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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Introduced in House (IH)]

108th CONGRESS
  1st Session
                                H. R. 3632

    To prevent and punish counterfeiting of copyrighted copies and 
                 phonorecords, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 21, 2003

Mr. Smith of Texas (for himself, Mr. Keller, Mr. Wexler, Mr. Goodlatte, 
Mr. Gallegly, and Mr. Carter) introduced the following bill; which was 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL

 
    To prevent and punish counterfeiting of copyrighted copies and 
                 phonorecords, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Anti-counterfeiting Amendments of 
2003''.

SEC. 2. PROHIBITION AGAINST TRAFFICKING IN ANTI-COUNTERFEITING 
              COMPONENTS.

    (a) In General.--Section 2318 of title 18, United States Code, is 
amended--
            (1) by striking the section heading and inserting the 
        following:
``Sec. 2318. Trafficking in counterfeit labels or counterfeit 
              documentation or packaging'';
            (2) by striking subsection (a) and inserting the following:
    ``(a) Whoever, in any of the circumstances described in subsection 
(c), knowingly traffics in--
            ``(1) a counterfeit label affixed to, enclosing, or 
        accompanying, or designed to be affixed to, enclose, or 
        accompany--
                    ``(A) a phonorecord;
                    ``(B) a copy of a computer program;
                    ``(C) a copy of a motion picture or other 
                audiovisual work; or
                    ``(D) documentation or packaging; or
            ``(2) counterfeit documentation or packaging,
shall be fined under this title or imprisoned for not more than 5 
years, or both.'';
            (3) in subsection (b)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) the term `counterfeit label' means--
                    ``(A) an identifying label or container that 
                appears to be genuine, but is not; or
                    ``(B) a genuine certificate, licensing document, 
                registration card, or similar labeling component--
                            ``(i) that is used by the copyright owner 
                        to verify that a phonorecord, a copy of a 
                        computer program, a copy of a motion picture or 
                        other audiovisual work, or documentation or 
                        packaging is not counterfeit or infringing of 
                        any copyright; and
                            ``(ii) that is, without the authorization 
                        of the copyright owner--
                                    ``(I) distributed or intended for 
                                distribution not in connection with the 
                                copy or phonorecord to which such 
                                labeling component was intended to be 
                                affixed by the respective copyright 
                                owner; or
                                    ``(II) in the case of a computer 
                                program, altered or removed to falsify 
                                the number of authorized copies or 
                                users, type of authorized user, or 
                                edition or version of the computer 
                                program;'';
                    (B) in paragraph (2), by striking ``and'' at the 
                end;
                    (C) in paragraph (3)--
                            (i) by striking ``and `audiovisual work' 
                        have'' and inserting the following: ``, 
                        `audiovisual work', `sound recording', and 
                        `copyright owner' have''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and'' ; and
                    (D) by adding at the end the following:
            ``(4) the term `documentation or packaging' means 
        documentation or packaging for a phonorecord, copy of a 
        computer program, or copy of a motion picture or other 
        audiovisual work.'';
            (4) in subsection (c)--
                    (A) by striking paragraph (3) and inserting the 
                following:
            ``(3) the counterfeit label is affixed to, encloses, or 
        accompanies, or is designed to be affixed to, enclose, or 
        accompany--
                    ``(A) a phonorecord of a copyrighted sound 
                recording;
                    ``(B) a copy of a copyrighted computer program;
                    ``(C) a copy of a copyrighted motion picture or 
                other audiovisual work; or
                    ``(D) copyrighted documentation or packaging; or''; 
                and
                    (B) in paragraph (4), by striking ``for a computer 
                program'';
            (5) in subsection (d), by inserting before the period at 
        the end the following: ``, and of any equipment, device, or 
        material used to manufacture, reproduce, or assemble the 
        counterfeit labels''; and
            (6) by adding at the end the following:
    ``(f) Civil Remedies for Violation.--
            ``(1) In general.--Any copyright owner who is injured, or 
        is threatened with injury, by a violation of this section may 
        bring a civil action in an appropriate United States district 
        court.
            ``(2) Discretion of court.--In any action brought under 
        paragraph (1), the court--
                    ``(A) may grant 1 or more temporary or permanent 
                injunctions on such terms as the court determines to be 
                reasonable to prevent or restrain violations of this 
                section;
                    ``(B) at any time while the action is pending, may 
                order the impounding, on such terms as the court 
                determines to be reasonable, of any article that is in 
                the custody or control of the alleged violator and that 
                the court has reasonable cause to believe was involved 
                in a violation of this section; and
                    ``(C) may award to the injured party--
                            ``(i) reasonable attorney fees and costs; 
                        and
                            ``(ii)(I) actual damages and any additional 
                        profits of the violator, as provided in 
                        paragraph (3); or
                            ``(II) statutory damages, as provided in 
                        paragraph (4).
            ``(3) Actual damages and profits.--
                    ``(A) In general.--The injured party is entitled to 
                recover--
                            ``(i) the actual damages suffered by the 
                        injured party as a result of a violation of 
                        this section, as provided in subparagraph (B); 
                        and
                            ``(ii) any profits of the violator that are 
                        attributable to a violation of this section and 
                        are not taken into account in computing the 
                        actual damages.
                    ``(B) Calculation of damages.--The court shall 
                calculate actual damages by multiplying--
                            ``(i) the value of the phonorecords or 
                        copies which are, or are intended to be, 
                        affixed with, enclosed in, or accompanied by 
                        any counterfeit labels or counterfeit 
                        documentation or packaging, by
                            ``(ii) the number of phonorecords or copies 
                        which are, or are intended to be, affixed with, 
                        enclosed in, or accompanied by any counterfeit 
                        labels or counterfeit documentation or 
                        packaging.
                    ``(C) Definition.--For purposes of this paragraph, 
                the term `value of the phonorecord or copy' means--
                            ``(i) in the case of a copyrighted sound 
                        recording, the retail value of an authorized 
                        phonorecord of that sound recording;
                            ``(ii) in the case of a copyrighted 
                        computer program, the retail value of an 
                        authorized copy of that computer program; and
                            ``(iii) in the case of a copyrighted motion 
                        picture or other audiovisual work, the retail 
                        value of an authorized copy of that motion 
                        picture or audiovisual work.
            ``(4) Statutory damages.--The injured party may elect, at 
        any time before final judgment is rendered, to recover, instead 
        of actual damages and profits, an award of statutory damages 
        for each violation of this section in a sum of not less than 
        $2,500 or more than $25,000, as the court considers 
        appropriate.
            ``(5) Subsequent violation.--The court may increase an 
        award of damages under this subsection by 3 times the amount 
        that would otherwise be awarded, as the court considers 
        appropriate, if the court finds that a person has subsequently 
        violated this section within 3 years after a final judgment was 
        entered against that person for a violation of this section.
            ``(6) Limitation on actions.--A civil action may not be 
        commenced under this section unless it is commenced within 3 
        years after the date on which the claimant discovers the 
        violation.
    ``(g) Other Rights not Affected.--Nothing in this section shall 
enlarge, diminish, or otherwise affect liability under section 1201 or 
1202 of title 17.''.
                                 <all>
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