Did you know the bittorrent of Led Zeppelin's box set you're downloading right now may be a criminal offense? Few people recognize that although the Copyright Act imposed criminal liability only in the event the infringer intentionally infringes for commercial benefit, there is now (actually for almost 10 years) a specialty Act that can target the casual P2P user.
The
No Electronic Theft Act (NET Act), passed in 1997, provides criminal liability for individuals who engage in copyright infringement, even when there is no monetary profit or commercial benefit from the infringement. The key ingredient is trafficking of copyrighted goods via electronic means. Hence, the NET Act could be applied to unauthorized P2P file sharing of MP3's or the now dreaded sharing of TV shows and films. The irony is that at the time of enactment, the real threat of the day was pirated software. Under the Act, penalties can be up to three years in prison and up to $250,000 in fines. The NET Act also raised Copyright's statutory damages to the current range of $750 to $30,000.
The most striking aspect of the Act is its imposition of criminal liability in the complete absence of mens rea, where the infringer neither obtained nor expected to obtain anything of value for the infringement. The Net Act was borne out of the unsuccessful prosecution of
David LaMacchia in 1994. LaMacchia, then a student at the Massachusetts Institute of Technology, allegedly engaged in massive copyright infringement, distributing volumes of copyrighted goods to third parties without receiving any gain—a quintessential infringement hobbyist. As a result, LaMacchia did not face criminal liability. The Net Act was partly a response to that episode.
As of 2006, the NET Act has been judicially applied in the realm of large scale "warez" trafficking. Based on the DOJ's resources and the MPAA/RIAA's litigation programs it is unlikely that the DOJ will be using the NET Act against the casual eDonkey user anytime soon, but who knows?