A bill to prohibit trafficking in counterfeit military goods or services.

Summary: Combating Military Counterfeits Act of 2010 - Amends the federal criminal code to impose criminal penalties on persons who traffic in counterfeit goods or services identified as meeting military standards or that are intended for use in a military or national security application.

Directs the United States Sentencing Commission to review and amend federal sentencing guidelines and policy statements to reflect the intent of Congress to increase penalties for trafficking in counterfeit goods or services, including military good or services.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Combating Military Counterfeits Act 
of 2010''.

SEC. 2. TRAFFICKING IN COUNTERFEIT MILITARY GOODS OR SERVICES.

    (a) Trafficking in Counterfeit Military Goods or Services.--Section 
2320 of title 18, United States Code, is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(3) Military goods or services.--
                    ``(A) In general.--A person who commits an offense 
                under paragraph (1) with knowledge that the good or 
                service described in paragraph (1) is identified as 
                meeting military standards or is intended for use in a 
                military or national security application shall be 
                punished in accordance with subparagraph (B).
                    ``(B) Penalties.--
                            ``(i) Individual.--An individual who 
                        commits an offense described in subparagraph 
                        (A) shall be fined not more than $5,000,000, 
                        imprisoned for not more than 20 years, or both.
                            ``(ii) Person other than an individual.--A 
                        person other than an individual that commits an 
                        offense described in subparagraph (A) shall be 
                        fined not more than $15,000,000.
                    ``(C) Subsequent offenses.--
                            ``(i) Individual.--An individual who 
                        commits an offense described in subparagraph 
                        (A) after the individual is convicted of an 
                        offense under subparagraph (A) shall be fined 
                        not more than $15,000,000, imprisoned not more 
                        than 30 years, or both.
                            ``(ii) Person other than an individual.--A 
                        person other than an individual that commits an 
                        offense described in subparagraph (A) after the 
                        person is convicted of an offense under 
                        subparagraph (A) shall be fined not more than 
                        $30,000,000.''; and
            (2) in subsection (e)--
                    (A) in paragraph (1), by striking the period at the 
                end and inserting a semicolon;
                    (B) in paragraph (3), by striking ``and'' at the 
                end;
                    (C) in paragraph (4), by striking the period at the 
                end and a semicolon; and
                    (D) by adding at the end the following:
            ``(5) the term `identified as meeting military standards' 
        relating to a good or service--
                    ``(A) means the good or service--
                            ``(i) bears a label, tag, stamp, product 
                        code, phrase, or emblem of any kind that 
                        indicates that the good or service meets a 
                        standard, requirement, or specification issued 
                        by the Department of Defense, an Armed Force, 
                        or a reserve component;
                            ``(ii) is packaged in a wrapper, container, 
                        box, case, or packaging of any type or nature 
                        which bears a label, tag, stamp, product code, 
                        phrase, or emblem of any kind which indicates 
                        that the good or services meets a standard, 
                        requirement, or specification issued by the 
                        Department of Defense, an Armed Force, or a 
                        reserve component; or
                            ``(iii) is accompanied by or marketed with 
                        a certificate or other oral or written 
                        representation that the good or service meets a 
                        standard, requirement, or specification issued 
                        by the Department of Defense, an Armed Force, 
                        or a reserve component; and
                    ``(B) shall not apply to the identification of a 
                good or service in a manner that is unlikely to cause 
                confusion, to cause mistake, or to deceive; and
            ``(6) the term `use in a military or national security 
        application' means the use of a good or service, independently, 
        in conjunction with, or as a component of another good or 
        service--
                    ``(A) during the performance of the official duties 
                of the Armed Forces of the United States or the reserve 
                components of the Armed Forces; or
                    ``(B) by or for the United States in furtherance of 
                the national defense or national security.''.
    (b) Sentencing Guidelines.--
            (1) Directive.--Not later than 180 days after the date of 
        enactment of this Act, pursuant to is authority under section 
        994 of title 28, United States Code, and in accordance with 
        this subsection, the United States Sentencing Commission shall 
        review and amend the Federal sentencing guidelines and policy 
        statements application to persons convicted of an offense under 
        section 2320(a) of title 18, United States Code, to reflect the 
        intent of Congress that penalties for such offenses be 
        increased in comparison to those provided on the day before the 
        date of enactment of this Act under the guidelines and policy 
        statements.
            (2) Requirements.--In amending the Federal Sentencing 
        Guidelines and policy statements under paragraph (1), the 
        United States Sentencing Commission shall--
                    (A) ensure that the guidelines and policy 
                statements, including section 2B5.3 of the Federal 
                Sentencing Guidelines (and any successor thereto), 
                reflect--
                            (i) the serious nature of the offenses 
                        described in section 2320(a) of title 18, 
                        United States Code;
                            (ii) the need for an effective deterrent 
                        and appropriate punishment to prevent offenses 
                        under section 2320(a) of title 18, United 
                        States Code; and
                            (iii) the effectiveness of incarceration in 
                        furthering the objectives described in clauses 
                        (i) and (ii);
                    (B) consider the extent to which the guidelines 
                appropriately account for the risk, even if attenuated 
                or unknown to the offender, to members of the Armed 
                Forces of the United States, military readiness, and 
                national security resulting from an offense committed 
                under section 2320(a) of title 18, United States Code, 
                including in instances involving a limited value or 
                quantity of goods or services;
                    (C) ensure reasonable consistency with other 
                relevant directives and guidelines and Federal 
                statutes;
                    (D) make any necessary conforming changes to the 
                guidelines; and
                    (E) ensure that the guidelines relating to offenses 
                under section 2320(a) of title 18, United States Code, 
                adequately meet the purposes of sentencing, as 
                described in section 3553(a)(2) of title 18, United 
                States Code.