WORLD TRADE IP/N/6/USA/1
19June1997
ORGANIZATION(97-2532)
Original: English Council forTrade-Related Aspects
ofIntellectual Property Rights
CHECKLIST OFISSUES ONENFORCEMENT1
Responses from theUnited States
Civil andAdministrative Procedures andRemedies
(a) Civiljudicial procedures andremedies
1. Specify thecourts which have jurisdiction overIPRinfringement cases.
USFederal district courts haveoriginal jurisdiction overcases based upon infringement of
rights based onFederal patent, trademark, plantvariety protection, copyright, orsemiconductor chip
mask work laws(see,28U.S.C. 1338). TheFederal district courts alsohaveoriginal jurisdiction
overclaims ofunfair competition thatarecoupled withasubstantial andrelated claim under anyof
those laws. Intheinterests ofjudicial efficiency, aclaim ofinfringement canbeheard inastatecourt
ifitisonlyincidental toallegations ofanother kind, suchasbreach ofcontract, thatisprimarily based
onstatelaw.
Statecourts havejurisdiction overclaims oftrademark infringement, misappropriation oftrade
secrets, orunfair competition based onstatelawsbut,depending onthenature oftheclaims andthe
parties involved, Federal district courts mayalsohavejurisdiction.
TheUSInternational Trade Commission (USITC) hasjurisdiction inadministrative actions
under Section 337oftheTariff Actof1930.
2. Which persons have standing toassert IPRs? How maytheyberepresented? Arethere
requirements formandatory personal appearances before thecourt bytheright holder?
Theowners ofintellectual property rights havestanding toenforce theirrights incourt and
before theUSITC. Insome instances (e.g., copyright) beneficial owners alsocanassert rights inan
action incourt orbefore theUSITC.
Parties mayberepresented bycounsel admitted topractise before thatcourt, orgiven special
permission todoso,inanycourt intheUnited States. IntheUSITC, parties mayberepresented by
alawyer licensed topractise anywhere intheUnited States.
Federal court judges havetheauthority toorder theappearance ofanindividual whoiswithin
thecourt’sjurisdiction, ifthatperson ’stestimony isessential tothecase. Judges canalsoauthorize
testimony tobeprovided bywritten orvideotaped deposition inspecific cases ifapersonal appearance
would impose anextreme hardship.
1Document IP/C/5 .IP/N/6/USA/1
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3. What authority dothejudicial authorities have toorder, attherequest ofanopposing
party, aparty toaproceeding toproduce evidence which lieswithin itscontrol?
TheFederal Rules ofCivil Procedure provide thatparties involved inlitigation mayrequest
answers towritten questions andtheproduction ofdocuments, andmaydepose individuals whose
testimony isrequired forthelitigation. Ifanyparty declines torespond torequests forinformation,
documents, ordeposition, therequesting party mayapply tothecourt torequire compliance. During
suchaproceeding, theparty ofwhom therequest wasmade maypresent evidence showing whythe
request isinerror orother reasons whynoresponse should begiven totherequest. Thejudge will
decide insuchcircumstances whether aresponse isrequired andwhether therequest should belimited
inanyway. Procedures instatecourts aregenerally similar totheprocedures defined bytheFederal
Rules ofCivil Procedure. Theprocedural regulations oftheUSITC arealsosimilar totheFederal
Rules.
4. What means exist toidentify andprotect confidential information brought forward as
evidence?
TheFederal Rules ofCivil Procedure authorize judges tolimit whomaybepresent when
evidence ofaconfidential nature ispresented incourt orduring depositions andtowhom confidential
documents maybeshown. Judges alsoareauthorized toissueprotective orders prohibiting those with
access toconfidential information fromrevealing it,whether during oraftertheconclusion oflitigation.
Inextreme cases, judges mayreview confidential information incamera, andkeepsuchinformation
under seal. State courts andtheUSITC regulations provide similar procedures forprotection for
confidential information.
5. Describetheremediesthatmaybeorderedbythejudicialauthoritiesandcriteria,legislative
orjurisprudential, fortheir use;
- injunctions;
- damages, including recovery ofprofits, andexpenses, including attorney ’sfees;
- destruction orother disposal ofinfringing goods andmaterials/implements for
their production;
– anyother remedies.
Injunctions
Actions thatviolate legalrights ofintellectual property owners orbeneficial owners maybe
enjoined,temporarilyorpermanently,bycourtsandsuchinjunctionscanbeenforcedbyFederalmarshals
ifviolated.
Damages
Damages canberecovered byanaggrieved intellectual property owner fortheinfringement
ofanintellectual property right. Thespecific nature andformofdamages thatcanberecovered varies
withthenature oftheintellectual property right thathasbeen infringed, anddepending onthe
circumstances ofthecaseandthenature oftheintellectual property rightinvolved. Forexample, with
respect toinfringement ofapatent, thecourt mustaward damages ofanamount astocompensate the
patent owner fortheinfringement, andrelyonsuchfactors aslostprofits, reasonable royalty foruse
oftheinvention, interest, andother costsasdetermined. Thecourt mayalsoaward attorneys feesand
court costs tothesuccessful litigant. Incertain actions, suchasactions forwilful infringement ofa
patent, treble damages canbeawarded bythecourt. Specific considerations withrespect tothe
determination ofdamages depend onthetypeoftheintellectual property rightinquestion.IP/N/6/USA/1
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Destruction orDisposal ofInfringing Articles orRelated Equipment
Acourtmayorder thedestruction orotherdisposal ofinfringing goods andmaterial/implements
fortheirproduction inappropriate situations. Specific authority forsuchactions canbefound inthe
sections oftheUnited States Code pertaining tothespecific typeofintellectual property right
(e.g., copyright, mask work, trademark), orunder general authority provided under theFederal Rules
ofCivil Procedure tocourts ortotheUSITC.
Other Remedies
TheUSITC mayorder theUSCustoms Service toexclude from entry goods thatarefound
toinfringe intellectual property rights andcanorder parties tocease anddesist activities thatviolate
Section 337.
6. Inwhat circumstances, ifany, dojudicial authorities have theauthority toorder the
infringer toinform theright holder oftheidentity ofthird persons involved intheproduction
anddistribution ofthegoods orservices found tobeinfringing andoftheirchannels ofdistribution?
TheFederal Rules ofCivil Procedure authorize courts toorder theproduction ofrequested
information ordocuments during thediscovery process ifthatinformation isrelevant tothelitigation.
Pursuant tothisauthority, acourt mayorder aninfringer toinform therightholder oftheidentity
ofthirdpersonsinvolvedintheproductionanddistributionofthegoodsorservicesfoundtobeinfringing
andoftheirchannels ofdistribution.
Administrative lawjudges oftheUSITC havesimilar authority.
7. Describe provisions relating totheindemnification ofdefendants wrongfully enjoined.
Towhat extent arepublic authorities and/or officials liable insuchasituation andwhat "remedial
measures" areapplicable tothem?
TheFederal Rules ofCivil Procedure authorize judges toprovide forindemnification in
appropriate cases(see,F.R.C.P. Rule65(b)). Federal Courts mustrequire parties seeking aninjunction
topostanadequate security withthecourttoensure thatindemnification willbepossible (see,F.R.C.P.
Rule65(c)).
TheUSITCcanalsorequireacomplainanttopostabondthatwouldbepayabletotherespondent
ifatemporary exclusion order islaterdetermined tobeunwarranted. Public authorities andofficials
cannot beheldpersonally liable insituations inwhich theiractions werewithin thescope oftheirduties
andresponsibilities andinwhich theywere acting ingood faith.
8. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost.
Thelength andcostofproceedings intheUnited States, whether before acourt orbefore the
USITC, varies inrelation tothecomplexity andnature ofthelegaloradministrative proceeding. Data
concerningproceedingsarenotmaintainedinaformorcharacterrelevanttothequestionbeingproposed.
Itisnoted thatenforcement proceedings areinmostinstances matters within thejurisdiction ofprivate
litigants; suchproceedings varytremendously depending onthefactual andlegal circumstances of
theaction; anddataconcerning suchproceedings isoften confidential between theparties tothe
litigation. Assuch, theUnited States Government isnotinaposition toprovide dataontheactual
duration orcostofproceedings concerned withtheenforcement ofintellectual property rights.IP/N/6/USA/1
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(b) Administrative procedures andremedies
9. Reply totheabove questions inrelation toanyadministrative procedures onthemerits
andremedies thatmayresult from these procedures.
Answers withrespect toadministrative procedures intheUnited States concerning thesubject
matter ofquestions 1to8areaddressed intheanswers provided above tothese questions.
Provisional Measures
(a) Judicial measures
10. Describe thetypes ofprovisional measures thatjudicial authorities mayorder, andthe
legal basis forsuchauthority.
Courts mayissueinjunctions priortotheconclusion ofthelegalaction bytheparties ifsufficient
standards forproof andneedaremetbytheparty seeking suchprovisional relief. Provisional relief
thuscantakeoneoftwoforms; namely apreliminary injunction ,which isaninterpartes proceeding,
andatemporary restraining order,which isanexparte proceeding. Bothforms ofprovisional measures
aregoverned byRule65oftheFederal Rules ofCivil Procedure.
TheUSITC mayalsoissuepreliminary injunctions ortemporary restraining orders consistent
withtheconditions specified intheFederal Rules ofCivil Procedure.
11. Inwhat circumstances maysuchmeasures beordered inaudita altera parte?
Rule 65(b) oftheFederal Rules ofCivil Procedure permits acourt toissue atemporary
restraining order without notice totheadverse party when thefollowing conditions areestablished
bytheparty seeking theorder:
(1) itclearly appears fromspecific factsshown byaffidavit orbytheverified complaint
thatimmediate andirreparable injury, loss,ordamage willresult totheapplicant before
theadverse party orthatparty'sattorney canbeheard inopposition; and
(2) theapplicant 'sattorney certifies tothecourt inwriting theefforts, ifany,which have
beenmade togivethenotice andthereasons supporting theclaim thatnotice should
notberequired.
TheUSITC issubject tothese restraints inissuing atemporary restraining order.
12. Describe themain procedures fortheinitiation, ordering andmaintenance inforce of
provisional measures, inparticular relevant time-limits andsafeguards toprotect thelegitimate
interests ofthedefendant.
Rule65oftheFederal Rules ofCivilProcedure prescribe theconditions thatapply tothecourt
andaparty seeking apreliminary injunction oratemporary restraining order.
Apreliminary injunction maybeissued byacourt afterconsideration ofarguments fromboth
thepartyseeking thepreliminary injunction andthepartysought tobeenjoined. Preliminary injunctions
cannot beissued without notice totheparty sought tobeenjoined.IP/N/6/USA/1
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Atemporary restraining order maybeimposed byacourt priortotheconclusion ofajudicial
proceeding ifasufficient basisisestablished bytheaggrieved party; suchorders canbeissued without
prior notice totheopposing party, butonlyonconditions specified inRule65(b) oftheFederal Rules
ofCivil Procedure.
Inallsituations where aparty hassought apreliminary injunction oratemporary restraining
order, thecourt:
- mustrequire theparty seeking theinjunction topostsecurity, inanamount thecourt
deems proper, tocover thepayment ofcosts anddamages suffered byaparty who
hasbeenfound tohavebeenwrongfully enjoined;
- must define thereasons fortheissuance oftheinjunction prior toconclusion ofthe
trialonitsmerits; and
- mustdefine theterms oftheinjunction inprecise terms, including, forexample, the
specific actstoberestrained, theparties whoaretoberestrained, andtheduration
oftheinjunction.
Thecourtissuing atemporary restraining order mustalsoobserve certain additional formalities.
Acourt imposing atemporary restraining order mustnoteontheorder thedateandtimeofitsissuance,
mustfilethenotice immediately withtheclerk’soffice andmustenter theorder intherecord ofthe
proceeding. Thecourt must also,intheorder, define theinjury andstatewhyitisirreparable and
whytheorder wasgranted without notice. Thecourt must alsodefine theduration oftheorder;
temporary restraining orders aretolastnolonger thantendays, absent ashowing ofgood cause to
havetheorder remain inforce foralonger period. Ifatemporary restraining order isgranted without
notice, theparty seeking thetemporary restraining order mustproceed withanapplication tothecourt
forapreliminary injunction. Ifsuchanapplication isnotmade, thecourt mustdissolve thetemporary
restraining order. Theapplication forapreliminary injunction must beacted onbythecourt atthe
earliest possible time. Finally, theparty towhom thetemporary restraining order isdirected may
move todissolve ormodify theorder onanexpedited basis (i.e., twodaysnotice orless).
TheUSITC canprovide provisional relief intheformofinjunctions ortemporary restraining
orders consistent withtherulesgoverning suchprovisional relief intheFederal Rules ofCivilProcedure.
13. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost.
Thelength andcostofproceedings intheUnited States, whether before acourt orbefore the
USITC, varies inrelation tothecomplexity andnature ofthelegaloradministrative proceeding. Data
concerningproceedingsarenotmaintainedinaformorcharacterrelevanttothequestionbeingproposed.
Itisnoted thatenforcement proceedings areinmostinstances matters within thejurisdiction ofprivate
litigants; suchproceedings varytremendously depending onthefactual andlegalcircumstances of
theaction; anddataconcerning suchproceedings isoften confidential between theparties tothe
litigation. Assuch, theUnited States Government isnotinaposition toprovide dataontheactual
duration orcostofproceedings concerned withtheenforcement ofintellectual property rights.
(b) Administrative measures
14. Reply totheabove questions inrelation toanyadministrative provisional measures.IP/N/6/USA/1
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Answers withrespect toadministrative procedures intheUnited States concerning thesubject
matter ofquestions 1to8areaddressed intheanswers provided above tothese questions.
Special Requirements Related toBorder Measures
15. Indicate forwhich goods itispossible toapply forthesuspension bythecustoms authorities
oftherelease intofreecirculation, inparticular whether these procedures areavailable alsoin
respect ofgoods which involve infringements ofintellectual property rights other thancounterfeit
trademark orpirated copyright goods asdefined intheTRIPS Agreement (footnote toArticle 51).
Specify, together with relevant criteria, anyimports excluded from theapplication ofsuch
procedures (such asgoods from another member ofacustoms union, goods intransit ordeminimis
imports). Dotheprocedures apply toimports ofgoods putonthemarket inanother country
byorwiththeconsent oftheright holder andtogoods destined forexportation?
Customs border enforcement procedures apply primarily togoods bearing infringing trademarks
andcopyrights. However, suchprocedures arenotlimited to"counterfeit ”or"pirated ”products.
Theycanbeinvoked withregard toanyformofinfringement ofcopyright ortrademark rights, whether
suchinfringement isliteral orresults fromafinding thattheproducts bearamark thatis"confusingly
similar ”toaregistered trademark orare"possibly piratical ”inthecontext ofcopyrighted works.
Asaresult, Customs border enforcement authorities cantakeaction against products thatarenotonly
outright"knock-offs”butalsoproductsthatarecloseenoughinappearancetogenerallyraisethequestion
ofwhether aproduct mayinfringe anintellectual property right. USCustoms border procedures also
apply togoods bearing trade names andgenuine trademarks (i.e., so-called "grey market ”goods) in
cases where nocorporate relationship exists between theUnited States 'andforeign trademark owner.
USCustoms doesnothavespecific legal authority toprotect intellectual property rights in
patents, industrial designs, mask works orundisclosed information abinitio.Rather, USCustoms
canenforce orders issued byaUScourt ortheUSITC inthese types ofintellectual property rights,
aswellaswithrespect toissues concerning trade dress orcontributory copyright infringement. The
court ortheITC, rather thanUSCustoms, isresponsible forthedetermination ofinfringement and
thedecision topreclude importation.
Thestatutory andregulatory basis fortheabove twoanswers are:
Statutory: 15U.S.C. 1124, 19U.S.C. 1526, 19U.S.C. 1595a(c); 17U.S.C. 603;18U.S.C.
2320; 18U.S.C. 2318; 19U.S.C. 1337.
Regulatory: 19C.F.R. 133.21 to133.23, 133.23a (Trademarks andTrade Names);
19C.F.R 133.42 and133.43 (Copyrights); 19C.F.R. 12.39 (Patents andUnfair Competition).
Customs border procedures areapplicable togoods shipped in-transit. Thelegalauthority is
thesame asthatfordomestic shipments.
Customs enforcement procedures todatemay,butarerarely applied toexported goods. Under
22U.S.C. 401,theUSCustoms authorities mayseizeandforfeit arms ormunitions ofwarorother
articles exported inviolation ofthelaw. Exported goods which infringe anintellectual property right
(e.g., bybearing aninfringing trademark orbyinfringing acopyright) violate USlaw,andthusfall
within thescope ofsection 401.
16. Provide adescription ofthemain elements oftheprocedures relating tothesuspension
oftherelease ofgoods bycustoms authorities, inparticular thecompetent authorities (Article 51),
therequirements foranapplication (Article 52)andvarious requirements related tothedurationIP/N/6/USA/1
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ofsuspension (Article 55). How have Articles 53(security orequivalent assurance), 56
(indemnification oftheimporter andoftheowner ofthegoods) and57(right ofinspection and
information) been implemented?
TheUnited States Customs Agency istheadministrative agency withwhom anintellectual
property right holder maydeposit itstrademark orcopyrighted work forthepurposes ofborder
enforcement. USCustoms hasestablished procedures bywhich intellectual property rightholders may
obtain protection byfiling a"record ”thatserves asthebasisforUSCustoms taking action. USCustoms
regulations havebeenamended toprovide "ad-hoc ”application contemplated inArticle 51oftheTRIPS
Agreement. USCustoms treats theterm"suspension ofrelease ”inthissection andthroughout Section 4
oftheTRIPS Agreement toinclude both"detention ”and"seizure ”ofinfringing goods.
Asthecompetent administrative authority, USCustoms willmake, within 10days, adecision
torelease ordetain imported goods ifthegoods aresuspected ofbeing infringing goods. Theintellectual
property rightholder willbenotified ifsuchstepsaretaken. Customs regulations havebeenmodified
recently toprovide fordisclosure totheintellectual property right holder intheform ofsample
merchandise andspecific information when goods areseized ordetained.
Customs procedures havealsobeenmodified toaddress theissue ofindemnification ofthe
importer incases where theimported goodissuspected ofbeing "possibly piratical ”orbears amark
thatis"confusingly similar ”toarecorded trademark. Insuchcases, theintellectual property right
holder iscontacted andrequired topostabond thatcanbeusedtoindemnify theimporter ifno
infringement isfound ofthedetained orseized goods.
Thestatutory andregulatory basis fortheabove twoanswers are:
Statutory: 15U.S.C. 1124; 17U.S.C. 603; 19U.S.C. 1526, 19U.S.C. 1595a(c),
19U.S.C. 1623.
Regulatory: 19C.F.R. Part133(Sub-parts A,BandD),19C.F.R. 133.43(b) and(d).
17. Describe provisions governing thelength andcostofproceedings. Provide anyavailable
dataontheactual duration ofproceedings andtheir cost. How longisthevalidity ofdecisions
bythecompetent authorities forthesuspension oftherelease ofgoods intofreecirculation?
Thetimeforobtaining adecision from theUSCustoms agency withrespect todetention or
seizure ofimported goods is10days. Where adversarial proceedings areinitiated, theduration of
suchproceedings doesnotexceed 90days. USCustoms willcharge theintellectual property right
holder afeeof$190.00 torecord atrademark orcopyright; thisrecord guarantees border protection
forthetermoftheregistration issued bytheUnited States Patent andTrademark Office ortheterm
ofthecopyright protection. Dataconcerning coststorights holders orimporters otherthanthosedefined
bytheUSCustoms Agency isnotavailable.
18. Arecompetent authorities required toactupon their owninitiative and,ifso,inwhat
circumstances? Arethere anyspecial provisions applicable toexofficio action?
USCustoms enforcement procedures focus primarily onexofficio intervention. Once an
intellectual property righthasbeenrecorded, fieldofficers, without theassistance oftheintellectual
property right holder, takeactions toprevent theimportation ofgoods thatinfringe therecorded
intellectual property rightonanon-going basis. Procedures arealsoavailable forproviding ad-hoc
applications andmeasures based onsuchapplications.IP/N/6/USA/1
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Thestatutory bases forthisanswer is:15U.S.C. 1124; 17U.S.C. 603;18U.S.C. 2318; 18
U.S.C. 2320.
19. Describe theremedies thatthecompetent authorities havetheauthority toorder andany
criteria regulating their use.
Under USCustoms procedures, shipments bearing marks thatare"confusingly similar ”to
arecorded trademark, orwhich are"possibly piratical ”inacopyright context, aredetained for30
days. Thisperiod gives theimporter anopportunity toshow thatcertain circumstances existthatcould
warrant release ofthemerchandise. Anexample ofsuchacondition would bethattheintellectual
property rightholder consents totheimportation orthere isanagreement toobliterate themark.
For"possibly piratical ”goods, theprocedures include anadversarial proceeding which allows
theimporter andtheintellectual property right holder topresent arguments concerning theissue of
infringementofthecopyright.Customsregulationshavebeenrecentlyamendedtomaketheseprocedures
available forsituations involving goods bearing marks thatare"confusingly similar" torecorded
trademarks.
Seized andforfeited goods thatarefound toinfringe recorded copyrights ortrademarks are
usually destroyed. Articles which infringe another form ofintellectual property right aretypically
disposed ofthrough government use,donation tocharities, orsaleafterobliteration oftheinfringing
mark. Articles detained orseized forcopyright violations mayalsobereturned tothecountry ofexport
ifitisshown thattheimporter hadnoreasonable grounds forbelieving hisactions constituted an
infringement.
Thestatutory andregulatory basis fortheabove answers are:
Statutory: 17U.S.C. 603;19U.S.C. 1526(b) and(e);19U.S.C. 1595a(c).
Regulatory: 19C.F.R. 133.22, 133.23a, 133.42, 133.43, 133.47 and133.52.
Criminal Procedures
20. Specify thecourts which have jurisdiction overcriminal actsofinfringement ofIPRs.
TheFederal district courts oftheUnited States havejurisdiction ofallcriminal violations of
Federal laws. Incopyright infringement cases, Federal courts haveexclusive jurisdiction. However,
intrademark infringement cases, thejurisdiction ofstateandFederal courts isconcurrent.
21. Inrespect ofwhich infringements ofwhich intellectual property rights arecriminal
procedures andpenalties available?
Criminal procedures andpenalties areavailable toremedy infringement ofcopyright and
trademark rights.
22. Which public authorities areresponsible forinitiating criminal proceedings? Arethey
required todothisontheir owninitiative and/or inresponse tocomplaints?
TheUnited States Department ofJustice hastheauthority toinvestigate anyalleged criminal
violations ofunlawful infringement onitsowninitiative oroncomplaint ofprivate persons. Atthe
statelevel, theOffice oftheAttorney General hastheauthority toinitiate criminal violations either
onitsownoroncomplaint ofprivate persons.IP/N/6/USA/1
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23. Doprivate persons have standing toinitiate criminal proceedings and,ifso,who?
Private persons donothavestanding toinitiate criminal proceedings.
24. Specify, bycategory ofIPRandtypeofinfringement where necessary, thepenalties and
other remedies thatmaybeimposed:
- imprisonment;
- monetary fines;
- seizure,forfeitureanddestructionofinfringinggoodsandmaterialsandimplements
fortheir production;
- other.
Copyright
Theprincipal criminal copyright lawprovision isSection 506oftheCopyright Actwhich makes
anyperson whoinfringes acopyright wilfully andforpurposes ofcommercial advantage orprivate
gainliable tobothimprisonment andfines(17U.S.C. 506(a) (1988)). Themaximum criminal penalties
varydepending onthetypeofwork involved andthequantity ofinfringing copies orphonorecords
made. Themaximum penalty forcriminal copyright infringement, unless thecriminal infringement
qualifies foramore severe maximum penalty, isafineofnotmore than$25,000, imprisonment for
notmore thanoneyearorboth(18U.S.C. 2319(b) (1988 &Supp. V1993)). Themaximum penalty
isincreased toafineofnotmore than$25,000, imprisonment fornotmore thantwoyears, orboth,
iftheoffence involves (1)thereproduction ordisposition ofmore than100butlessthan1,000
phonorecords orcopies infringing thecopyright inoneormore sound recordings during any180-day
period, or(2)thereproduction ordistribution ofmore thanseven butlessthansixty-five copies of
oneormore motion pictures orother audiovisual works during any180-day period (18U.S.C. 2319(b)
(1988 &Supp. V1993)). Themaximum penalty isincreased toafineofnotmore than$250,000,
imprisonment fornotmore thanfiveyears, orboth, iftheoffence involves (1)thereproduction or
distribution ofatleast1,000 phonorecords orcopies infringing thecopyright inoneormore sound
recordings during any180-day period, (2)thereproduction ordistribution ofatleastsixty-five copies
infringing thecopyright inoneormore motion pictures orother audiovisual works during any180-day
period, or(3)if(a)theconviction isasecond orsubsequent conviction ofthesame defendant, (b)the
conviction involves thereproduction ordistribution ofmorethan100phonorecords orcopies ofasound
recording ormore thanseven motion pictures orother audiovisual works, and(c)atleastoneprior
conviction involves thecriminal infringement ofthecopyright inasound recording, motion picture,
orother audiovisual work (19U.S.C. 2319(b) (1988 &Supp. V1993)).
Upon conviction ofcriminal copyright infringement, thecourt shallorder theforfeiture and
destruction orother disposition ofallinfringing copies orphonorecords andallimplements, devices,
orequipmentusedinthemanufactureofsuchinfringingcopiesorphonorecords.Thisorderismandatory
andnotdiscretionary (17U.S.C. 506(b) &509(a) (1988)).
Trademarks
TheintentionaltraffickingincounterfeitgoodsorservicesisaFederalcrimesubjecttomaximum
penalties against aperson of$2,000,000 infines, 10years imprisonment, orboth, andamaximum
fineof$5,000,000 asagainst acorporation (18U.S.C. 2320(b)(1988)). Forpersons already convicted
onceofatrafficking offence, themaximum penalties against aperson arefinesupto$5,000,000, 20
years imprisonment, orboth, andamaximum fineof$15,000,000 (18U.S.C. 2320(b)(1988)). For
criminal prosecution purposes, acounterfeit mark isaspurious mark usedinconnection withgoods
orservices thatisidentical withorsubstantially indistinguishable from amark registered forthoseIP/N/6/USA/1
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goods orservices ontheFederal Register, whether ornotthedefendant knew suchmarkwasregistered,
whenthedefendant'suseislikelytocauseconfusion,mistake,ortodeceive(18U.S.C.2320(d)(1988)).
Since statetrademark statutes arenotpre-empted byFederal law,statecourts havetheauthority
toimpose penal sanctions toindividuals trafficking incounterfeit goods orservices. Amajority ofstates
imposecriminalpenaltiesforindividualsdistributingarticlesonwhichatrademarkisreproducedknowing
thatthetrademark wasusedwithout theowner 'sconsent. Thefollowing listsetsforth thecriminal
penalties imposed byvarious jurisdictions:
Alabama:
Maximum fineof$5,000 andaterm ofimprisonment ofnotmore than10years (Ala.
Code 13-A-8-10.4).
Arizona:
Maximum fineof$750andatermofimprisonment ofnotmore thanfourmonths. Fines against
acorporation maybelevied inanamount nottoexceed $20,000 (Ariz. Rev.Stat.13-707 &13-803).
California andOregon:
Maximum fineof$5,000 oratermofimprisonment nottoexceed oneyear. Fines against
acorporation maybelevied inanamount nottoexceed $10,000 (Cal. Penal Code 350andOr.Rev.
Stat.647.125 to647.991).
Connecticut, District ofColumbia, Michigan, Mississippi, andTennessee:
Maximum fineof$500 oratermofimprisonment nottoexceed oneyear(Conn. Gen.Stat.
53-347; D.C. Code Ann. 22-1402; Mich. Comp. Laws Ann. 750.263; Miss. Code Ann. 97-21-53
to97-21-57; andTenn. Code Ann. 47-25-405).
Florida:
Maximum fineof$500andatermofimprisonment nottoexceed 60days(Fla.Stat.ch.506.06
to506.13).
Illinois, Maine, North Dakota andSouth Dakota:
Maximum fineof$1000 andatermofimprisonment nottoexceed oneyear(Ill.Rev.Stat.
ch.5,pare. 5-8-3 and5-91; Me.Rev.Stat.Ann. tit.10,4699; N.D. Cent. Code 51-0704; andS.D.
Codified Laws 37-6-2 &37-6-3).
Iowa:
Maximum fineof$10,000 andatermofimprisonment nottoexceed 10years (Iowa Code 903.1
&902.9).
Louisiana:
Maximum fineof$10,000 andatermofimprisonment nottoexceed fiveyears (La.Rev.Stat.
Ann. 14:229).IP/N/6/USA/1
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Minnesota:
Maximum fineof$100 andatermofimprisonment nottoexceed three months (Minn. Stat.
Ann. 333.42).
Nevada:
Maximum fineof$1,000 andatermofimprisonment nottoexceed sixmonths (Nev. Rev.
Stat.205.205 to205.215).
South Carolina:
Maximum fineof$5000 andatermofimprisonment nottoexceed oneyear. Amaximum fine
of$20,000 maybelevied against acorporation (S.C. Code Ann. 39-15-1190).
Utah:
Maximum fineof$299 andatermofimprisonment nottoexceed sixmonths. Amaximum
fineof$2,000 maybelevied against acorporation (Utah Code Ann. 76-10-1001).
WestVirginia:
Maximum fineof$500 andatermofimprisonment nottoexceed three months (W.Va.
Code 47-2-3).
25. Describeprovisionsgoverningthelengthandanycostofproceedings.Provideanyavailable
dataontheactual duration ofproceedings andtheir cost, ifany.
TheUnited States Constitution provides thattheaccused inallcriminal prosecutions shallenjoy
therighttoaspeedy andpublic trial(USConst. amend. VI).Apart fromthisConstitutional mandate,
there arenospecific provisions governing thelength ofcriminal proceedings. However, inlightof
anddepending uponthecomplexity ofcriminal copyright andtrademark infringement cases, thelength
oftheproceedings mayvaryfrom onetoseveral years.
Federal andstate governments beartheburden offinancing criminal investigations and
prosecutions. Defendants aregenerally responsible forallcosts relating totheirdefence. However,
anaccused hastheright toanattorney inallcriminal prosecutions. Therefore, intheevent thatan
accused isnotfinancially capable ofretaining theservices ofcounsel, counsel willbeappointed to
aidinthedefence oftheaccused. Allcostsvarydepending onthenature andcomplexity ofeachcase.