[Congressional Record Volume 141, Number 153 (Thursday, September 28, 1995)]
[Senate]
[Pages S14547-S14553]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. KERRY (for himself and Mr. Kennedy):
  S. 1281. A bill to authorize the Secretary of Transportation to issue 
a certificate of documentation with appropriate endorsement for 
employment in coastwise trade for the vessel Sarah-Christen; to the 
Committee on Commerce, Science, and Transportation.


                      jones act waiver legislation

 Mr. KERRY. Mr. President, I am pleased to join my colleague, 
the distinguished senior Senator from Massachusetts, in introducing a 
bill to allow the vessel Sarah-Christen to be employed in coastwise 
trade of the United States. This boat has a small passenger capacity, 
carrying up to 12 passengers in a charter business. The purpose of this 
bill is to waive those sections of the Jones Act which prohibit 
foreign-made vessels from operating in coastwise trade. The waiver is 
necessary because, under the law, a vessel is not considered built in 
the United States unless all major components of its hull and 
superstructures are fabricated in the United States, and the vessel is 
assembled entirely in the United States. This vessel was originally 
built in a foreign shipyard in 1971, but since then has been owned and 
operated by American citizens, repaired in American shipyards, and 
maintained with American products. The owner of the vessel simply 
wishes to start a small business, a charter boat operation, seasonally 
taking people out for cruises.
  After reviewing the facts in the case of the Sarah-Christen, I find 
that this wavier does not compromise our national readiness in times of 
national emergency, which is the fundamental purpose of the Jones Act 
requirement. While I generally support the provisions of the Jones Act, 
I believe the specific facts in this case warrant a waiver to permit 
the Sarah-Christen to engage in coastwise trade. These include the 
facts the vessel is more than 20 years old, the owner has invested 
significant funds in vessel maintenance and restoration in the United 
States, and the vessel has a relatively small passenger-carrying 
capacity. I hope and trust the Senate will agree and will speedily 
approve the bill being introduced today.
                                 ______

      By Mr. KERRY (for himself and Mr. Kennedy):
  S. 1282. A bill to authorize the Secretary of Transportation to issue 
a certificate of documentation with appropriate endorsement for 
employment in coastwise trade for the vessel Triad; to the Committee on 
Commerce, Science, and Transportation.


                      JONES ACT WAIVER LEGISLATION

 Mr. KERRY. Mr. President, I am pleased to join my colleague, 
the distinguished senior Senator from Massachusetts, in introducing a 
bill to allow the vessel Triad to be employed in coastwise trade of the 
United States. This boat has a small passenger capacity, carrying up to 
6 passengers in a charter business. The purpose of this bill is to 
waive those sections of the Jones Act which prohibit foreign-made 
vessels from operating in coastwise trade. The waiver is necessary 
because, under the law, a vessel is not considered built in the United 
States unless all major components of its hull and superstructure are 
fabricated in the United States, and the vessel is assembled entirely 
in the United States. This vessel was originally built in a foreign 
shipyard in 1982, but since 1992 it has been owned and operated by 
American citizens, repaired in American shipyards, and maintained with 
American products. The owner of the vessel now wishes to start a small 
business, a charter boat operation, seasonally taking people out for 
cruises.
  After reviewing the facts in the case of the Triad I find that this 
waiver would not compromise our national readiness in times of national 
emergency, which is the fundamental purpose of the Jones Act 
requirement. While I generally support the provisions of the Jones Act, 
I believe the specific facts in this case warrant a waiver to permit 
the Triad to engage in coastwise trade. These include the facts the 
vessel is more than 10 years old, the owner has invested significant 
funds in vessel maintenance and restoration in the United States and 
the vessel has a relatively small passenger-carrying capacity. I hope 
and trust the Senate will agree and will speedily approve the bill 
being introduced today.
                                 ______

      By Mr. McCONNELL:
  S. 1283. A bill to authorize the Secretary of Agriculture to regulate 
the commercial transportation of horses, and for other purposes; to the 
Committee on Agriculture, Nutrition, and Forestry.


  the humane methods of livestock slaughter act amendments act of 1995

 Mr. McCONNELL. Mr. President, last year I introduced 
legislation amending the Federal Humane Methods of Livestock Slaughter 
Act to regulate the commercial transportation of horses to slaughter 
facilities. After considerable discussion and much mail on this 
important issue, I have made several modifications to the original 
bill. Today, I am introducing legislation that will provide greater 
oversight and 

[[Page S 14548]]
integrity concerning the commercial transportation of horses to 
slaughter facilities.
  I am pleased that my bill is supported by the American Horse Council, 
and the American Horse Protection Association. Other organizations that 
support this legislation include the American Association of Equine 
Practitioners, the American Humane Association, the American Society 
for Prevention of Cruelty to Animals, and the Humane Society of the 
United States.
  Currently, some horses are being transported for long periods in 
overcrowded conditions without rest, food, or water. Some vehicles used 
for transport have inadequate headroom and are not intended to 
transport large animals. Further, some of the horses transported have 
serious injuries which can be severely aggravated by the journey. This 
legislation would give the Secretary of Agriculture the authority to 
correct these practices by regulating those in the business of 
transporting horses to processing facilities.
  I want to make it clear that it is not my intention to either promote 
or prevent the commercial slaughter of horses. This industry has been 
in existence for a long time in this country, and I expect that it will 
continue to operate long into the future. My purpose in this 
legislation is to protect horses from unduly harsh and unpleasant 
treatment as they are transported across the country.
  Horses occupy a central role in the traditions, history, and economy 
of Kentucky. Thousands of Kentuckians are employed either directly or 
indirectly by the horse industry. Horses have been good to Kentucky; 
and we should try to the maximum practical extent to be good to horses.
  This bill would require that horses be rested off the vehicle after 
24 hours, with access to food and water. Vehicles used to transport the 
horses would have to have adequate headroom and interiors free of sharp 
edges. Transporting vehicles must be maintained in a sanitary 
condition, offer adequate ventilation and shelter from extremes of heat 
and cold, be large enough for the number of horses transported, and 
allow for the position of horses by size, with stallions segregated 
from other horses. Finally, in order to be transported, horses must be 
physically fit to travel.
  Enforcement of the Act is placed with the U.S. Department of 
Agriculture, which presently regulates the slaughter process itself 
under the Humane Methods of Slaughter Act. The Department would be 
authorized to work with State and local authorities to enforce the 
provisions of this bill. This bill, while correcting abuses that exist, 
will not be an excessive burden on the processing facilities, auctions, 
or the commercial transporters of these horses.
  Unlike other livestock, the transportation of horses to processing 
facilities is often a lengthy process, because there are fewer 
facilities that handle horses and they are located in only a few areas. 
Moreover, not all of them operate on a full-time basis. The result is 
that the transporting of these animals requires special protection.
  There are several States that have passed legislation to regulate the 
transportation of these horses, but most of the travel is interstate, 
across wide areas. This is why Federal legislation is needed. The 
shipment of horses over long distances in inappropriate trailers, 
without food or water, is unacceptable. This bill would extend Federal 
regulation to the commercial transport of horses to slaughter and 
assure the humane and safe conditions of that transport.
  I invite all groups that are concerned about these horses to work 
with me in passing this legislation.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1283

       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 ``Safe Commercial 
     Transportation of Horses for Slaughter Act of 1995''.

     SEC. 2. COMMERCIAL TRANSPORTATION OF HORSES FOR SLAUGHTER.

       Public Law 85-765 (7 U.S.C. 1901 et seq.) is amended by 
     adding at the end the following:
     ``TITLE II--COMMERCIAL TRANSPORTATION OF HORSES FOR SLAUGHTER

     ``SEC. 201. FINDINGS.

       ``Congress finds that, to ensure that horses sold for 
     slaughter are provided human treatment and care, it is 
     essential to regulate the transportation, care, handling, and 
     treatment of horses by any person engaged in the commercial 
     transportation of horses for slaughter.

     ``SEC. 202. DEFINITIONS.

       ``In this title:
       ``(1) Commerce.--The term `commerce' means trade, traffic, 
     transportation, or other commerce--
       ``(A) between any State, territory, or possession of the 
     United States, or the District of Columbia, and any place 
     outside thereof;
       ``(B) between points within the same State, territory, or 
     possession of the United States, or the District of Columbia, 
     but through any place outside thereof; or
       ``(C) within any territory or possession of the United 
     States or the District of Columbia.
       ``(2) Department.--The term `Department' means the United 
     States Department of Agriculture.
       ``(3) Equine.--The term `equine' includes any member of the 
     Equidae family.
       ``(4) Foal.--The term `foal' means a horse that is not more 
     than 6 months of age.
       ``(5) Horse.--The term `horse' includes any member of the 
     Equidae family.
       ``(6) Horse for slaughter.--The term `horse for slaughter' 
     means any horse that is transported, or intended to be 
     transported, to a slaughter facility or intermediate handler 
     from a sale, auction, or intermediate handler by a person 
     engaged in the business of transporting horses for slaughter.
       ``(7) Intermediate handler.--The term `intermediate 
     handler' means any person engaged in the business of 
     receiving custody of horses for slaughter in connection with 
     the transport of the horses to a slaughter facility, 
     including a stockyard, feedlot, or assembly point.
       ``(8) Person.--The term `person' includes any individual, 
     partnership, firm, company, corporation, or association.
       ``(9) Secretary.--The term `Secretary' means the Secretary 
     of Agriculture.
       ``(10) Vehicle.--The term `vehicle' means any machine, 
     truck, tractor, trailer, or semitrailer, or any combination 
     thereof, propelled or drawn by mechanical power and used on a 
     highway in the commercial transportation of horses for 
     slaughter.
       ``(11) Stallion.--The term `stallion' means any uncastrated 
     male horse that is 1 year of age or older.

     ``SEC. 203. STANDARDS FOR HUMANE COMMERCIAL TRANSPORTATION OF 
                   HORSES FOR SLAUGHTER.

       ``(a) In General.--Not later than 180 days after the date 
     of enactment of this title, the Secretary shall issue, by 
     regulation, standards for the humane commercial 
     transportation of horses for slaughter.
       ``(b) Prohibition.--No person shall transport in commerce, 
     to a slaughter facility or intermediate handler, a horse for 
     slaughter except in accordance with the standards and this 
     title.
       ``(c) Minimum Requirements.--The standards shall include 
     minimum requirements for the humane handling, care, 
     treatment, and equipment necessary to ensure the safe and 
     humane transportation of horses for slaughter. The standards 
     shall require, at a minimum, that--
       ``(1) no horse for slaughter shall be transported for more 
     than 24 hours without being unloaded from the vehicle and 
     allowed to rest for at least 8 consecutive hours and given 
     access to adequate quantities of wholesome food and potable 
     water;
       ``(2) a vehicle shall provide adequate headroom for a horse 
     for slaughter with a minimum of at least 6 feet, 6 inches of 
     headroom from the roof and beams or other structural members 
     overhead to floor underfoot, except that a vehicle 
     transporting 6 horses or less shall provide a minimum of at 
     least 6 feet of headroom from the roof and beams or other 
     structural members overhead to floor underfoot if none of the 
     horses are over 16 hands;
       ``(3) the interior of a vehicle shall--
       ``(A) be free of protrusions, sharp edges, and harmful 
     objects;
       ``(B) have ramps and floors that are adequately covered 
     with a nonskid nonmetallic surface; and
       ``(C) be maintained in a sanitary condition;
       ``(4) a vehicle shall--
       ``(A) provide adequate ventilation and shelter from 
     extremes of weather and temperature for all equine;
       ``(B) be of appropriate size, height, and interior design 
     for the number of equine being carried to prevent 
     overcrowding; and
       ``(C) be equipped with doors and ramps of sufficient size 
     and location to provide for safe loading and unloading, 
     including unloading during emergencies;
       ``(5)(A) horses shall be positioned in the vehicle by size; 
     and
       ``(B) stallions shall be segregated from other horses;
       ``(6)(A) all horses for slaughter must be fit to travel as 
     determined by an accredited large animal veterinarian, who 
     shall prepare a certificate of inspection, prior to loading 
     for transport, that--
       ``(i) states that the horses were inspected and satisfied 
     the requirements of subparagraph (B);
       ``(ii) includes a clear description of each horse; and

[[Page S 14549]]

       ``(iii) is valid for 7 days;
       ``(B) no horse shall be transported to slaughter if the 
     horse is found to be--
       ``(i) suffering from a broken or dislocated limb;
       ``(ii) unable to bear weight on all 4 limbs;
       ``(iii) blind in both eyes; or
       ``(iv) obviously suffering from severe illness, injury, 
     lameness, or physical debilitation that would make the horse 
     unable to withstand the stress of transportation;
       ``(C) no foal may be transported for slaughter;
       ``(D) no mare in foal that exhibits signs of impending 
     partition may be transported for slaughter; and
       ``(E) no horse for slaughter shall be accepted by a 
     slaughter facility unless the horse is accompanied by a 
     certificate of inspection issued by an accredited large 
     animal veterinarian, not more than 7 days before the 
     delivery, stating that the veterinarian inspected the horse 
     on a specified date.

     ``SEC. 204. RECORDS.

       ``(a) In General.--A person engaged in the business of 
     transporting horses for slaughter shall establish and 
     maintain such records, make such reports, and provide such 
     information as the Secretary may, by regulation, require for 
     the purposes of carrying out, or determining compliance with, 
     this subtitle.
       ``(b) Minimum Requirements.--The records shall include, at 
     a minimum--
       ``(1) the veterinary certificate of inspection;
       ``(2) the names and addresses of current owners and 
     consignors, if applicable, of the horses at the time of sale 
     or consignment to slaughter; and
       ``(3) the bill of sale or other documentation of sale for 
     each horse.
       ``(c) Availability.--The records shall--
       ``(1) accompany the horses during transport to slaughter;
       ``(2) be retained by any person engaged in the business of 
     transporting horses for slaughter for a reasonable period of 
     time, as determined by the Secretary; and
       ``(3) on request of an officer or employee of the 
     Department, be made available at all reasonable times for 
     inspection and copying by the officer or employee.

     ``SEC. 205. AGENTS.

       ``(a) In General.--For purposes of this title, the act, 
     omission, or failure of an individual acting for or employed 
     by a person engaged in the business of transporting horses 
     for slaughter, within the scope of the employment or office 
     of the individual, shall be considered the act, omission, or 
     failure of the person engaging in the commercial 
     transportation of horses for slaughter as well as of the 
     individual.
       ``(b) Assistance.--If a horse suffers a substantial injury 
     or illness while being transported for slaughter on a 
     vehicle, the driver of the vehicle should seek prompt 
     assistance from a large animal veterinarian.

     ``SEC. 206. COOPERATIVE AGREEMENTS.

       ``Not later than 180 days after the date of enactment of 
     this title, the Secretary shall, to the maximum extent 
     practicable, establish cooperative agreements and enter into 
     memoranda of agreement with appropriate Federal and State 
     agencies or political subdivisions of the agencies, including 
     State departments of agriculture, State law enforcement 
     agencies, and foreign governments, to carry out and enforce 
     this title.

     ``SEC. 207. INVESTIGATIONS AND INSPECTIONS.

       ``(a) In General.--The Secretary shall make such 
     investigations or inspections as the Secretary considers 
     necessary--
       ``(1) to enforce this title (including any regulation 
     issued under this title); and
       ``(2) pursuant to information regarding alleged violations 
     of this title provided to the Secretary by a State official 
     or any other person.
       ``(b) Access.--For the purposes of conducting an 
     investigation or inspection under subsection (a), the 
     Secretary shall, at all reasonable times, have access to--
       ``(1) the place of business of any person engaged in the 
     business of transporting horses for slaughter;
       ``(2) the facilities and vehicles used to transport the 
     horses; and
       ``(3) records required to be maintained under section 204.
       ``(c) Minimum Requirement.--An investigation or inspection 
     shall include, at a minimum, an inspection by an employee of 
     the Department of all horses and vehicles carrying horses, on 
     the arrival of the horses and vehicles at the slaughter 
     facility.
       ``(d) Assistance to or Destruction of Horses.--The 
     Secretary shall issue such regulations as the Secretary 
     considers necessary to permit employees or agents of the 
     Department to--
       ``(1) provide assistance to any horse that is covered by 
     this title (including any regulation issued under this 
     title); or
       ``(2) destroy, in a humane manner, any such horse found to 
     be suffering.

     ``SEC. 208. INTERFERENCE WITH ENFORCEMENT.

       ``(a) In General.--Subject to subsection (b), a person who 
     forcibly assaults, resists, opposes, impedes, intimidates, or 
     interferes with any person while engaged in or on account of 
     the performance of an official duty of the person under this 
     title shall be fined not more than $5,000 or imprisoned not 
     more than 3 years, or both.
       ``(b) Weapons.--If the person uses a deadly or dangerous 
     weapon in connection with an action described in subsection 
     (a), the person shall be fined not more than $10,000 or 
     imprisoned not more than 10 years, or both.

     ``SEC. 209. JURISDICTION OF COURTS.

       ``Except as provided in section 210(a)(5), a district court 
     of the United States in any appropriate judicial district 
     under section 1391 of title 28, United States Court, shall 
     have jurisdiction to specifically enforce this title, to 
     prevent and restrain a violation of this title, and to 
     otherwise enforce this title.

     ``SEC. 210. CIVIL AND CRIMINAL PENALTIES.

       ``(a) Civil Penalties.--
       ``(1) In general.--A person who violates this title 
     (including a regulation or standard issued under this title) 
     shall be assessed a civil penalty by the Secretary of not 
     more than $2,000 for each violation.
       ``(2) Separate offenses.--Each horse transported in 
     violation of this title shall constitute a separate offense. 
     Each violation and each day during which a violation 
     continues shall constitute a separate offense.
       ``(3) Hearings.--No penalty shall be assessed under this 
     subsection unless the person who is alleged to have violated 
     this title is given notice and opportunity for a hearing with 
     respect to an alleged violation.
       ``(4) Final order.--An order of the Secretary assessing a 
     penalty under this subsection shall be final and conclusive 
     unless the aggrieved person files an appeal from the order 
     pursuant to paragraph (5).
       ``(5) Appeals.--Not later than 30 days after entry of a 
     final order of the Secretary issued pursuant to this 
     subsection, a person aggrieved by the order may seek review 
     of the order in the appropriate United States Court of 
     Appeals. The Court shall have exclusive jurisdiction to 
     enjoin, set aside, suspend (in whole or in part), or to 
     determine the validity of the order.
       ``(6) Nonpayment of penalty.--On a failure to pay the 
     penalty assessed by a final order under this section, the 
     Secretary shall request the Attorney General to institute a 
     civil action in a district court of the United States or 
     other United States court for any district in which the 
     person is found, resides, or transacts business, to collect 
     the penalty. The court shall have jurisdiction to hear and 
     decide the action.
       ``(b) Criminal Penalties.--
       ``(1) First offense.--Subject to paragraph (2), a person 
     who knowingly violates this title (or a regulation or 
     standard issued under this title) shall, on conviction of the 
     violation, be subject to imprisonment for not more than 1 
     year or a fine of not more than $2,000, or both.
       ``(2) Subsequent offenses.--On conviction of a second or 
     subsequent offense described in paragraph (1), a person shall 
     be subject to imprisonment for not more than 3 years or to a 
     fine of not more than $5,000, or both.

     ``SEC. 211. PAYMENTS FOR TEMPORARY OR MEDICAL ASSISTANCE FOR 
                   HORSES DUE TO VIOLATIONS.

       ``From sums received as penalties, fines, or forfeitures of 
     property for any violation of this title (including a 
     regulation issued under this title), the Secretary shall pay 
     the reasonable and necessary costs incurred by any person in 
     providing temporary care or medical assistance for any horse 
     that needs the care or assistance due to a violation of this 
     title.

     ``SEC. 212. RELATIONSHIP TO STATE LAW.

       ``Nothing in this title prevents a State from enacting or 
     enforcing any law (including a regulation) that is not 
     inconsistent with this title or that is more restrictive than 
     this title.

     ``SEC. 213. AUTHORIZATION OF APPROPRIATIONS.

       ``There is authorized to be appropriated for each fiscal 
     year such sums as are necessary to carry out this title.''.

     SEC. 3. CONFORMING AMENDMENTS.

       (a) The first section of Public Law 85-765 (7 U.S.C. 1901) 
     is amended by striking ``That the Congress'' and inserting 
     the following:

     ``SEC. 1. SHORT TITLE.

       ``This Act may be cited as the `Federal Humane Methods of 
     Livestock Slaughter Act'.
            ``TITLE I--HUMANE METHODS OF LIVESTOCK SLAUGHTER

     ``SEC. 101. FINDINGS AND DECLARATION OF POLICY.

       ``Congress''.
       (b) Section 2 of the Federal Humane Methods of Livestock 
     Slaughter Act (7 U.S.C. 1902) is amended by striking ``Sec. 
     2. No'' and inserting the following:

     ``SEC. 102. HUMANE METHODS.

       ``No''.
       (c) Section 4 of the Act (7 U.S.C. 1904) is amended by 
     striking ``Sec. 4. In'' and inserting the following:

     ``SEC. 103. METHODS RESEARCH.

       ``In''.
       (d) Section 6 of the Act (7 U.S.C. 1906) is amended by 
     striking ``Sec. 6. Nothing'' and inserting the following:

     ``SEC. 104. EXEMPTION OF RITUAL SLAUGHTER.

       ``Nothing''.

     SEC. 4. EFFECTIVE DATE.

       (a) In General.--This Act and the amendments made by this 
     Act shall become effective 180 days after the date of 
     enactment of this Act.
       (b) Regulations.--As soon as practicable, but not later 
     than 180 days after the date of enactment of this Act, the 
     Secretary of Agriculture shall issue such regulations as the 
     Secretary determines are necessary to implement this Act and 
     the amendments made by this Act.
       (c) Compliance.--A person shall be required to comply 
     with--
       (1) sections 203 and 204 of the Federal Humane Methods of 
     Livestock Slaughter Act (as added by section 2) beginning on 
     the date 

[[Page S 14550]]
     that is 180 days after the date of enactment of this Act; and
       (2) other sections of title II of the Act beginning on the 
     date that is 90 days after the Secretary issues final 
     regulations under subsection (b).
                                 ______

      By Mr. HATCH (for himself and Mr. Leahy):
  S. 1284. A bill to amend title 17 to adapt the copyright to the 
digital, networked environment of the National Information 
Infrastructure, and for other purposes; to the Committee on the 
Judiciary.


    the national information infrastructure copyright protection act

  Mr. HATCH. Mr. President, today, together with my distinguished 
colleague from Vermont, Senator Leahy, I am introducing the National 
Information Infrastructure Copyright Protection Act of 1995, which 
amends the Copyright Act to bring it up to date with the digital 
communications age.
  The National Information Infrastructure or ``NII'' is a fancy name 
for what is popularly known as the ``information highway.'' Probably 
most people today experience the information highway by means of their 
computers when they use electronic mail or subscribe to a bulletin 
board service or use other on-line services. But these existing 
services are only dirt roads compared to the superhighway of 
information-sharing which lies ahead.
  The NII of the future will link not only computers, but also 
telephones, televisions, radios, fax machines, and more into an 
advanced, high-speed, interactive, broadband, digital communications 
system. Over this information superhighway, data, text, voice, sound, 
and images will travel, and their digital format will permit them not 
only to be viewed or heard, but also to be copied and manipulated. The 
digital format will also ensure that copies will be perfect 
reproductions, without the degradation that normally occurs today when 
audio and videotapes are copied.
  The NII has tremendous potential to improve and enhance our lives, by 
providing quick, economical, and high-quality access to information 
that educates and entertains as well as informs. When linked up to a 
``Global Information Infrastructure,'' the NII will broaden our 
cultural experiences, and allow American products to be more widely 
disseminated.
  Highways, of course, are meant to be used, and in order to be used, 
they must be safe. That's why we have ``rules of the road'' on our 
asphalt highways and that's why we need rules for our digital highway. 
No manufacturer would ship his or her goods on a highway if his trucks 
were routinely hijacked and his or her goods plundered. Likewise, no 
producer of intellectual property will place his or her works on the 
information superhighway if they are routinely pirated. We might end up 
having enormous access to very little information, unless we can 
protect property rights in intellectual works. The piracy problem is 
particularly acute in the digital age where perfect copies can be made 
quickly and cheaply.
  Protecting the property rights of the owners of intellectual property 
not only induces them to make their products available, it also 
encourages the creation of new products. Our copyright laws are based 
on the conviction that creativity increases when authors can reap 
benefits of their creative activity.
  But the NII also promises to increase creativity in a more dramatic 
way by providing individual creators with public distribution of their 
works outside traditional channels. For example, authors who have been 
unsuccessful in finding a publisher will be able to distribute their 
works themselves to great numbers of people at very low cost.
  The bill that I am introducing today begins the process of designing 
the rules of the road for the information superhighway. It was drafted 
by the Working Group on Intellectual Property Rights of the Information 
Infrastructure Task Force. Chaired by the Honorable Bruce A Lehman, 
Assistant Secretary of Commerce and Commissioner of Patents and 
Trademarks, the Working Group labored for 2 years examining the 
intellectual property implications of the NII to determine if changes 
were necessary to intellectual property law and to recommend 
appropriate statutory language.
  The Working Group drew upon the expertise of 26 departments and 
agencies of the Federal Government; it heard the testimony of 30 
witnesses and received some 70 written statements from all interested 
parties. On July 7, 1994, it produced a preliminary draft (``Green 
Paper''), which opened another period of extensive testimony and 
comment. The Final Report, containing a draft of the legislation that I 
am introducing today, was unveiled on September 5, 1995.
  The length and scope of the Working Group's investigation would alone 
commend its recommendations to serious attention, but I have also 
studied the legislation and find it an excellent basis for the 
Committee on the Judiciary to begin its own examination of the issues 
with a view to fine-tuning the solutions proposed by the Working Group.
  The bill deals with five major areas:
  (1) transmission of copies,
  (2) exemptions for libraries and the visually impaired,
  (3) copyright protection systems,
  (4) copyright management information, and
  (5) remedies.
  In general, the bill provides as follows:
  Transmission of Copies. The bill makes clear that the right of public 
distribution in the Copyright Act applies to transmission of copies and 
phonorecords of copyrighted works. For example, this means that 
transmitting a copy of a computer program from one computer to ten 
other computers without permission of the copyright owner would 
ordinarily be an infringement.

  Exemptions for Libraries and the Visually Impaired. The bill amends 
the current exemption for libraries to allow the preparation of three 
copies of works in digital format, and it authorizes the making of a 
limited number of digital copies by libraries and archives for purposes 
of preservation.
  The bill adds a new exemption for non-profit organizations to 
reproduce and distribute to the visually impaired--at cost--Braille, 
large type, audio or other editions of previously published literary 
works, provided that the owner of the exclusive right to distribute the 
work in the United States has not entered the market for such editions 
during the first year following first publication.
  Copyright Protection Systems. The bill adds a new section which 
prohibits the importation, manufacture or distribution of any device or 
product, or the provision of any service, the primary purpose or effect 
of which is to deactivate any technological protections which prevent 
or inhibit the violation of exclusive rights under the copyright law.
  Copyright Management Information. ``Copyright management 
information'' is information that identifies the author of the work, 
the copyright owner, the terms and conditions for uses of the work, and 
other information that the Register of Copyrights may prescribe. The 
bill prohibits the dissemination of copyright management information 
known to be false and the unauthorized removal or alteration of 
copyright management information.
  Remedies. The bill provides for civil penalties for circumvention of 
copyright protection systems and for tampering with copyright 
management information, including injunction, impoundment, actual or 
statutory damages, costs, attorney's fees, and the modification or 
destruction of products and devices.
  The bill provides criminal penalties for tampering with copyright 
management information--a fine of not more than $500,000 or 
imprisonment of not more than 5 years or both.
  There is widespread support for the general thrust of the bill among 
interested parties. However, during the hearing process, I am sure that 
issues will arise that no one has yet anticipated. Already, some 
potential discussion points have been identified: the scope of the 
library exemption and the exemption for the visually impaired, the 
absence of criminal penalties for circumvention of copyright protection 
systems, the use of encryption as a copyright protection system, the 
application of the doctrine of fair use, the development of efficient 
licensing models, and the liability of on-line service providers.
  In the interest of time, it may be that fuller discussion and 
solution may 

[[Page S 14551]]
have to be deferred for those points not covered expressly in the bill. 
The fully commercial information superhighway is not yet here, and we 
must resign ourselves to a period of experimentation. We want to be on 
the cutting edge, not the bleeding edge of new technology.
  Once again, I would like to commend the Working Group on Intellectual 
Property Rights of the Information Infrastructure Task Force for 
providing an excellent model for us to work with. I also recommend to 
all interested parties that they read the full report of the Working 
Group. Without endorsing any of the specific language of that report, I 
believe that it provides useful background material for the recommended 
changes.
  In conclusion, Mr. President, I would like to thank my colleague from 
Vermont, Senator Leahy, for joining me in introducing this important 
legislation.
  Mr. President, I ask unanimous consent that a copy of this bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1284

       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 ``NII Copyright Protection Act 
     of 1995''.

     SEC. 2. TRANSMISSION OF COPIES.

       (a) Distribution.--Section 106(3) of title 17, United 
     States Code, is amended by striking ``or by rental, lease, or 
     lending'' and inserting ``by rental, lease, or lending, or by 
     transmission''.
       (b) Definitions.--Section 101 of title 17, United States 
     Code, is amended--
       (1) in the definition of ``publication'' by striking ``or 
     by rental, lease, or lending'' in the first sentence and 
     insert ``by rental, lease, or lending, or by transmission''; 
     and
       (2) in the definition of ``transmit'' by inserting at the 
     end thereof the following: ``To `transmit' a reproduction is 
     to distribute it by any device or process whereby a copy or 
     phonorecord of the work is fixed beyond the place from which 
     it was sent.''.
       (c) Importation.--Section 602 of title 17, United States 
     Code, is amended by inserting ``whether by carriage of 
     tangible goods or by transmission,'' after ``Importation into 
     the United States,''.

     SEC. 3. EXEMPTIONS FOR LIBRARIES AND THE VISUALLY IMPAIRED.

       (a) Libraries.--Section 108 of title 17, United States 
     Code, is amended--
       (1) in subsection (a) by deleting ``one copy or 
     phonorecord'' and inserting in lieu thereof ``three copies or 
     phonorecords'';
       (2) in subsection (a) by deleting ``such copy or 
     phonorecord'' and inserting in lieu thereof ``no more than 
     one of such copies or phonorecords'';
       (3) by inserting at the end of subsection (a)(3) ``if such 
     notice appears on the copy or phonorecord that is reproduced 
     under the provisions of this section'';
       (4) in subsection (b) by inserting ``or digital'' after 
     ``facsimile'' and by inserting ``in facsimile form'' before 
     ``for deposit for research use''; and
       (5) in subsection (c) by inserting ``or digital'' after 
     ``facsimile''.
       (b) Visually Impaired.--Title 17, United States Code, is 
     amended by adding the following new section:

     ``Sec. 108A. Limitations on exclusive rights: Reproduction 
       for the Visually Impaired

       ``Notwithstanding the provision of section 106, it is not 
     an infringement of copyright for a non-profit organization to 
     reproduce and distribute to the visually impaired, at cost, a 
     Braille, large type, audio or other edition of a previously 
     published literary work in a form intended to be perceived by 
     the visually impaired, provided that, during a period of at 
     least one year after the first publication of a standard 
     edition of such work in the United States, the owner of the 
     exclusive right to distribute such work in the United States 
     has not entered the market for editions intended to be 
     perceived by the visually impaired.''

     SEC. 4. COPYRIGHT PROTECTION SYSTEMS AND COPYRIGHT MANAGEMENT 
                   INFORMATION.

       Title 17, United States Code, is amended by adding the 
     following new chapter:

       ``CHAPTER 12.--COPYRIGHT PROTECTION AND MANAGEMENT SYSTEMS

``Sec.
``1201. Circumvention of Copyright Protection Systems
``1202. Integrity of Copyright Management Information
``1203. Civil Remedies
``1204. Criminal Offenses and Penalties

     Sec. 1201. Circumvention of Copyright Protection Systems

       ``No person shall import, manufacture or distribute any 
     device, product, or component incorporated into a device or 
     product, or offer or perform any service, the primary purpose 
     or effect of which is to avoid, bypass, remove, deactivate, 
     or otherwise circumvent, without the authority of the 
     copyright owner or the law, any process, treatment, mechanism 
     or system which prevents or inhibits the violation of any of 
     the exclusive rights of the copyright owner under section 
     106.

     Sec. 1202. Integrity of Copyright Management Information

       ``(a) False Copyright Management Information.--No person 
     shall knowingly provide copyright management information that 
     is false, or knowingly publicly distribute or import for 
     public distribution copyright management information that is 
     false.
       ``(b) Removal or Alteration of Copyright Management 
     Information.--No person shall, without authority of the 
     copyright owner or the law, (i) knowingly remove or alter any 
     copyright management information, (ii) knowingly distribute 
     or import for distribution copyright management information 
     that has been altered without authority of the copyright 
     owner or the law, or (iii) knowingly distribute or import for 
     distribution copies or phonorecords from which copyright 
     management information has been removed without authority of 
     the copyright owner or the law.
       ``(c) Definition.--As used in this chapter, ``copyright 
     management information'' means the name and other identifying 
     information of the author of a work, the name and other 
     identifying information of the copyright owner, terms and 
     conditions for uses of the work, and such other information 
     as the Register of Copyrights may prescribe by regulation.

     Sec. 1203. Civil Remedies

       ``(a) Civil Actions.--Any person injured by a violation of 
     Sec. 1201 or 1202 may bring a civil action in an appropriate 
     United States district court for such violation.
       ``(b) Powers of the Court.--In an action brought under 
     subsection (a), the court--
       ``(1) may grant temporary and permanent injunctions on such 
     terms as it deems reasonable to prevent or restrain a 
     violation;
       ``(2) at any time while an action is pending, may order the 
     impounding, on such terms as it deems reasonable, of any 
     device or product 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;
       ``(3) may award damages under subsection (c);
       ``(4) in its discretion may allow the recovery of costs by 
     or against any party other than the United States or an 
     officer thereof;
       ``(5) in its discretion may award reasonable attorney's 
     fees to the prevailing party; and
       ``(6) may, as part of a final judgment or decree finding a 
     violation, order the remedial modification or the destruction 
     of any device or product involved in the violation that is in 
     the custody or control of the violator or has been impounded 
     under subsection (2).
       ``(c) Awards of Damages.--
       ``(1) In general.--Except as otherwise provided in this 
     chapter, a violator is liable for either (i) the actual 
     damages and any additional profits of the violator, as 
     provided by subsection (2) or (ii) statutory damages, as 
     provided by subsection (3).
       ``(2) Actual damages.--The court shall award to the 
     complaining party the actual damages suffered by him or her 
     as a result of the violation, and any profits of the violator 
     that are attributable to the violation and are not taken into 
     account in computing the actual damages, if the complaining 
     party elects such damages at any time before final judgment 
     is entered.
       ``(3) Statutory damages.--
       ``(A) At any time before final judgment is entered, a 
     complaining party may elect to recover an award of statutory 
     damages for each violation of section 1201 in the sum of not 
     less than $200 or more than $2,500 per device, product, offer 
     or performance of service, as the court considers just.
       ``(B) At any time before final judgment is entered, a 
     complaining party may elect to recover an award of statutory 
     damages for each violation of section 1202 in the sum of not 
     less than $2,500 or more than $25,000.
       ``(4) Repeated violations.--In any case in which the 
     injured party sustains the burden of proving, and the court 
     finds, that a person has violated section 1201 or 1202 within 
     three years after a final judgment was entered against that 
     person for another such violation, the court may increase the 
     award of damages up to triple the amount that would otherwise 
     be awarded, as the court considers just.
       ``(5) Innocent violations.--The court in its discretion may 
     reduce or remit altogether the total award of damages in any 
     case in which the violator sustains the burden of proving, 
     and the court finds, that the violator was not aware and had 
     no reason to believe that its acts constituted a violation.

     Sec. 1204. Criminal Offenses and Penalties

       ``Any person who violates section 1202 with intent to 
     defraud shall be fined not more than $500,000 or imprisoned 
     for not more than 5 years, or both.''

     SEC. 5. CONFORMING AMENDMENTS.

       (a) Table of Sections.--The table of sections for chapter 1 
     of title 17, United States Code, is amended by inserting 
     after the item relating to section 108 the following:

``108A. Limitations on exclusive rights: Reproduction for the Visually 
              Impaired.''

       (b) Table of Chapters.--The table of chapters for title 17, 
     United States Code, is amended by adding at the end the 
     following:

``12. COPYRIGHT PROTECTION AND MANAGEMENT SYSTEMS...............1201''.

[[Page S 14552]]


     SEC. 6. EFFECTIVE DATE.

       This Act, and the amendments made by this Act, shall take 
     effect on the date of the enactment of this Act.

  Mr. LEAHY. Mr. President, I join today in the introduction of the 
``NII Copyright Protection Act.'' This bill reflects the effort of the 
Working Group on Intellectual Property Rights, chaired by Assistant 
Secretary of Commerce and Commissioner of Patents and Trademarks Bruce 
A. Lehman. The Working Group included key Federal agencies in 
consultation with the private sector, public interest groups and State 
and local governments. Its examination of the intellectual property 
implications of the National Information Infrastructure forms a 
critical component of the Information Infrastructure Task Force, 
created in early 1993 by President Clinton and Vice President Gore.
  This legislative proposal confronts fundamental questions about the 
role of copyright in the next century. On July 7, 1995, the Working 
Group released its preliminary draft report. Following additional 
hearings, public comment and consultation, the Administration released 
its long-awaited ``White Paper,'' or final report, on copyright 
protection in the digital, electronic information age on September 5, 
1995. This 238-page report, ``Intellectual Property and the National 
Information Infrastructure,'' culminates in legislative recommendations 
that are incorporated in this bill. This bill takes important steps 
toward answering questions about the structure of copyright protection 
for decades to come.
  Increasing the accessibility to computer networks is of vital 
importance to our Nation's continued economic health and growth. 
Computers have already been integrated into virtually everything we do 
from getting cash at bank ATMs, paying for our groceries at the local 
market, and sending e-mail messages to friends, to making a simple 
telephone call that is directed by the telephone companies' computers.
  Our dependence on computers only grows. Businesses both large and 
small depend on computers to communicate, manage and improve their 
delivery of goods and services. In fact, small businesses can use 
computers successfully to keep up with their bigger competitors.
  We have to make sure that all of us feel as comfortable with using 
computers as we did, in my youth, using a typewriter. We have to make 
sure that we appreciate all the advantages that networked communities, 
such as the Internet, have to offer. Computer networks will 
increasingly become the means of transmitting copyrighted works in the 
years ahead. This presents great opportunities but also poses 
significant risks to authors and our copyright industries.
  I believe that we can legislate in ways that promote the use of the 
Internet, both by content providers and users. We must and will update 
our copyright laws to protect the intellectual property rights of 
creative works available online. The future growth of computer networks 
like the Internet and of digital, electronic communications requires 
it. Otherwise, owners of intellectual property will be unwilling to put 
their material online. If there is no content worth reading online, the 
growth of this medium will be stifled, and public accessibility will be 
retarded.
  The Report of the Working Group on Intellectual Property Rights put 
it this way:

       Thus, the full potential of the NII will not be realized if 
     the education, information and entertainment products 
     protected by intellectual property laws are not protected 
     effectively when disseminated via the NII. Creators and other 
     owners of intellectual property will not be willing to put 
     their interests at risk if appropriate systems--both in the 
     U.S. and internationally--are not in place to permit them to 
     set and enforce the terms and conditions under which their 
     works are made available in the NII environment. Likewise, 
     the public will not use the services available on the NII and 
     generate the market necessary for its success unless a wide 
     variety of works are available under equitable and reasonable 
     terms and conditions, and the integrity of those works is 
     assured. All the computers, telephones, fax machines, 
     scanners, cameras, keyboards, televisions, monitors, 
     printers, switches, routers, wires, cables, networks, and 
     satellites in the world will not create a successful NII, if 
     there is no content. What will drive the NII is the content 
     moving through it.

  The emergence of the computer networks forming the backbone of the 
National Information Infrastructure in this country and the Global 
Information Infrastructure worldwide hold enormous promise. They also 
present an enormous challenge to those of us in government and in the 
private sector to make sure it is accessible and affordable to all.
  I support a balanced approach to digital communications and have 
already proposed a series of other bills to foster the continued growth 
of electronic communications while encouraging creativity. Together 
with this NII Copyright Protection Act, they will go a long way toward 
creating an environment for growth of digital networks.
  When we consider information providers we cannot leave out the 
Federal Government. Government databases hold vast amounts of 
information that is not restricted by copyright and is legally required 
by the Freedom of Information Act to be available to the public, who 
paid for its collection. Earlier this year I introduced, along with 
Senators Hank Brown and John Kerry, the ``Electronic Freedom of 
Information Improvement Act of 1995,'' S.1090, to require federal 
agencies to make more information available in electronic form and 
online so that it can be readily accessible to students and scholars 
doing research, companies who need the data for business purposes or 
simply curious members of the public.
  Government ought to be using technology to make itself more 
accountable and government information more accessible to the public. 
Individual federal agencies are already contributing to the development 
of the much heralded National Information Infrastructure by using 
technology to make Government information more easily accessible to our 
citizens. For example, the Internet Multicasting Service [IMS] now 
posts massive government data archives, including the Securities and 
Exchange Commission EDGAR database and the U.S. Patent and Trademark 
Office database on the Internet free of charge. Similarly, FedWorld, a 
bulletin board available on the Internet, provides a gateway to more 
than 60 Federal agencies.
  The Electronic Freedom of Information Improvement Act would 
contribute to that information flow by increasing online access to 
Government information, including agency regulations, opinions, and 
policy statements, and FOIA-released records that are the subject of 
repeated requests. This bill passed the Senate in the last Congress and 
I hope to see it through both Houses of this Congress.
  Our increasing reliance on networked computers for business and 
socializing also makes us more vulnerable to hackers and computer 
criminals. Anyone who has had to deal with the aftermath of a computer 
virus knows what havoc can be. Having previously been active in 
legislation to prevent computer crime and abuse, I have this year 
introduced the National Information Infrastructure Protection Act, 
S.982, with Senators Kyl and Grassley to increase protection for both 
government and private computers, and the information on those 
computers, from the growing threat of computer crime. This bill would 
increase protection against computer thieves, hackers and blackmailers 
and protecting computer systems used in interstate and foreign commerce 
and communications from destructive activity. It also serves to 
increase personal privacy, a matter on which I feel most strongly.
  Finally, I note my recent introduction with Senator Feingold of the 
Criminal Copyright Improvement Act of 1995, S.1122. This bill is 
designed to close a significant loophole in our copyright law and 
encourage the continued growth of the NII by insuring better protection 
of the creative works available online.
  Under current law, a defendant's willful copyright infringement must 
be for purposes of commercial advantage or private financial gain to be 
the subject of criminal prosecution. As exemplified by the recent case 
of United States v. LaMacchia, this presents an enormous loophole in 
criminal liability for willful infringers who can use digital 
technology to make exact copies of copyrighted software or other 
digitally encoded works, and then use computer networks for quick, 
inexpensive and 

[[Page S 14553]]
mass distribution of pirated, infringing works.
  The Report of the Working Group recognizes that the LaMacchia case 
demonstrates that the current law is insufficient to prevent flagrant 
copyright violations in the NII context and generally supports the 
amendments to the copyright law and the criminal law (which sets out 
sanctions for criminal copyright violations) set forth in S.1122, 
introduced in the 104th Congress by Senators Leahy and Feingold 
following consultations with the Justice Department. This increasingly 
important problem must be solved and the Criminal Copyright Improvement 
Act, S.1122, is a necessary component of the legal changes we need to 
adapt to the emerging digital environment.
  Today I join in sponsoring a bill that will help update our copyright 
law to the emerging electronic and digital age by revising basic 
copyright law definitions to take electronic transmissions into 
account. Further it endorses the use of copyright protection systems so 
that we may take fullest advantage of the technological developments 
that can be used to protect copyright and provide incentives for 
creativity. The bill provides graduated civil and criminal remedies for 
the circumvention of copyright protection systems through the use of 
false copyright management information.
  Finally, it suggests certain limited exemptions for libraries and the 
visually impaired. In this bill and others we need carefully to 
construct the proper balance that will respect copyright, encourage and 
reward creativity and serve the needs of public access to works.
  I believe that technological developments, such as the development of 
the Internet and remote computer information databases, are leading to 
important advancements in accessibility and affordability of 
information and entertainment services. We see opportunities to break 
through barriers previously facing those living in rural settings and 
those with physical disabilities. Democratic values can be served by 
making more information and services available.
  The public interest requires the consideration and balancing of such 
interests. In the area of creative rights that balance has rested on 
encouraging creativity by ensuring rights that reward it while 
encouraging its public performance, distribution and display.
  The Constitution speaks in terms of promoting the progress of science 
and useful arts, by securing for limited times to authors and inventors 
the exclusive right to their respective writings and discoveries. 
Technological developments and the emergence of the Global Information 
Infrastructure hold enormous promise and opportunity for creators, 
artists, copyright industries and the public. There are methods of 
distribution emerging that dramatically affect the role of copyright 
and the accessibility of art, literature, music, film and information 
to all Americans.
  I was pleased to work with Chairman Hatch, Senator Thurmond, Senator 
Feinstein, Senator Thompson and others earlier this year to craft a 
bill creating a performance right in sound recordings, a matter that 
had been a source of contention for more than 20 years. That bill, The 
Digital Performance Rights in Sound Recordings Act of 1995, S.227, 
deals with digital transmissions, has already passed the Senate and 
should soon be the law of the land.
  Senator Hatch and I have also previously joined to cosponsor the 
Anticounterfeiting Consumer Protection Act of 1995, S.1136, to add law 
enforcement tools against counterfeit goods and to protect the 
important intellectual property rights associated with trademarks. I 
anticipate prompt hearings on that important measure and its enactment 
this Congress.
  I look forward to working with Chairman Hatch, the Chairman of the 
Judiciary, and others to adapt our copyright laws to the needs of the 
NII and the global information society, as well. The amendment of our 
copyright laws is an important and essential effort, one that merits 
our time and attention. I hope and trust that we will soon begin 
hearings on this important measure so that we may be sure to understand 
its likely impact both domestically and internationally. We must 
carefully balance the authors' interest in protection along with the 
public's interest in the accessibility of information.
  Ours is a time of unprecedented challenge to copyright protection. 
Copyright has been the engine that has traditionally converted the 
energy of artistic creativity into publicly available arts and 
entertainment. Historically, Government's role has been to encourage 
creativity and innovation by protecting copyrights that create 
incentives for the dissemination to the public of new works and forms 
of expression. That is the tradition that I intend to continue in this 
bill, the NII Copyright Protection Act of 1995.

                          ____________________