IB 

Union Calendar No. 34 

109TH CONGRESS 

1ST SESSION H. R. 32 

[Report No. 109–68] 

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 

MAY 3, 2005 

Additional sponsors: Mr. Manzullo, Mrs. BLACKBURN, Mr. SMITH of Washington, Mr. PENCE, Mr. SOUDER, Ms. VELA ́ZQUEZ, Mr. CALVERT, Mr. 

SCHWARZ of Michigan, Mr. ROYCE, Mr. GUTKNECHT, Mr. ACKERMAN, 

Mr. FLAKE, Mr. GERLACH, Mr. JENKINS, Mr. MCKEON, Mr. KILDEE, 

Mr. PLATTS, Mr. WILSON of South Carolina, Mr. HOSTETTLER, Mrs. 

MALONEY, Mr. WEINER, Mr. MENENDEZ, Mr. GARRETT of New Jersey, 

Mr. BROWN of Ohio, Mr. FEENEY, MR. RYAN of Ohio, Ms. Watson, Mr. 

FITZPATRICK of Pennsylvania, Mr. KANJORSKI, Ms. HART, Mrs. BONO, 

Mr. GALLEGLY, Mr. FORTUN ̃O, Mr. ROTHMAN, Mr. CHOCOLA, Mr. PETERSON of Minnesota, Mr. GOHMERT, and Mr. GORDON, 

MAY 3, 2005 

Reported with an amendment, committed to the Committee of the Whole 

House on the State of the Union, and ordered to be printed 
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[Strike out all after the enacting clause and insert the part printed in italic] 

[For text of introduced bill, see copy of bill as introduced on January 4, 2005] 

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 jobs 

9 because of the manufacture, distribution, and sale of 

10 counterfeit goods; 

11 (2) the Bureau of Customs and Border Protec12 tion estimates that counterfeiting costs the United 

13 States $200 billion annually; 

14 (3) counterfeit automobile parts, including brake 

15 pads, cost the auto industry alone billions of dollars 

16 in lost sales each year; 

17 (4) counterfeit products have invaded numerous 

18 industries including those producing auto parts, elec-
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1 trical appliances, medicines, tools, toys, office equip2 ment, clothing, and many other products; 

3 (5) ties have been established between counter4 feiting and terrorist organizations that use the sale of 

5 counterfeit goods to raise and launder money; 

6 (6) ongoing counterfeiting of manufactured goods 

7 poses a widespread threat to public health and safety; 

8 and 

9 (7) strong domestic criminal remedies against 

10 counterfeiting will permit the United States to seek 

11 stronger anticounterfeiting provisions in bilateral and 

12 international agreements with trading partners. 

13 SEC. 2. TRAFFICKING IN COUNTERFEIT MARKS. 

14 Section 2320 of title 18, United States Code, is amend15 ed as follows: 

16 (1) Subsection (a) is amended by inserting after 

17 ‘‘such goods or services’’ the following: ‘‘, or inten18 tionally traffics or attempts to traffic in labels, patch19 es, stickers, wrappers, badges, emblems, medallions, 

20 charms, boxes, containers, cans, cases, hangtags, docu21 mentation, or packaging of any type or nature, know22 ing that a counterfeit mark has been applied thereto, 

23 the use of which is likely to cause confusion, to cause 

24 mistake, or to deceive,’’. 

25 (2) Subsection (b) is amended to read as follows: 
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1 ‘‘(b)(1) Upon a determination by a preponderance of 

2 the evidence that any article in the possession of a defend3 ant in a prosecution under this section bears or consists 

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

5 and destruction of such article, regardless of whether the 

6 defendant is convicted of an offense under this section. 

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

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

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

10 section, shall order, in addition to any other sentence im11 posed, that the person forfeit to the United States— 

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

13 any proceeds the person obtained, directly or indi14 rectly, as the result of such violation, and 

15 ‘‘(B) any of the person’s property used, or in16 tended to be used, in any manner or part, to commit, 

17 facilitate, aid, or abet the commission of such viola18 tion, if the court in its discretion so determines, tak19 ing into account the nature, scope, and proportion20 ality of the use of the property in the offense. 

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

22 this section, or pleads guilty or nolo contendre to an offense 

23 under this section, the court, pursuant to sections 3556, 

24 3663A, and 3664, shall order the person to pay restitution 

25 to the owner of the mark and any other victim of the offense 
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1 as an offense against property referred to in section 

2 3663A(c)(1)(A)(ii). 

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

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

5 (3) Subsection (e)(1) is amended— 

6 (A) by striking subparagraph (A) and in7 serting the following: 

8 ‘‘(A) a spurious mark— 

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

10 trafficking in any goods, services, labels, 

11 patches, stickers, wrappers, badges, em12 blems, medallions, charms, boxes, con13 tainers, cans, cases, hangtags, documenta14 tion, or packaging of any type or nature; 

15 ‘‘(ii) that is identical with, or substan16 tially indistinguishable from, a mark reg17 istered on the principal register in the 

18 United States Patent and Trademark Office 

19 and in use, whether or not the defendant 

20 knew such mark was so registered; 

21 ‘‘(iii) that is applied to or used in con22 nection with the goods or services for which 

23 the mark is registered with the United 

24 States Patent and Trademark Office, or is 

25 applied to or consists of a label, patch, 
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1 sticker, wrapper, badge, emblem, medallion, 

2 charm, box, container, can, case, hangtag, 

3 documentation, or packaging of any type or 

4 nature that is capable of being applied to or 

5 used in connection with the goods or serv6 ices for which the mark is registered in the 

7 United States Patent and Trademark Of8 fice; and 

9 ‘‘(iv) the use of which is likely to cause 

10 confusion, to cause mistake, or to deceive; 

11 or’’; and 

12 (B) in the matter following subparagraph 

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

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

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

16 (4) Section 2320 is further amended— 

17 (A) by redesignating subsection (f) as sub18 section (g); and 

19 (B) by inserting after subsection (e) the fol20 lowing: 

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

22 States to bring a criminal cause of action under this section 

23 for the repackaging of genuine goods or services not in24 tended to deceive or confuse.’’. 

Union Calendar No. 34 

109TH CONGRESS 

1ST SESSION H. R. 32 

[Report No. 109–68] 

A BILL 

To amend title 18, United States Code, to provide 

marks. criminal penalties for trafficking in counterfeit 

MAY 3, 2005 

Reported with an amendment, committed to the Comand ordered to be printed mittee of the Whole House on the State of the Union,