[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 3021 Introduced in Senate (IS)]







108th CONGRESS
  2d Session
                                S. 3021

To provide for the protection of intellectual property rights, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 20, 2004

 Mr. Hatch (for himself and Mr. Leahy) introduced the following bill; 
                          which was read twice

_______________________________________________________________________

                                 A BILL


 
To provide for the protection of intellectual property rights, 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 ``Family Entertainment and Copyright 
Act of 2004''.

             TITLE I--ARTISTS' RIGHTS AND THEFT PREVENTION

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Artists' Rights and Theft 
Prevention Act of 2004'' or the ``ART Act''.

SEC. 102. CRIMINAL PENALTIES FOR UNAUTHORIZED RECORDING OF MOTION 
              PICTURES IN A MOTION PICTURE EXHIBITION FACILITY.

    (a) In General.--Chapter 113 of title 18, United States Code, is 
amended by adding after section 2319A the following new section:
``Sec. 2319B. Unauthorized recording of motion pictures in a motion 
              picture exhibition facility
    ``(a) Offense.--Any person who, without the authorization of the 
copyright owner, knowingly uses or attempts to use an audiovisual 
recording device to transmit or make a copy of a motion picture or 
other audiovisual work protected under title 17, or any part thereof, 
from a performance of such work in a motion picture exhibition 
facility, shall--
            ``(1) be imprisoned for not more than 3 years, fined under 
        this title, or both; or
            ``(2) if the offense is a second or subsequent offense, be 
        imprisoned for no more than 6 years, fined under this title, or 
        both.
The possession by a person of an audiovisual recording device in a 
motion picture exhibition facility may be considered as evidence in any 
proceeding to determine whether that person committed an offense under 
this subsection, but shall not, by itself, be sufficient to support a 
conviction of that person for such offense.
    ``(b) Forfeiture and Destruction.--When a person is convicted of a 
violation of subsection (a), the court in its judgment of conviction 
shall, in addition to any penalty provided, order the forfeiture and 
destruction or other disposition of all unauthorized copies of motion 
pictures or other audiovisual works protected under title 17, or parts 
thereof, and any audiovisual recording devices or other equipment used 
in connection with the offense.
    ``(c) Authorized Activities.--This section does not prevent any 
lawfully authorized investigative, protective, or intelligence activity 
by an officer, agent, or employee of the United States, a State, or a 
political subdivision of a State, or a person acting under a contract 
with the United States, a State, or a political subdivision of a State.
    ``(d) Immunity for Theaters.--With reasonable cause, the owner or 
lessee of a facility where a motion picture is being exhibited, the 
authorized agent or employee of such owner or lessee, the licensor of 
the motion picture being exhibited, or the agent or employee of such 
licensor--
            ``(1) may detain, in a reasonable manner and for a 
        reasonable time, any person suspected of a violation of this 
        section for the purpose of questioning or summoning a law 
        enforcement officer; and
            ``(2) shall not be held liable in any civil or criminal 
        action arising out of a detention under paragraph (1).
    ``(e) Victim Impact Statement.--
            ``(1) In general.--During the preparation of the 
        presentence report under rule 32(c) of the Federal Rules of 
        Criminal Procedure, victims of an offense under this section 
        shall be permitted to submit to the probation officer 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) Contents.--A victim impact statement submitted under 
        this subsection shall include--
                    ``(A) producers and sellers of legitimate works 
                affected by conduct involved in the offense;
                    ``(B) holders of intellectual property rights in 
                the works described in subparagraph (A); and
                    ``(C) the legal representatives of such producers, 
                sellers, and holders.
    ``(f) State Law Not Preempted.--Nothing in this section may be 
construed to annul or limit any rights or remedies under the laws of 
any State.
    ``(g) Definitions.--In this section, the following definitions 
shall apply:
            ``(1) Title 17 definitions.--The terms `audiovisual work', 
        `copy', `copyright owner', `motion picture', `motion picture 
        exhibition facility', and `transmit' have, respectively, the 
        meanings given those terms in section 101 of title 17.
            ``(2) Audiovisual recording device.--The term `audiovisual 
        recording device' means a digital or analog photographic or 
        video camera, or any other technology or device capable of 
        enabling the recording or transmission of a copyrighted motion 
        picture or other audiovisual work, or any part thereof, 
        regardless of whether audiovisual recording is the sole or 
        primary purpose of the device.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 113 of title 18, United States Code, is amended by inserting 
after the item relating to section 2319A the following:

``2319B. Unauthorized recording of motion pictures in a motion picture 
                            exhibition facility.''.
    (c) Definition.--Section 101 of title 17, United States Code, is 
amended by inserting after the definition of ``Motion pictures'' the 
following:
            ``The term `motion picture exhibition facility' means a 
        movie theater, screening room, or other venue that is being 
        used primarily for the exhibition of a copyrighted motion 
        picture, if such exhibition is open to the public or is made to 
        an assembled group of viewers outside of a normal circle of a 
        family and its social acquaintances.''.

SEC. 103. CRIMINAL INFRINGEMENT OF A WORK BEING PREPARED FOR COMMERCIAL 
              DISTRIBUTION.

    (a) Prohibited Acts.--Section 506(a) of title 17, United States 
Code, is amended to read as follows:
    ``(a) Criminal Infringement.--
            ``(1) In general.--Any person who willfully infringes a 
        copyright shall be punished as provided under section 2319 of 
        title 18, if the infringement was committed--
                    ``(A) for purposes of commercial advantage or 
                private financial gain;
                    ``(B) 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; or
                    ``(C) by the distribution of a work being prepared 
                for commercial distribution, by making it available on 
                a computer network accessible to members of the public, 
                if such person knew or should have known that the work 
                was intended for commercial distribution.
            ``(2) Evidence.--For purposes of this subsection, evidence 
        of reproduction or distribution of a copyrighted work, by 
        itself, shall not be sufficient to establish willful 
        infringement of a copyright.
            ``(3) Definition.--In this subsection, the term `work being 
        prepared for commercial distribution' means--
                    ``(A) a computer program, a musical work, a motion 
                picture or other audiovisual work, or a sound 
                recording, if at the time of unauthorized 
                distribution--
                            ``(i) the copyright owner has a reasonable 
                        expectation of commercial distribution; and
                            ``(ii) the copies or phonorecords of the 
                        work have not been commercially distributed; or
                    ``(B) a motion picture, if at the time of 
                unauthorized distribution, the motion picture--
                            ``(i) has been made available for viewing 
                        in a motion picture exhibition facility; and
                            ``(ii) has not been made available in 
                        copies for sale to the general public in the 
                        United States in a format intended to permit 
                        viewing outside a motion picture exhibition 
                        facility.''.
    (b) Criminal Penalties.--Section 2319 of title 18, United States 
Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``Whoever'' and inserting ``Any 
                person who''; and
                    (B) by striking ``and (c) of this section'' and 
                inserting ``, (c), and (d)'';
            (2) in subsection (b), by striking ``section 506(a)(1)'' 
        and inserting ``section 506(a)(1)(A)'';
            (3) in subsection (c), by striking ``section 506(a)(2) of 
        title 17, United States Code'' and inserting ``section 
        506(a)(1)(B) of title 17'';
            (4) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively;
            (5) by adding after subsection (c) the following:
    ``(d) Any person who commits an offense under section 506(a)(1)(C) 
of title 17--
            ``(1) shall be imprisoned not more than 3 years, fined 
        under this title, or both;
            ``(2) shall be imprisoned not more than 5 years, fined 
        under this title, or both, if the offense was committed for 
        purposes of commercial advantage or private financial gain;
            ``(3) shall be imprisoned not more than 6 years, fined 
        under this title, or both, if the offense is a second or 
        subsequent offense; and
            ``(4) shall be imprisoned not more than 10 years, fined 
        under this title, or both, if the offense is a second or 
        subsequent offense under paragraph (2).''; and
            (6) in subsection (f), as redesignated--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2), by striking the period at the 
                end and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(3) the term `financial gain' has the meaning given the 
        term in section 101 of title 17; and
            ``(4) the term `work being prepared for commercial 
        distribution' has the meaning given the term in section 506(a) 
        of title 17.''.

SEC. 104. CIVIL REMEDIES FOR INFRINGEMENT OF A WORK BEING PREPARED FOR 
              COMMERCIAL DISTRIBUTION.

    (a) Preregistration.--Section 408 of title 17, United States Code, 
is amended by adding at the end the following:
    ``(f) Preregistration of Works Being Prepared for Commercial 
Distribution.--
            ``(1) Rulemaking.--Not later than 180 days after the date 
        of enactment of this subsection, the Register of Copyrights 
        shall issue regulations to establish procedures for 
        preregistration of a work that is being prepared for commercial 
        distribution and has not been published.
            ``(2) Class of works.--The regulations established under 
        paragraph (1) shall permit preregistration for any work that is 
        in a class of works that the Register determines has had a 
        history of infringement prior to authorized commercial 
        distribution.
            ``(3) Application for registration.--Not later than 3 
        months after a the first publication of a work preregistered 
        under this subsection, the applicant shall submit to the 
        Copyright Office--
                    ``(A) an application for registration of the work;
                    ``(B) a deposit; and
                    ``(C) the applicable fee.
            ``(4) Effect of untimely application.--An action under this 
        chapter for infringement of a preregistered work, in a case in 
        which the infringement commenced no later than 2 months after 
        the first publication of the work shall be dismissed if the 
        items described in paragraph (3) are not submitted to the 
        Copyright Office in proper form within the earlier of--
                    ``(A) 3 months after the first publication of the 
                work; or
                    ``(B) 1 month after the copyright owner has learned 
                of the infringement.''.
    (b) Infringement Actions.--Section 411(a) of title 17, United 
States Code, is amended by inserting ``preregistration or'' after 
``shall be instituted until''.
    (c) Exclusion.--Section 412 of title 17, United States Code, is 
amended by inserting ``, an action for infringement of the copyright of 
a work that has been preregistered under section 408(f) before the 
commencement of the infringement and that has an effective date of 
registration not later than the earlier of 3 months after the first 
publication of the work or 1 month after the copyright owner has 
learned of the infringement,'' after ``section 106A(a)''.

SEC. 105. FEDERAL SENTENCING GUIDELINES.

    (a) Review and Amendment.--Not later than 180 days after the date 
of enactment of this Act, the United States Sentencing Commission, 
pursuant to its authority under section 994 of title 28, United States 
Code, and in accordance with this section, shall review and, if 
appropriate, amend the Federal sentencing guidelines and policy 
statements applicable to persons convicted of intellectual property 
rights crimes, including any offense under--
            (1) section 506, 1201, or 1202 of title 17, United States 
        Code; or
            (2) section 2318, 2319, 2319A, 2319B, or 2320 of title 18, 
        United States Code.
    (b) Authorization.--The United States Sentencing Commission may 
amend the Federal sentencing guidelines in accordance with the 
procedures set forth in section 21(a) of the Sentencing Act of 1987 (28 
U.S.C. 994 note) as though the authority under that section had not 
expired.
    (c) Responsibilities of United States Sentencing Commission.--In 
carrying out this section, the United States Sentencing Commission 
shall--
            (1) take all appropriate measures to ensure that the 
        Federal sentencing guidelines and policy statements described 
        in subsection (a) are sufficiently stringent to deter, and 
        adequately reflect the nature of, intellectual property rights 
        crimes;
            (2) determine whether to provide a sentencing enhancement 
        for those convicted of the offenses described in subsection 
        (a), if the conduct involves the display, performance, 
        publication, reproduction, or distribution of a copyrighted 
        work before it has been authorized by the copyright owner, 
        whether in the media format used by the infringing party or in 
        any other media format;
            (3) determine whether the scope of ``uploading'' set forth 
        in application note 3 of section 2B5.3 of the Federal 
        sentencing guidelines is adequate to address the loss 
        attributable to people who broadly distribute copyrighted works 
        without authorization over the Internet; and
            (4) determine whether the sentencing guidelines and policy 
        statements applicable to the offenses described in subsection 
        (a) adequately reflect any harm to victims from copyright 
        infringement if law enforcement authorities cannot determine 
        how many times copyright material has been reproduced or 
        distributed.

  TITLE II--EXEMPTION FROM INFRINGEMENT FOR SKIPPING AUDIO AND VIDEO 
                       CONTENT IN MOTION PICTURES

SEC. 201. SHORT TITLE.

    This title may be cited as the ``Family Movie Act of 2004''.

SEC. 202. EXEMPTION FROM INFRINGEMENT FOR SKIPPING AUDIO AND VIDEO 
              CONTENT IN MOTION PICTURES.

    (a) In General.--Section 110 of title 17, United States Code, is 
amended--
            (1) in paragraph (9), by striking ``and'' after the 
        semicolon at the end;
            (2) in paragraph (10), by striking the period at the end 
        and inserting ``; and'';
            (3) by inserting after paragraph (10) the following:
            ``(11) the making imperceptible, by or at the direction of 
        a member of a private household, of limited portions of audio 
        or video content of a motion picture, during a performance in 
        or transmitted to that household for private home viewing, from 
        an authorized copy of the motion picture, or the creation or 
        provision of a computer program or other technology that 
        enables such making imperceptible and that is designed and 
        marketed for such use at the direction of a member of a private 
        household, if no fixed copy of the altered version of the 
        motion picture is created by such computer program or other 
        technology.''; and
            (4) by adding at the end the following:
    ``For purposes of paragraph (11), the term `making imperceptible' 
does not include the addition of audio or video content that is 
performed or displayed over or in place of existing content in a motion 
picture.
    ``Nothing in paragraph (11) shall be construed to imply further 
rights under section 106 of this title, or to have any effect on 
defenses or limitations on rights granted under any other section of 
this title or under any other paragraph of this section.''.
    (b) Exemption From Trademark Infringement.--Section 32 of the 
Trademark Act of 1946 (15 U.S.C. 1114) is amended by adding at the end 
the following:
    ``(3)(A) Any person who engages in the conduct described in 
paragraph (11) of section 110 of title 17, United States Code, and who 
complies with the requirements set forth in that paragraph is not 
liable on account of such conduct for a violation of any right under 
this Act. This subparagraph does not preclude liability, nor shall it 
be construed to restrict the defenses or limitations on rights granted 
under this Act, of a person for conduct not described in paragraph (11) 
of section 110 of title 17, United States Code, even if that person 
also engages in conduct described in paragraph (11) of section 110 of 
such title.
    ``(B) A manufacturer, licensee, or licensor of technology that 
enables the making of limited portions of audio or video content of a 
motion picture imperceptible as described in subparagraph (A) is not 
liable on account of such manufacture or license for a violation of any 
right under this Act, if such manufacturer, licensee, or licensor 
ensures that the technology provides a clear and conspicuous notice at 
the beginning of each performance that the performance of the motion 
picture is altered from the performance intended by the director or 
copyright holder of the motion picture. The limitations on liability in 
subparagraph (A) and this subparagraph shall not apply to a 
manufacturer, licensee, or licensor of technology that fails to comply 
with this paragraph.
    ``(C) The requirement under subparagraph (B) to provide notice 
shall apply only with respect to technology manufactured after the end 
of the 180-day period beginning on the date of the enactment of the 
Family Movie Act of 2004.
    ``(D) Any failure by a manufacturer, licensee, or licensor of 
technology to qualify for the exemption under subparagraphs (A) and (B) 
shall not be construed to create an inference of liability for 
trademark infringement for any such party that engages in conduct 
described in paragraph (11) of section 110 of title 17, United States 
Code.''.
    (c) Definition.--In this section, the term ``Trademark Act of 
1946'' means the Act entitled ``An Act to provide for the registration 
and protection of trademarks used in commerce, to carry out the 
provisions of certain international conventions, and for other 
purposes'', approved July 5, 1946 (15 U.S.C. 1051 et seq.).

                 TITLE III--NATIONAL FILM PRESERVATION

  Subtitle A--Reauthorization of the National Film Preservation Board

SEC. 301. SHORT TITLE.

    This subtitle may be cited as the ``National Film Preservation Act 
of 2004''.

SEC. 302. REAUTHORIZATION AND AMENDMENT.

    (a) Duties of the Librarian of Congress.--Section 103 of the 
National Film Preservation Act of 1996 (2 U.S.C. 179m) is amended--
            (1) in subsection (b)--
                    (A) by striking ``film copy'' each place that term 
                appears and inserting ``film or other approved copy'';
                    (B) by striking ``film copies'' each place that 
                term appears and inserting ``film or other approved 
                copies''; and
                    (C) in the third sentence, by striking 
                ``copyrighted'' and inserting ``copyrighted, mass 
                distributed, broadcast, or published''; and
            (2) by adding at the end the following:
    ``(c) Coordination of Program With Other Collection, Preservation, 
and Accessibility Activities.--In carrying out the comprehensive 
national film preservation program for motion pictures established 
under the National Film Preservation Act of 1992, the Librarian, in 
consultation with the Board established pursuant to section 104, 
shall--
            ``(1) carry out activities to make films included in the 
        National Film registry more broadly accessible for research and 
        educational purposes, and to generate public awareness and 
        support of the Registry and the comprehensive national film 
        preservation program;
            ``(2) review the comprehensive national film preservation 
        plan, and amend it to the extent necessary to ensure that it 
        addresses technological advances in the preservation and 
        storage of, and access to film collections in multiple formats; 
        and
            ``(3) wherever possible, undertake expanded initiatives to 
        ensure the preservation of the moving image heritage of the 
        United States, including film, videotape, television, and born 
        digital moving image formats, by supporting the work of the 
        National Audio-Visual Conservation Center of the Library of 
        Congress, and other appropriate nonprofit archival and 
        preservation organizations.''.
    (b) National Film Preservation Board.--Section 104 of the National 
Film Preservation Act of 1996 (2 U.S.C. 179n) is amended--
            (1) in subsection (a)(1) by striking ``20'' and inserting 
        ``22'';
            (2) in subsection (a)(2) by striking ``three'' and 
        inserting ``5'';
            (3) in subsection (d) by striking ``11'' and inserting 
        ``12''; and
            (4) by striking subsection (e) and inserting the following:
    ``(e) Reimbursement of Expenses.--Members of the Board shall serve 
without pay, but may receive travel expenses, including per diem in 
lieu of subsistence, in accordance with sections 5702 and 5703 of title 
5, United States Code.''.
    (c) National Film Registry.--Section 106 of the National Film 
Preservation Act of 1996 (2 U.S.C. 179p) is amended by adding at the 
end the following:
    ``(e) National Audio-Visual Conservation Center.--The Librarian 
shall utilize the National Audio-Visual Conservation Center of the 
Library of Congress at Culpeper, Virginia, to ensure that preserved 
films included in the National Film Registry are stored in a proper 
manner, and disseminated to researchers, scholars, and the public as 
may be appropriate in accordance with--
            ``(1) title 17, United States Code; and
            ``(2) the terms of any agreements between the Librarian and 
        persons who hold copyrights to such audiovisual works.''.
    (d) Use of Seal.--Section 107 (a) of the National Film Preservation 
Act of 1996 (2 U.S.C. 179q(a)) is amended--
            (1) in paragraph (1), by inserting ``in any format'' after 
        ``or any copy''; and
            (2) in paragraph (2), by striking ``or film copy'' and 
        inserting ``in any format''.
    (e) Effective Date.--Section 113 of the National Film Preservation 
Act of 1996 (2 U.S.C. 179w) is amended by striking ``7'' and inserting 
``12''.

     Subtitle B--Reauthorization of the National Film Preservation 
                               Foundation

SEC. 311. SHORT TITLE.

    This subtitle may be cited as the ``National Film Preservation 
Foundation Reauthorization Act of 2004''.

SEC. 312. REAUTHORIZATION AND AMENDMENT.

    (a) Board of Directors.--Section 151703 of title 36, United States 
Code, is amended--
            (1) in subsection (b)(2)(A), by striking ``nine'' and 
        inserting ``12''; and
            (2) in subsection (b)(4), by striking the second sentence 
        and inserting ``There shall be no limit to the number of terms 
        to which any individual may be appointed.''.
    (b) Powers.--Section 151705 of title 36, United States Code, is 
amended in subsection (b) by striking ``District of Columbia'' and 
inserting ``the jurisdiction in which the principal office of the 
corporation is located''.
    (c) Principal Office.--Section 151706 of title 36, United States 
Code, is amended by inserting ``, or another place as determined by the 
board of directors'' after ``District of Columbia''.
    (d) Authorization of Appropriations.--Section 151711 of title 36, 
United States Code, is amended by striking subsections (a) and (b) and 
inserting the following:
    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Library of Congress amounts necessary to carry out 
this chapter, not to exceed $530,000 for each of the fiscal years 2004 
through 2008. These amounts are to be made available to the corporation 
to match any private contributions (whether in currency, services, or 
property) made to the corporation by private persons and State and 
local governments.
    ``(b) Limitation Related to Administrative Expenses.--Amounts 
authorized under this section may not be used by the corporation for 
management and general or fundraising expenses as reported to the 
Internal Revenue Service as part of an annual information return 
required under the Internal Revenue Code of 1986.''.

                 TITLE IV--PRESERVATION OF ORPHAN WORKS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Preservation of Orphan Works 
Act''.

SEC. 402. REPRODUCTION OF COPYRIGHTED WORKS BY LIBRARIES AND ARCHIVES.

    Section 108(i) of title 17, United States Code, is amended by 
striking ``(b) and (c)'' and inserting ``(b), (c), and (h)''.

TITLE V--ANTICOUNTERFEIT-ING PROVISIONS AND FRAUDULENT ONLINE IDENTITY 
                               SANCTIONS

               Subtitle A--Anticounterfeiting Provisions

SEC. 501. SHORT TITLE.

    This subtitle may be cited as the ``Anticounterfeiting Act of 
2004''.

SEC. 502. PROHIBITION AGAINST TRAFFICKING IN COUNTERFEIT COMPONENTS.

    (a) In General.--Section 2318 of title 18, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 2318. Trafficking in counterfeit labels, illicit labels, or 
              counterfeit documentation or packaging'';
            (2) by striking subsection (a) and inserting the following:
    ``(a) Whoever, in any of the circumstances described in subsection 
(c), knowingly traffics in--
            ``(1) a counterfeit label or illicit label affixed to, 
        enclosing, or accompanying, or designed to be affixed to, 
        enclose, or accompany--
                    ``(A) a phonorecord;
                    ``(B) a copy of a computer program;
                    ``(C) a copy of a motion picture or other 
                audiovisual work;
                    ``(D) a copy of a literary work;
                    ``(E) a copy of a pictorial, graphic, or sculptural 
                work;
                    ``(F) a work of visual art; or
                    ``(G) documentation or packaging; or
            ``(2) counterfeit documentation or packaging,
shall be fined under this title or imprisoned for not more than 5 
years, or both.'';
            (3) in subsection (b)--
                    (A) in paragraph (2), by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (3)--
                            (i) by striking ``and `audiovisual work' 
                        have'' and inserting the following: 
                        ```audiovisual work', `literary work', 
                        `pictorial, graphic, or sculptural work', 
                        `sound recording', `work of visual art', and 
                        `copyright owner' have''; and
                            (ii) by striking the period at the end and 
                        inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(4) the term `illicit label' means a genuine certificate, 
        licensing document, registration card, or similar labeling 
        component--
                    ``(A) that is used by the copyright owner to verify 
                that a phonorecord, a copy of a computer program, a 
                copy of a motion picture or other audiovisual work, a 
                copy of a literary work, a copy of a pictorial, 
                graphic, or sculptural work, a work of visual art, or 
                documentation or packaging is not counterfeit or 
                infringing of any copyright; and
                    ``(B) that is, without the authorization of the 
                copyright owner--
                            ``(i) distributed or intended for 
                        distribution not in connection with the copy, 
                        phonorecord, or work of visual art to which 
                        such labeling component was intended to be 
                        affixed by the respective copyright owner; or
                            ``(ii) in connection with a genuine 
                        certificate or licensing document, knowingly 
                        falsified in order to designate a higher number 
                        of licensed users or copies than authorized by 
                        the copyright owner, unless that certificate or 
                        document is used by the copyright owner solely 
                        for the purpose of monitoring or tracking the 
                        copyright owner's distribution channel and not 
                        for the purpose of verifying that a copy or 
                        phonorecord is noninfringing;
            ``(5) the term `documentation or packaging' means 
        documentation or packaging, in physical form, for a 
        phonorecord, copy of a computer program, copy of a motion 
        picture or other audiovisual work, copy of a literary work, 
        copy of a pictorial, graphic, or sculptural work, or work of 
        visual art; and
            ``(6) the term `counterfeit documentation or packaging' 
        means documentation or packaging that appears to be genuine, 
        but is not.'';
            (4) in subsection (c)--
                    (A) by striking paragraph (3) and inserting the 
                following:
            ``(3) the counterfeit label or illicit label is affixed to, 
        encloses, or accompanies, or is designed to be affixed to, 
        enclose, or accompany--
                    ``(A) a phonorecord of a copyrighted sound 
                recording or copyrighted musical work;
                    ``(B) a copy of a copyrighted computer program;
                    ``(C) a copy of a copyrighted motion picture or 
                other audiovisual work;
                    ``(D) a copy of a literary work;
                    ``(E) a copy of a pictorial, graphic, or sculptural 
                work;
                    ``(F) a work of visual art; or
                    ``(G) copyrighted documentation or packaging; or''; 
                and
                    (B) in paragraph (4), by striking ``for a computer 
                program''; and
            (5) in subsection (d)--
                    (A) by inserting ``or illicit labels'' after 
                ``counterfeit labels'' each place it appears; and
                    (B) by inserting before the period at the end the 
                following: ``, and of any equipment, device, or 
                material used to manufacture, reproduce, or assemble 
                the counterfeit labels or illicit labels''.
    (b) Civil Remedies.--Section 2318 of title 18, United States Code, 
is further amended by adding at the end the following:
    ``(f) Civil Remedies.--
            ``(1) In general.--Any copyright owner who is injured, or 
        is threatened with injury, by a violation of subsection (a) may 
        bring a civil action in an appropriate United States district 
        court.
            ``(2) Discretion of court.--In any action brought under 
        paragraph (1), the court--
                    ``(A) may grant 1 or more temporary or permanent 
                injunctions on such terms as the court determines to be 
                reasonable to prevent or restrain a violation of 
                subsection (a);
                    ``(B) at any time while the action is pending, may 
                order the impounding, on such terms as the court 
                determines to be reasonable, of any article that is in 
                the custody or control of the alleged violator and that 
                the court has reasonable cause to believe was involved 
                in a violation of subsection (a); and
                    ``(C) may award to the injured party--
                            ``(i) reasonable attorney fees and costs; 
                        and
                            ``(ii)(I) actual damages and any additional 
                        profits of the violator, as provided in 
                        paragraph (3); or
                            ``(II) statutory damages, as provided in 
                        paragraph (4).
            ``(3) Actual damages and profits.--
                    ``(A) In general.--The injured party is entitled to 
                recover--
                            ``(i) the actual damages suffered by the 
                        injured party as a result of a violation of 
                        subsection (a), as provided in subparagraph (B) 
                        of this paragraph; and
                            ``(ii) any profits of the violator that are 
                        attributable to a violation of subsection (a) 
                        and are not taken into account in computing the 
                        actual damages.
                    ``(B) Calculation of damages.--The court shall 
                calculate actual damages by multiplying--
                            ``(i) the value of the phonorecords, 
                        copies, or works of visual art which are, or 
                        are intended to be, affixed with, enclosed in, 
                        or accompanied by any counterfeit labels, 
                        illicit labels, or counterfeit documentation or 
                        packaging, by
                            ``(ii) the number of phonorecords, copies, 
                        or works of visual art which are, or are 
                        intended to be, affixed with, enclosed in, or 
                        accompanied by any counterfeit labels, illicit 
                        labels, or counterfeit documentation or 
                        packaging.
                    ``(C) Definition.--For purposes of this paragraph, 
                the `value' of a phonorecord, copy, or work of visual 
                art is--
                            ``(i) in the case of a copyrighted sound 
                        recording or copyrighted musical work, the 
                        retail value of an authorized phonorecord of 
                        that sound recording or musical work;
                            ``(ii) in the case of a copyrighted 
                        computer program, the retail value of an 
                        authorized copy of that computer program;
                            ``(iii) in the case of a copyrighted motion 
                        picture or other audiovisual work, the retail 
                        value of an authorized copy of that motion 
                        picture or audiovisual work;
                            ``(iv) in the case of a copyrighted 
                        literary work, the retail value of an 
                        authorized copy of that literary work;
                            ``(v) in the case of a pictorial, graphic, 
                        or sculptural work, the retail value of an 
                        authorized copy of that work; and
                            ``(vi) in the case of a work of visual art, 
                        the retail value of that work.
            ``(4) Statutory damages.--The injured party may elect, at 
        any time before final judgment is rendered, to recover, instead 
        of actual damages and profits, an award of statutory damages 
        for each violation of subsection (a) in a sum of not less than 
        $2,500 or more than $25,000, as the court considers 
        appropriate.
            ``(5) Subsequent violation.--The court may increase an 
        award of damages under this subsection by 3 times the amount 
        that would otherwise be awarded, as the court considers 
        appropriate, if the court finds that a person has subsequently 
        violated subsection (a) within 3 years after a final judgment 
        was entered against that person for a violation of that 
        subsection.
            ``(6) Limitation on actions.--A civil action may not be 
        commenced under this subsection unless it is commenced within 3 
        years after the date on which the claimant discovers the 
        violation of subsection (a).''.
    (c) Conforming Amendment.--The item relating to section 2318 in the 
table of sections for chapter 113 of title 18, United States Code, is 
amended to read as follows:

``2318. Trafficking in counterfeit labels, illicit labels, or 
                            counterfeit documentation or packaging.''.

SEC. 503. OTHER RIGHTS NOT AFFECTED.

    (a) Chapters 5 and 12 of Title 17; Electronic Transmissions.--The 
amendments made by this subtitle--
            (1) shall not enlarge, diminish, or otherwise affect any 
        liability or limitations on liability under sections 512, 1201, 
        or 1202 of title 17, United States Code; and
            (2) shall not be construed to apply--
                    (A) in any case, to the electronic transmission of 
                a genuine certificate, licensing document, registration 
                card, similar labeling component, or documentation or 
                packaging described in paragraph (4) or (5) of section 
                2318(b) of title 18, United States Code, as amended by 
                this subtitle; and
                    (B) in the case of a civil action under section 
                2318(f) of title 18, United States Code, to the 
                electronic transmission of a counterfeit label or 
                counterfeit documentation or packaging defined in 
                paragraph (1) or (6) of section 2318(b) of title 18, 
                United States Code.
    (b) Fair Use.--The amendments made by this subtitle shall not 
affect the fair use, under section 107 of title 17, United States Code, 
of a genuine certificate, licensing document, registration card, 
similar labeling component, or documentation or packaging described in 
paragraph (4) or (5) of section 2318(b) of title 18, United States 
Code, as amended by this subtitle.

            Subtitle B--Fraudulent Online Identity Sanctions

SEC. 511. SHORT TITLE.

    This subtitle may be cited as the ``Fraudulent Online Identity 
Sanctions Act''.

SEC. 512. AMENDMENT TO TRADEMARK ACT OF 1946.

    Section 35 of the Act entitled ``An Act to provide for the 
registration and protection of trademarks used in commerce, to carry 
out the provisions of certain international conventions, and for other 
purposes'', approved July 5, 1946 (commonly referred to as the 
``Trademark Act of 1946''; 15 U.S.C. 1117), is amended by adding at the 
end the following new subsection:
    ``(e) In the case of a violation referred to in this section, it 
shall be a rebuttable presumption that the violation is willful for 
purposes of determining relief if the violator, or a person acting in 
concert with the violator, knowingly provided or knowingly caused to be 
provided materially false contact information to a domain name 
registrar, domain name registry, or other domain name registration 
authority in registering, maintaining, or renewing a domain name used 
in connection with the violation. Nothing in this subsection limits 
what may be considered a willful violation under this section.''.

SEC. 513. AMENDMENT TO TITLE 17, UNITED STATES CODE.

    Section 504(c) of title 17, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(3)(A) In a case of infringement, it shall be a 
        rebuttable presumption that the infringement was committed 
        willfully for purposes of determining relief if the violator, 
        or a person acting in concert with the violator, knowingly 
        provided or knowingly caused to be provided materially false 
        contact information to a domain name registrar, domain name 
        registry, or other domain name registration authority in 
        registering, maintaining, or renewing a domain name used in 
        connection with the infringement.
            ``(B) Nothing in this paragraph limits what may be 
        considered willful infringement under this subsection.
            ``(C) For purposes of this paragraph, the term `domain 
        name' has the meaning given that term in section 45 of the Act 
        entitled `An Act to provide for the registration and protection 
        of trademarks used in commerce, to carry out the provisions of 
        certain international conventions, and for other purposes' 
        approved July 5, 1946 (commonly referred to as the `Trademark 
        Act of 1946'; 15 U.S.C. 1127).''.

SEC. 514. AMENDMENT TO TITLE 18, UNITED STATES CODE.

    (a) Sentencing Enhancement.--Section 3559 of title 18, United 
States Code, is amended by adding at the end the following:
    ``(f)(1) If a defendant who is convicted of a felony offense (other 
than an offense of which an element is the false registration of a 
domain name) knowingly falsely registered a domain name and knowingly 
used that domain name in the course of that offense, the maximum 
imprisonment otherwise provided by law for that offense shall be 
doubled or increased by 7 years, whichever is less.
    ``(2) As used in this subsection--
            ``(A) the term `falsely registers' means registers in a 
        manner that prevents the effective identification of or contact 
        with the person who registers; and
            ``(B) the term `domain name' has the meaning given that 
        term in section 45 of the Act entitled `An Act to provide for 
        the registration and protection of trademarks used in commerce, 
        to carry out the provisions of certain international 
        conventions, and for other purposes' approved July 5, 1946 
        (commonly referred to as the `Trademark Act of 1946'; (15 
        U.S.C. 1127).''.
    (b) United States Sentencing Commission.--
            (1) Directive.--Pursuant to its authority under section 
        994(p) of title 28, United States Code, and in accordance with 
        this section, the United States Sentencing Commission shall 
        review and amend the sentencing guidelines and policy 
        statements to ensure that the applicable guideline range for a 
        defendant convicted of any felony offense carried out online 
        that may be facilitated through the use of a domain name 
        registered with materially false contact information is 
        sufficiently stringent to deter commission of such acts.
            (2) Requirements.--In carrying out this subsection, the 
        Sentencing Commission shall provide sentencing enhancements for 
        anyone convicted of any felony offense furthered through 
        knowingly providing or knowingly causing to be provided 
        materially false contact information to a domain name 
        registrar, domain name registry, or other domain name 
        registration authority in registering, maintaining, or renewing 
        a domain name used in connection with the violation.
            (3) Definition.--For purposes of this subsection, the term 
        ``domain name'' has the meaning given that term in section 45 
        of the Act entitled ``An Act to provide for the registration 
        and protection of trademarks used in commerce, to carry out the 
        provisions of certain international conventions, and for other 
        purposes'', approved July 5, 1946 (commonly referred to as the 
        ``Trademark Act of 1946''; 15 U.S.C. 1127).

SEC. 515. CONSTRUCTION.

    (a) Free Speech and Press.--Nothing in this subtitle shall enlarge 
or diminish any rights of free speech or of the press for activities 
related to the registration or use of domain names.
    (b) Discretion of Courts in Determining Relief.--Nothing in this 
subtitle shall restrict the discretion of a court in determining 
damages or other relief to be assessed against a person found liable 
for the infringement of intellectual property rights.
    (c) Discretion of Courts in Determining Terms of Imprisonment.--
Nothing in this subtitle shall be construed to limit the discretion of 
a court to determine the appropriate term of imprisonment for an 
offense under applicable law.

       TITLE VI--COOPERATIVE RESEARCH AND TECHNOLOGY ENHANCEMENT

SEC. 601. SHORT TITLE.

    This title may be cited as the ``Cooperative Research and 
Technology Enhancement (CREATE) Act of 2004''.

SEC. 602. COLLABORATIVE EFFORTS ON CLAIMED INVENTIONS.

    Section 103(c) of title 35, United States Code, is amended to read 
as follows:
    ``(c)(1) Subject matter developed by another person, which 
qualifies as prior art only under one or more of subsections (e), (f), 
and (g) of section 102 of this title, shall not preclude patentability 
under this section where the subject matter and the claimed invention 
were, at the time the claimed invention was made, owned by the same 
person or subject to an obligation of assignment to the same person.
    ``(2) For purposes of this subsection, subject matter developed by 
another person and a claimed invention shall be deemed to have been 
owned by the same person or subject to an obligation of assignment to 
the same person if--
            ``(A) the claimed invention was made by or on behalf of 
        parties to a joint research agreement that was in effect on or 
        before the date the claimed invention was made;
            ``(B) the claimed invention was made as a result of 
        activities undertaken within the scope of the joint research 
        agreement; and
            ``(C) the application for patent for the claimed invention 
        discloses or is amended to disclose the names of the parties to 
        the joint research agreement.
    ``(3) For purposes of paragraph (2), the term `joint research 
agreement' means a written contract, grant, or cooperative agreement 
entered into by two or more persons or entities for the performance of 
experimental, developmental, or research work in the field of the 
claimed invention.''.

SEC. 603. EFFECTIVE DATE.

    (a) In General.--The amendments made by this title shall apply to 
any patent granted on or after the date of the enactment of this Act.
    (b) Special Rule.--The amendments made by this title shall not 
affect any final decision of a court or the United States Patent and 
Trademark Office rendered before the date of the enactment of this Act, 
and shall not affect the right of any party in any action pending 
before the United States Patent and Trademark Office or a court on the 
date of the enactment of this Act to have that party's rights 
determined on the basis of the provisions of title 35, United States 
Code, in effect on the day before the date of the enactment of this 
Act.
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