[Congressional Record Volume 145, Number 96 (Thursday, July 1, 1999)]
[Senate]
[Pages S8190-S8191]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 DIGITAL THEFT DETERRENCE AND COPYRIGHT DAMAGES IMPROVEMENT ACT OF 1999

  Mr. GORTON. Mr. President, I ask unanimous consent that the Senate 
now proceed to the consideration of Calendar No. 193, S. 1257.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 1257) to amend statutory damages provisions of 
     title 17, United States Code.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. HATCH. Mr. President, today the Senate is considering four very 
important intellectual property related ``high-tech'' bills that 
Senator Leahy and I have introduced to promote the continued growth of 
vital sectors of the American economy and to protect the interests and 
investment of the entrepreneurs, authors, and innovators who fuel their 
growth. These bills were reported by unanimous consent earlier today by 
the Judiciary Committee.
  Technology is the driving force in the American economy today, and 
American technology is setting new standards for the global economy, 
from semiconductor chip technology, to computer software, Internet and 
telecommunications technology, to leading pharmaceutical and genetic 
research. In my own state of Utah, these information technology 
industries contribute in excess of $7 billion each year to the State's 
economy and pay wages that average 66 percent higher than the state 
average. Their performance has placed Utah among the world's top ten 
technology centers according to Newsweek Magazine. Similar success is 
seen in areas across the country, with the U.S. being home to seven of 
the world's top ten technology centers and with American creative 
industries now surpassing all other export sectors in foreign sales and 
exports.
  Underlying all of these technologies are the intellectual property 
rights that serve to promote creativity and innovation by safeguarding 
the investment, effort, and goodwill of those who venture into these 
fast-placed and volatile fields. Strong intellectual property 
protections are particularly critical in the global high-tech 
environment where electronic piracy is so easy, so cheap, and yet so 
potentially devastating to intellectual property owners--many of which 
are small entrepreneurial enterprises. In Utah, 65 percent of these 
companies have fewer than 25 employees, and a majority have annual 
revenues of less than $1 million. Intellectual property is the 
lifeblood of

[[Page S8191]]

these companies, and even a single instance of piracy could drive them 
out of business. What's more, without adequate international 
protection, these companies would simply be unable to compete in the 
global marketplace.
  That is why we enacted a number of measures last year to provide 
enhanced protection for intellectual property in the new global, high-
tech environment. For example, the Digital Millennium Copyright Act 
(DMCA) implemented two new World Intellectual Property Organization 
Treaties setting new global standards for copyright protection in the 
digital environment. We also paved the way for new growth in online 
commerce by providing a copyright framework in which the Internet and 
other new technologies can flourish.
  This year, Senator Leahy and I are continuing to focus our attention 
on important high-tech and intellectual property legislation. The bills 
we are considering today will build upon existing protections, 
including last year's measures to deter digital piracy, by raising the 
Copyright Act's limit on statutory damages to make it more costly to 
engage in cyber-piracy and copyright theft. They will also make 
technical ``clean-up'' amendments to the DMCA and other Copyright Act 
provisions to make them clearer and more user-friendly. On the 
trademark side, these bills will make the protection of famous marks 
easier and more efficient and provide recourse for trademark owners 
against the federal government for trademark infringement. Finally, 
these bills will allow the Patent and Trademark Office to better serve 
its customers--America's innovators and trademark owners--through the 
collection and retention of fees.
  Each of these bills is noncontroversial and enjoys widespread 
support. I want to thank Senator Leahy for his assistance, cooperation, 
and leadership in this process, and I look forward to the Senate 
swiftly passing these bills today.
  Mr. GORTON. I ask unanimous consent that the bill be considered read 
a third time and passed and the motion to reconsider be laid upon the 
table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1257) was considered read the third time and passed, as 
follows:

                                S. 1257

       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 Theft Deterrence and 
     Copyright Damages Improvement Act of 1999''.

     SEC. 2. STATUTORY DAMAGES ENHANCEMENT.

       Section 504(c) of title 17, United States Code, is 
     amended--
       (1) in paragraph (1)--
       (A) by striking ``$500'' and inserting ``$750''; and
       (B) by striking ``$20,000'' and inserting ``$30,000''; and
       (2) in paragraph (2)--
       (A) by inserting ``(A)'' after ``(2)'';
       (B) by striking ``$100,000'' and inserting ``$150,000'';
       (C) by inserting after the second sentence the following:
       ``(B) In a case where the copyright owner demonstrates that 
     the infringement was part of a repeated pattern or practice 
     of willful infringement, the court may increase the award of 
     statutory damages to a sum of not more than $250,000 per 
     work.''; and
       (D) by striking ``The court shall remit statutory damages'' 
     and inserting the following:
       ``(C) The court shall remit statutory damages''.

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