A bill to amend the Foreign Assistance Act of 1961 to require recipients of United States foreign assistance to certify that the assistance will not be used to intentionally traffic in goods or services that contain counterfeit marks or for other purposes that promote the improper use of intellectual property, and for other purposes.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stop Assistance to Counterfeiters 
Act''.

SEC. 2. CERTIFICATION REQUIREMENT RELATING TO TRAFFICKING IN GOODS OR 
              SERVICES THAT CONTAIN COUNTERFEIT MARKS.

    (a) Amendments.--Chapter 1 of part III of the Foreign Assistance 
Act of 1961 (22 U.S.C. 2351 et seq.) is amended--
            (1) by redesignating the second section 620G (as added by 
        section 149 of Public Law 104-164 (110 Stat. 1436)) as section 
        620J; and
            (2) by adding at the end the following new section:

``SEC. 620K. CERTIFICATION REQUIREMENT RELATING TO TRAFFICKING IN GOODS 
              OR SERVICES THAT CONTAIN COUNTERFEIT MARKS.

    ``(a) Requirement for Certification.--
            ``(1) In general.--Subject to paragraph (2), assistance may 
        not be provided to a person seeking United States assistance 
        for a fiscal year until such person submits to the President a 
        certification described in subsection (c) for that fiscal year.
            ``(2) Exception for foreign governments.--The certification 
        requirement set out in paragraph (1) shall not be applied to 
        assistance provided under this Act or any other Act directly to 
        the government of a foreign country or an entity of such 
        government or to an international organization that is an 
        association of representatives of national governments, 
        including the United Nations.
    ``(b) Definitions.--In this section:
            ``(1) Counterfeit mark.--The term `counterfeit mark' has 
        the meaning given that term in section 2320 of title 18, United 
        States Code.
            ``(2) Person seeking united states assistance.--The term 
        `person seeking United States assistance' means a person, 
        including an international or domestic organization that is not 
        an association of national governments, that--
                    ``(A) is seeking assistance under this Act or any 
                other Act directly from the United States; or
                    ``(B) subsequently receives such assistance 
                pursuant to a contract, grant, cooperative agreement, 
                or other agreement.
            ``(3) Traffic.--The term `traffic' has the meaning given 
        that term in section 2320 of title 18, United States Code.
    ``(c) Certification.--
            ``(1) In general.--A certification described in this 
        subsection is a certification made by a person seeking United 
        States assistance that--
                    ``(A) such assistance will not be used to 
                intentionally traffic in goods or services that contain 
                counterfeit marks;
                    ``(B) such assistance will not be used by any 
                person that has had an administrative or judicial 
                determination issued against the person for 
                infringement, counterfeiting, or piracy of intellectual 
                property in the United States or a foreign country;
                    ``(C) any material or product, including a material 
                or product in electronic form, that was developed, in 
                whole or in part, using such assistance will not be 
                imported into the United States--
                            ``(i) in violation of section 2320 of title 
                        18, United States Code; or
                            ``(ii) in violation of section 526(a) of 
                        the Tariff Act of 1930 (19 U.S.C. 1526(a)); and
                    ``(D) if such assistance will be used for a 
                contract, grant, cooperative agreement, or other 
                agreement that includes use of any intellectual 
                property, provides evidence of the right to use the 
                intellectual property, including a written license 
                agreement for the use, the date of the first commercial 
                use of the intellectual property, and any registration 
                for the use with an appropriate government.
            ``(2) Requirements for submission of certification.--A 
        certification described in paragraph (1) shall be submitted to 
        the President by a person seeking United States assistance 
        prior to the provision of any assistance under this Act or any 
        other Act and at the beginning of each subsequent fiscal year 
        for which such person will receive the assistance.
    ``(d) Suspension and Termination of Assistance.--The President 
shall suspend or terminate the provision of assistance under this Act 
or any other Act, in whole or in part, to a person seeking United 
States assistance if the President determines that such person has used 
the assistance to carry out an activity in violation of a certification 
made under subsection (c).
    ``(e) National Security Waiver.--The President may waive a 
provision of this section if the President--
            ``(1) determines that such a waiver is necessary to the 
        national security interests of the United States; and
            ``(2) promptly submits to Congress a notification of the 
        waiver and of the reasons for the waiver.''.
    (b) Effective Date.--The certification requirements under section 
620K of the Foreign Assistance Act of 1961, as added by subsection (a) 
of this section, apply with respect to the provision of assistance by 
the President for a fiscal year after fiscal year 2006.

Summary: Stop Assistance to Counterfeiters Act - Amends the Foreign Assistance Act of 1961 to require US foreign assistance recipients to certify that such assistance will not be used to intentionally traffic in goods or services that contain counterfeit marks or for other purposes that promote the improper use of intellectual property. Exempts from such requirement direct assistance to a foreign government or to an international organization that is an association of representatives of national governments, including the United Nations. Directs the President to suspend or terminate assistance to a recipient who is in violation of this Act. Authorizes a national security waiver.