Copyright Basics for the College Store
Module Four: The Impact of Technology

The No Electronic Theft Act (NET Act) sets substantial penalties for unauthorized reproduction of copyrighted materials on electronic media.

The legislation covers copyrighted materials in any electronic form, including

  • The web
  • E-mail
  • Disk
  • CD-ROM

This act makes it a criminal offense to deliberately create and distribute electronic or audio copies of copyrighted material without permission, even when no profit is made from the action.

The NET Act sets penalties for willfully infringing a copyright for purposes of commercial advantage or private financial gain; or by reproducing or distributing, including via electronic means, during any 180-day period.

  • Reproducing or distributing one or more copies of one or more copyrighted works with a total retail value of $1,000 to $2,500 carries a misdemeanor charge with a maximum penalty of a $100,000 fine and up to one year in jail.
  • Reproducing or distributing at least ten copies of one or more copyrighted works which have a total retail value of more than $2,500 is a felony, which carries a maximum penalty of a $250,000 fine and up to five years in prison.

Distance Education and the Digital Millennium Copyright Act