- Introduction
- What Is Warez Trading?
- The Criminal Copyright Infringement Statute
- Elements of a Prosecution and Applicable Defenses
- Statute of Limitations
- From Here
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The Criminal Copyright Infringement Statute
Criminal copyright infringement is the willful infringement of a copyright (a) for purposes of commercial advantage or private financial gain ("Section 506(a)(1)"),11 or (b) by the reproduction or distribution (including by electronic means), during any 180-day period, of copyrighted works with a total retail value of more than $1,000 ("Section 506(a)(2)").12
For a first-time violation where the infringement involves reproducing or distributing at least 10 copies with a total retail value of more than $2,500, criminal penalties include up to five years imprisonment (in the case of Section 506(a)(1)) or up to three years imprisonment (in the case of Section 506(a)(2)), and in each possibly a fine.13 Because it offers greater penalties, generally the government prefers to prosecute under Section 506(a)(1).14 Otherwise, all other criminal violations can result in up to one year of imprisonment and possibly a fine. In all cases, defendants should forfeit the equipment used to commit infringement.15
The U.S. Sentencing Commission Guidelines control the determination of actual sentences, and Section 2B5.3 specifically applies to criminal copyright infringement.16 In the portions most relevant to warez trading, guidelines increase the offense level based on uploading infringing items (including setting a minimum offense level);17 decrypting or circumventing technological protection measures to gain access to the work;18 and participating in an organized criminal enterprise;19 and a guideline reduces the offense level when the offense is not committed for commercial advantage or private financial gain.20