[Congressional Record Volume 143, Number 114 (Wednesday, September 3, 1997)]
[Senate]
[Pages S8728-S8732]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. ASHCROFT:
  S. 1146. A bill to amend title 17, United States code, to provide 
limitations on copyright liability relating to material on-line, and 
for other purposes; to the Committee on the Judiciary.


  the digital copyright clarification and technology education act of 
                                  1997

  Mr. ASHCROFT. Mr. President, I speak today on an issue of great 
importance to copyright law and to the continued growth of electronic 
commerce on the Internet. In December 1996, two treaties were adopted 
by the diplomatic conference of the World Intellectual Property 
Organization [WIPO] to update international copyright law. These 
treaties would extend international copyright law into the digital 
environment, including the Internet. However, these treaties do not 
provide a comprehensive response to the many copyright issues raised by 
the flourishing of the Internet and the promise of digital technology. 
We must endeavor to keep the scales of copyright law balanced, 
providing important protections to creators of content, while ensuring 
their widespread distribution. To begin the discussion I am introducing 
today the Digital Copyright Clarification and Technology Education Act 
of 1997.
  Any discussion of this issue, even in the most simple terms, raises 
many

[[Page S8729]]

important issues. We must foster the growth of the Internet, which 
provides such great opportunity to our country because it is the most 
participatory form of mass communication ever developed. It draws 
people together from all corners of the globe to share and communicate 
on an unprecedented level, and brings all levels of government closer 
to the public. The Internet also holds great promise for education. 
Students--rural, suburban, and urban--are increasingly able to access a 
wealth of information right at their computer that was previously 
beyond their reach.
  In addition, the Internet offers significant commercial 
possibilities. Small businesses can reach out across the globe and 
conquer the distances between them and potential customers. Individuals 
can view merchandise and make purchases without leaving home. 
Hopefully, soon a system will develop to allow individuals to contract 
electronically with traditional force of law for contracts on paper. 
However, this potential will never be realized without a system that 
fairly protects the interests of those who own copyrighted material; 
those who deliver that material via the Internet; and individual users. 
The implications here are far-reaching, with impacts that touch 
individual users, companies, libraries, universities, teachers and 
students.
  The legislation I am introducing today would accomplish several 
goals. First, the legislation would clarify the extent of liability for 
entities who transfer information via the Internet without control of 
the content. Second, the bill would provide for a rapid response to 
copyright infringement with the cooperation of the copyright owner and 
the on-line service to take down the infringing material, helping to 
curtail piracy. Third, the Act will provide for the use of digital 
technology in education, research, and library archives, including 
updating the fair use doctrine for electronic media. Fourth, the 
legislation provides a standard for liability based on individual 
conduct, not a standard that constrains the development of new 
technology.
  We must confirm that the entities who facilitate the operation of the 
global information infrastructure not be unfairly liable for literally 
billions of transmissions that individual users send via the Internet 
or post on the World Wide Web every week. We cannot make the Internet 
too costly to operate. Liability for infringement of copyright should 
reflect the degree of control that any party had in the determination 
of the content of the offending message. Those providing the 
infrastructure that makes the Internet possible should not be held 
liable for the content of messages to which they have no access. Often, 
the copyright holders will be best situated to make a determination of 
whether their copyrighted material is being infringed.

  In addition, two very real considerations in the final outcome are 
the capabilities and limits of current technology. It is not possible 
to monitor every communication on the Internet, not even to look at 
every homepage on the World Wide Web, even if it were desirable. In 
January 1997, one estimate put the number of Internet hosts at more 
than 16 million. Each could host multiple homepages, and those 
individual sites could be composed of multiple individual pages. One 
individual host, GeoCities, boasts of more than half a million 
homesteaders, with 5,000 new residents arriving daily. As of May 1997 
there were more than 40 million people on the Web, a breathtaking 
increase from the 1 million in December 1994. To state the facts of the 
exploding traffic growth in a different way, one major infrastructure 
provider, of which there are many, reports traffic of 250 terabytes a 
month--a terabyte is a thousand billion bytes--which translates into 
almost six billion bytes a minute--for one carrier. More importantly, 
any wholesale reading of messages would constitute the largest full 
scale attack on our individual privacy ever undertaken. We are 
confident that those delivering the mail do not read our sealed letters 
and we should have that same confidence in our e-mail and other 
electronic communications. It would be impossible for any carrier to 
review all of the material; and we cannot create a legal obligation 
that is technologically impossible to satisfy. Clearly, the potential 
for copyright infringement is real--as real as the impossibility of 
requiring a service provider to monitor every communication, including 
e-mail, homepages, and chat rooms.
  Another important issue is the right of reproduction as specifically 
related to ephemeral copying. As a message is sent through cyberspace 
copies of the message are reproduced, in a sense. This is a reality of 
computer technology. For the most part an entire copy never exists 
anywhere, except at the points of distribution and receipt. The 
Internet was designed to send packets, pieces of a message expressed in 
digital form, a full message is not sent from one point to another. In 
the process of delivering the message multiple copies of each packet 
are sent so if a path is blocked path or data lost, the end message can 
be totally reassembled. Additionally, a full copy may be assembled on 
the recipient's server, where the message would reside until the 
recipient pulls down the file, or a copy may be made on a user's hard 
drive during the simple act of reading a document on-line. Obviously, 
to make this sort of copy illegal would be a move that flies in the 
face of the operations of the Internet and would destroy the World Wide 
Web. We need to make clear the status of these temporary and necessary 
copies within communications networks.
  The passage of appropriate copyright legislation goes beyond the 
implications of liability and technical operations. The outcome of this 
debate will affect educators and students across the country. One 
important aspect for education is to guarantee that computers can be 
used in distance learning, in a way that television and video recorders 
have been used for years. The copyright laws have long recognized the 
need to ensure that the copyright laws do not stand in the way of the 
opportunities that the technology promises to provide students in rural 
areas. Unfortunately, the current law reflects the technology that was 
current when it was passed, largely video. We need to update these laws 
to reflect the enormous potential of the digital era. Part of the work 
in this area may include defining the classroom to reflect that in many 
instances the classroom is no longer a physical space.
  In addition, the fair use doctrine in the Copyright Act should be 
amended to make clear that fair use applies regardless of the manner in 
which the material is distributed. A sound fair use doctrine is 
critical to continued interoperability of various systems, which in 
effect allows the Internet to exist and grow. Fair use encourages 
others to build freely on the ideas and information in a work while 
guaranteeing the author's right to their original expression. 
Currently, fair use may be made of a work for teaching, commentary, 
research, scholarship, criticism, and even news reporting. We should 
not tolerate discriminatory treatment based on a means of distribution 
or an alternative technology. Fair use in one medium should be fair use 
in another.

  Finally, we must facilitate the preservation of copyrighted materials 
by libraries, archives, and universities. These institutions should be 
able to preserve their works, many of which represent the cultural 
heritage of the United States, in the best means possible, including 
digitally. To require that these institutions purchase new copies of 
existing works, but in digital format, could cost untold billions of 
dollars. Many works could never be made available digitally as they are 
no longer available in a format available for purchase.
  Mr. President, we have made an effort to provide access to technology 
to all students in the last couple of years. In 1996, Congress 
appropriated $200 million to provide teachers with the training and 
support needed for access to technology, and to ensure that effective 
software and on-line resources would be available for use with the 
curriculum. The fiscal year 1998 budget request from the administration 
for this program is $425 million, with the House Appropriations 
Committee approving $460 million. Approving nearly $700 million over 2 
years to guarantee that education can be delivered in a digital format, 
while impeding or denying delivery of digital material by neglecting 
our copyright law makes no sense. A decision has been made that 
students must prepare to operate in an on-line world. We must unlock 
the teaching

[[Page S8730]]

potential of the Internet and we must now guarantee that the 
appropriate material is made available, so that our students can 
receive a full education while taking advantage of the tremendous 
strides made in technology.
  The Missouri State Librarian recently wrote to me that Missouri's 
strong distance education programs could flourish or wither, depending 
on the outcome of this debate. I suspect this is the case in all States 
with strong distance learning programs to serve rural areas. These 
programs allow residents in even the most remote areas to have the same 
access to education as those who live near schools, colleges, or 
universities. These programs cannot operate as effectively without the 
assurance that educators can use materials over computer networks.
  Equally important, Mr. President, we must begin a process 
internationally that is structured to balance the rights of copyright 
owners with the needs and technological limitations of those who enable 
the distribution of the electronic information, and with the rights and 
needs of individual end users. The current treaties and statements are 
not sufficient, and include some language that could create legal 
uncertainty. The loose language could lead to law that ignores 
technical realities, blindly shifts liability and ignores serious 
issues. The language must be clarified through the enactment of 
legislation in conjunction with the Senate's ratification of the 
treaties.
  Moreover, some of the proposed treaty implementation language 
attempts to attack copyright violations from the position of the 
technology that may be used, rather than placing the blame on those who 
are infringing the copyright. We cannot legislate technology. Just as 
we have seen the legislated 56-bit encryption become obsolete so too 
will any technology frozen in place by legislation. We must end 
policies of the Government that hinder technology, but, more 
importantly we must not initiate new policies that express an inherent 
fear of new technology.

  We must recognize other realities. Scores of software programs are 
illegally copied on-line, and intellectual piracy is an issue. However, 
some of this problem relates to the failure of the law, particularly 
copyright law, to keep up with the swift advance of technology. In a 
digital environment, hundreds of copies can be made and distributed in 
the blink of an eye. These copies are reproductions; they are perfect 
recreations of the original. The speed with which copies can be made 
makes the traditional ways of enforcing the copyright laws--a court 
order--obsolete. Copyright laws must evolve to embrace the new medium 
of digital storage and transmission. Those who provide the content for 
the Internet need some assurance that their valuable work will not 
become worthless because piracy. The approach in the Digital Copyright 
Clarification and Technology Education Act of 1997 requires that 
service providers cooperate with content providers by taking action 
after they are notified that illegal material is posted, or being 
transmitted on their systems. The benefits to copyright holders are 
notable. A copyright owner will be able to stop the illegal 
distribution of the material quickly without having to use the courts 
as a first measure. This approach solves the largest problem for on-
line piracy, by providing a quick response to illegal activity which 
will preserve the value of the material.
  Mr. President, one of the many important values held in this country 
is the freedom of expression. The United States must continue to be a 
leader in the preservation of freedom of expression around the world. 
Many countries are looking to the United States to be a leader on these 
important issues. We have the opportunity to send a strong message 
internationally that copyright law must be revised to fit the realities 
of a digital environment, and that by doing so we can encourage the 
growth and evolution of the Internet, while protecting all parties 
involved, with zero tolerance for illegality.
  I look forward to working with all interested parties, service 
providers, educators, entertainers, authors and others as this issue 
develops. I welcome the involvement of Senators who may have an 
interest in this legislation and the opportunity to work together to 
develop sound policy.
  Mr. President, the administration took a lead role in the copyright 
debate that took place in an international forum. We must continue this 
leadership in the Senate, in order to secure the U.S. role not only as 
a leader in the manufacture of technology and development of content, 
but also as a leader in fashioning a fair and just approach to the use 
of digital technology and information.
  Mr. president, I ask unanimous consent that the text of the bill be 
printed in the Record.

                                S. 1146

       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 ``Digital Copyright 
     Clarification and Technology Education Act of 1997''.

                TITLE I--DIGITAL COPYRIGHT CLARIFICATION

     SEC. 101. PURPOSES.

       The purposes of this Act are--
       (1) to clarify the application of copyright law in the 
     unique environment of Internet and on-line communication;
       (2) to foster the continued growth and development of the 
     Internet as a means of communication and commerce, including 
     the lawful distribution of intellectual property;
       (3) to protect the rights of copyright owners in the 
     digital environment;
       (4) to clarify that providing network services and 
     facilities with respect to the transmission of electronic 
     communications of another person does not result in liability 
     under the Copyright Act;
       (5) to clarify that Internet and on-line service providers 
     are not liable for third-party copyright infringements unless 
     they have received notice in compliance with this Act of the 
     infringing material and have a reasonable opportunity to 
     limit the third-party infringement; and
       (6) to create incentive for the rapid elimination of 
     infringing material residing on an electronic communications 
     system or network without litigation.

     SEC. 102. CLARIFICATION OF LIABILITY.

       (a) In General.--Chapter 5 of title 17, United States Code, 
     is amended by adding after section 511 the following new 
     section:

     ``Sec. 512. Liability relating to material on the Internet 
       and on-line

       ``(a) Material Being Transmitted Through an Electronic 
     Communications System or Network.--
       ``(1) Network service with respect to the transmission of 
     electronic communications.--A person shall not be liable for 
     direct, vicarious or contributory infringement of copyright 
     arising out of providing electronic communications network 
     services or facilities with respect to a copyright 
     infringement by a user. A person shall be considered to 
     provide `network services and facilities' when such person 
     transmits, routes or provides connections for material on 
     behalf of a user over an electronic communications system or 
     network controlled or operated by or for the person, 
     including intermediate and transient storage, the processing 
     of information, and the provision of facilities therefor, 
     if--
       ``(A) the provision of services is for the purpose of 
     managing, controlling or operating a communications system or 
     network, supplying local access, local exchange, telephone 
     toll, trunk line, private line, or backbone services, 
     including network components or functions necessary to the 
     transmission of material contained in electronic 
     communications carried over those services; or
       ``(B) the transmission of material over the system or 
     network on behalf of a user does not involve the generation 
     or material alteration of content by the person.
       ``(2) Private and real-time communication services.--A 
     person shall not be liable for direct, vicarious or 
     contributory infringement of copyright arising from supplying 
     to another--
       ``(A) a private electronic communication, including voice 
     messaging or electronic mail services, or any other 
     communication for which such person lacks either the 
     technical ability or authority under law to access or 
     disclose such communication to any third party in the normal 
     course of business; or
       ``(B) real-time communication formats, including chat 
     rooms, streamed data, or other virtually simultaneous 
     transmissions.
       ``(3) Information location tools.--No person shall be 
     liable for direct, vicarious or contributory infringement of 
     copyright arising out of supplying a user of network services 
     or facilities with--
       ``(A) a site-linking aid or directory, including a 
     hyperlink or index;
       ``(B) a navigational aid, including a search engine or 
     browser; or
       ``(C) the tools for the creation of a site-linking aid.
       ``(b) Material Residing on a System or Network.--
       ``(1) Cooperative procedure for expeditious response to 
     claims of infringement.--A person shall not be liable for 
     direct, vicarious or contributory infringement of copyright 
     arising out of the violation of any of the exclusive rights 
     of the copyright owner by another with respect to material 
     residing on a system or network used in conjunction with 
     electronic communications that is controlled or operated by 
     or for the

[[Page S8731]]

     person, unless upon receiving notice complying with paragraph 
     (b)(3), the person fails expeditiously to remove, disable, or 
     block access to the material to the extent technologically 
     feasible and economically reasonable for a period of ten 
     days, or until receiving a court order concerning the 
     material, whichever is less.
       ``(2) Paragraph (b)(1) shall apply where such person--
       ``(A) did not initiate the placement of the material on the 
     system or network;
       ``(B) did not determine the content of the material placed 
     on the system or network; and
       ``(C) did not contract for placement of the specific 
     material on the system or network by another person in order 
     to provide that content as part of the person's service 
     offering.
       ``(3) A person shall not be deemed to have notice that 
     material residing on a system or network used in conjunction 
     with electronic communications is infringing unless the 
     person--
       ``(A) is in receipt of a notification that the particular 
     material is infringing. Such notification shall:
       ``(i) pertain only to allegedly infringing material that 
     resides on a system or network controlled or operated by or 
     for the person;
       ``(ii) be submitted in accordance with directions displayed 
     on the person's system or network indicating a single place 
     or person to which such notifications shall be submitted;
       ``(iii) be signed, physically or electronically, by an 
     owner of an exclusive right that is allegedly infringed, or 
     by a person authorized to act on such owner's behalf;
       ``(iv) provide an address, telephone number, and electronic 
     mail address, if available, at which the complaining party 
     may be contacted in a timely manner;
       ``(v) describe the material claimed to be infringing, 
     including information reasonably sufficient to permit the 
     person expeditiously to identify and locate the material;
       ``(vi) provide reasonable proof of a certificate of 
     copyright registration for the material in question, a filed 
     application for such registration, or a court order 
     establishing that use of the material in the manner 
     complained of is not authorized by the copyright owner or the 
     law;
       ``(vii) contain a sworn statement that the information in 
     the notice is accurate, that the complaining party is an 
     owner of the exclusive right that is claimed to be infringed 
     or otherwise has the authority to enforce the owner's rights 
     under this title, and that the complaining party has a good 
     faith belief that the use complained of is an infringement;
       ``(viii) be accompanied by any payment that the Register of 
     Copyrights determines is necessary to deter frivolous and de 
     minimis notices; and
       ``(B) A person who is an employee or agent of a nonprofit 
     educational institution, library or archives, acting within 
     the scope of his employment, or such an educational 
     institution, library or archives itself, shall not be deemed 
     to have notice under subparagraph (A) if that person 
     reasonably believed (i) that the allegedly infringing use was 
     a fair use under Sec. 10 or (ii) was otherwise lawful; and
       ``(C) The Register of Copyrights may, by regulation, 
     establish guidelines identifying additional information to be 
     included in the notice and shall issue a standard notice form 
     in both electronic and hard copy formats, which complies with 
     this paragraph, but failure of a party to provide any such 
     additional information, or failure to use any issued form, 
     shall not invalidate the notice.
       ``(4) Misrepresentations and redress for wrongful 
     notifications.--Any person who materially misrepresents that 
     material on-line is infringing in a notice described in 
     paragraph (b)(3)(A), shall be liable in a civil action that 
     may be brought in an appropriate United States district court 
     or State court for statutory damages of not less than $1,000, 
     and any actual damages, including costs and attorneys' fees, 
     incurred by--
       ``(A) the actual copyright owner or the alleged infringer 
     arising out of the disabling or blocking of access to or 
     removal of such material; or
       ``(B) any person who relies upon such misrepresentation in 
     removing, disabling, or blocking access to the material 
     claimed to be infringing in such notice.
       ``(5) Limitation on liability based upon removing, 
     disabling, or blocking access to infringing material.--A 
     person shall not be liable for any claim based on that 
     person's removing, disabling, or blocking access for a period 
     of ten days, or until the person receives a court order 
     concerning the material, whichever is less, to material 
     residing on a system or network used in conjunction with 
     electronic communications that is controlled or operated by 
     or for that person in response to notice pursuant to 
     paragraph (b)(3)(A) that the material is infringing, whether 
     or not the material is infringing.
       ``(6) Other defenses not affected.--A person's removing, 
     disabling, or blocking access to material residing on a 
     system or network used in conjunction with electronic 
     communications that is controlled or operated by or for that 
     person, pursuant to paragraph (1), or the failure to do so, 
     shall not adversely bear upon the consideration by a court of 
     any other issue pertaining to liability or remedy, including 
     any other limitation on liability established in paragraph 
     (a), any other applicable defense, any claim that the service 
     provider's alleged conduct is not infringing, or whether or 
     not such conduct is willful or innocent.''
       (b) Conforming Amendment.--The table of sections for 
     chapter 5 of title 17, United States Code, is amended by 
     adding at the end of the following:

``512. Liability relating to material on the Internet and on-line.''

            TITLE II--TECHNOLOGY FOR TEACHERS AND LIBRARIANS

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Technology for Educators 
     and Children (TECH) Act.

     SEC. 202. FAIR USE.

       (a) Transmissions.--The first sentence of section 107 of 
     title 17, United States Code, is amended by inserting after 
     ``or by any other means specified in that section,'' the 
     following: ``and by analog or digital transmission,''; and
       (b) Determination.--Section 107 of title 17, United States 
     Code, is amended by adding at the end thereof the following: 
     ``In making a determination concerning fair use, no 
     independent weight shall be afforded to--
       ``(1) the means by which the work has been performed, 
     displayed or distributed under the authority of the copyright 
     owner; or
       ``(2) the application of an effective technological measure 
     (as defined under section 1201(c)) to the work.''.

     SEC. 203. LIBRARY EXEMPTIONS.

       Section 108 of title 17, United States Code, is amended--
       (1) by striking ``Notwithstanding'' at the beginning of 
     subsection (a) and inserting: ``Except as otherwise provided 
     and notwithstanding'';
       (2) by inserting after ``copyright'' in subsection (a)(3): 
     ``if such notice appears on the copy or phonorecord that is 
     reproduced under the provisions of this section'';
       (3) in subsection (b) by--
       (A) deleting ``a copy or phonorecord'' and inserting in 
     lieu thereof: ``three copies or phonorecords''; and
       (B) deleting ``in facsimile form''; and
       (4) in subsection (c) by--
       (A) deleting ``a copy or phonorecord'' and inserting in 
     lieu thereof: ``three copies or phonorecords'';
       (B) deleting ``in facsimile form''; and
       (C) inserting ``or if the existing format in which the work 
     is stored has become obsolete,'' after ``stolen,''.

     SEC. 204. DISTANCE EDUCATION.

       (a) Title Change.--The title of section 110 of title 17, 
     United States Code, is amended to read as follows:

     ``Sec. 110. Limitations on exclusive rights: Exemption of 
       certain activities''.

       (b) Performance, Display and Distribution of a Work.--
     Section 110(2) of title 17, United States Code, is amended to 
     read as follows:
       ``(2) performance, display or distribution of a work, by or 
     in the course of an analog or digital transmission, if--
       ``(A) the performance, display or distribution is a regular 
     part of the systematic instructional activities of a 
     governmental body or a nonprofit educational institution;
       ``(B) the performance, display or distribution is directly 
     related and of material assistance to the teaching content of 
     the transmission; and
       ``(C) the work is provided for reception by--
       ``(i) students officially enrolled in the course in 
     connection with which it is provided; or
       ``(ii) officers or employees of governmental bodies as part 
     of their official duties or employment.''
       (c) Ephemeral Recordings of Works.--Section 112(b) of title 
     17, United States Code, is amended by deleting ``transmit a 
     performance or display of'' and inserting in lieu thereof: 
     ``perform, display or distribute''.

     SEC. 205. LIMITATIONS ON EXCLUSIVE RIGHTS.

       (a) Title.--The title of section 117 of title 17, United 
     States Code, is amended to read as follows:

     ``Sec. Limitations on exclusive rights: Computer programs and 
       digital copies'';

       (b) Digital Copies.--Section 117 of title 17, United States 
     Code, is amended by inserting ``(a)'' before 
     ``Notwithstanding'' and inserting the following as a new 
     subsection (b):
       ``(b) Notwithstanding the provisions of section 106, it is 
     not an infringement to make a copy of a work in a digital 
     format if such copying--
       ``(1) is incidental to the operation of a device in the 
     course of the use of a work otherwise lawful under this 
     title; and
       ``(2) does not conflict with the normal exploitation of the 
     work and does not unreasonably prejudice the legitimate 
     interest of the author.''.

                 TITLE III--WIPO TREATY IMPLEMENTATION

     SEC. 301. WIPO IMPLEMENTATION.

       Title 17 of the United States Code is amended by adding the 
     following sections:

     ``Sec. 1201. Circumvention of certain technological measures

       ``(a) Circumvention Conduct.--No person, for the purpose of 
     facilitating or engaging in an act of infringement, shall 
     engage in conduct so as knowingly to remove, deactivate or 
     otherwise circumvent the application of operation of any 
     effective technological measure used by a copyright owner to 
     preclude or limit reproduction of a work or a portion 
     thereof. As used in this subsection, the term `conduct' does 
     not include manufacturing, importing or distributing a device 
     or a computer program.

[[Page S8732]]

       ``(b) Conduct Governed by Separate Chapter.-- 
     Notwithstanding subsection (a), this section shall not apply 
     with respect to conduct or the offer or performance of a 
     service governed by a separate chapter of this title.
       ``(c) Definition of Effective Technological Measure.--As 
     used in this section, the term `effective technological 
     measure' means information included with or an attribute 
     applied to a transmission or a copy of a work in a digital 
     format, or a portion thereof, so as to protect the rights of 
     a copyright owner of such work or portion thereof under 
     chapter one of this title and which--
       ``(1) encrypts or scrambles the work or a portion thereof 
     in the absence of access information supplied by the 
     copyright owner; or
       ``(2) includes attributes regarding access to or recording 
     of the work that cannot be removed without degrading the work 
     or a portion thereof.

     ``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 
     distribution copyright management information that is false, 
     with intent to induce, facilitate, or conceal infringement.
       ``(b) Removal or Alteration of Copyright Management 
     Information.--No person shall, without authority of the 
     copyright owner or other lawful authority, knowingly and with 
     intent to mislead or to induce or facilitate infringement--
       ``(1) remove or alter any copyright management information;
       ``(2) publicly distribute or import for distribution a copy 
     or phonorecord containing copyright management information 
     that has been altered without authority of the copyright 
     owner or other lawful authority; or
       ``(3) publicly distribute or import for distribution a copy 
     or phonorecord from which copyright management information 
     has been removed without authority of the copyright owner or 
     other lawful authority: Provided, That the conduct governed 
     by this subsection does not include the manufacturing, 
     importing or distributing of a device.
       ``(c) Definition of Copyright Management Information.--As 
     used in this chapter, the term `copyright management 
     information' means the following information in electronic 
     form as carried in or as data accompanying a copy or 
     phonorecord of a work, including in digital form:
       ``(1) The title and other information identifying the work, 
     including the information set forth in a notice of copyright.
       ``(2) The name and other identifying information of the 
     author of the work.
       ``(3) The name and other identifying information of the 
     copyright owner of the work, including the information set 
     forth in a notice of copyright.
       ``(4) Terms and conditions for uses of the work.
       ``(5) Identifying numbers or symbols referring to such 
     information or links to such information.
       ``(6) Such other identifying information concerning the 
     work as the Register of Copyrights may prescribe by 
     regulations: Provided, That the term `copyright management 
     information' does not include the information described in 
     section 1002, section 1201(c), or a chapter of this title 
     other than chapters one through nine of this. Provided 
     further, That, in order to assure privacy protection, the 
     term `copyright management information' does not include 
     any personally identifiable information relating to the 
     user of a work, including but not limited to the name, 
     account, address or other contact information of or 
     pertaining to the user.

     ``Sec. 1203. Civil remedies

       ``(a) Civil Actions.--Any person aggrieved by a violation 
     of section 1201(a) or 1202 may bring a civil action in an 
     appropriate United States district court against any person 
     for such violation.
       ``(b) Powers of the Court.--In an action brought under 
     subsection (a), the court--
       ``(1) may grant a temporary and a permanent injunction on 
     such terms as it deems reasonable to prevent or restrain a 
     violation;
       ``(2) may grant such other equitable relief as it deems 
     appropriate;
       ``(3) may award damages pursuant to subsection (c);
       ``(4) may allow the recovery of costs by or against any 
     party other than the United States or an officer thereof; and
       ``(5) may award a reasonable attorney's fee to the 
     prevailing party.
       ``(c) Award of damages.--
       ``(1) In general.--If the court finds that a violation of 
     section 1201(a) or 1202 has occurred, the complaining party 
     may elect either actual damages as computed under paragraph 
     (2) or statutory damages as computed under paragraph (3).
       ``(2) Actual Damages.--The court may 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 instead of statutory damages at any 
     time before final judgment is entered.
       ``(3) Statutory Damages.--(A) The court may award to the 
     complaining party statutory damages for each violation of 
     section 1201(a) of not less than $250 or more than $2,500, as 
     the court considers just, if the complaining party elects 
     such damages instead of actual damages at any time before 
     final judgment is entered.
       ``(B) The court may award to the complaining party 
     statutory damages for each violation of section 1202 of not 
     less than $500 or more than $20,000, as the court considers 
     just, if the complaining party elects such damages instead of 
     actual damages at any time before final judgment is entered.
       ``(4) Repeated Violations.--In any case in which the court 
     finds that a person has violated section 1201(a) or 1202 
     within three years after a final judgment against that person 
     for another such violation was entered, the court may 
     increase the award of damages to not more than double the 
     amount that would otherwise be awarded under paragraph (2) or 
     (3), as the court considers just.
       ``(5) Innocent Violation.--The court may reduce or remit 
     altogether the total award of damages that otherwise would be 
     awarded under paragraph (2) or (3) 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 of section 1201(a) or 
     1202.''.

     SEC. 302. CONFORMING AMENDMENTS.

       (a) Table of Sections.--The table of sections for chapter 1 
     of title 17, United States Code, is amended by--
       (1) Revising the item relating to section 110 to read as 
     follows:

``110. Limitations on exclusive rights: Exemption of certain 
              activities''; and

       (2) Revising the item relating to section 117 to read as 
     follows:

``117. Limitations on exclusive rights: Computer programs and digital 
              copies''.

       (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''.....

     SEC. 303. EFFECTIVE DATES.

       (a) In General.--Sections one through seven and section 
     9(a) of this Act, and the amendments made by sections one 
     through seven and section 9(a) of this Act, shall take effect 
     on the date of enactment of this Act.
       (b) WIPO Treaties.--Section 8 and section 9(b) of this Act, 
     and the amendments made by section 8 and section 9(b) of this 
     Act, shall take effect on the date on which both the World 
     Intellectual Property Organization Copyright Treaty and the 
     World Intellectual Property Organization Performances and 
     Phonograms Treaty have entered into force with respect to the 
     United States.

                          ____________________