Federal Prosecution Of Violations Of Intellectual Property Rights

usdoj.gov, Aug 17, 2005

The 1992 amendments have made it possible to pursue felony sanctions for infringements of all types of copyrighted works, including computer software and copyrighted digitally encoded works. (31) Felony penalties, however, only attach to violations involving reproduction or distribution in the quantity stated. It is a misdemeanor violation if the numerical and monetary thresholds are not met, or if the defendant is involved in the infringement of the right to prepare derivative works, or the right to publicly display or perform a copyrighted work.

As previously noted, the criminal law now assumes greater significance in the protection of copyrights. This development is, in part, a consequence of the burgeoning trade in unlawfully reproduced records, tapes, films, and computer software. It is also a direct result of the increased attention paid to copyright issues by Congress and by federal law enforcement authorities.
The federal copyright statute, contained in Title 17 of the United States Code, provides for several separate criminal sanctions. At the outset, 17 U.S.C. § 506(a) imposes criminal penalties on certain acts of copyright infringement, and carries the most severe penalties of any Title 17 offense. Section 506(a) makes reference to 18 U.S.C. § 2319, which contains specific penalties and additional criminal elements. Section 506 also provides lesser criminal sanctions for conduct which does not constitute copyright infringement but which nonetheless undermines the integrity of the copyright system. See 17 U.S.C. § 506(c)-(e). Further, in 1994, Congress created 18 U.S.C. § 2319A, which expressly covers the unauthorized fixation of and trafficking in sound recordings and musical videos of live musical performances. Pub. L. No. 103-465, Title V, § 513(a), 108 Stat. 4974 (1994). These criminal provisions are discussed in seriatim.