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What is 17 USC 506?

Published in Copyright Law Criminal Offenses 5 mins read

17 USC 506 is a crucial section of the United States Copyright Act that outlines criminal offenses related to copyright infringement and other fraudulent activities concerning copyright. While civil copyright infringement typically results in monetary damages, 17 USC 506 deals with actions that are deemed severe enough to warrant criminal prosecution, leading to fines and imprisonment.

This section primarily targets willful acts committed for commercial advantage or private financial gain, as well as fraudulent misrepresentations involving copyright notices or applications.

Understanding the Core Components of 17 USC 506

17 USC 506 is divided into several subsections, each addressing a specific criminal act related to copyrights.

1. Criminal Infringement (17 U.S.C. 506(a))

This is the most significant part of the statute, establishing what constitutes criminal copyright infringement. It stipulates that any person who infringes a copyright willfully and for purposes of commercial advantage or private financial gain can face criminal penalties.

  • Key Elements for Prosecution:

    • Infringement: The defendant must have violated one of the exclusive rights of the copyright owner (e.g., reproduction, distribution, public performance).
    • Willfulness: The infringement must have been committed knowingly and intentionally, not accidentally or unknowingly.
    • Commercial Advantage or Private Financial Gain: The act must be motivated by profit or financial benefit, directly or indirectly. This can include activities like selling pirated copies, distributing copyrighted material to generate ad revenue, or benefiting financially from the illegal use of copyrighted works.
  • Penalties: Punishments for criminal copyright infringement are detailed in 18 U.S.C. 2319, which can include significant fines and imprisonment, depending on the number of infringing copies and the retail value of the infringed works. For instance, trafficking in 10 or more copies with a retail value over $2,500 can lead to felony charges. Even a first offense, if it meets certain thresholds, can be a misdemeanor.

  • Examples of Criminal Infringement:

    • Operating a website that illegally streams movies or music for a subscription fee.
    • Mass-producing and selling counterfeit copies of copyrighted software or video games.
    • Illegally distributing copyrighted educational materials for profit.

2. Forfeiture and Destruction (17 U.S.C. 506(b))

Upon conviction for criminal copyright infringement under subsection (a), the court has the authority to order the forfeiture and destruction of:

  • All infringing copies or phonorecords.
  • All implements, devices, or equipment used in the manufacture of such infringing copies or phonorecords.

This aims to remove the illegal materials from circulation and prevent future infringement.

3. Fraudulent Copyright Notice (17 U.S.C. 506(c))

This subsection makes it a criminal offense to knowingly place a fraudulent copyright notice on any article with the intent to deceive. A fraudulent notice might claim copyright exists when it does not, or misrepresent the copyright owner or year of publication.

  • Example: A person marks a public domain work with a false copyright notice to deter others from using it freely.

4. Fraudulent Removal of Copyright Notice (17 U.S.C. 506(d))

It is a criminal offense to knowingly and fraudulently remove or alter a copyright notice appearing on a copy or phonorecord with the intent to deceive. This action often aims to obscure the true copyright status of a work, making it appear that the work is not copyrighted or belongs to someone else.

  • Example: Erasing or obscuring the copyright symbol and owner's name from a legitimate product to then sell unauthorized copies.

5. False Representation (17 U.S.C. 506(e))

This section criminalizes making a false representation of a material fact in an application for copyright registration or in any written statement filed in connection with the application, if done knowingly and with the intent to defraud.

  • Example: Falsely claiming to be the original author of a work created by someone else when applying for copyright registration.

Summary of 17 USC 506 Provisions

The table below summarizes the key aspects of each subsection of 17 USC 506:

Subsection Offense Type Description Penalties / Action
506(a) Criminal Infringement Willful copyright infringement for commercial advantage or private financial gain. Fines and imprisonment (as per 18 U.S.C. 2319).
506(b) Forfeiture and Destruction Court-ordered seizure and destruction of infringing materials and manufacturing equipment upon conviction under 506(a). Seizure and destruction of materials.
506(c) Fraudulent Copyright Notice Knowingly placing a false copyright notice on an article with intent to deceive. Fines.
506(d) Fraudulent Removal of Copyright Notice Knowingly and fraudulently removing or altering a copyright notice from a work with intent to deceive. Fines.
506(e) False Representation (in Registration/Statement) Knowingly making a false material representation in a copyright registration application or related written statement with intent to defraud. Fines.

Implications and Importance

17 USC 506 underscores the serious nature of certain copyright violations, particularly those committed for financial gain or involving deceptive practices. It serves as a strong deterrent against large-scale piracy and fraudulent activities that undermine the rights of creators and the integrity of the copyright system. While civil actions allow copyright holders to recover damages, criminal prosecutions under 17 USC 506 are pursued by the government to punish offenders and protect the public interest in intellectual property.