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To provide criminal penalties for unauthorized recording of motion pictures in a motion picture exhibition facility, to provide criminal and civil penalties for unauthorized distribution of commercial prerelease copyrighted works, and for other purposes.Section 1: Short TitleThis Act may be cited as the “Artists’ Rights and Theft Prevention Act” of 2003.Sec. 2: Congressional FindingsThe Congress finds the following: (1) Music, film, software, books and all forms of intellectual property represent one of the strongest sectors of the United States Economy; (2) In 1997, Congress unanimously passed and President Clinton signed the “No Electronic Theft” or “NET” Act in 1997. The NET Act was designed to strengthen copyright and trademark laws and to permit the prosecution of individuals in cases involving large-scale illegal reproduction and/or distribution of copyrighted works where the infringers act willfully; (3) Despite this legislation, online theft of music, film, software and all forms of intellectual property continues to rise and the negative effects on this large segment of the U.S. Economy are significant; (4) Federal legislation is necessary and warranted to combat the most egregious forms of online theft of intellectual property and its significant, negative economic impact on the U.S. economy. Sec. 3: Criminal Penalties for Unauthorized Recording of Motion Pictures in a Motion Picture Exhibition FacilityThe digital recording of movies before or during their initial theatrical release is one of the most serious piracy problems faced by the motion picture industry. An individual can use sophisticated hidden cameras and take advantage of jacks in motion picture exhibition facilities meant for the hearing-impaired to produce a near-release quality copy of a film. This section of the Bill allows the movie industry and theater owners to attack effectively this problem. It will enable theater owners to post signs stating that camcording violates federal criminal law. If someone ignored the warning, the theater owner could notify federal or local law enforcement officials, who would have a clear-cut statute with which to charge a defendant.Sec. 4: Criminal Infringement of a Commercial Pre-Release Copyrighted Work Under existing law, it is a crime to willfully infringe a copyright by reproducing or distributing one or more copies within a six month period having a retail value of more than $1,000, and a felony if 10 or more copies having a total retail value of more than $2,500 are reproduced or distributed. When a copyrighted work that is a pre-release commercial product is distributed to the public before its authorized release, copyright owners can suffer terrible injury by the rapid distribution of thousands or even millions of copies, yet the thresholds for criminal liability may be very difficult to prove. This section of the bill adds to the criminal infringement provisions of 18 U.S.C. § 2319 a new subsection creating a presumption to close that loophole.18 U.S.C. § 2319(e)(1). Creates a conclusive presumption that the threshold for felony copyright infringement is met when a person willfully distributes a pre-release commercial product as described below by making it available for copying on a public computer network, when the person doing so knew or should have known that the product was intended for commercial distribution but as yet was unpublished. 18 U.S.C. § 2319(e)(2). Specifies the limited set of pre-release commercial products for which the presumption described above is to be made. Briefly, these are unpublished copyrighted works of the types that are most commercially significant, where the copyright owner intended, and had taken substantial steps, to distribute them commercially.Sec. 5: Civil Remedies for Infringement of a Commercial Pre-Release Copyrighted WorkThis section of the bill is intended to deal with the problem of “scooping” the copyright owner created by the illegal publishing of pre-release materials. Enforcement is rendered difficult by the fact statutory damages are typically not available, given that the pre-release works by definition have not yet been published and often are not registered before publication. the bill seeks to remedy the problem by establishing a legal presumption that the actual damages to the copyright owner from such “scooping” amount to, at least, the threshold of $2,500 per infringement outlined in the NET Act. In these circumstances, there can be no doubt that the actual damages caused are at least this high, given the value of a pre-release work, the loss of the early market window and the work’s widespread online availability for continued sharing. The establishment of a threshold significantly enhances deterrence, and avoids the inherent difficulties of proof as to how many users have downloaded the pre-release work. the bill contains a number of limitations to ensure that it is properly applied and interpreted. It is limited to works that are already being prepared for commercial distribution to the public, so as to avoid an overbroad application to any work that the copyright owner has an undefined or amorphous plan “someday to publish.” The bill also includes a definition of “being prepared for commercial distribution,” which requires not only a bona fide intent to cause the work to be commercially distributed, but also that substantial steps have already been taken to do so. Sec. 6: Sentencing GuidelinesThis section requires the United States Sentencing Commission to take a number of actions within 180 days after the enactment of this legislation. It shall:1. review the Federal sentencing guidelines with respect to offenses involving the illegal reproduction and distribution of copyrighted works in violation of Federal law, including violations of section 2319 and new section 2319B of title 18, United States Code;2. amend the Federal sentencing guidelines, as necessary, to provide for increased penalties for offenses involving the illegal reproduction and distribution of copyrighted works in a manner that reflects the serious nature of, and need to deter, such offenses;3. submit a report to Congress that details its findings and amendments; and 4. take such other action that the Commission considers necessary to carry out this Act.