[Congressional Record (Bound Edition), Volume 145 (1999), Part 7]
[Extensions of Remarks]
[Pages 9233-9234]
[From the U.S. Government Publishing Office, www.gpo.gov]



             THE COPYRIGHT DAMAGES IMPROVEMENT ACT OF 1999

                                 ______
                                 

                          HON. JAMES E. ROGAN

                             of california

                    in the house of representatives

                         Tuesday, May 11, 1999

  Mr. ROGAN. Mr. Speaker, I am pleased to introduce the Copyright 
Damages Improvement Act of 1999. This bill makes significant 
improvements to the Copyright Act by strengthening damages for 
copyright infringement. It is extremely important that the United 
States remain a leader in the protection and enforcement of 
intellectual property rights, not only because of the value of the 
intellectual property created in the United States, but also to set an 
example for other countries to follow.
  This bill will increase the range of statutory damages available for 
copyright infringement. Copyright owners may elect to receive actual or 
statutory damages for infringement of their registered works. Because 
of the difficulty in proving actual damages, many copyright owners 
choose statutory damages. The amount of statutory damages were last 
increased in 1988 when the United States acceded to the Berne 
Convention. The proposed amount of statutory damages are rounded from 
the rate of inflation since 1988. In this time of economic and 
technological growth, it is necessary to increase the level of damages 
if they are to be an effective deterrent to copyright infringement. 
Further, the increase in damages will assist the United States in its 
negotiations with other countries concerning protection of intellectual 
property.
  This bill also adds a new tier of statutory damages. It targets 
``repeat'' offenders or parties that have engaged in a ``pattern or 
practice'' of infringement. These are the worst of the worst offenders. 
These individuals, who continue to infringe a copyrighted work in spite 
of receiving notice from the copyright owner that the use is 
unauthorized, should be subject to stricter penalties. Currently, an 
infringer may be liable for up to $100,000 per infringed work. An 
infringer who is distributing thousands of unauthorized copies of a 
popular movie or software program may not be deterred by this penalty. 
In response to this problem, my bill will establish a strong deterrent 
for this kind of infringement by allowing the courts to award up to 
$250,000 per infringed work.
  Finally, this bill ensures that a debtor may not be discharged from 
debts resulting from willful copyright infringement. The Bankruptcy 
Code lists items that may not be discharged in bankruptcy. One of these 
item is, ``. . . for willful and malicious injury by the debtor to 
another entity or to the property of another entity.'' Federal courts 
have split on whether ``willful'' copyright infringement equates with a

[[Page 9234]]

``willful and malicious'' injury under the Bankruptcy Code so that the 
debt may not be discharged. This bill will close a loophole and ensure 
that a copyright infringer who receives a judgment against them does 
not have an incentive to file for bankruptcy and avoid the debt.
  Mr. Speaker, this bill makes a strong statement that the United 
States supports protection of intellectual property rights and will be 
diligent in enforcing those rights against infringers. It provides 
incentive for the creation of intellectual property in the United 
States and for other countries to establish and enforce copyright laws 
as well. I encourage my colleagues to support this bill.

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