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         DATE:           August 25,1999
         CONTACT:  MICHELLE SEMONES 
 
GOODLATTE'S NET ACT NABS 
AN ONLINE PIRATE
 
    Through the provisions of Congressman Bob Goodlatte's No Electronic Theft (NET) Act, the U.S. Department of Justice recently announced the first conviction of an online thief who offered pirated software programs, musical recordings, and digitally recorded movies on his web site. The NET Act was introduced by Congressman Bob Goodlatte and enacted in 1997.  The NET Act makes it illegal to steal copyrighted works, such as software programs and musical recordings, even if the defendant acts without a commercial purpose when the value of the materials given away is significant. 

    "The NET Act is critical to protecting copyrighted material on-line in the Information Age," Goodlatte said.  "Artists, musicians, authors, and software producers can feel secure that when they use the Internet they are protected by laws that are as effective in cyberspace as they are on main street.  I hope that the Justice Department continues to prosecute online thieves under this important law.  Piracy drives up prices for consumers and drives down the quality of creative works made available on the Internet."

    A student at the University of Oregon pled guilty in federal court to criminal copyright infringement for trafficking in unlicensed software on the Internet.  University officials alerted law enforcement officers after the student's web site began to generate a large amount of traffic.  FBI and Oregon State Police discovered thousands of pirated software programs, movies, and music recordings available for downloading from the site. 

    United States Attorney Kristine Olson stated that this prosecution "represents the latest step in a major initiative of federal and state law enforcement representatives working together to prosecute electronic crimes." Olson stated that federal law enforcement will continue to pursue persons who steal copyrighted materials by reproducing or distributing them on the Internet.  

    Pirating works online is the same as shoplifting a video tape, book, or computer program from a department store.  Until the enactment of the NET Act, however, through a loophole in the law, copyright infringers who intentionally pirated works, but did not do so for profit, were outside the reach of the law.  Congressman Goodlatte introduced and successfully passed the NET Act to address this problem.

    Goodlatte introduced the NET Act on July 25, 1997.  The legislation passed the House of Representatives on November 4, 1997 and the Senate on November 13, 1997.  The NET Act was signed into law by the President in December 1997.  Under this law if the defendant reproduces or distributes 10 or more copyrighted works that have a total value of more than $2,500 he or she can be charged with a felony, and faces up to three years imprisonment and a fine of up to $250,000.  A defendant who reproduces or distributes one or more copies of copyrighted works with a value of more than $1,000 can be charged with a misdemeanor, and face up to one year in prison and a fine of up to $100,000.