Intellectual property laws in the Copy Right Act of 1976 outline general rules to proprietary access, use, and ownership of digital files. Section 106 of the Act outlines the six rights of copyrighted works:
- reproduction
- derivations
- distribution
- lending
- display
- digital transmission
While the final rule article on digital transmission in Section 106 pertains to digital audio files, the definition of digital files is broadened to include digital computer files in The Digital Millennium Copyright Act of 1998 and subsequent legislation targeting specific categories of digital copyright protections since.
Protections
Digital files protected under the Acts are considered proprietary knowledge owned by the producer of the data. This includes all rights related to upload or download of files, as well as full control of streaming over the Internet or copy of files in any media. Backups of digital files fall under rules of archival creation. Copies can be made of a digital file if the party is the owner of the original file creation.
Owners may request the destruction of copies of the original of a file prior to sale, gift, or transfer. According to Section 117 of the Act, backups of files copyrighted under another owner’s name are illegal. This prohibition extends to backups of digital files to a computer hard drive. Without proper copyright permissions, the downloading of music, films, or other digital files is in violation of U.S. intellectual property law. Artists and other producers of the data on a digital file are the rightful copyright holders.
The Copyright Act also does not permit buying or selling backup copies on a computer hard drive when the unit itself is sold to a third party, unless they are part of the original operating system and its applications. Section 117 strictly prohibits distribution of backup copies of digital files to be sold to the public without the proper vendor licensing to engage in such sales. Distribution of digital files without a license is copyright infringement.
Uploading or downloading works on peer to peer websites is protected by copyright law. Owners of the works are the copyright owner. In the case of artist works, copyrights are established by hand. This includes written copyright which goes into force upon the act of writing. This is true of all creative works, unless otherwise sold in an agreement which allows the new owner to post a digital file on the Internet.
Fines and Fees
Copyright infringement of an owner's exclusive rights to distribution or reproduction may result in statutory damages of up to $30,000 per each file or work infringed. Where willful infringement is evidenced, fines for copyright infringement may exceed $150,000 for each work or file infringed. Cases where willful copyright infringement is shown may be subject to criminal penalties of up to five years, carrying $250,000 restitution. The assessment of attorney’s fees for infringes upon a work protected by the natural copyright of an artist or producer may also be enforced by the courts.
