In a case that some say could limit the freedom of electronic communication, an MIT student was indicted Thursday for fraud for allegedly giving computer users around the world illegal access to more than $1 million worth of copyrighted software.

David LaMacchia, a junior and an engineering/computer science major at MIT, is charged with setting up his account on the Internet, a global data communication network, to allow users to pirate software.

If convicted, LaMacchia faces a possible jail sentence or a fine up to $250,000.

LaMacchia's could be a test case that could help decide the debate between network users who want more publicly available software--including some who want it to be universally available--and computer companies trying to protect their products.

LaMacchia's attorney, Harvey A. Silverglate, said his client was being unfairly prosecuted for other individuals' actions in copying software from the system he set up.

"The U.S. attorney and his staff are trying to brand a computer systems operator...as a criminal for what other people place on, and take off of, a computer system," Silverglate said in a statement.

Silverglate said that his client made no money from the software. LaMacchia was only responsible for setting up the system, and did not "control what was put on the system," theattorney's statement said.

Silverglate also accused U.S. Attorney DonaldK. Stern of "stretching and mangling the meaningof certain existing criminal laws" in prosecutingLaMacchia.

Stern defended the indictment in The BostonGlobe.

"Both the scale of the crime and his intent toillegally distribute the software take this farbeyond the bounds of the First Amendment," hesaid.

But Jason Gull, a paralegal assistingSilverglate, said the indictment sets a "terribleprecedent" which could "scare operators fromplacing software on the network" and diminish thenetwork's potential utility.

Silverglate said a conviction could threatenthe freedom of traditional means of communicationas well.

"The people who run the telephone company...should be watching this case carefully, lest theyfind themselves criminally responsible for misusesof their communications media and systems," hesaid.

University Attorney Allan A. Ryan Jr. said theaction should warn students to be careful whenusing the network.

"This case illustrates that the law is tryingto catch up with the users," he said.

Ryan said a conviction would alert people thatcopyrights do not lose their legal force justbecause software is accessible over the network.

Network users say they fear the case mightchill the free exchange of information andprogramming on the network.

"It's possible that Harvard students could openindividual accounts and find this happening tothem," said William J. Ouchark, acting director ofthe Harvard Arts and Sciences Computer Services.

He also said that computer operators need to beable to place software on the network withoutfear. "We live in a world where the network isnecessary to communicate," said Ouchark.

"Without software, the network might be moresecure, but it will be less efficient," he said.

Eugene E. Kim '96, president of the HarvardComputer Society, said he saw problems withselectively enforcement of copyright legislation.

"Most people use pirated software, but it's notfeasible for the government to enforce the lawfairly or equitably," he said