In utilizing any of the exclusive rights provided to the copyright holder without his permission, you may be violating or infringing on his rights under the Copyright Act. If the copyright holder has registered the infringed work with the U.S. Copyright Office prior to the infringement, the copyright holder may be entitled to compensation for his loss. Compensation may include damages, such as lost profits from the infringing activity, or statutory damages ranging from $250 to $150,000 for each infringing copy if the court feels that the infringement was committed "willfully."
You may also be criminally liable if you willfully copy a work for profit or financial gain, or if the work has a value of more than $1,000. Penalties can include a one year jail sentence plus fines. If the value is more than $2,500, you may be sentenced to five years in jail plus fines. Criminal penalties generally apply to large-scale commercial piracy.