The Motion Picture Association of America Inc. and the Recording Industry of America, Inc. favor S. 1722 as it brings the offense of criminal copyright infringement into title 18 and classifies that offense as a felony. Only through strong penalties can the sophisticated criminals now masterminding the illegal reproduction and distribution of motion pictures and sound recordings be deterred. Endorsement is given to the provision in S. 1722 on civil forfeiture of infringing reproductions and reproduction equipment and the provision including criminal copyright infringement within the definition of racketeering activity. The Committee, however, can improve the effectiveness of the copyright infringement by using the approach adopted in several provisions of the most recent draft of the criminal code legislation before the Criminal Justice Subcommittee of the House Judiciary Committee. Separate provisions are included for the separate crimes of criminal copyright infringement and counterfeiting. Further, the penalties for criminal copyright infringement are graded depending on the quantity and type of films or records illegally reproduced or distributed. (Author abstract modified)