the

15 meaning given that term in section 506(h).’’.

16 SEC. 11. AMENDMENT OF FEDERAL SENTENCING GUIDE17

LINES REGARDING THE INFRINGEMENT OF

18 COPYRIGHTED WORKS AND RELATED CRIMES.

19 (a) AMENDMENT TO THE SENTENCING GUIDELINES.—

20 Pursuant to its authority under section 994 of title 28,

21 United States Code, and in accordance with this section,

22 the United States Sentencing Commission shall review and,

23 if appropriate, amend the sentencing guidelines and policy

24 statements applicable to persons convicted of intellectual

25 property rights crimes, including sections 2318, 2319,

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1 2319A, 2319B, 2320 of title 18, United States Code, and

2 sections 506, 1201, and 1202 of title 17, United States Code.

3 (b) FACTORS.—In carrying out this section, the Sen4

tencing Commission shall—

5 (1) take all appropriate measures to ensure that

6 the sentencing guidelines and policy statements appli7

cable to the offenses described in subsection (a) are

8 sufficiently stringent to deter and adequately reflect

9 the nature of such offenses;

10 (2) consider whether to provide a sentencing en11

hancement for those convicted of the offenses described

12 in subsection (a) when the conduct involves the dis13

play, performance, publication, reproduction, or dis14

tribution of a copyrighted work before the time when

15 the copyright owner has authorized the display, per16

formance, publication, reproduction, or distribution of

17 the original work, whether in the media format used

18 by the infringing good or in any other media format;

19 (3) consider whether the definition of

20 ‘‘uploading’’ contained in Application Note 3 to

21 Guideline 2B5.3 is adequate to address the loss attrib22

utable to people broadly distributing copyrighted

23 works over the Internet without authorization; and

24 (4) consider whether the sentencing guidelines

25 and policy statements applicable to the offenses de21

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1 scribed in subsection (a) adequately reflect any harm

2 to victims from infringement in circumstances where

3 law enforcement cannot determine how many times

4 copyrighted material is reproduced or distributed.

5 (c) PROMULGATION.—The Commission may promul6

gate the guidelines or amendments under this section in ac7

cordance with the procedures set forth in section 21(a) of

8 the Sentencing Act of 1987, as though the authority under

9 that Act had not expired.

10 SEC. 12. EXEMPTION FROM INFRINGEMENT FOR SKIPPING

11 AUDIO CONTENT IN MOTION PICTURES.

12 (a) SHORT TITLE.—This section may be cited as the

13 ‘‘Family Movie Act of 2004’’.

14 (b) EXEMPTION FROM COPYRIGHT AND TRADEMARK

15 INFRINGEMENT FOR SKIPPING OF AUDIO OR VIDEO CON16

TENT OF MOTION PICTURES.—Section 110 of title 17,

17 United States Code, is amended—

18 (1) in paragraph (9), by striking ‘‘and’’ after the

19 semicolon at the end;

20 (2) in paragraph (10), by striking the period at

21 the end and inserting ‘‘; and’’; and

22 (3) by inserting after paragraph (10) the fol23

lowing:

24 ‘‘(11)(A) the making of limited portions of audio

25 or video content of a motion picture imperceptible by

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1 or for the owner or other lawful possessor of an au2

thorized copy of that motion picture in the course of

3 viewing of that work for private use in a household,

4 by means of consumer equipment or services that—

5 ‘‘(i) are operated by an individual in that

6 household;

7 ‘‘(ii) serve only such household; and

8 ‘‘(iii) do not create a fixed copy of the al9

tered version; and

10 ‘‘(B) the use of technology to make such audio or

11 video content imperceptible, that does not create a

12 fixed copy of the altered version.’’.

13 (c) EXEMPTION FROM TRADEMARK INFRINGEMENT.—

14 Section 32 of the Trademark Act of 1946 (15 U.S.C. 1114)

15 is amended by adding at the end the following:

16 ‘‘(3)(A) Any person who engages in the conduct de17

scribed in paragraph (11) of section 110 of title 17, United

18 States Code, and who complies with the requirements set

19 forth in that paragraph is not liable on account of such

20 conduct for a violation of any right under this Act.

21 ‘‘(B) A manufacturer, licensee, or licensor of tech22

nology that enables the making of limited portions of audio

23 or video content of a motion picture imperceptible that is

24 authorized under subparagraph (A) is not liable on account

25 of such manufacture or license for a violation of any right

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1 under this Act, if such manufacturer, licensee, or licensor

2 ensures that the technology provides a clear and con3

spicuous notice that the performance of the motion picture

4 is altered from the performance intended by the director or

5 copyright holder of the motion picture.

6 ‘‘(C) Any manufacturer, licensee, or licensor of tech7

nology described in subparagraph (B) who fails to comply

8 with the requirement under subparagraph (B) to provide

9 notice with respect to a motion picture shall be liable in

10 a civil action brought by the copyright owner of the motion

11 picture that is modified by the technology in an amount

12 not to exceed $1,000 for each such motion picture.

13 ‘‘(D) The requirement under subparagraph (B) to pro14

vide notice, and the provisions of subparagraph (C), shall

15 apply only with respect to technology manufactured after

16 the end of the 180-day period beginning on the date of the

17 enactment of the Family Movie Act of 2004.’’.

18 (d) DEFINITION.—In this section, the term ‘‘Trade19

mark Act of 1946’’ means the Act entitled ‘‘An Act to pro20

vide for the registration and protection of trademarks used

21 in commerce, to carry out the provisions of certain inter22

national conventions, and for other purposes’’, approved

23 July 5, 1946 (15 U.S.C. 1051 et seq.).

Union Calendar No. 428

108TH CONGRESS

2D SESSION H. R. 4077

[Report No. 108–700]

A BILL

To enhance criminal enforcement of the copyright

laws, to educate the public about the application

of copyright law to the Internet, and for other

purposes.

SEPTEMBER 24, 2004

Reported with an amendment, committed to the Committee

of the Whole House on the State of the Union,

and ordered to be printed