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          S 1122 
          104th CONGRESS
          1st Session
          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.
                           IN THE SENATE OF THE UNITED STATES
                        August 4 (legislative day, JULY 10), 1995
          Mr. LEAHY (for himself and Mr. FEINGOLD) introduced the following
              bill; which was read twice and referred to the Committee on the
              Judiciary
                                         A BILL
          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.
           [Italic->]   Be it enacted by the Senate and House of
          Representatives of the United States of America in Congress
          assembled, [<-Italic]
          SECTION 1. SHORT TITLE.
            This Act may be cited as the `Criminal Copyright Improvement Act
          of 1995'.
          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 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
              transmission, or assisting others in such reproduction or
              distribution, of 1 or more copies, of 1 or more copyrighted
              works, which have a total retail value of $5,000 or more,
          shall be punished as provided under section 2319 of title 18.'.
            (c) LIMITATION ON CRIMINAL PROCEEDINGS- Section 507(a) of title
          17, United States Code, is amended by striking out `three' and
          inserting in lieu thereof `five'.
            (d) CRIMINAL INFRINGEMENT OF A COPYRIGHT- Section 2319 of title
          18, United States Code, is amended--
                (1) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by striking 
                  out `subsection (a) of this section' and inserting in lieu
                  thereof `section 506(a)(1) of title 17';
                    (B) in paragraph (1)--
                        (i) by inserting `including by transmission, or
                      assisting others in such reproduction or distribution,'
                      after `if the offense consists of the reproduction or
                      distribution,';
                        (ii) by striking out `with a retail value of more 
                      than $2,500' and inserting in lieu thereof `which have 
                      a total retail value of more than $5,000'; and
                        (iii) by adding `and' at the end thereof;
                    (C) by striking out paragraph (2); and
                    (D) by redesignating paragraph (3) as paragraph (2); and
                (2) by redesignating subsection (c) as subsection (f) and
              inserting after subsection (b) the following:
            `(c) Any person who commits an offense under section 506(a)(2) of
          title 17--
                `(1) 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
              transmission, or assisting others in such reproduction or
              distribution, of 1 or more copyrighted works, which have a 
              total retail value of more than $10,000; and
                `(2) shall be imprisoned not more than 1 year, or fined in 
              the amount set forth in this title, or both, in any other case.
            `(d) Any person who commits an offense under subsection (a) 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 felony offense under that subsection.
            `(e)(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 subsection (d) as subsection (e); 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 of the legitimate items that are infringed upon and 
          the quantity of items so infringed.