What is the No Electronic Theft Act?

The No Electronic Theft (NET) Act is a United States federal law passed by Congress in 1997 that criminalizes the reproduction and distribution of copyrighted works, even in the absence of financial gain. According to the statute, it is a federal crime to reproduce, distribute, or share copies of electronic copyrighted works such as songs, movies, games, or software programs, even if the person copying or distributing the material acts without commercial purpose and/or receives no private financial gain.

Key Takeaways

• The No Electronic Theft (NET) Act is a United States federal law that prohibits the reproduction and distribution of copyrighted works, even in the absence of financial gain.
• The act relies on willful infringement, which means that the infringer knowingly engages in activities that violate copyright law. 
• The penalties for violating the NET Act can include fines and imprisonment. 

Understanding the No Electronic Theft (NET) Act

Prior to the NET’s enactment in 1997, copyright infringement only occurred when an individual or business knowingly violated someone’s copyright for commercial advantage or private financial gain. Under the NET act, even if you abused someone else’s registered copyright without a commercial purpose and no private gain, you may be convicted of a federal crime. 

According to the act, you may face charges if you distribute copyrighted files over the Internet, upload copyrighted software to a website or provide information regarding the availability of copyrighted software.

The NET Act emphasized the importance of "willful" infringement, meaning that the infringing party knowingly engaged in activities that violated copyright law. This element of intent was a critical factor in prosecuting cases under the act. In other words, the law did not aim to criminalize those who incidentally infringe copyrights without realizing it. Instead, it targeted those who purposefully pirate, share, and distribute copyrighted content online in blatant disregard for the law. Requiring willfulness ensured that casual internet users would not be unduly penalized for unknowing copyright infringement under the expanded scope of the NET Act. 

Penalties for Violating the No Electronic Theft (NET) Act

Here are a few key points to keep in mind regarding the most common penalties for violating the No Electronic Theft (NET) Act:

• Fines: Individuals convicted of criminal copyright infringement under the No Electronic Theft Act are subject to monetary fines as punishment. The exact cost of the fine depends on the judge’s discretion, within the limits set by law.
• Imprisonment: In certain cases, violations of the NET Act may lead to imprisonment. The act allows for a maximum imprisonment of up to three years for a first-time offense and up to six years for subsequent offenses. 
• Civil Remedies: Through civil litigation, they can recover compensation for actual financial losses attributed to the infringement. Civil remedies provide copyright holders another avenue to hold infringers financially accountable through compensation for damages and injunctions preventing ongoing violations. 

Bottom Line

By imposing criminal penalties regardless of commercial intent, the Act enabled more aggressive enforcement against unauthorized online reproduction and distribution. 

For those with questions about topics like the NET Act and how it may apply to specific situations, consulting a legal professional can provide helpful guidance and perspective. Talk to an Internet and Communications lawyer in your city today with Attorney At Law.