reduction of minimum statutory damages to $100 where the infringer "was
not aware and had no reason to believe that his or her acts constituted
an infringement of copyright," is sufficient to protect against
unwarranted liability in cases of occasional or isolated innocent
infringement, and it offers adequate insulation to users, such as
broadcasters and newspaper publishers, who are particularly vulnerable
to this type of infringement suit. On the other hand, by establishing a
realistic floor for liability, the provision preserves its intended
deterrent effect; and it would not allow an infringer to escape simply
because the plaintiff failed to disprove the defendant's claim of
innocence.

In addition to the general "innocent infringer" provision clause (2)
deals with the special situation of teachers, librarians, archivists,
and public broadcasters, and the non-profit institutions of which they
are a part. Section 504 (c)(2) provides that, where such a person or
institution infringes copyrighted material in the honest belief that
what they were doing constituted fair use, the court is precluded from
awarding any statutory damages. It is intended that, in cases involving
this provision, the burden of proof with respect to the defendant's good
faith should rest on the plaintiff.

3. Excerpts From Conference Report on Section 504

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The following excerpts are reprinted from the Report of the
Conference Committee on the new copyright law (H.R. Rep. No. 94-1733,
pages 79-80).
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REMEDIES FOR COPYRIGHT INFRINGEMENT

Senate bill

Chapter 5 of the Senate bill dealt with civil and criminal infringement
of copyright and the remedies for both. Subsection (c) of section 504
allowed statutory damages within a stated dollar range, and clause (2)
of that subsection provided for situations in which the maximum could
be exceeded and the minimum lowered; the court was given discretion to
reduce or remit statutory damages entirely where a teacher, librarian,
or archivist believed that the infringing activity constituted fair
use.***

House bill

Section 504(c)(2) of the House bill required the court to remit
statutory damages entirely in cases where a teacher, librarian,
archivist, or public broadcaster, or the institution to which they
belong, infringed in the honest belief