Can Copyright Infringement be Criminal?
Criminal Copyright Infringement
Copyright infringement is most often treated as a civil dispute between private parties, but a recent federal case highlights that certain conduct can cross the line into criminal liability. The convictions of three technology company employees underscore how willful, profit-driven infringement can trigger serious criminal consequences.
Federal Court Finds Software Piracy Can Support Criminal Charges — In this case, three employees of Constructure Technologies were found guilty of criminal copyright infringement after knowingly installing and distributing unlicensed software. Rather than paying legitimate licensing fees, the defendants used illegal programs to generate unauthorized license keys and then sold or deployed the software to customers and employees as if it were properly licensed.
Willful Conduct and Financial Gain Were Key Factors — The court focused on evidence showing the defendants intentionally tested and used license-cracking tools, distributed the software internally, and charged customers for licenses they never purchased. This deliberate scheme, carried out over several years, distinguished the case from routine civil infringement and supported criminal liability.
DMCA Violations and High-Tech Theft Led to Felony Convictions — In addition to individual guilty pleas for high-tech theft, Constructure Technologies itself was convicted of a felony violation of the Digital Millennium Copyright Act. The case serves as a reminder that companies and executives can face criminal exposure when infringement involves circumvention of technological protection measures and is undertaken for commercial advantage.
For more information, see our blog post Yes, There Is Such a Thing as Criminal Copyright Infringement.
Klemchuk PLLC is a leading IP law firm based in Dallas, Texas, focusing on litigation, anti-counterfeiting, trademarks, patents, and business law. Our experienced attorneys assist clients in safeguarding innovation and expanding market share through strategic investments in intellectual property.
This article is provided for informational purposes only and does not constitute legal advice. For guidance on specific legal matters under federal, state, or local laws, please consult with our IP Lawyers.
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