[Congressional Record: July 1, 1999 (Senate)]
[Page S8190-S8191]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]
[DOCID:cr01jy99pt2-181]


 DIGITAL THEFT DETERRENCE AND COPYRIGHT DAMAGES IMPROVEMENT ACT OF 1999

  Mr. GORTON. Mr. President, I ask unanimous consent that the Senate
now proceed to the consideration of Calendar No. 193, S. 1257.
  The PRESIDING OFFICER. The clerk will report.
  The legislative clerk read as follows:

       A bill (S. 1257) to amend statutory damages provisions of
     title 17, United States Code.

  There being no objection, the Senate proceeded to consider the bill.
  Mr. HATCH. Mr. President, today the Senate is considering four very
important intellectual property related ``high-tech'' bills that
Senator Leahy and I have introduced to promote the continued growth of
vital sectors of the American economy and to protect the interests and
investment of the entrepreneurs, authors, and innovators who fuel their
growth. These bills were reported by unanimous consent earlier today by
the Judiciary Committee.
  Technology is the driving force in the American economy today, and
American technology is setting new standards for the global economy,
from semiconductor chip technology, to computer software, Internet and
telecommunications technology, to leading pharmaceutical and genetic
research. In my own state of Utah, these information technology
industries contribute in excess of $7 billion each year to the State's
economy and pay wages that average 66 percent higher than the state
average. Their performance has placed Utah among the world's top ten
technology centers according to Newsweek Magazine. Similar success is
seen in areas across the country, with the U.S. being home to seven of
the world's top ten technology centers and with American creative
industries now surpassing all other export sectors in foreign sales and
exports.
  Underlying all of these technologies are the intellectual property
rights that serve to promote creativity and innovation by safeguarding
the investment, effort, and goodwill of those who venture into these
fast-placed and volatile fields. Strong intellectual property
protections are particularly critical in the global high-tech
environment where electronic piracy is so easy, so cheap, and yet so
potentially devastating to intellectual property owners--many of which
are small entrepreneurial enterprises. In Utah, 65 percent of these
companies have fewer than 25 employees, and a majority have annual
revenues of less than $1 million. Intellectual property is the
lifeblood of

[[Page S8191]]

these companies, and even a single instance of piracy could drive them
out of business. What's more, without adequate international
protection, these companies would simply be unable to compete in the
global marketplace.
  That is why we enacted a number of measures last year to provide
enhanced protection for intellectual property in the new global, high-
tech environment. For example, the Digital Millennium Copyright Act
(DMCA) implemented two new World Intellectual Property Organization
Treaties setting new global standards for copyright protection in the
digital environment. We also paved the way for new growth in online
commerce by providing a copyright framework in which the Internet and
other new technologies can flourish.
  This year, Senator Leahy and I are continuing to focus our attention
on important high-tech and intellectual property legislation. The bills
we are considering today will build upon existing protections,
including last year's measures to deter digital piracy, by raising the
Copyright Act's limit on statutory damages to make it more costly to
engage in cyber-piracy and copyright theft. They will also make
technical ``clean-up'' amendments to the DMCA and other Copyright Act
provisions to make them clearer and more user-friendly. On the
trademark side, these bills will make the protection of famous marks
easier and more efficient and provide recourse for trademark owners
against the federal government for trademark infringement. Finally,
these bills will allow the Patent and Trademark Office to better serve
its customers--America's innovators and trademark owners--through the
collection and retention of fees.
  Each of these bills is noncontroversial and enjoys widespread
support. I want to thank Senator Leahy for his assistance, cooperation,
and leadership in this process, and I look forward to the Senate
swiftly passing these bills today.
  Mr. GORTON. I ask unanimous consent that the bill be considered read
a third time and passed and the motion to reconsider be laid upon the
table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 1257) was considered read the third time and passed, as
follows:

                                S. 1257

       Be it enacted by the Senate and House of Representatives of
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Digital Theft Deterrence and
     Copyright Damages Improvement Act of 1999''.

     SEC. 2. STATUTORY DAMAGES ENHANCEMENT.

       Section 504(c) of title 17, United States Code, is
     amended--
       (1) in paragraph (1)--
       (A) by striking ``$500'' and inserting ``$750''; and
       (B) by striking ``$20,000'' and inserting ``$30,000''; and
       (2) in paragraph (2)--
       (A) by inserting ``(A)'' after ``(2)'';
       (B) by striking ``$100,000'' and inserting ``$150,000'';
       (C) by inserting after the second sentence the following:
       ``(B) In a case where the copyright owner demonstrates that
     the infringement was part of a repeated pattern or practice
     of willful infringement, the court may increase the award of
     statutory damages to a sum of not more than $250,000 per
     work.''; and
       (D) by striking ``The court shall remit statutory damages''
     and inserting the following:
       ``(C) The court shall remit statutory damages''.

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