17 Usc 506

USCODE-2013-title17-chap5-sec506.pdf

Allegation of Counterfeiting and Intellectual Piracy

17 USC 506

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TITLE 17—COPYRIGHTS

§ 505

copyrighted works, the copyright owner is entitled to
statutory damages of at least $750 and may be awarded up to $30,000. Subsection (c)(1) makes clear, however, that, although they are regarded as independent
works for other purposes, ‘‘all the parts of a compilation or derivative work constitute one work’’ for this
purpose. Moreover, although the minimum and maximum amounts are to be multiplied where multiple
‘‘works’’ are involved in the suit, the same is not true
with respect to multiple copyrights, multiple owners,
multiple exclusive rights, or multiple registrations.
This point is especially important since, under a
scheme of divisible copyright, it is possible to have
the rights of a number of owners of separate ‘‘copyrights’’ in a single ‘‘work’’ infringed by one act of a
defendant.
4. Where the infringements of one work were committed by a single infringer acting individually, a
single award of statutory damages would be made.
Similarly, where the work was infringed by two or
more joint tortfeasors, the bill would make them
jointly and severally liable for an amount in the $250
to $10,000 range. However, where separate infringements for which two or more defendants are not
jointly liable are joined in the same action, separate
awards of statutory damages would be appropriate.
Clause (2) of section 504(c) provides for exceptional
cases in which the maximum award of statutory damages could be raised from $10,000 to $50,000, and in which
the minimum recovery could be reduced from $250 to
$100. The basic principle underlying this provision is
that the courts should be given discretion to increase
statutory damages in cases of willful infringement and
to lower the minimum where the infringer is innocent.
The language of the clause makes clear that in these
situations the burden of proving willfulness rests on
the copyright owner and that of proving innocence
rests on the infringer, and that the court must make a
finding of either willfulness or innocence in order to
award the exceptional amounts.
The ‘‘innocent infringer’’ provision of section 504(c)(2)
has been the subject of extensive discussion. The exception, which would allow reduction of minimum statutory damages to $100 where the infringer ‘‘was not
aware and had no reason to believe that his or her acts
constituted an infringement of copyright,’’ is sufficient
to protect against unwarranted liability in cases of occasional or isolated innocent infringement, and it offers adequate insulation to users, such as broadcasters
and newspaper publishers, who are particularly vulnerable to this type of infringement suit. On the other
hand, by establishing a realistic floor for liability, the
provision preserves its intended deterrent effect; and it
would not allow an infringer to escape simply because
the plaintiff failed to disprove the defendant’s claim of
innocence.
In addition to the general ‘‘innocent infringer’’ provision clause (2) deals with the special situation of teachers, librarians, archivists, and public broadcasters, and
the nonprofit institutions of which they are a part.
Section 504(c)(2) provides that, where such a person or
institution infringed copyrighted material in the honest belief that what they were doing constituted fair
use, the court is precluded from awarding any statutory damages. It is intended that, in cases involving
this provision, the burden of proof with respect to the
defendant’s good faith should rest on the plaintiff.
CONSTITUTIONALITY
For information regarding constitutionality of certain provisions of this section, as enacted by section 101
of Pub. L. 94–553, see Congressional Research Service,
The Constitution of the United States of America:
Analysis and Interpretation, Appendix 1, Acts of Congress Held Unconstitutional in Whole or in Part by the
Supreme Court of the United States.
AMENDMENTS
2010—Subsec. (c)(2). Pub. L. 111–295 substituted ‘‘section 118(f)’’ for ‘‘subsection (g) of section 118’’.

Page 146

2004—Subsec. (c)(3). Pub. L. 108–482 added par. (3).
1999—Subsec. (c)(1). Pub. L. 106–160, § 2(1), substituted
‘‘$750’’ for ‘‘$500’’ and ‘‘$30,000’’ for ‘‘$20,000’’.
Subsec. (c)(2). Pub. L. 106–160, § 2(2), substituted
‘‘$150,000’’ for ‘‘$100,000’’.
1998—Subsec. (d). Pub. L. 105–298 added subsec. (d).
1997—Subsec. (c)(2). Pub. L. 105–80 substituted ‘‘the
court in its discretion’’ for ‘‘the court it its discretion’’.
1988—Subsec. (c)(1). Pub. L. 100–568, § 10(b)(1), substituted ‘‘$500’’ for ‘‘$250’’ and ‘‘$20,000’’ for ‘‘$10,000’’.
Subsec. (c)(2). Pub. L. 100–568, § 10(b)(2), substituted
‘‘$100,000’’ for ‘‘$50,000’’ and ‘‘$200’’ for ‘‘$100’’.
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106–160, § 4, Dec. 9, 1999, 113 Stat. 1774, provided
that: ‘‘The amendments made by section 2 [amending
this section] shall apply to any action brought on or
after the date of the enactment of this Act [Dec. 9,
1999], regardless of the date on which the alleged activity that is the basis of the action occurred.’’
EFFECTIVE DATE OF 1998 AMENDMENT
Amendment by Pub. L. 105–298 effective 90 days after
Oct. 27, 1998, see section 207 of Pub. L. 105–298, set out
as a note under section 101 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Amendment by Pub. L. 100–568 effective Mar. 1, 1989,
with any cause of action arising under this title before
such date being governed by provisions in effect when
cause of action arose, see section 13 of Pub. L. 100–568,
set out as a note under section 101 of this title.

§ 505. Remedies for infringement: Costs and attorney’s fees
In any civil action under this title, the court
in its discretion may allow the recovery of full
costs by or against any party other than the
United States or an officer thereof. Except as
otherwise provided by this title, the court may
also award a reasonable attorney’s fee to the
prevailing party as part of the costs.
(Pub. L. 94–553, title I, § 101, Oct. 19, 1976, 90 Stat.
2586.)
HISTORICAL AND REVISION NOTES
HOUSE REPORT NO. 94–1476

Under section 505 the awarding of costs and attorney’s fees are left to the court’s discretion, and the section also makes clear that neither costs nor attorney’s
fees can be awarded to or against ‘‘the United States or
an officer thereof.’’

§ 506. Criminal offenses
(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,
which have a total retail value of more than
$1,000; or
(C) by the distribution of a work being prepared for commercial distribution, by making it available on a computer network accessible to members of the public, if such
person knew or should have known that the

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TITLE 17—COPYRIGHTS

work was intended for commercial distribution.
(2) EVIDENCE.—For purposes of this subsection, evidence of reproduction or distribution 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 distribution’’ 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—
(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; or
(B) a motion picture, if, at the time of unauthorized distribution, the motion picture—
(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 in a format intended to permit
viewing outside a motion picture exhibition facility.
(b) FORFEITURE,
TION.—Forfeiture,

DESTRUCTION, AND RESTITUdestruction, and restitution
relating to this section shall be subject to section 2323 of title 18, to the extent provided in
that section, in addition to any other similar
remedies provided by law.
(c) FRAUDULENT COPYRIGHT NOTICE.—Any person who, with fraudulent intent, places on any
article a notice of copyright or words of the
same purport that such person knows to be
false, or who, with fraudulent intent, publicly
distributes or imports for public distribution
any article bearing such notice or words that
such person knows to be false, shall be fined not
more than $2,500.
(d) FRAUDULENT REMOVAL OF COPYRIGHT NOTICE.—Any person who, with fraudulent intent,
removes or alters any notice of copyright appearing on a copy of a copyrighted work shall be
fined not more than $2,500.
(e) FALSE REPRESENTATION.—Any person who
knowingly makes a false representation of a material fact in the application for copyright registration provided for by section 409, or in any
written statement filed in connection with the
application, shall be fined not more than $2,500.
(f) RIGHTS OF ATTRIBUTION AND INTEGRITY.—
Nothing in this section applies to infringement
of the rights conferred by section 106A(a).
(Pub. L. 94–553, title I, § 101, Oct. 19, 1976, 90 Stat.
2586; Pub. L. 97–180, § 5, May 24, 1982, 96 Stat. 93;
Pub. L. 101–650, title VI, § 606(b), Dec. 1, 1990, 104
Stat. 5131; Pub. L. 105–147, § 2(b), Dec. 16, 1997, 111
Stat. 2678; Pub. L. 109–9, title I, § 103(a), Apr. 27,
2005, 119 Stat. 220; Pub. L. 110–403, title II,
§ 201(a), Oct. 13, 2008, 122 Stat. 4260.)

§ 507

profit, fraudulent use of a copyright notice, fraudulent
removal of notice, and false representation in connection with a copyright application. The maximum fine
on conviction has been increased to $10,000 and, in conformity with the general pattern of the Criminal Code
(18 U.S.C.), no minimum fines have been provided. In
addition to or instead of a fine, conviction for criminal
infringement under section 506(a) can carry with it a
sentence of imprisonment of up to one year. Section
506(b) deals with seizure, forfeiture, and destruction of
material involved in cases of criminal infringement.
Section 506(a) contains a special provision applying
to any person who infringes willfully and for purposes
of commercial advantage the copyright in a sound recording or a motion picture. For the first such offense
a person shall be fined not more than $25,000 or imprisoned for not more than one year, or both. For any subsequent offense a person shall be fined not more than
$50,000 or imprisoned not more than two years, or both.
AMENDMENTS
2008—Subsec. (b). Pub. L. 110–403 amended subsec. (b)
generally. Prior to amendment, text read as follows:
‘‘When any person is convicted of any violation of subsection (a), the court in its judgment of conviction
shall, in addition to the penalty therein prescribed,
order the forfeiture and destruction or other disposition of all infringing copies or phonorecords and all implements, devices, or equipment used in the manufacture of such infringing copies or phonorecords.’’
2005—Subsec. (a). Pub. L. 109–9 reenacted heading
without change and amended text generally. Prior to
amendment, text read as follows: ‘‘Any person who infringes a copyright willfully either—
‘‘(1) for purposes of commercial advantage or private financial gain, or
‘‘(2) 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, which have a total retail value of
more than $1,000,
shall be punished as provided under section 2319 of title
18, United States Code. For purposes of this subsection,
evidence of reproduction or distribution of a copyrighted work, by itself, shall not be sufficient to establish willful infringement.’’
1997—Subsec. (a). Pub. L. 105–147 amended subsec. (a)
generally. Prior to amendment, subsec. (a) read as follows:
‘‘(a) CRIMINAL INFRINGEMENT.—Any person who infringes a copyright willfully and for purposes of commercial advantage or private financial gain shall be
punished as provided in section 2319 of title 18.’’
1990—Subsec. (f). Pub. L. 101–650 added subsec. (f).
1982—Subsec. (a). Pub. L. 97–180 substituted ‘‘shall be
punished as provided in section 2319 of title 18’’ for
‘‘shall be fined not more than $10,000 or imprisoned for
not more than one year, or both: Provided, however,
That any person who infringes willfully and for purposes of commercial advantage or private financial
gain the copyright in a sound recording afforded by
subsections (1), (2), or (3) of section 106 or the copyright
in a motion picture afforded by subsections (1), (3), or
(4) of section 106 shall be fined not more than $25,000 or
imprisoned for not more than one year, or both, for the
first such offense and shall be fined not more than
$50,000 or imprisoned for not more than two years, or
both, for any subsequent offense’’.
EFFECTIVE DATE OF 1990 AMENDMENT
Amendment by Pub. L. 101–650 effective 6 months
after Dec. 1, 1990, see section 610 of Pub. L. 101–650, set
out as an Effective Date note under section 106A of this
title.

HISTORICAL AND REVISION NOTES
HOUSE REPORT NO. 94–1476

Four types of criminal offenses actionable under the
bill are listed in section 506: willful infringement for

§ 507. Limitations on actions
(a) CRIMINAL PROCEEDINGS.—Except as expressly provided otherwise in this title, no


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