TITLE II--ADDITIONAL ENHANCEMENTS TO COMBAT INTELLECTUAL PROPERTY THEFT
SEC. 201. STREAMING OF COPYRIGHTED WORKS IN VIOLATION OF CRIMINAL LAW.
(a) Title 17 Amendments- Section 506(a) of title 17, United States Code, is amended to read as follows:
`(a) Criminal Infringement-
`(1) IN GENERAL- Any person who willfully infringes a copyright shall be punished as provided under section 2319 of title 18, if the infringement was committed--
`(A) for purposes of commercial advantage or private financial gain;
`(B) by the reproduction or distribution, including by electronic means, during any 180-day period, of 1 or more copies or phonorecords of 1 or more copyrighted works, or by the public performance by means of digital transmission, during any 180-day period, of 1 or more copyrighted works, when the total retail value of the copies or phonorecords, or of the public performances, is more than $1,000; or
`(C) by the distribution or public performance of a work being prepared for commercial dissemination, by making it available on a computer network accessible to members of the public, if such person knew or should have known that the work was intended for commercial dissemination.
`(2) EVIDENCE- For purposes of this subsection, evidence of reproduction, distribution, or public performance of a copyrighted work, by itself, shall not be sufficient to establish willful infringement of a copyright.
`(3) DEFINITION- In this subsection, the term `work being prepared for commercial dissemination' means--
`(A) a computer program, a musical work, a motion picture or other audiovisual work, or a sound recording, if, at the time of unauthorized distribution or public performance--
`(i)(I) the copyright owner has a reasonable expectation of commercial distribution; and
`(II) the copies or phonorecords of the work have not been commercially distributed in the United States by or with the authorization of the copyright owner; or
`(ii)(I) the copyright owner does not intend to offer copies of the work for commercial distribution but has a reasonable expectation of other forms of commercial dissemination of the work; and
`(II) the work has not been commercially disseminated to the public in the United States by or with the authorization of the copyright owner;
`(B) a motion picture, if, at the time of unauthorized distribution or public performance, the motion picture--
`(i)(I) has been made available for viewing in a motion picture exhibition facility; and
`(II) has not been made available in copies for sale to the general public in the United States by or with the authorization of the copyright owner in a format intended to permit viewing outside a motion picture exhibition facility; or
`(ii) had not been commercially disseminated to the public in the United States by or with the authorization of the copyright owner more than 24 hours before the unauthorized distribution or public performance.'.
(b) Title 18 Amendments- Section 2319 of title 18, United States Code, is amended--
(1) in subsection (b)(1), by striking `during any 180-day period' and all that follows and insert `of at least 10 copies or phonorecords, or of at least 10 public performances by means of digital transmission, of 1 or more copyrighted works, during any 180-day period, which have a total retail value of more than $2,500;';
(2) in subsection (c)--
(A) in paragraph (1), by striking `of 10 or more copies or phonorecords' and all that follows and inserting `including by electronic means, of at least 10 copies or phonorecords, or of at least 10 public performances by means of digital transmission, of 1 or more copyrighted works, during any 180-day period, which have a total retail value of more than $2,500;'; and
(B) in paragraph (3), by striking `if the offense' and all that follows and inserting `in any other case;';
(3) in subsection (d)(4), by striking `under paragraph (2)' and inserting `committed for purposes of commercial advantage or private financial gain under subsection (a)';
(4) in subsection (f)--
(A) by amending paragraph (2) to read as follows:
`(2) the terms `reproduction', `distribution', and `public performance' refer to the exclusive rights of a copyright owner under paragraphs (1), (3), (4), and (6), respectively, of section 106 (relating to exclusive rights in copyrighted works), as limited by sections 107 through 122, of title 17; and';
(B) in paragraph (3), by striking `; and' and inserting a period; and
(C) by striking paragraph (4); and
(5) by adding at the end the following new subsection:
`(g) Evidence of Total Retail Value- For purposes of this section and section 506(a) of title 17, total retail value may be shown by evidence of--
`(1) the total retail price that persons receiving the reproductions, distributions, or public performances constituting the offense would have paid to receive such reproductions, distributions, or public performances lawfully;
`(2) the total economic value of the reproductions, distributions, or public performances to the infringer or to the copyright owner, as shown by evidence of fee, advertising, or other revenue that was received by the person who commits the offense, or that the copyright owner would have been entitled to receive had such reproductions, distributions, or public performances been offered lawfully; or
`(3) the total fair market value of licenses to offer the type of reproductions, distributions, or public performances constituting the offense.'.
(c) Rule of Construction- Any person acting with a good faith reasonable basis in law to believe that the person's conduct is lawful shall not be considered to have acted willfully for purposes of the amendments made by this section. Such person includes, but is not limited to, a person engaged in conduct forming the basis of a bona fide commercial dispute over the scope of existence of a contract or license governing such conduct where such person has a reasonable basis in law to believe that such conduct is noninfringing. Nothing in this subsection shall affect the application or interpretation of the willfulness requirement in any other provision of civil or criminal law.
SEC. 202. TRAFFICKING IN INHERENTLY DANGEROUS GOODS OR SERVICES.
Section 2320 of title 18, United States Code, is amended as follows:
(1) Subsection (a) is amended to read as follows:
`(1) IN GENERAL-
`(A) OFFENSES- Whoever--
`(i) intentionally traffics or attempts to traffic in goods or services and knowingly uses a counterfeit mark on or in connection with such goods or services,
`(ii) intentionally traffics or attempts to traffic in labels, patches, stickers, wrappers, badges, emblems, medallions, charms, boxes, containers, cans, cases, hangtags, documentation, or packaging of any type or nature, knowing that a counterfeit mark has been applied thereto, the use of which is likely to cause confusion, to cause mistake, or to deceive, or
`(iii) intentionally imports, exports, or traffics in counterfeit drugs or intentionally participates in or knowingly aids drug counterfeiting,
shall, if an individual, be fined not more than $2,000,000 or imprisoned not more than 10 years, or both, and, if a person other than an individual, be fined not more than $5,000,000.
`(B) SUBSEQUENT OFFENSES- In the case of an offense by a person under this paragraph that occurs after that person is convicted of another offense under this paragraph, the person convicted, if an individual, shall be fined not more than $5,000,000 or imprisoned not more than 20 years, or both, and if other than an individual, shall be fined not more than $15,000,000.
`(2) SERIOUS BODILY HARM OR DEATH-
`(A) SERIOUS BODILY HARM- If the offender knowingly or recklessly causes or attempts to cause serious bodily injury from conduct in violation of paragraph (1), the penalty shall be, for an individual, a fine of not more than $5,000,000 or imprisonment for any term of years or for life, or both, and for other than an individual, a fine of not more than $15,000,000.
`(B) DEATH- If the offender knowingly or recklessly causes or attempts to cause death from conduct in violation of paragraph (1), the penalty shall be, for an individual, a fine of not more than $5,000,000 or imprisonment for any term of years or for life, or both, and for other than an individual, a fine of not more than $15,000,000.
`(3) MILITARY GOODS OR SERVICES-
`(A) IN GENERAL- A person who commits an offense under paragraph (1) shall be punished in accordance with subparagraph (B) if--
`(i) the offense involved a good or service described in paragraph (1) that if it malfunctioned, failed, or was compromised, could reasonably be foreseen to cause--
`(I) serious bodily injury or death;
`(II) disclosure of classified information;
`(III) impairment of combat operations; or
`(IV) other significant harm--
`(aa) to a member--
`(AA) of the Armed Forces; or
`(BB) of a Federal, State, or local law enforcement agency; or
`(bb) to national security or critical infrastructure; and
`(ii) the person had knowledge that the good or service is falsely identified as meeting military standards or is intended for use in a military or national security application, or a law enforcement or critical infrastructure application.
`(B) PENALTIES-
`(i) INDIVIDUAL- An individual who commits an offense described in subparagraph (A) shall be fined not more than $5,000,000, imprisoned for not more than 20 years, or both.
`(ii) PERSON OTHER THAN AN INDIVIDUAL- A person other than an individual that commits an offense described in subparagraph (A) shall be fined not more than $15,000,000.
`(C) SUBSEQUENT OFFENSES-
`(i) INDIVIDUAL- An individual who commits an offense described in subparagraph (A) after the individual is convicted of an offense under subparagraph (A) shall be fined not more than $15,000,000, imprisoned not more than 30 years, or both.
`(ii) PERSON OTHER THAN AN INDIVIDUAL- A person other than an individual that commits an offense described in subparagraph (A) after the person is convicted of an offense under subparagraph (A) shall be fined not more than $30,000,000.'.
(2) Subsection (e) is amended--
(A) in paragraph (1), by striking the period at the end and inserting a semicolon;
(B) in paragraph (3), by striking `and' at the end;
(C) in paragraph (4), by striking the period at the end and inserting a semicolon; and
(D) by adding at the end the following:
`(5) the term `counterfeit drug' has the meaning given that term in section 201(g)(2) of the Federal Food Drug, and Cosmetic Act (21 U.S.C. 321(g)(2));
`(6) the term `critical infrastructure' has the meaning given that term in section 2339D(c);
`(7) the term `drug counterfeiting' means any act prohibited by section 301(i) of the Federal Food Drug, and Cosmetic Act (21 U.S.C. 331(i));
`(8) the term `final dosage form' has the meaning given that term in section 735(4) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 379g(4));
`(9) the term `falsely identified as meeting military standards' relating to a good or service means there is a material misrepresentation that the good or service meets a standard, requirement, or specification issued by the Department of Defense, an Armed Force, or a reserve component;
`(10) the term `use in a military or national security application' means the use of a good or service, independently, in conjunction with, or as a component of another good or service--
`(A) during the performance of the official duties of the Armed Forces of the United States or the reserve components of the Armed Forces; or
`(B) by the United States to perform or directly support--
`(i) combat operations; or
`(ii) critical national defense or national security functions; and
`(11) the term `use in a law enforcement or critical infrastructure application' means the use of a good or service, independently, in conjunction with, or as a component of, another good or service by a person who is directly engaged in--
`(A) Federal, State, or local law enforcement; or
`(B) an official function pertaining to critical infrastructure.'.
SEC. 203. PROTECTING U.S. BUSINESSES FROM FOREIGN AND ECONOMIC ESPIONAGE.
(a) For Offenses Committed by Individuals- Section 1831(a) of title 18, United States Code, is amended, in the matter after paragraph (5)--
(1) by striking `15 years' and inserting `20 years'; and
(2) by striking `not more than $500,000' and inserting `not less than $1,000,000 and not more than $5,000,000'.
(b) For Offenses Committed by Organizations- Section 1831(b) of such title is amended by striking `$10,000,000' and inserting `not more than the greater of $10,000,000 or 3 times the value of the stolen trade secret to the organization (including expenses for research and design or other costs of reproducing the trade secret that the organization has thereby avoided)'.
SEC. 204. AMENDMENTS TO SENTENCING GUIDELINES.
Not later than 180 days after the date of the enactment of this Act, pursuant to its authority under section 994(p) of title 28, United States Code, the United States Sentencing Commission shall--
(1) review, and if appropriate, amend Federal Sentencing Guidelines and policy statements applicable to persons convicted of--
(A) intellectual property offenses;
(B) an offense under section 2320(a) of title 18, United States Code; or
(C) an offense under section 1831 of title 18, United States Code;
(2) in carrying out such review, consider amending such Guidelines and policy statements to--
(A) apply an appropriate offense level enhancement for intellectual property offenses committed in connection with an organized criminal enterprise;
(B) apply an appropriate offense level enhancement to the simple misappropriation of a trade secret;
(C) apply an additional appropriate offense level enhancement if the defendant transmits or attempts to transmit the stolen trade secret outside of the United States and an additional appropriate enhancement if the defendant instead commits economic espionage;
(D) provide that when a defendant transmits trade secrets outside of the United States or commits economic espionage, that the defendant should face a minimum offense level;
(E) provide for an offense level enhancement for Guidelines relating to the theft of trade secrets and economic espionage, including trade secrets transferred or attempted to be transferred outside of the United States;
(F) apply an appropriate offense level enhancement and minimum offense level for offenses under section 2320(a) of title 18, United States Code, that involve a product intended for use in a military or national security application, or a law enforcement or critical infrastructure application;
(G) ensure that the Guidelines and policy statements (including section 2B5.3 of the Federal Sentencing Guidelines (and any successor thereto)) reflect--
(i) the serious nature of the offenses described in section 2320(a) of title 18, United States Code;
(ii) the need for an effective deterrent and appropriate punishment to prevent offenses under section 2320(a) of title 18, United States Code; and
(iii) the effectiveness of incarceration in furthering the objectives described in clauses (i) and (ii); and
(H) ensure reasonable consistency with other relevant directives and Guidelines and Federal statutes;
(3) submit to Congress a report detailing the Commission's actions with respect to each potential amendment described in paragraph (2);
(4) make such conforming amendments to the Federal Sentencing Guidelines as the Commission determines necessary to achieve consistency with other Guideline provisions and applicable law; and
(5) promulgate the Guidelines, policy statements, or amendments provided for in this section as soon as practicable in accordance with the procedure set forth in section 21(a) of the Sentencing Act of 1987 (28 U.S.C. 994 note), as though the authority under that Act had not expired.
SEC. 205. DEFENDING INTELLECTUAL PROPERTY RIGHTS ABROAD.
(a) Resources To Protect Intellectual Property Rights-
(1) POLICY- The Secretary of State and the Secretary of Commerce, in consultation with the Register of Copyrights, shall ensure that the protection in foreign countries of the intellectual property rights of United States persons is a significant component of United States foreign and commercial policy in general, and in relations with individual countries in particular.
(2) DEDICATION OF RESOURCES- The Secretary of State and the Secretary of Commerce, in consultation with the Register of Copyrights, and the heads of other appropriate departments and agencies, shall ensure that adequate resources are available at the United States embassy or diplomatic mission (as the case may be) in any country that is identified under section 182(a)(1) of the Trade Act of 1974 (19 U.S.C.