No Electronic Theft Act (NET Act)

The federal No Electronic Theft Act (NET Act) provides for criminal prosecution of individuals who engage in copyright infringement, even where the individual derives no monetary profit or commercial benefit from the infringement. Such behavior can result in up to three years in prison and/or up to $250,000 in fines.

The NET Act also amended the definition of "commercial advantage or private financial gain" to include receiving or expecting to receive anything of value, including the receipt of copyrighted works. This provision means that MP3 trading - because a copyrighted audio recording has a clearly defined value - can result in stiffer penalties including up to five years in prison and/or up to $250,000 in fines. Additionally, individuals who engage in copyright infringement can be held civilly liable for actual damages or lost profits, or for statutory damages of up to $150,000 per work infringed.