Title 17 — CopyrightsRelease 119-73not60

§907 Limitation on Exclusive Rights: Innocent Infringement

Title 17 › Chapter 9— PROTECTION OF SEMICONDUCTOR CHIP PRODUCTS › § 907

Last updated Apr 5, 2026|Official source

Summary

An innocent buyer of a semiconductor chip that infringes a mask work is not legally responsible for importing or selling the units they had before they learned the mask work was protected. After they get notice that the mask work is protected, they must pay a reasonable royalty for each unit they import or sell from that point on. If the buyer and the rights holder cannot agree on the royalty, a court will decide it unless they settle by negotiation, mediation, or binding arbitration. The same immunity and royalty limit also apply to people who buy the chips from the innocent buyer. These rules only cover units bought before the buyer had notice.

Full Legal Text

Title 17, §907

Copyrights — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of this chapter, an innocent purchaser of an infringing semiconductor chip product—

(1)shall incur no liability under this chapter with respect to the importation or distribution of units of the infringing semiconductor chip product that occurs before the innocent purchaser has notice of protection with respect to the mask work embodied in the semiconductor chip product; and

(2)shall be liable only for a reasonable royalty on each unit of the infringing semiconductor chip product that the innocent purchaser imports or distributes after having notice of protection with respect to the mask work embodied in the semiconductor chip product.

(b)The amount of the royalty referred to in subsection (a)(2) shall be determined by the court in a civil action for infringement unless the parties resolve the issue by voluntary negotiation, mediation, or binding arbitration.

(c)The immunity of an innocent purchaser from liability referred to in subsection (a)(1) and the limitation of remedies with respect to an innocent purchaser referred to in subsection (a)(2) shall extend to any person who directly or indirectly purchases an infringing semiconductor chip product from an innocent purchaser.

(d)The provisions of subsections (a), (b), and (c) apply only with respect to those units of an infringing semiconductor chip product that an innocent purchaser purchased before having notice of protection with respect to the mask work embodied in the semiconductor chip product.

Reference

Citations & Metadata

Citation

17 U.S.C. § 907

Title 17 — Copyrights

Last Updated

Apr 5, 2026

Release point: 119-73not60