## Facts

- Dennis Moran, an Omaha police officer, owned a small video rental business.
- The government charged Moran with misdemeanor criminal copyright infringement for willfully infringing copyrighted videocassettes for commercial advantage and private financial gain under 17 U.S.C. § 506(a).
- FBI agents executed a search warrant at Moran’s store and seized videocassettes appearing to be unauthorized duplicates of commercial movies.
- The parties stipulated that several identified motion pictures were validly copyrighted and that at least one movie was reproduced by Moran without authorization, placed into rental inventory, and rented.
- Moran told agents he duplicated tapes to “insure” originals against theft or damage by renting the duplicate while keeping the purchased original.
- Moran asserted he believed the practice was lawful so long as he had purchased and possessed the original cassette.
- Moran affixed title labels and FBI copyright warning labels to the duplicate copies.
- There was no evidence Moran made multiple copies per title or rented both the original and duplicate at the same time.
- At trial, Moran testified his understanding came from conversations and trade materials, though he could not identify specific sources; the court found him cooperative, credible, and unsophisticated in copyright law.

## Issues

1. Whether “willfully” in 17 U.S.C. § 506(a) requires proof that the defendant knowingly and intentionally violated a known legal duty, rather than merely intentionally making the unauthorized copy.
2. Whether the government proved beyond a reasonable doubt that Moran had the required willful intent when he duplicated and rented at least one copyrighted motion picture.

## Decision

- After a bench trial before a magistrate judge by consent, the court found Moran not guilty.
- The court held that “willfully” under § 506(a) requires a voluntary, intentional violation of a known legal duty.
- The court rejected the government’s position that intent to copy alone satisfies willfulness.
- The court concluded the government failed to prove beyond a reasonable doubt that Moran knew his conduct was unlawful and proceeded anyway.

## Legal Principles

- Criminal copyright “willfulness” under 17 U.S.C. § 506(a) requires proof that the defendant voluntarily and intentionally violated a known legal duty.
- A subjective good-faith belief that the conduct is lawful can negate willfulness, even if the belief is unreasonable.
- Evidence that a defendant acted openly, made limited copies, and lacked sophistication about the law may support a finding that the government did not prove knowing illegality beyond a reasonable doubt.
- Criminal copyright liability demands a higher culpability showing than civil infringement; proof of copying and commercial activity is insufficient without the required willful intent element.

## Conclusion

The court acquitted Moran because § 506(a) requires proof that the defendant knew the copying was unlawful and deliberately violated that legal duty, and Moran’s credited good-faith misunderstanding prevented the government from establishing willfulness beyond a reasonable doubt.


United States v. Moran, 757 F. Supp. 1046 (D. Neb. 1991)