I 

109TH CONGRESS 

1ST SESSION H. R. 32

To amend title 18, United States Code, to provide criminal penalties for 

trafficking in counterfeit marks. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 4, 2005

Mr. KNOLLENBERG (for himself, Mr. GREEN of Wisconsin, Mr. EHLERS, Mr. 

SIMMONS, Mr. GILLMOR, Mr. SMITH of Texas, Mr. COBLE, Mr. 

MCCOTTER, Mr. CAMP, Mr. UPTON, Mr. ROGERS of Michigan, Mr. 

WEXLER, Mr. LEVIN, Mr. ROHRABACHER, Mr. GOODLATTE, Mr. 

WELDON of Pennsylvania, Mrs. MILLER of Michigan, Mr. HOEKSTRA, 

Mr. CHABOT, Ms. KAPTUR, Mr. MCGOVERN, and Mr. TERRY) introduced 

the following bill; which was referred to the Committee on the Judiciary 

A BILL

To amend title 18, United States Code, to provide criminal 

penalties for trafficking in counterfeit marks.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; FINDINGS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Stop Counterfeiting in Manufactured Goods Act’’. 

6 (b) FINDINGS.—The Congress finds that—

7 (1) the United States economy is losing millions 

8 of dollars in tax revenue and tens of thousands of 
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1 jobs because of the manufacture, distribution, and 

2 sale of counterfeit goods; 

3 (2) the U.S. Customs Service and Border Pro4 tection estimates that counterfeiting costs the U.S. 

5 $200 billion annually; 

6 (3) counterfeit automobile parts, including 

7 brake pads, cost the auto industry alone billions of 

8 dollars in lost sales each year; 

9 (4) counterfeit products have invaded numerous 

10 industries including those producing auto parts, elec11 trical appliances, medicines, tools, toys, office equip12 ment, clothing, and many other products; 

13 (5) ties have been established between counter14 feiting and terrorist organizations that use the sale 

15 of counterfeit goods to raise and launder money; 

16 (6) ongoing counterfeiting of manufactured 

17 goods poses a widespread threat to public health and 

18 safety; and 

19 (7) strong domestic criminal remedies against 

20 counterfeiting will permit the United States to seek 

21 stronger anticounterfeiting provisions in bilateral 

22 and international agreements with trading partners. 

23 SEC. 2. TRAFFICKING IN COUNTERFEIT MARKS. 

24 Section 2320 of title 18, United States Code, is 

25 amended as follows: 
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1 (1) Subsection (a) is amended by inserting after 

2 ‘‘such goods or services’’ the following: ‘‘, or inten3 tionally traffics or attempts to traffic in labels, 

4 patches, stickers, wrappers, badges, emblems, medal5 lions, charms, boxes, containers, cans, cases, 

6 hangtags, documentation, or packaging of any type 

7 or nature to which a counterfeit mark is knowingly 

8 applied,’’. 

9 (2) Subsection (b) is amended to read as fol10 lows: 

11 ‘‘(b)(1) Upon a determination by a preponderance of 

12 the evidence that any article in the possession of a defend13 ant in a prosecution under this section bears or consists 

14 of a counterfeit mark, the court shall order the forfeiture 

15 and destruction of such article, regardless of whether the 

16 defendant is convicted of an offense under this section. 

17 ‘‘(2) The court, in imposing a sentence upon a person 

18 convicted of a violation of this section, or upon a person 

19 who pleads guilty or nolo contendre to a violation of this 

20 section, shall order, in addition to any other sentence im21 posed, that the person forfeit to the United States—

22 ‘‘(A) any property constituting or derived from 

23 any proceeds the person obtained, directly or indi24 rectly, as the result of such violation, and 
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1 ‘‘(B) any of the person’s property used, or in2 tended to be used, in any manner or part, to com3 mit, facilitate, aid, or abet the commission of such 

4 violation, 

5 if the court in its discretion so determines, taking into ac6 count the nature, scope, and proportionality of the use of 

7 the property in the offense. 

8 ‘‘(3) When a person is convicted of an offense under 

9 this section, or pleads guilty or nolo contendre to an of10 fense under this section, the court, pursuant to sections 

11 3556, 3663A, and 3664, shall order the person to pay res12 titution to the owner of the mark and any other victim 

13 of the offense as an offense against property referred to 

14 in section 3663A(c)(1)(A)(ii). 

15 ‘‘(4) The term ‘victim’, as used in paragraph (3), has 

16 the meaning given that term in section 3663A(a)(2).’’. 

17 (3) Subsection (e)(1) is amended—

18 (A) by striking subparagraph (A) and in19 serting the following: 

20 ‘‘(A) a spurious mark—

21 ‘‘(i) that is used in connection with 

22 trafficking in any goods, services, labels, 

23 patches, stickers, wrappers, badges, em24 blems, medallions, charms, boxes, con-
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1 tainers, cans, cases, hangtags, documenta2 tion, or packaging of any type or nature; 

3 ‘‘(ii) that is identical with, or substan4 tially indistinguishable from, a mark reg5 istered on the principal register in the 

6 United States Patent and Trademark Of7 fice and in use, whether or not the defend8 ant knew such mark was so registered; 

9 ‘‘(iii) that is applied to or used in con10 nection with the goods or services for 

11 which the mark is registered with the 

12 United States Patent and Trademark Of13 fice, or is applied to or consists of a label, 

14 patch, sticker, wrapper, badge, emblem, 

15 medallion, charm, box, container, can, 

16 case, hangtag, documentation, or pack17 aging of any type or nature that is capable 

18 of being applied to or used in connection 

19 with the goods or services for which the 

20 mark is registered in the United States 

21 Patent and Trademark Office; and 

22 ‘‘(iv) the use of which is likely to 

23 cause confusion, to cause mistake, or to 

24 deceive; or’’; and 
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1 (B) in the matter following subparagraph 

2 (B), by striking ‘‘used in connection with goods 

3 or services’’ and inserting ‘‘that is applied to 

4 goods, or used in connection with services,’’. 

5 (4) Section 2320 is further amended—

6 (A) by redesignating subsection (f) as sub7 section (g); and 

8 (B) by inserting after subsection (e) the 

9 following: 

10 ‘‘(f) Nothing in this section shall entitle the United 

11 States to bring a criminal cause of action for the repack12 aging, without deception, of genuine goods or services.’’.

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