69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–617 

PRIORITIZING RESOURCES AND ORGANIZATION FOR 

INTELLECTUAL PROPERTY ACT OF 2008 

MAY 5, 2008.—Committed to the Committee of the Whole House on the State of the 

Union and ordered to be printed 

Mr. CONYERS, from the Committee on the Judiciary, 

submitted the following 

R E P O R T 

[To accompany H.R. 4279] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on the Judiciary, to whom was referred the bill 

(H.R. 4279) to enhance remedies for violations of intellectual property laws, and for other purposes, having considered the same, report favorably thereon with an amendment and recommend that 

the bill as amended do pass. 

CONTENTS 

Page 

The Amendment ...................................................................................................... 1 

Purpose and Summary ............................................................................................ 20 

Background and Need for the Legislation ............................................................. 20 

Hearings ................................................................................................................... 32 

Committee Consideration ........................................................................................ 33 

Committee Votes ...................................................................................................... 33 

Committee Oversight Findings ............................................................................... 33 

New Budget Authority and Tax Expenditures ...................................................... 33 

Congressional Budget Office Cost Estimate .......................................................... 33 

Performance Goals and Objectives ......................................................................... 37 

Constitutional Authority Statement ...................................................................... 38 

Advisory on Earmarks ............................................................................................. 38 

Section-by-Section Analysis .................................................................................... 38 

Changes in Existing Law Made by the Bill, as Reported ..................................... 45 

Committee Jurisdiction Letters .............................................................................. 62 

THE AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Prioritizing Resources and Organization for Intellectual Property Act of 2008’’. 

(b) TABLE OF CONTENTS.—The table of contents is as follows: 

Sec. 1. Short title; table of contents. 


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Sec. 2. Reference. 

Sec. 3. Definition. 

TITLE I—ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS 

Sec. 101. Registration of claim. 

Sec. 102. Registration and infringement actions. 

Sec. 103. Civil remedies for infringement. 

Sec. 104. Treble damages in counterfeiting cases. 

Sec. 105. Statutory damages in counterfeiting cases. 

Sec. 106. Exportation of goods bearing infringing marks. 

Sec. 107. Importation and exportation. 

TITLE II—ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS 

Sec. 201. Criminal infringement of a copyright. 

Sec. 202. Harmonization of forfeiture procedures for intellectual property offenses.

Sec. 203. Directive to United States Sentencing Commission. 

Sec. 204. Trafficking in counterfeit goods or services. 

TITLE III—COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT AGAINST 

COUNTERFEITING AND PIRACY 

Subtitle A—Office of the United States Intellectual Property Enforcement Representative 

Sec. 301. Office of the United States Intellectual Property Enforcement Representative. 

Sec. 302. Definition. 

Subtitle B—Joint Strategic Plan 

Sec. 321. Joint Strategic Plan. 

Sec. 322. Reporting. 

Sec. 323. Savings and repeals. 

Sec. 324. Authorization of appropriations. 

TITLE IV—INTERNATIONAL ENFORCEMENT AND COORDINATION 

Sec. 401. Intellectual property attache ́s. 

Sec. 402. Duties and responsibilities of intellectual property attache ́s. 

Sec. 403. Training and designation of assignment. 

Sec. 404. Coordination. 

Sec. 405. Authorization of appropriations. 

TITLE V—DEPARTMENT OF JUSTICE PROGRAMS 

Subtitle A—Coordination 

Sec. 501. Intellectual Property Enforcement Officer. 

Subtitle B—Law Enforcement Resources 

Sec. 511. Local law enforcement grants. 

Sec. 512. CHIP units, training, and additional resources. 

Sec. 513. Transparency of prosecutorial decisionmaking. 

Sec. 514. Authorization of appropriations. 

Subtitle C—International Activities 

Sec. 521. International intellectual property law enforcement coordinators. 

Sec. 522. International training activities of the computer crime and intellectual property section. 

Subtitle D—Coordination, Implementation, and Reporting 

Sec. 531. Coordination. 

Sec. 532. Annual reports. 

SEC. 2. REFERENCE. 

Any reference in this Act to the ‘‘Trademark Act of 1946’’ refers to the Act entitled 

‘‘An Act to provide for the registration of trademarks used in commerce, to carry 

out the provisions of certain international conventions, and for other purposes’’, approved July 5, 1946 (15 U.S.C. 1051 et seq.). 

SEC. 3. DEFINITION. 

In this Act, the term ‘‘United States person’’ means—

(1) any United States resident or national, 

(2) any domestic concern (including any permanent domestic establishment of 

any foreign concern), and 

(3) any foreign subsidiary or affiliate (including any permanent foreign establishment) of any domestic concern that is controlled in fact by such domestic 

concern, 

except that such term does not include an individual who resides outside the United 

States and is employed by an individual or entity other than an individual or entity 

described in paragraph (1), (2), or (3). 


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TITLE I—ENHANCEMENTS TO CIVIL 

INTELLECTUAL PROPERTY LAWS 

SEC. 101. REGISTRATION OF CLAIM. 

Section 410 of title 17, United States Code, is amended— (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and 

(2) by inserting after subsection (b) the following: ‘‘(c)(1) A certificate of registration satisfies the requirements of section 411 and 

section 412 regardless of any inaccurate information contained in the certificate, unless— ‘‘(A) the inaccurate information was included on the application for copyright 

registration with knowledge that it was inaccurate; and ‘‘(B) the inaccuracy of the information, if known, would have caused the Register of Copyrights to refuse registration. ‘‘(2) In any case in which inaccuracies described under paragraph (1) are alleged, 

the court shall request the Register of Copyrights to advise the court whether the 

inaccuracy of the information, if known, would have caused the Register of Copyrights to refuse registration. The Register shall respond to the court’s request within 

45 days after the request is made. ‘‘(3) Nothing in this subsection shall affect any rights, obligations, or requirements 

of a person related to information contained in a registration certificate except for 

the institution of and remedies in infringement actions under sections 411 and 

412.’’. 

SEC. 102. REGISTRATION AND INFRINGEMENT ACTIONS. 

(a) REGISTRATION IN CIVIL INFRINGEMENT ACTIONS.—Section 411 of title 17, 

United States Code, is amended— (1) in the section heading, by inserting ‘‘civil’’ after ‘‘and’’ ; and 

(2) in subsection (a), by striking ‘‘no action’’ and inserting ‘‘no civil action’’. (b) TECHNICAL AND CONFORMING AMENDMENT.—Section 411(b) of title 17, United 

States Code, is amended by striking ‘‘506 and sections 509 and’’ and inserting ‘‘505 

and section’’. 

SEC. 103. CIVIL REMEDIES FOR INFRINGEMENT. 

Section 503(a) of title 17, United States Code, is amended— (1) by striking ‘‘and of all plates’’ and inserting ‘‘of all plates’’; and 

(2) by striking the period at the end and inserting the following: ‘‘, and 

records documenting the manufacture, sale, or receipt of things involved in such 

violation. The court shall enter an appropriate protective order with respect to 

discovery by the applicant of any records that have been seized. The protective 

order shall provide for appropriate procedures to assure that confidential information contained in such records is not improperly disclosed to the applicant.’’. 

SEC. 104. TREBLE DAMAGES IN COUNTERFEITING CASES. 

Section 35(b) of the Trademark Act of 1946 (15 U.S.C. 1117(b)) is amended to read 

as follows: 

‘‘(b) In assessing damages under subsection (a) for any violation of section 32(1)(a) 

of this Act or section 220506 of title 36, United States Code, in a case involving use 

of a counterfeit mark or designation (as defined in section 34(d) of this Act), the 

court shall, unless the court finds extenuating circumstances, enter judgment for 

three times such profits or damages, whichever amount is greater, together with a 

reasonable attorney’s fee, if the violation consists of—

‘‘(1) intentionally using a mark or designation, knowing such mark or designation is a counterfeit mark (as defined in section 34(d) of this Act), in connection with the sale, offering for sale, or distribution of goods or services; 

‘‘(2) intentionally inducing another to engage in a violation specified in paragraph (1); or 

‘‘(3) providing goods or services necessary to the commission of a violation 

specified in paragraph (1), with the intent that the recipient of the goods or 

services would put the goods or services to use in committing the violation. 

In such a case, the court may award prejudgment interest on such amount at an 

annual interest rate established under section 6621(a)(2) of the Internal Revenue 

Code of 1986, beginning on the date of the service of the claimant’s pleadings setting 

forth the claim for such entry of judgment and ending on the date such entry is 

made, or for such shorter time as the court considers appropriate.’’. 

SEC. 105. STATUTORY DAMAGES IN COUNTERFEITING CASES. 

Section 35(c) of the Trademark Act of 1946 (15 U.S.C. 1117) is amended—


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(1) in paragraph (1)—

(A) by striking ‘‘$500’’ and inserting ‘‘$1,000’’; and 

(B) by striking ‘‘$100,000’’ and inserting ‘‘$200,000’’; and 

(2) in paragraph (2), by striking ‘‘$1,000,000’’ and inserting ‘‘$2,000,000’’. 

SEC. 106. EXPORTATION OF GOODS BEARING INFRINGING MARKS. 

Title VII of the Trademark Act of 1946 (15 U.S.C. 1124) is amended—

(1) in the title heading, by inserting after ‘‘IMPORTATION’’ the following: 

‘‘OR EXPORTATION’’; and 

(2) in section 42—

(A) by striking the word ‘‘imported’’; and 

(B) by inserting after ‘‘customhouse of the United States’’ the following: 

‘‘, nor shall any such article be exported from the United States’’. 

SEC. 107. IMPORTATION AND EXPORTATION. 

(a) IN GENERAL.—The heading for chapter 6 of title 17, United States Code, is 

amended to read as follows: 

‘‘CHAPTER 6—MANUFACTURING REQUIREMENTS, IMPORTATION, AND 

EXPORTATION’’. 

(b) AMENDMENT ON EXPORTATION.—Section 602(a) of title 17, United States Code, 

is amended—

(1) by redesignating paragraphs (1) through (3) as subparagraphs (A) through 

(C), respectively, and moving such subparagraphs 2 ems to the right; 

(2) by striking ‘‘(a)’’ and inserting ‘‘(a) INFRINGING IMPORTATION AND EXPORTATION.—

‘‘(1) IMPORTATION.—’’; 

(3) by striking ‘‘This subsection does not apply to—’’ and inserting the following: 

‘‘(2) IMPORTATION OR EXPORTATION OF INFRINGING ITEMS.—Importation into 

the United States or exportation from the United States, without the authority 

of the owner of copyright under this title, of copies or phonorecords, the making 

of which either constituted an infringement of copyright or would have constituted an infringement of copyright if this title had been applicable, is an infringement of the exclusive right to distribute copies or phonorecords under section 106, actionable under sections 501 and 506. 

‘‘(3) EXCEPTIONS.—This subsection does not apply to—’’; 

(4) in paragraph (3)(A) (as redesignated by this subsection) by inserting ‘‘or 

exportation’’ after ‘‘importation’’; and 

(5) in paragraph (3)(B) (as redesignated by this subsection)—

(A) by striking ‘‘importation, for the private use of the importer’’ and inserting ‘‘importation or exportation, for the private use of the importer or 

exporter’’; and 

(B) by inserting ‘‘or departing from the United States’’ after ‘‘United 

States’’. 

(c) CONFORMING AMENDMENTS.—(1) Section 602 of title 17, United States Code, 

is further amended—

(A) in the section heading, by inserting ‘‘or exportation’’ after ‘‘importation’’; and 

(B) in subsection (b)—

(i) by striking ‘‘(b) In a case’’ and inserting ‘‘(b) IMPORT PROHIBITION.—

In a case’’; 

(ii) by striking ‘‘the United States Customs Service’’ and inserting ‘‘U.S. 

Customs and Border Protection’’; and 

(iii) by striking ‘‘the Customs Service’’ and inserting ‘‘U.S. Customs and 

Border Protection’’. 

(2) Section 601(b)(2) of title 17, United States Code, is amended by striking ‘‘the 

United States Customs Service’’ and inserting ‘‘U.S. Customs and Border Protection’’. 

(3) The item relating to chapter 6 in the table of chapters for title 17, United 

States Code, is amended to read as follows: 


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‘‘6. MANUFACTURING REQUIREMENTS, IMPORTATION, AND EXPORTATION ........ 601’’. 

TITLE II—ENHANCEMENTS TO CRIMINAL 

INTELLECTUAL PROPERTY LAWS 

SEC. 201. CRIMINAL INFRINGEMENT OF A COPYRIGHT. 

Section 2319 of title 18, United States Code, is amended— (1) in subsection (b)(2)— (A) by inserting ‘‘is a felony and’’ after ‘‘offense’’ the first place such term 

appears; and 

(B) by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (a)’’; 

(2) in subsection (c)(2)— (A) by inserting ‘‘is a felony and’’ after ‘‘offense’’ the first place such term 

appears; and 

(B) by striking ‘‘paragraph (1)’’ and inserting ‘‘subsection (a)’’; 

(3) in subsection (d)(3)— (A) by inserting ‘‘is a felony and’’ after ‘‘offense’’ the first place such term 

appears; and 

(B) by inserting ‘‘under subsection (a)’’ before the semicolon; and 

(4) in subsection (d)(4), by inserting ‘‘is a felony and’’ after ‘‘offense’’ the first 

place such term appears. 

SEC. 202. HARMONIZATION OF FORFEITURE PROCEDURES FOR INTELLECTUAL PROPERTY 

OFFENSES. 

(a) TRAFFICKING IN COUNTERFEIT LABELS.—Section 2318 of title 18, United States 

Code, is amended— (1) by amending subsection (d) to read as follows: ‘‘(d) FORFEITURE AND DESTRUCTION; RESTITUTION.— ‘‘(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to 

forfeiture to the United States: ‘‘(i) Any counterfeit documentation or packaging, and any counterfeit 

label or illicit label and any article to which a counterfeit label or illicit 

label has been affixed, which a counterfeit label or illicit label encloses or 

accompanies, or which was intended to have had such label affixed, enclosing, or accompanying. ‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). ‘‘(iii) Any property used, or intended to be used, to commit or facilitate 

the commission of a violation of subsection (a) that is owned or predominantly controlled by the violator or by a person conspiring with or aiding 

and abetting the violator in committing the violation, except that property 

is subject to forfeiture under this clause only if the Government establishes 

that there was a substantial connection between the property and the violation of subsection (a). 

‘‘(B) The provisions of chapter 46 relating to civil forfeitures shall extend to 

any seizure or civil forfeiture under subparagraph (A). At the conclusion of the 

forfeiture proceedings, the court shall order that any forfeited counterfeit labels 

or illicit labels and any article to which a counterfeit label or illicit label has 

been affixed, which a counterfeit label or illicit label encloses or accompanies, 

or which was intended to have had such label affixed, enclosing, or accompanying, be destroyed or otherwise disposed of according to law. 

‘‘(C) In this paragraph, the term ‘aiding and abetting’ means knowingly providing aid to the violator with the intent to facilitate the violation. 

‘‘(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in imposing sentence 

on a person convicted of an offense under this section, shall order, in addition 

to any other sentence imposed, that the person forfeit to the United States the 

following property: 

‘‘(i) Any counterfeit documentation or packaging, and any counterfeit 

label or illicit label, that was used, intended for use, or possessed with intent to use in the commission of an offense under subsection (a), and any 

article to which such a counterfeit label or illicit label has been affixed, 

which such a counterfeit label or illicit label encloses or accompanies, or 

which was intended to have had such label affixed, enclosing, or accompanying. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or substantially facilitate the commission of an offense under subsection (a). 


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‘‘(B) The forfeiture of property under subparagraph (A), including any seizure 

and disposition of the property and any related judicial or administrative proceeding, shall be governed by the procedures set forth in section 413 of the 

Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), 

other than subsection (d) of that section. At the conclusion of the forfeiture proceedings, the court shall order that any counterfeit label or illicit label and any 

article to which a counterfeit label or illicit label has been affixed, which a counterfeit label or illicit label encloses or accompanies, or which was intended to 

have had such label affixed, enclosing, or accompanying, be destroyed or otherwise disposed of according to law. 

‘‘(3) RESTITUTION.—When a person is convicted of an offense under this section, the court, pursuant to sections 3556, 3663A, and 3664, shall order the person to pay restitution to the owner of the marks or copyrighted works involved 

in the offense and any other victim of the offense as an offense against property 

referred to in section 3663A(c)(1)(A)(ii).’’; 

(2) by striking subsection (e); and 

(3) by redesignating subsection (f) as subsection (e). 

(b) CRIMINAL INFRINGEMENT OF A COPYRIGHT.—

(1) IN GENERAL.—Section 2319 of title 18, United States Code, is amended by 

adding at the end the following: 

‘‘(g) FORFEITURE AND DESTRUCTION; RESTITUTION.—

‘‘(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to 

forfeiture to the United States: 

‘‘(i) Any copies or phonorecords manufactured, reproduced, distributed, 

sold, or otherwise used, intended for use, or possessed with intent to use 

in violation of section 506(a) of title 17, any plates, molds, matrices, masters, tapes, film negatives, or other articles by means of which such copies 

or phonorecords may be made, and any devices for manufacturing, reproducing, or assembling such copies or phonorecords. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of section 506(a) of title 17. 

‘‘(iii) Any property used, or intended to be used, to commit or facilitate 

the commission of a violation of section 506(a) of title 17 that is owned or 

predominantly controlled by the violator or by a person conspiring with or 

aiding and abetting the violator in committing the violation, except that 

property is subject to forfeiture under this clause only if the Government 

establishes that there was a substantial connection between the property 

and the violation of section 506(a) of title 17. 

‘‘(B) The provisions of chapter 46 relating to civil forfeitures shall extend to 

any seizure or civil forfeiture under this section. At the conclusion of the forfeiture proceedings, the court shall order that any forfeited infringing copies or 

phonorecords, and any plates, molds, matrices, masters, tapes, and film negatives by means of which such unauthorized copies or phonorecords may be 

made, be destroyed or otherwise disposed of according to law. 

‘‘(C) In this paragraph, the term ‘aiding and abetting’ means knowingly providing aid to the violator with the intent to facilitate the violation. 

‘‘(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in imposing sentence 

on a person convicted of an offense under subsection (a), shall order, in addition 

to any other sentence imposed, that the person forfeit to the United States the 

following property: 

‘‘(i) Any copies or phonorecords manufactured, reproduced, distributed, 

sold, or otherwise used, intended for use, or possessed with intent to use 

in the commission of an offense under subsection (a), any plates, molds, 

matrices, masters, tapes, film negatives, or other articles by means of which 

the copies or phonorecords may be reproduced, and any electronic, mechanical, or other devices for manufacturing, reproducing, or assembling such 

copies or phonorecords. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or substantially facilitate the commission of an offense under subsection (a). 

‘‘(B) The forfeiture of property under subparagraph (A), including any seizure 

and disposition of the property and any related judicial or administrative proceeding, shall be governed by the procedures set forth in section 413 of the 

Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), 

other than subsection (d) of that section. At the conclusion of the forfeiture proceedings, the court shall order that any forfeited infringing copies or 

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tives by means of which such infringing copies or phonorecords may be made, 

be destroyed or otherwise disposed of according to law. ‘‘(3) RESTITUTION.—When a person is convicted of an offense under this section, the court, pursuant to sections 3556, 3663A, and 3664, shall order the person to pay restitution to the copyright owner and any other victim of the offense 

as an offense against property referred to in section 3663A(c)(1)(A)(ii).’’. (2) CONFORMING AMENDMENTS.—(A) Section 506(b) of title 17, United States 

Code, is amended by striking all that follows ‘‘destruction’’ and inserting the following: ‘‘of property as prescribed by section 2319(g) of title 18.’’. (B) Section 509 of title 17, United States Code, relating seizure and forfeiture, 

and the item relating to section 509 in the table of sections at the beginning 

of chapter 5 of title 17, United States Code, are repealed. 

(c) UNAUTHORIZED FIXATION AND TRAFFICKING.— (1) IN GENERAL.—Section 2319A of title 18, United States Code, is amended— (A) by striking subsection (c) and redesignating subsections (d), (e), and 

(f) as subsections (c), (d), and (e), respectively; and 

(B) by amending subsection (b) to read as follows: ‘‘(b) FORFEITURE AND DESTRUCTION; RESTITUTION.— ‘‘(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to 

forfeiture to the United States: ‘‘(i) Any copies or phonorecords of a live musical performance described 

in subsection (a)(1) that are made without the consent of the performer or 

performers involved, and any plates, molds, matrices, masters, tapes, and 

film negatives by means of which such copies or phonorecords may be 

made. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or facilitate 

the commission of a violation of subsection (a) that is owned or predominantly controlled by the violator or by a person conspiring with or aiding 

and abetting the violator in committing the violation, except that property 

is subject to forfeiture under this clause only if the Government establishes 

that there was a substantial connection between the property and the violation of subsection (a). 

‘‘(B) The provisions of chapter 46 relating to civil forfeitures shall extend to 

any seizure or civil forfeiture under paragraph (1). At the conclusion of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies 

or phonorecords of live musical performances, and any plates, molds, matrices, 

maters, tapes, and film negatives by means of which such unauthorized copies 

or phonorecords may be made, be destroyed or otherwise disposed of according 

to law. 

‘‘(C) In this paragraph, the term ‘aiding and abetting’ means knowingly providing aid to the violator with the intent to facilitate the violation. 

‘‘(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in imposing sentence 

on a person convicted of an offense under this section, shall order, in addition 

to any other sentence imposed, that the person forfeit to the United States the 

following property: 

‘‘(i) Any unauthorized copies or phonorecords of a live musical performance that were used, intended for use, or possessed with intent to use in 

the commission of an offense under subsection (a), and any plates, molds, 

matrices, masters, tapes, and film negatives by means of which such copies 

or phonorecords may be made. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or substantially facilitate the commission of an offense under subsection (a). 

‘‘(B) The forfeiture of property under subparagraph (A), including any seizure 

and disposition of the property and any related judicial or administrative proceeding, shall be governed by the procedures set forth in section 413 of the 

Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), 

other than subsection (d) of that section. At the conclusion of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies or 

phonorecords of live musical performances, and any plates, molds, matrices, 

masters, tapes, and film negatives by means of which such unauthorized copies 

of phonorecords may be made, be destroyed or otherwise disposed of according 

to law. 

‘‘(3) NOTIFICATION OF IMPORTATION.—The Secretary of Homeland Security 

shall issue regulations by which any performer may, upon payment of a specified fee, be entitled to notification by U.S. Customs and Border Protection of the 


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importation of copies or phonorecords that appear to consist of unauthorized fixations of the sounds or sounds and images of a live musical performance prohibited by this section. 

‘‘(4) RESTITUTION.—When a person is convicted of an offense under this section, the court, pursuant to sections 3556, 3663A, and 3664, shall order the person to pay restitution to the performer or performers involved, and any other 

victim of the offense as an offense against property referred to in section 

3663A(c)(1)(A)(ii).’’. 

(2) APPLICABILITY.—Section 2319A(e), as redesignated by paragraph (1) of this 

subsection, is amended by inserting before the period the following: ‘‘, except 

that the forfeiture provisions under subsection (b)(2), as added by the 

Prioritizing Resources and Organization for Intellectual Property Act, shall 

apply only in a case in which the underlying act or acts occur on or after the 

date of the enactment of that Act’’. 

(d) UNAUTHORIZED RECORDING OF MOTION PICTURES.—Section 2319B(b) of title 

18, United States Code, is amended to read as follows: 

‘‘(b) FORFEITURE AND DESTRUCTION; RESTITUTION.—

‘‘(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to 

forfeiture to the United States: 

‘‘(i) Any copies of a motion picture or other audiovisual work protected 

under title 17 that are made without the authorization of the copyright 

owner. 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or facilitate 

the commission of a violation of subsection (a) that is owned or predominantly controlled by the violator or by a person conspiring with or aiding 

and abetting the violator in committing the violation, except that property 

is subject to forfeiture under this clause only if the Government establishes 

that there was a substantial connection between the property and the violation of subsection (a). 

‘‘(B) The provisions of chapter 46 relating to civil forfeitures shall extend to 

any seizure or civil forfeiture under this section. At the conclusion of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies 

or phonorecords of a motion picture or other audiovisual work, or part thereof, 

and any plates, molds, matrices, masters, tapes, and film negatives by means 

of which such unauthorized copies or phonorecords may be made, be destroyed 

or otherwise disposed of according to law. 

‘‘(C) In this paragraph, the term ‘aiding and abetting’ means knowingly providing aid to the violator with the intent to facilitate the violation. 

‘‘(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in imposing sentence 

on a person convicted of an offense under this section, shall order, in addition 

to any other sentence imposed, that the person forfeit to the United States the 

following property: 

‘‘(i) Any unauthorized copies of a motion picture or other audiovisual 

work protected under title 17, or part thereof, that were used, intended for 

use, or possessed with intent to use in the commission of an offense under 

subsection (a). 

‘‘(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

‘‘(iii) Any property used, or intended to be used, to commit or substantially facilitate the commission of an offense under subsection (a). 

‘‘(B) The forfeiture of property under subparagraph (A), including any seizure 

and disposition of the property and any related judicial or administrative proceeding, shall be governed by the procedures set forth in section 413 of the 

Comprehensive Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 853), 

other than subsection (d) of that section. At the conclusion of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies or 

phonorecords of a motion picture or other audiovisual work, or part thereof, and 

any plates, molds, matrices, masters, tapes, and film negatives by means of 

which such unauthorized copies or phonorecords may be made, be destroyed or 

otherwise disposed of according to law. 

‘‘(3) RESTITUTION.—When a person is convicted of an offense under this chapter, the court, pursuant to sections 3556, 3663A, and 3664, shall order the person to pay restitution to the owner of the copyright in the motion picture or 

other audiovisual work and any other victim of the offense as an offense against 

property referred to in section 3663A(c)(1)(A)(ii).’’. 


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(e) APPLICABILITY.—The amendments made by this section shall apply only in a 

case in which the underlying act or acts occur on or after the date of the enactment 

of this Act. 

SEC. 203. DIRECTIVE TO UNITED STATES SENTENCING COMMISSION. 

(a) REVIEW AND AMENDMENT.—The United States Sentencing Commission, pursuant to its authority under section 994 of title 28, United States Code, shall review 

and, if appropriate, amend the Federal sentencing guidelines and policy statements 

applicable in any case sentenced under section 2B5.3 of the Federal sentencing 

guidelines for exporting infringing items in violation of section 602(a)(2) of title 17, 

United States Code, to determine whether a defendant in such case should receive 

an upward adjustment in the offense level, on the grounds that exportation introduces infringing items into the stream of foreign commerce in a manner analogous 

to the manner in which manufacturing, importing, and uploading such items introduces them into the stream of commerce. 

(b) AUTHORIZATION.—The United States Sentencing Commission may amend the 

Federal sentencing guidelines under subsection (a) in accordance with the procedures set forth in section 21(a) of the Sentencing Act of 1987 (28 U.S.C. 994 note) 

as though the authority under that section had not expired. 

SEC. 204. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES. 

(a) IN GENERAL.—Section 2320 of title 18, United States Code, is amended—

(1) in subsection (a)—

(A) by striking ‘‘Whoever’’ and inserting ‘‘OFFENSE.—

‘‘(1) IN GENERAL.—Whoever’’; 

(B) by moving the remaining text 2 ems to the right; and 

(C) by adding at the end the following: 

‘‘(2) SERIOUS BODILY HARM OR DEATH.—

‘‘(A) SERIOUS BODILY HARM.—If the offender knowingly or recklessly 

causes or attempts to cause serious bodily injury from conduct in violation 

of paragraph (1), the penalty shall be a fine under this title or imprisonment for not more than 20 years, or both. 

‘‘(B) DEATH.—If the offender knowingly or recklessly causes or attempts 

to cause death from conduct in violation of paragraph (1), the penalty shall 

be a fine under this title or imprisonment for any term of years or for life, 

or both.’’; and 

(2) in subsection (b)(l)—

(A) by redesignating subparagraph (B) as subparagraph (C); and 

(B) by inserting after subparagraph (A) the following: 

‘‘(B) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a).’’. 

TITLE III—COORDINATION AND STRATEGIC 

PLANNING OF FEDERAL EFFORT AGAINST 

COUNTERFEITING AND PIRACY 

Subtitle A—Office of the United States Intellectual 

Property Enforcement Representative 

SEC. 301. OFFICE OF THE UNITED STATES INTELLECTUAL PROPERTY ENFORCEMENT REPRESENTATIVE. 

(a) ESTABLISHMENT WITHIN EXECUTIVE OFFICE OF THE PRESIDENT.—There is established within the Executive Office of the President the Office of the United 

States Intellectual Property Enforcement Representative (in this title referred to as 

‘‘the Office’’). 

(b) UNITED STATES INTELLECTUAL PROPERTY ENFORCEMENT REPRESENTATIVE.—

The head of the Office shall be the United States Intellectual Property Enforcement 

Representative (in this title referred to as the ‘‘IP Enforcement Representative’’) 

who shall be appointed by the President, by and with the advice and consent of the 

Senate. As an exercise of the rulemaking power of the Senate, any nomination of 

the IP Enforcement Representative submitted to the Senate for confirmation, and 

referred to a committee, shall be referred to the Committee on the Judiciary. 

(c) DUTIES OF IP ENFORCEMENT REPRESENTATIVE.—

(1) IN GENERAL.—The IP Enforcement Representative shall—

(A) have primary responsibility for developing the Joint Strategic Plan 

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plementation of the Joint Strategic Plan by the departments and agencies 

listed in subsection (d)(2)(A); 

(B) serve as a principal advisor to the President on domestic and international intellectual property enforcement policy; 

(C) assist the United States Trade Representative—

(i) concerning negotiations on behalf of the United States relating to 

international intellectual property enforcement, including negotiations 

on any intellectual property enforcement matter considered under the 

auspices of the World Trade Organization or in the course of commodity 

or direct investment negotiations in which the United States participates; and 

(ii) in the programs of the United States Trade Representative to 

monitor and enforce intellectual property enforcement obligations of 

other countries under trade agreements with the United States; 

(D) coordinate the issuance of policy guidance to departments and agencies on basic issues of policy and interpretation that arise in the exercise 

of domestic and international intellectual property enforcement functions, 

to the extent necessary to assure the coordination of intellectual property 

enforcement policy and consistency with any other law; 

(E) act as a principal spokesperson of the President on domestic and 

international intellectual property enforcement matters; 

(F) report directly to the President and the Congress regarding domestic 

and international intellectual property enforcement programs; 

(G) advise the President and the Congress with respect to domestic and 

international intellectual property enforcement challenges and priorities; 

(H) report to the Congress, as provided in section 322, on the implementation of the Joint Strategic Plan, and make recommendations to the Congress for improvements in Federal intellectual property enforcement efforts; 

(I) chair the interagency intellectual property enforcement advisory committee established under subsection (d)(2), and consult with such advisory 

committee in the performance of the functions of the IP Enforcement Representative; and 

(J) carry out such other functions as the President may direct. 

(2) SENSE OF CONGRESS.—It is the sense of the Congress that the IP Enforcement Representative should—

(A) be a senior representative on any body that the President may establish for the purpose of providing to the President advice on overall policies 

in which intellectual property enforcement matters predominate; and 

(B) be included as a participant in economic summit and other international meetings at which international intellectual property enforcement 

is a significant topic. 

(3) DELEGATION.—The IP Enforcement Representative may—

(A) delegate any of the IP Enforcement Representative’s functions, powers, and duties to such officers and employees of the Office as the IP Enforcement Representative may designate; and 

(B) authorize such successive redelegations of such functions, powers, and 

duties to such officers and employees of the Office as the IP Enforcement 

Representative considers appropriate. 

(d) COORDINATION OF INTELLECTUAL PROPERTY ENFORCEMENT ACTIONS.—

(1) IN GENERAL.—In carrying out the functions of the IP Enforcement Representative, the IP Enforcement Representative shall develop recommendations 

on the allocation of Federal resources for intellectual property enforcement. 

(2) ADVISORY COMMITTEE.—

(A) ESTABLISHMENT.—There is established an interagency intellectual 

property enforcement advisory committee composed of the IP Enforcement 

Representative, who shall chair the committee, and senior representatives 

of the following departments and agencies who are involved in intellectual 

property enforcement, and are appointed by the respective heads of those 

departments and agencies: 

(i) The Department of Justice (including the Intellectual Property Enforcement Officer appointed under section 501). 

(ii) The United States Patent and Trademark Office and other relevant units of the Department of Commerce. 

(iii) The Office of the United States Trade Representative. 

(iv) The Department of State (including the United States Agency for 

International Development and the Bureau of International Narcotics 

Law Enforcement). 


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(v) The Department of Homeland Security (including U.S. Customs 

and Border Protection and U.S. Immigration and Customs Enforcement). 

(vi) The United States International Trade Commission. 

(vii) The Food and Drug Administration of the Department of Health 

and Human Services. 

(viii) The United States Copyright Office. 

(ix) Such other agencies as the IP Enforcement Representative determines to be substantially involved in the efforts of the Federal Government to combat counterfeiting and piracy. 

(B) FUNCTIONS.—The advisory committee established under subparagraph (A) shall, under the guidance of the IP Enforcement Representative, 

develop the Joint Strategic Plan against counterfeiting and piracy under 

section 321. 

(3) EXEMPTION FROM FEDERAL ADVISORY COMMITTEE ACT.—The Federal Advisory Committee Act shall not apply to the interagency intellectual property enforcement advisory committee established under paragraph (2) or to any of the 

activities conducted by the IP Enforcement Representative in developing the 

Joint Strategic Plan under section 321. 

(e) IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE PROTECTION OF INTELLECTUAL PROPERTY RIGHTS.—Section 182(b)(2)(A) of the Trade Act of 1974 (19 

U.S.C. 2242(b)(2)(A)) is amended by inserting ‘‘the United States Intellectual Property Enforcement Representative,’’ after ‘‘consult with’’. 

(f) POWERS OF IP ENFORCEMENT REPRESENTATIVE.—In carrying out the responsibilities under this title, the IP Enforcement Representative may—

(1) select, appoint, employ, and fix the compensation of such officers and employees as may be necessary to carry out those responsibilities; 

(2) request the head of a department, agency, or program of the Federal Government to place personnel of such department, agency, or program who are engaged in intellectual property enforcement activities on temporary detail to the 

Office of the IP Enforcement Representative to assist in carrying out those responsibilities; 

(3) use, with the consent of the Federal, State, and local government agencies 

concerned, the available services, equipment, personnel, and facilities of such 

Federal, State, and local government agencies; 

(4) procure the services of experts and consultants in accordance with section 

3109 of title 5, United States Code, relating to the procurement of temporary 

and intermittent services, at rates of compensation for individuals not to exceed 

the daily equivalent of the rate of pay payable under level IV of the Executive 

Schedule under section 5315 of title 5, United States Code, and while such experts and consultants are so serving away from their homes or regular place 

of business, pay such employees travel expenses and per diem in lieu of subsistence at rates authorized by section 5703 of title 5, United States Code, for persons in Government service employed intermittently; 

(5) issue such regulations as may be necessary to carry out the functions vested in the IP Enforcement Representative; 

(6) enter into and perform such contracts, leases, cooperative agreements, or 

other transactions as may be necessary in the conduct of the work of the Office 

and on such terms as the IP Enforcement Representative considers appropriate, 

with any department, agency, or instrumentality of the United States, or with 

any public or private person, firm, association, corporation, or institution; 

(7) accept voluntary and uncompensated services, notwithstanding the provisions of section 1342 of title 31, United States Code; 

(8) adopt an official seal, which shall be judicially noticed; and 

(9) accept, hold, administer, and use gifts, devises, and bequests of property, 

both real and personal, for the purpose of aiding or facilitating the work of the 

Office. 

(g) COMPENSATION.—Section 5312 of title 5, United States Code, is amended by 

adding at the end the following: 

‘‘United States Intellectual Property Enforcement Representative.’’. 

SEC. 302. DEFINITION. 

For purposes of this title, the term ‘‘intellectual property enforcement’’ means 

matters relating to the enforcement of laws protecting copyrights, patents, trademarks, other forms of intellectual property, and trade secrets, both in the United 

States and abroad, including in particular matters relating to combating counterfeit 

and pirated goods. 


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Subtitle B—Joint Strategic Plan 

SEC. 321. JOINT STRATEGIC PLAN. 

(a) PURPOSE.—The objectives of the Joint Strategic Plan against counterfeiting 

and piracy that is referred to in section 301(c)(1)(A) (in this section referred to as 

the ‘‘joint strategic plan’’) are the following: 

(1) Reducing counterfeit and pirated goods in the domestic and international 

supply chain. 

(2) Identifying and addressing structural weaknesses, systemic flaws, or other 

unjustified impediments to effective enforcement action against the financing, 

production, trafficking, or sale of counterfeit or pirated goods. 

(3) Assuring that information is identified and shared among the relevant departments and agencies, to the extent permitted by law and consistent with law 

enforcement protocols for handling information, to aid in the objective of arresting and prosecuting individuals and entities that are knowingly involved in the 

financing, production, trafficking, or sale of counterfeit or pirated goods. 

(4) Disrupting and eliminating domestic and international counterfeiting and 

piracy networks. 

(5) Strengthening the capacity of other countries to protect and enforce intellectual property rights, and reducing the number of countries that fail to enforce laws preventing the financing, production, trafficking, and sale of counterfeit and pirated goods. 

(6) Working with other countries to establish international standards and 

policies for the effective protection and enforcement of intellectual property 

rights. 

(7) Protecting intellectual property rights overseas by—

(A) working with other countries to ensure that such countries—

(i) have adequate and effective laws protecting copyrights, trademarks, patents, and other forms of intellectual property; 

(ii) have legal regimes that enforce their own domestic intellectual 

property laws, eliminate counterfeit and piracy operations, and arrest 

and prosecute those who commit intellectual property crimes; 

(iii) provide their law enforcement officials with the authority to 

seize, inspect, and destroy pirated and counterfeit goods, including at 

ports of entry; and 

(iv) provide for the seizure of property used to produce pirated and 

counterfeit goods; 

(B) exchanging information with appropriate law enforcement agencies in 

other countries relating to individuals and entities involved in the financing, production, trafficking, or sale of pirated or counterfeit goods; 

(C) using the information described in subparagraph (B) to conduct enforcement activities in cooperation with appropriate law enforcement agencies in other countries; and 

(D) building a formal process for consulting with companies, industry associations, labor unions, and other interested groups in other countries with 

respect to intellectual property enforcement. 

(b) TIMING.—Not later than 12 months after the date of the enactment of this Act, 

and not later than December 31 of every third year thereafter, the IP Enforcement 

Representative shall submit the joint strategic plan to the President, to the Committee on the Judiciary and the Committee on Appropriations of the House of Representatives, and to the Committee on the Judiciary and the Committee on Appropriations of the Senate. 

(c) RESPONSIBILITY OF THE IP ENFORCEMENT REPRESENTATIVE.—During the development of the joint strategic plan, the IP Enforcement Representative—

(1) shall consult and coordinate with the appropriate officers and employees 

of departments and agencies represented on the advisory committee appointed 

under section 301(d)(2) who are involved in intellectual property enforcement; 

and 

(2) may consult with private sector experts in intellectual property enforcement. 

(d) RESPONSIBILITIES OF OTHER DEPARTMENTS AND AGENCIES.—To assist in the 

development and implementation of the joint strategic plan, the heads of the departments and agencies identified under section 301(d)(2)(A) (including the heads of any 

other agencies identified by the IP Enforcement Representative under section 

301(d)(2)(A)(ix)) shall—

(1) designate personnel with expertise and experience in intellectual property 

enforcement matters to work with the IP Enforcement Representative; and 


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(2) share relevant department or agency information with the IP Enforcement 

Representative, including statistical information on the enforcement activities of 

the department or agency against counterfeiting or piracy, and plans for addressing the joint strategic plan. 

(e) CONTENTS OF THE JOINT STRATEGIC PLAN.—Each joint strategic plan shall include the following: 

(1) A detailed description of the priorities identified for carrying out the objectives in the joint strategic plan, including activities of the Federal Government 

relating to intellectual property enforcement. 

(2) A detailed description of the means and methods to be employed to 

achieve the priorities, including the means and methods for improving the efficiency and effectiveness of the Federal Government’s enforcement efforts 

against counterfeiting and piracy. 

(3) Estimates of the resources necessary to fulfill the priorities identified 

under paragraph (1). 

(4) The performance measures to be used to monitor results under the joint 

strategic plan during the following year. 

(5) An analysis of the threat posed by violations of intellectual property 

rights, including targets, risks, and threats of intellectual property infringement, the costs to the economy of the United States resulting from violations 

of intellectual property laws, and the threats to public health and safety created 

by counterfeiting and piracy. 

(6) An identification of the departments and agencies that will be involved in 

implementing each priority under paragraph (1). 

(7) A strategy for ensuring coordination between the IP Enforcement Representative and the departments and agencies identified under paragraph (6), 

including a process for oversight by the executive branch of, and accountability 

among, the departments and agencies responsible for carrying out the strategy. 

(8) Such other information as is necessary to convey the costs imposed on the 

United States economy by, and the threats to public health and safety created 

by, counterfeiting and piracy, and those steps that the Federal Government intends to take over the period covered by the succeeding joint strategic plan to 

reduce those costs and counter those threats. 

(f) ENHANCING ENFORCEMENT EFFORTS OF FOREIGN GOVERNMENTS.—The joint 

strategic plan shall include programs to provide training and technical assistance 

to foreign governments for the purpose of enhancing the efforts of such governments 

to enforce laws against counterfeiting and piracy. With respect to such programs, 

the joint strategic plan shall—

(1) seek to enhance the efficiency and consistency with which Federal resources are expended, and seek to minimize duplication, overlap, or inconsistency of efforts; 

(2) identify and give priority to those countries where programs of training 

and technical assistance can be carried out most effectively and with the greatest benefit to reducing counterfeit and pirated products in the United States 

market, to protecting the intellectual property rights of United States persons 

and their licensees, and to protecting the interests of United States persons otherwise harmed by violations of intellectual property rights in those countries; 

(3) in identifying the priorities under paragraph (2), be guided by the list of 

countries identified by the United States Trade Representative under section 

182(a) of the Trade Act of 1974 (19 U.S.C. 2242(a)); and 

(4) develop metrics to measure the effectiveness of the Federal Government’s 

efforts to improve the laws and enforcement practices of foreign governments 

against counterfeiting and piracy. 

(g) DISSEMINATION OF THE JOINT STRATEGIC PLAN.—The joint strategic plan shall 

be posted for public access on the website of the White House, and shall be disseminated to the public through such other means as the IP Enforcement Representative 

may identify. 

SEC. 322. REPORTING. 

(a) ANNUAL REPORT.—Not later than December 31 of each calendar year beginning in 2009, the IP Enforcement Representative shall submit a report on the activities of the Office during the preceding fiscal year. The annual report shall be submitted to the President and the Congress, and disseminated to the people of the 

United States, in the manner specified in subsections (b) and (g) of section 321. 

(b) CONTENTS.—The report required by this section shall include the following: 

(1) The progress made on implementing the strategic plan and on the 

progress toward fulfillment of the priorities identified under section 321(e), including an analysis of the performance measures used to monitor results described in section 321(e)(4). 


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(2) The progress made in efforts to encourage Federal, State, and local government departments and agencies to accord higher priority to intellectual property enforcement. 

(3) The progress made in working with foreign countries to investigate, arrest, 

and prosecute entities and individuals involved in the financing, production, 

trafficking, and sale of counterfeit and pirated goods. 

(4) The manner in which the relevant departments and agencies are working 

together and sharing information to strengthen intellectual property enforcement. 

(5) An assessment of the successes and shortcomings of the efforts of the Federal Government, including departments and agencies represented on the committee established under section 301(d)(2)(A), in fulfilling the priorities identified in the applicable joint strategic plan during the preceding fiscal year and 

in implementing the recommendations developed under section 301(d)(1). 

(6) Recommendations for any changes in enforcement statutes, regulations, or 

funding levels that the IP Representative considers would significantly improve 

the effectiveness or efficiency of the effort of the Federal Government to combat 

counterfeiting and piracy and otherwise strengthen intellectual property enforcement, including through the elimination or consolidation of duplicative programs or initiatives. 

(7) The progress made in strengthening the capacity of countries to protect 

and enforce intellectual property rights. 

(8) The successes and challenges in sharing with other countries information 

relating to intellectual property enforcement. 

(9) The progress of the United States Trade Representative in taking the appropriate action under any trade agreement or treaty to protect intellectual 

property rights of United States persons and their licensees. 

SEC. 323. SAVINGS AND REPEALS. 

(a) REPEAL OF COORDINATION COUNCIL.—Section 653 of the Treasury and General 

Government Appropriations Act, 2000 (15 U.S.C. 1128) is repealed. 

(b) CURRENT AUTHORITIES NOT AFFECTED.—Except as provided in subsection (a), 

nothing in this title shall alter the authority of any department or agency of the 

United States (including any independent agency) relating to—

(1) investigating and prosecuting violations of laws protecting intellectual 

property rights; 

(2) administratively enforcing, at the borders of the United States, laws protecting intellectual property rights; or 

(3) international trade or the United States trade agreements program. 

(c) REGISTER OF COPYRIGHTS.—Nothing in this title shall derogate from the duties 

and functions of the Register of Copyrights. 

SEC. 324. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL.—There are authorized to be appropriated for each fiscal year 

such sums as may be necessary to carry out this title. 

(b) SUBMISSION OF PROJECTED BUDGET.—By not later than the date on which the 

President submits to the Congress the budget of the United States Government for 

a fiscal year, the IP Representative shall submit to the Committees on the Judiciary 

of the House of Representatives and the Senate the projected amount of funds for 

the succeeding fiscal year that will be necessary for the Office to carry out its functions. 

TITLE IV—INTERNATIONAL ENFORCEMENT 

AND COORDINATION 

SEC. 401. INTELLECTUAL PROPERTY ATTACHE ́ S. 

The Under Secretary of Commerce for Intellectual Property and Director of the 

United States Patent and Trademark Office (in this title referred to as the ‘‘Director’’), in consultation with the Director General of the United States and Foreign 

Commercial Service, shall, within 2 years after the date of the enactment of this 

Act, appoint at least 10 intellectual property attache ́s to serve in United States embassies or other diplomatic missions. The appointments under this section shall be 

in addition to those individuals serving in the capacity of intellectual property 

attache ́s at United States embassies or other diplomatic missions on the date of the 

enactment of this Act. The Director shall provide such managerial, administrative, 

research, and other services as the Secretary of Commerce considers necessary to 

assist the intellectual property attache ́s in carrying out their responsibilities. 


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SEC. 402. DUTIES AND RESPONSIBILITIES OF INTELLECTUAL PROPERTY ATTACHE ́ S. 

The intellectual property attache ́s appointed under section 401, as well as others 

serving as intellectual property attache ́s of the Department of Commerce, shall have 

the following responsibilities: 

(1) To promote cooperation with foreign governments in the enforcement of 

intellectual property laws generally, and in the enforcement of laws against 

counterfeiting and piracy in particular. 

(2) To assist United States persons holding intellectual property rights, and 

the licensees of such United States persons, in their efforts to combat counterfeiting and piracy of their products or works within the host country, including 

counterfeit or pirated goods exported from or transshipped through that country. 

(3) To chair an intellectual property protection task force consisting of representatives from all other relevant sections or bureaus of the embassy or other 

mission. 

(4) To coordinate with representatives of the embassies or missions of other 

countries in information sharing, private or public communications with the 

government of the host country, and other forms of cooperation for the purpose 

of improving enforcement against counterfeiting and piracy. 

(5) As appropriate and in accordance with applicable laws and the diplomatic 

status of the attache ́s, to engage in public education efforts against counterfeiting and piracy in the host country. 

(6) To coordinate training and technical assistance programs of the United 

States Government within the host country that are aimed at improving the enforcement of laws against counterfeiting and piracy. 

(7) To assist in the coordination of the efforts of the United States Intellectual 

Property Enforcement Representative, Federal agencies, and private organizations engaged in the promotion of United States intellectual property interests 

abroad so as to maximize their effectiveness and minimize duplicative efforts. 

(8) To identify and promote other means to more effectively combat counterfeiting and piracy activities under the jurisdiction of the host country. 

SEC. 403. TRAINING AND DESIGNATION OF ASSIGNMENT. 

(a) TRAINING OF ATTACHE ́S.—The Director shall ensure that each attache ́ appointed under section 401 is fully trained for the responsibilities of the position before assuming duties at the United States embassy or other mission in question. 

(b) PRIORITY ASSIGNMENTS.—In designating the embassies or other missions to 

which attache ́s are assigned, the Director shall give priority to those countries 

where the activities of an attache ́ can be carried out most effectively and with the 

greatest benefit to reducing counterfeit and pirated products in the United States 

market, to protecting the intellectual property rights of United States persons and 

their licensees, or to protecting the interests of United States persons otherwise 

harmed by violations of intellectual property rights in those countries. 

SEC. 404. COORDINATION. 

(a) IN GENERAL.—The activities authorized by this title shall be carried out in coordination with the United States Intellectual Property Enforcement Representative 

appointed under section 301. 

(b) REPORT ON ATTACHE ́S.—The Inspector General of the Department of Commerce shall perform yearly audits of the intellectual property attache ́s of the Department, and shall report to the Committees on the Judiciary of the House of Representatives and the Senate the results of each such audit. In addition to an overview of the activities and effectiveness of the intellectual property attache ́ operations, the audit shall include—

(1) an evaluation of the current placement of foreign-based personnel and recommendations for transferring such personnel in response to newly emerging 

intellectual property issues abroad; and 

(2) an evaluation of the personnel system and its management, including the 

recruitment, assignment, promotion, and performance appraisal of personnel, 

and the use of limited appointees. 

SEC. 405. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated for each fiscal year such sums as may 

be necessary for the training and support of the intellectual property attache ́s appointed under section 401 and of other individuals serving as intellectual property 

attache ́s of the Department of Commerce. 


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TITLE V—DEPARTMENT OF JUSTICE 

PROGRAMS 

Subtitle A—Coordination 

SEC. 501. INTELLECTUAL PROPERTY ENFORCEMENT OFFICER. 

(a) ESTABLISHMENT.—There is established within the Office of the Deputy Attorney General in the Department of Justice the ‘‘Intellectual Property Enforcement 

Division’’. The head of the Intellectual Property Enforcement Division shall be the 

Intellectual Property Enforcement Officer (in this title referred to as the ‘‘IP Offi- cer’’). The IP Officer shall be appointed by the Attorney General and shall report 

directly to the Deputy Attorney General. 

(b) DUTIES.—The IP Officer shall— (1) coordinate all efforts of the Department of Justice relating to the enforcement of intellectual property rights and to combating counterfeiting and piracy; 

(2) serve as the lead representative of the Department of Justice on the advisory committee provided for in section 301(d)(2) and as the liaison of the Department of Justice with foreign governments with respect to training conducted under section 522; and 

(3) carry out such other related duties that may be assigned by the Deputy 

Attorney General. 

(c) TRANSFER OF FUNCTIONS.— (1) CRIMINAL INTELLECTUAL PROPERTY ENFORCEMENT.—There are transferred 

to the Intellectual Property Enforcement Division those functions of the Computer Crime and Intellectual Property Section of the Criminal Division of the 

Department of Justice that relate to the enforcement of criminal laws relating 

to the protection of intellectual property rights and trade secrets, including the 

following: 

(A) Sections 506 and 1204 of title 17, United States Code. 

(B) Sections 2318 through 2320 of title 18, United States Code. 

(C) Sections 1831 and 1832 of title 18, United States Code. 

(D) Any other provision of law, including the following, to the extent such 

provision involves the enforcement of any provision of law referred to in 

subparagraphs (A) through (C) or comparable provision of law: 

(i) Section 1341 of title 18, United States Code, relating to frauds and 

swindles. 

(ii) Section 1343 of title 18, United States Code, relating to fraud by 

wire, radio, or television. 

(iii) Section 2512 of title 18, United States Code, relating to trafficking in interception devices. 

(iv) Section 633 of the Communications Act of 1934 (47 U.S.C. 553), 

relating to the unauthorized reception of cable service. 

(v) Section 705 of the Communications Act of 1934 (47 U.S.C. 605), 

relating to the unauthorized publication or use of communications. 

(2) INTELLECTUAL PROPERTY ENFORCEMENT COORDINATORS.—The Intellectual 

Property Law Enforcement Coordinators of the Department of Justice to whom 

section 521 applies shall also be in the Intellectual Property Enforcement Division. 

Subtitle B—Law Enforcement Resources 

SEC. 511. LOCAL LAW ENFORCEMENT GRANTS. 

(a) AUTHORIZATION.—Section 2 of the Computer Crime Enforcement Act (42 

U.S.C. 3713) is amended—

(1) in subsection (b), by inserting after ‘‘computer crime’’ each place it appears 

the following: ‘‘, including infringement of copyrighted works over the Internet’’; 

and 

(2) in subsection (e)(1), relating to authorization of appropriations, by striking 

‘‘fiscal years 2001 through 2004’’ and inserting ‘‘fiscal years 2009 through 2013’’. 

(b) GRANTS.—The Office of Justice Programs of the Department of Justice shall 

make grants to eligible State or local law enforcement entities, including law enforcement agencies of municipal governments and public educational institutions, 

for training, prevention, enforcement, and prosecution of intellectual property theft 

and infringement crimes (in this subsection referred to as ‘‘IP–TIC grants’’), in accordance with the following: 


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(1) USE OF IP–TIC GRANT AMOUNTS.—IP–TIC grants may be used to establish 

and develop programs to do the following with respect to the enforcement of 

State and local true name and address laws and State and local criminal laws 

on anti-piracy, anti-counterfeiting, and unlawful acts with respect to goods by 

reason of their protection by a patent, trademark, service mark, trade secret, 

or other intellectual property right under State or Federal law: 

(A) Assist State and local law enforcement agencies in enforcing those 

laws, including by reimbursing State and local entities for expenses incurred in performing enforcement operations, such as overtime payments 

and storage fees for seized evidence. 

(B) Assist State and local law enforcement agencies in educating the public to prevent, deter, and identify violations of those laws. 

(C) Educate and train State and local law enforcement officers and prosecutors to conduct investigations and forensic analyses of evidence and 

prosecutions in matters involving those laws. 

(D) Establish task forces that include personnel from State or local law 

enforcement entities, or both, exclusively to conduct investigations and forensic analyses of evidence and prosecutions in matters involving those 

laws. 

(E) Assist State and local law enforcement officers and prosecutors in acquiring computer and other equipment to conduct investigations and forensic analyses of evidence in matters involving those laws. 

(F) Facilitate and promote the sharing, with State and local law enforcement officers and prosecutors, of the expertise and information of Federal 

law enforcement agencies about the investigation, analysis, and prosecution 

of matters involving those laws and criminal infringement of copyrighted 

works, including the use of multi-jurisdictional task forces. 

(2) ELIGIBILITY.—To be eligible to receive an IP–TIC grant, a State or local 

government entity must provide to the Attorney General—

(A) assurances that the State in which the government entity is located 

has in effect laws described in paragraph (1); 

(B) an assessment of the resource needs of the State or local government 

entity applying for the grant, including information on the need for reimbursements of base salaries and overtime costs, storage fees, and other expenditures to improve the investigation, prevention, or enforcement of laws 

described in paragraph (1); and 

(C) a plan for coordinating the programs funded under this section with 

other federally funded technical assistance and training programs, including directly funded local programs such as the Edward Byrne Memorial 

Justice Assistance Grant Program authorized by subpart 1 of part E of title 

I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 

3750 et seq.). 

(3) MATCHING FUNDS.—The Federal share of an IP–TIC grant may not exceed 

90 percent of the costs of the program or proposal funded by the IP–TIC grant, 

unless the Attorney General waives, in whole or in part, the 90 percent requirement. 

(4) AUTHORIZATION OF APPROPRIATIONS.—

(A) AUTHORIZATION.—There is authorized to be appropriated to carry out 

this subsection the sum of $25,000,000 for each of fiscal years 2008 through 

2012. 

(B) LIMITATION.—Of the amount made available to carry out this subsection in any fiscal year, not more than 3 percent may be used by the Attorney General for salaries and administrative expenses. 

SEC. 512. CHIP UNITS, TRAINING, AND ADDITIONAL RESOURCES. 

(a) EVALUATION OF CHIP UNITS.—The Attorney General shall review the allocation and activities of the Computer Hacking and Intellectual Property (in this section referred to as ‘‘CHIP’’) units that have been established in various Federal judicial districts, with the goals of—

(1) improving the effectiveness of CHIP units in investigating and prosecuting 

criminal offenses arising from counterfeiting or piracy activities; 

(2) ensuring that CHIP units are established and funded in every judicial district in which they can be effectively deployed; 

(3) upgrading the training and expertise of Department of Justice personnel 

participating in CHIP units; and 

(4) improving the coordination of the activities of CHIP units with corresponding efforts of State and local law enforcement agencies operating within 

the Federal judicial district in question. 


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(b) REQUIREMENTS.—In addition to any initiatives undertaken as a result of the 

review conducted under subsection (a), the Attorney General, in consultation with 

the Director of the Federal Bureau of Investigation, shall ensure that—

(1) each CHIP unit is supported by at least 2 additional agents of the Federal 

Bureau of Investigation for the purpose of investigating intellectual property 

crimes; 

(2) each CHIP unit is assigned at least 1 additional assistant United States 

attorney to support such unit for the purpose of prosecuting intellectual property crimes or other crimes involved in counterfeiting or piracy activities; 

(3) CHIP units are established and staffed in at least 10 Federal judicial districts in addition to those districts in which CHIP units exist on the date of the 

enactment of this Act; and 

(4) an operational unit is created consisting of not less than 5 agents of the 

Federal Bureau of Investigation, attached to the headquarters of the Federal 

Bureau of Investigation in Washington, D.C., and dedicated to working with the 

Intellectual Property Enforcement Division established by section 501 on the development, investigation, and coordination of complex, multi-district, and international criminal intellectual property cases. 

(c) COORDINATION WITH STATE AND LOCAL AUTHORITIES.—The United States attorney for each Federal judicial district in which a CHIP unit is in operation shall 

ensure that the activities of that unit are coordinated with the corresponding activities of State and local law enforcement agencies operating within that Federal judicial district in the investigation of intellectual property crimes and other crimes involved in counterfeiting or piracy, including by coordinating Federal, State, and 

local operations and intelligence sharing to the extent appropriate. 

(d) ADDITIONAL RESPONSIBILITIES OF THE ATTORNEY GENERAL.—The Attorney 

General, in consultation with the Director of the Federal Bureau of Investigation 

as appropriate, shall ensure the following: 

(1) All assistant United States attorneys who are assigned to CHIP units, and 

all agents of the Federal Bureau of Investigation who support those units, have 

received advanced training, on an annual basis, in the investigation and prosecution of intellectual property crimes and other crimes involved in counterfeiting and piracy. 

(2) All relevant units of the Department of Justice are allocated sufficient 

funding and other resources as may be necessary to provide expert computer 

forensic assistance, including from nongovernmental entities, in investigating 

and prosecuting intellectual property crimes in a timely manner. For purposes 

of this paragraph, the term ‘‘all relevant units’’ includes those officers and employees assigned to carry out the functions transferred by section 501(c)(1), 

CHIP units, offices of the United States attorneys, and units of the Federal Bureau of Investigation that are engaged in the investigation of intellectual property crimes. 

SEC. 513. TRANSPARENCY OF PROSECUTORIAL DECISIONMAKING. 

(a) IN GENERAL.—The Attorney General shall direct each United States attorney—

(1) to review the formal or informal standards currently in effect in that Federal judicial district for accepting or declining prosecution of cases involving 

criminal violations of intellectual property laws; 

(2) to consider whether the standards should be modified or applied more 

flexibly—

(A) to ensure that significant violations are not being declined for prosecution inappropriately; or 

(B) in light of the broader impact of individual cases on the overall strategy to combat counterfeiting and piracy; and 

(3) to review the practices and procedures currently in place for providing information to complainants and victims in cases and investigations involving 

criminal violations of intellectual property laws regarding the status of such 

cases and investigations, including the practices and procedures for apprising 

interested parties of the decision to decline prosecution of such cases. 

(b) CONSTRUCTION.—

(1) PROSECUTORIAL MATTERS.—Nothing in this section shall be construed to 

impinge on the appropriate exercise of prosecutorial discretion with regard to 

cases involving criminal violations of intellectual property laws or to require the 

promulgation of formal standards or thresholds regarding prosecution of any 

cases. 

(2) NO CLAIMS, ETC., MAY BE ASSERTED.—Nothing in the section shall give rise 

to any claim, cause of action, defense, privilege, or immunity that may be asserted by any party to Federal litigation. 


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SEC. 514. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated for each fiscal year such sums as may 

be necessary to carry out this subtitle. 

Subtitle C—International Activities 

SEC. 521. INTERNATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT COORDINATORS. 

(a) DEPLOYMENT OF ADDITIONAL COORDINATORS.—The Attorney General shall, 

within 180 days after the date of the enactment of this Act, deploy 5 Intellectual 

Property Law Enforcement Coordinators, in addition to those serving in such capacity on such date of enactment. Such deployments shall be made to those countries 

and regions where the activities of such a coordinator can be carried out most effectively and with the greatest benefit to reducing counterfeit and pirated products in 

the United States market, to protecting the intellectual property rights of United 

States persons and their licensees, and to protecting the interests of United States 

persons otherwise harmed by violations of intellectual property rights in those countries. The mission of all International Intellectual Property Law Enforcement Coordinators shall include the following: 

(1) Acting as liaison with foreign law enforcement agencies and other foreign 

officials in criminal matters involving intellectual property rights. 

(2) Performing outreach and training to build the enforcement capacity of foreign governments against intellectual property-related crime in the regions in 

which the coordinators serve. 

(3) Coordinating United States law enforcement activities against intellectual 

property-related crimes in the regions in which the coordinators serve. 

(4) Coordinating with the activities of the intellectual property attache ́s appointed under title IV in the countries or regions to which the coordinators are 

deployed. 

(5) Coordinating the activities of the coordinators with the IP Officer. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

for each fiscal year such sums as may be necessary for the deployment and support 

of all International Intellectual Property Enforcement Coordinators of the Department of Justice, including those deployed under subsection (a). 

SEC. 522. INTERNATIONAL TRAINING ACTIVITIES OF THE COMPUTER CRIME AND INTELLECTUAL PROPERTY SECTION. 

(a) INCREASED TRAINING AND TECHNICAL ASSISTANCE TO FOREIGN GOVERNMENTS.—The Attorney General shall increase the efforts of the Department of Justice to provide training and technical assistance to foreign governments, including 

foreign law enforcement agencies and foreign courts, to more effectively combat 

counterfeiting and piracy activities falling within the jurisdiction of such governments. 

(b) CONDUCT OF PROGRAMS.—The increased training and technical assistance programs under subsection (a) shall be carried out by the Intellectual Property Enforcement Division established by section 501, as well as through such other divisions, 

sections, or agencies of the Department of Justice as the Attorney General may direct. 

(c) PRIORITY COUNTRIES.—The Attorney General, in providing increased training 

and technical assistance programs under this section, shall give priority to those 

countries where such programs can be carried out most effectively and with the 

greatest likelihood of reducing counterfeit and pirated products in the United States 

market, of protecting the intellectual property rights of United States persons, or 

of protecting the interests of United States persons otherwise harmed by violations 

of intellectual property rights in those countries. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated 

for each fiscal year such sums as may be necessary to carry out this section. 

Subtitle D—Coordination, Implementation, 

and Reporting 

SEC. 531. COORDINATION. 

The IP officer shall ensure that activities undertaken under this title are carried 

out in a manner consistent with the joint strategic plan developed under section 

321. 


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1 Robert Shapiro and Nam Pham, Economic Effects of Intellectual Property-Intensive Manufacturing in the United States, prepared for World Growth (July 2007). 2Stephen Siwek, Copyright Industries in the U.S. Economy; The 2006 Report, prepared for the 

International Intellectual Property Alliance (Nov. 2006). 

SEC. 532. ANNUAL REPORTS. 

Not later than 1 year after the date of the enactment of this Act, and annually 

thereafter, the Attorney General shall submit to the Committees on the Judiciary 

of the Senate and the House of Representatives a report on actions taken to carry 

out this title, including a report on the activities of the IP Officer. 

PURPOSE AND SUMMARY

The purpose of H.R. 4279, the ‘‘Prioritizing Resources and Organization for Intellectual Property Act of 2008’’ (PRO IP Act), is to 

improve intellectual property enforcement in the United States and 

abroad. Titles 1 and 2 of the PRO IP Act strengthen civil and 

criminal intellectual property laws. This includes providing stiffer 

penalties for piracy and counterfeiting activities, harmonizing forfeiture procedures for intellectual property offenses, making it illegal to export counterfeit goods, and eliminating loopholes that 

might prevent enforcement of otherwise validly registered copyrights. Title 3 establishes an Intellectual Property Enforcement 

Representative (IPER) responsible for coordinating all Federal Government IP enforcement efforts. The IPER will be established in 

the Executive Office of the President and, with the cooperation of 

all the relevant government agencies, will be responsible for producing a Joint Strategic Plan for national intellectual property enforcement. Titles 4 and 5 of the Act strengthen the Administration’s ability to address intellectual property rights violations. It reorganizes intellectual property enforcement within the Department 

of Justice and provides additional resources to investigate and 

prosecute intellectual property crimes. It provides for intellectual 

property enforcement coordinators and additional intellectual property attache ́s to strengthen respect for intellectual property rights 

in foreign countries. And, it authorizes $25 million in grant money 

to help state and local law enforcement combat intellectual property crimes. 

BACKGROUND AND NEED FOR THE LEGISLATION

The knowledge, creativity, and industry of American citizens are 

essential to the economic strength of our nation. Intellectual property law provides the principal incentives that stimulate the creation and production of new innovations, inventions, and works. 

Countless studies have shown that many United States businesses 

and entrepreneurs rely on intellectual property rights to protect 

the significant investments of time, resources, and creativity that 

result in copyrights, trademarks, and patents. According to a recent report on intellectual property-intensive manufacturing, ‘‘twothirds of the value of America’s large businesses can be traced back 

to intangible assets that embody ideas, especially . . . patents and 

trademarks.’’ 1

Another report, which focused solely on the copyright industries, 

found that their direct and indirect contributions to the United 

States economy amounted to $1.3 trillion in 2004 and $1.38 trillion 

in 2005.2 In total, intellectual property-related businesses accounted for, on average, about 18 percent of the United States 


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3Government Accountability Office, Intellectual Property: Federal Enforcement has Generally 

Increased, but Assessing Performance Could Strengthen Law Enforcement Efforts (GAO-08-157), 

Report to Ranking Member, Subcommittee on Oversight of Government Management, the Federal Workforce, and the District of Columbia, Committee on Homeland Security and Government Affairs, U.S. Senate (Mar. 2008) [hereinafter ‘‘GAO March 2008 Report’’]. 4 International Anti-Counterfeiting Coalition, Get Real - The Truth About Counterfeiting (visited September 21, 2007), <http://www.iacc.org/counterfeiting/counterfeiting.php>. 5 Counterfeiting and Theft of Intellectual Property: Challenges and Solutions: Hearing Before 

the S. Comm. on the Judiciary, 108th Cong. (2004) (statement of Thomas Donohue, President 

and CEO of the U.S. Chamber of Commerce). 6Mac Daniel, Officials find contaminated toothpaste in Hub stores, BOSTON GLOBE, July 12, 

2007, at B7. 7David Schwab, Phony Lipitor Scheme Detailed, THE STAR-LEDGE, Oct. 16, 2003, at 25. 8 Briefing, Auto Bust, NEWSDAY, Dec. 2, 2004, at A18. 9Warning: Substandard Batteries Linked to Explosions, U.S. NEWSWIRE, Apr. 3, 2008; Fake 

Parts are Seeping Into Military Aircraft Maintenance Depots, INSIDE THE AIR FORCE, Mar. 28, 

2008, Vol. 19, No. 13; Sarah Netter, More Counterfeit Extension Cords Found, THE JOURNAL

NEWS (New York), Dec. 30, 2007, at 6A; Peter Pitts, Copycat Drugs Present Long-Term Threat 

to U.S., TAMPA TRIB., Nov. 29, 2007, at 13; David Kolman, Suppliers Warn Fleets About Parts 

Deals That Seem Too Good to be True, BULK TRANSPORTER, Nov. 1, 2007, at 26; Fake Crane 

Parts Pose Danger to Contractors, CONTRACT J., July 18, 2007, at 1; Kerry Burke & Dave 

Goldliner, Bogus Condoms a Trojan Horse, DAILY NEWS (New York), May 30, 2007, at 6. 

Gross Domestic Product (GDP) from 1998 through 2003. Intellectual property-based industries employed 18 million workers, or 

about 13 percent of the United States labor force. Intellectual property-based industries are also estimated to have accounted for 26 

percent of the annual real GDP growth rate from 1998 to 2003, and 

about 40 percent of United States exports of goods and services in 

2003 through 2004.3 The reliance by United States businesses on 

intellectual property has grown over time, and is expected to continue to grow as the United States further develops into a predominantly knowledge-based economy. 

While intellectual property is the bedrock upon which United 

States businesses have grown and thrived, increasing intellectual 

property theft in the United States and globally threatens the future economic prosperity of our nation. Conservative estimates indicate that the United States economy loses between $200 and 

$250 billion per year, and has lost 750,000 jobs, due to intellectual 

property theft.4 Some estimates indicate that counterfeit and pirated goods comprise six to nine percent of all world trade, the bulk 

of which violates the intellectual property rights of United States 

businesses and entrepreneurs.5

Intellectual property theft also poses major risks to public health 

and safety, as goods like prescription drugs, food products, electrical equipment and products, and automobile and airline parts increasingly become the targets of intellectual property thieves. 

Often, counterfeit and pirated products do not meet minimum regulatory or industry standards, are made with substandard parts, or 

contain harmful and in some cases potentially fatal ingredients. In 

June 2007, counterfeit toothpaste that contained diethylene glycol, 

a chemical used in antifreeze, was distributed and sold to American 

consumers.6 In another incident, the United States Food and Drug 

Administration recalled 200,000 bottles of fake Lipitor, a drug used 

by millions to control high cholesterol.7 In yet another high profile 

incident, investigators in New York City apprehended six auto 

parts dealers who were selling more than $700,000 worth of counterfeit ignition coils, sway bars, and brake pads.8 Countless more 

news articles have documented the variety of counterfeit products 

that impact public health and safety.9

In recent years, the United States government has responded to 

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10See generally, MOISES NAIM, ILLICIT: HOW SMUGGLERS, TRAFFICKERS, AND COPYCATS ARE

HIJACKING THE GLOBAL ECONOMY (2005). 11The Coalition Against Counterfeiting and Piracy (CACP), Intellectual Property Enforcement 

Initiative: Campaign to Protect America (2007). The CACP is an initiative organized by the 

United States Chamber of Commerce. The CACP’s members include over 500 companies and 

trade associations including 3M, Cargill, Gillette, Honeywell, Nike, Verizon, the National Association of Manufacturers, the Pharmaceutical Research and Manufacturers Association. The 

CACP’s recommendations are also supported by major labor groups like the International Brotherhood of Teamsters, the Service Employee International Union, the American Federation of 

Music, and others. 12While a number of Government Accountability Office reports and testimony informed this 

Act, the most helpful include: Finding and Fighting Fakes: Reviewing the Strategy Targeting Organized Piracy, before the S. Comm. on Homeland Security and Government Affairs, Subcomm. 

109th Cong. (June 2005) (statement of Loren Yager, Director of International Affairs and Trade, 

Government Accountability Office) [hereinafter ‘‘GAO June 2005 Testimony’’]; Government Accountability Office, Strategy for Targeting Organized Piracy (STOP) Requires Changes for Longterm Success, Report to the Chairman, Committee on Government Reform, House of Representatives (Nov. 2006) [hereinafter ‘‘GAO November 2006 Report’’]; Pirating the American Dream: Intellectual Property Theft’s Impact on America’s Place in the Global Economy and Strategies for 

Improving Enforcement, before the S. Comm. on Banking, Housing and Urban Affairs, 

Subcomm. on Security and International Trade and Finance, 110th Cong. (Apr. 2007) (Statement of Loren Yager, Director of International Affairs and Trade, Government Accountability 

Office) [hereinafter ‘‘GAO April 2007 Testimony’’]; International Piracy: The Challenges of Protecting Intellectual Property in the 21st Century, before the H. Comm. on the Judiciary, 

Subcomm. on Courts, the Internet, and Intellectual Property, 110th Cong. (Mar. 2007) (statecreasing the resources available for intellectual property enforcement, and by developing new mechanisms to meet this challenge. 

The Department of Justice has increased the number of attorneys 

available for intellectual property prosecutions. The United States 

Patent and Trademark Office has established an intellectual property attache ́ program that places experts internationally where 

United States rights holders are encountering obstacles to effective 

intellectual property protection and enforcement. 

While IP enforcement resources have increased, these increases 

unfortunately have not kept pace with the dramatic growth in the 

volume and proliferation of counterfeit and pirated goods produced 

and distributed globally. Further, growing evidence indicates that 

intellectual property thieves have become more sophisticated, employing loosely organized, decentralized multinational networks to 

facilitate the movement of illegal goods. These networks are designed to quickly adopt new technologies, strategies, suppliers, or 

distributors in order to adeptly evade detection, capture, and prosecution.10 According to INTERPOL, intellectual property theft is so 

lucrative that international organized criminal syndicates have entered into and are profiting from trade in these illegal markets. 

Given the substantial and rising importance of intellectual property to the United States economy, the threat that IP theft poses 

to United States businesses and to public health and safety, and 

the growing capabilities of intellectual property thieves, it is critical that IP enforcement be improved both domestically and internationally. To this end, a number of entities have recently released 

documents that provide detailed recommendations on the methods 

and mechanisms that the United States government can employ to 

strengthen intellectual property enforcement. These recommendations have been reviewed and were considered in the drafting of 

this Act. Among the most important of these documents are the 

Campaign to Protect America proposal from the Coalition Against 

Counterfeiting and Piracy,11 the Department of Justice’s Intellectual Property Protection Act legislative proposal, and a series of 

Government Accountability Office (GAO) reports and testimony before Congress.12


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ment of Loren Yager, Director of International Affairs and Trade, Government Accountability 

Office)[hereinafter ‘‘GAO October 2007 Testimony’’]; GAO March 2008 Report, supra note 3. 13 17 U.S.C. § 411(a). 14LETTER FROM THE OFFICE OF THE ASSISTANT ATTORNEY GENERAL, U.S. DEPARTMENT OF

JUSTICE, TO HON. NANCY PELOSI, SPEAKER, HOUSE OF REPRESENTATIVES, concerning a legislative proposal titled ‘‘Intellectual Property Act of 2007,’’ May 14, 2007, at 1. 

In summary, this Act will: 1) enhance civil and criminal penalties for intellectual property violations, to make commercial scale 

IP theft less profitable and easier to prosecute; 2) institutionalize 

key IP enforcement leadership within the Executive Office of the 

President and provide a mechanism by which the President can 

more effectively lead coordination of Federal IP enforcement efforts; 

and 3) provide greater resources for IP enforcement efforts, including increased resources and enhanced focus for the effort to investigate and prosecute domestic and international intellectual property crimes. The bill has received letters of support from key industries and associations, including the Consumer Electronics Association, Digital Media Association, Net Coalition, the Internet Commerce Coalition, Coalition for Consumers’ Pictures Rights, and the 

Printing Industries of America. This is in addition to the support 

the bill has already received from the Teamsters, Directors Guild 

of America, SEIU, AFTRA, Unite Here, AFM, Laborers, OPEIU, 

the Coalition Against Counterfeiting and Piracy, the Motor Equipment Manufacturing Association, PhRMA, and NBC Universal. 

ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAW

Title I makes a number of changes to copyright and trademark 

law that will enhance the ability of intellectual property rights 

holders to enforce their rights. Title I also makes it easier for 

rights holders to secure judgments that deter infringing activities 

and reduce the incentives available to intellectual property thieves. 

Under current law, registration of a copyright with the Copyright 

Office is a prerequisite for a United States right holder to seek 

statutory damages in a civil infringement action. According to the 

Department of Justice (DOJ), effective prosecution of criminal infringement of valuable works, especially those that have just been 

released or that have not yet been made available to the public, is 

sometimes hampered by uncertainties regarding the provision of 

current law that requires registration of U.S. works as a prerequisite of any ‘‘action for infringement of the copyright.’’ 13 DOJ 

points out that it isn’t clear whether the registration requirement 

for U.S. copyright holders has any effect on criminal prosecutions 

undertaken by DOJ.14 This Act clarifies that copyright registration 

is not a prerequisite for DOJ to criminally prosecute copyright pirates. 

While copyright registration benefits the public, it was never intended as a way for copyright pirates to evade prosecution. Prosecution of copyright crimes serves the public interest by punishing 

and deterring criminal activity. A prosecutor’s ability to serve this 

public interest should not be hamstrung by the fact that a work 

has not yet been registered. The lack of a registration does not 

make the criminal activity any less egregious, especially in a case 

in which the target of the infringement is an unreleased or justreleased work at the peak of its commercial value, or in which numerous works, some of them unregistered, are being infringed on 


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15See In re Napster, Inc., Copyright Litigation, 191 F. Supp. 2d 1087, 1099 (N.D. Cal. 2002). 

the Internet. DOJ recommends, and the Committee agrees, that 

current law should be amended to make clear that the registration 

prerequisite affects civil actions only. The Committee does not intend for this language, found in section 102 of the bill, to have any 

effect on the enforcement authority of United States Customs and 

Border Protection under sections 602 or 603 of Title 17 of the 

United States Code. 

It has also been argued in litigation that a mistake in the registration documents, such as checking the wrong box on the registration form, renders a registration invalid and thus forecloses 

the availability of statutory damages.15 To prevent intellectual 

property thieves from exploiting this potential loophole, the Act 

makes clear that a registration containing inaccuracies will satisfy 

the registration requirements of the Copyright Act unless the mistake was knowingly made and the inaccuracy, if known, would 

have caused the Register of Copyrights to refuse the registration. 

And in cases where mistakes in a copyright registration are alleged, courts will be required to seek the advice of the Register of 

Copyrights as to whether the asserted mistake, if known at the 

time of application, would have caused the Copyright Office to 

refuse registration. 

The Act contains a savings clause to protect and preserve the 

rights and interests of any person with respect to claims, including 

adverse claims, of authorship and ownership apart from the jurisdictional and remedial provisions of sections 411 and 412, at any 

time, in any judicial or administrative forum, and without any procedural or substantive limitation except as set forth in other provisions of the Copyright Act. 

Under current copyright law, the ability of the court to order impoundment of evidence of infringement is restricted to the infringing copies themselves and the means by which they may be made, 

but does not extend to the records that document the violation. 

This gap may provide copyright pirates who have been sued a window of opportunity to destroy evidence. To address this problem, 

the Act gives courts authority to also impound records that document the manufacture, sale, or receipt of things involved in a copyright violation, providing a tool similar to that available for many 

years to trademark owners in counterfeiting cases. 

Experts point out that counterfeiters have developed a ‘‘long 

value chain’’ in their operations, thus limiting the risk of each 

party being caught and the possible penalties if they are apprehended. Although under current law contributory trademark liability can be found against parties who intentionally induce others to 

commit acts of counterfeiting, or who intentionally provide goods or 

services to facilitate the commission of acts of counterfeiting, with 

the intent that the recipient of the goods or services would put 

them to use in committing the violation, the damages to which 

those parties are exposed may fall far short of deterrent levels. To 

remedy this, and to take into account the realities of today’s counterfeiting environment, the Act directs courts to award treble damages and attorney’s fees against such knowing participants in the 

value chain, just as is the case under current law with direct infringers engaged in counterfeit operations. 


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The level of statutory damages that can be assessed against 

counterfeiters has not been adjusted since 1996. In the ensuing 12 

years, the profits of counterfeiters and the volume of their traffic 

has skyrocketed. The existing statutory damage levels no longer 

serve as an adequate deterrent in this more lucrative environment. 

Therefore, the Act doubles current statutory damages for use of a 

counterfeit mark, raising the minimum to from $500 to $1,000 and 

the maximum from to $100,000 to $200,000 per mark, with willful 

counterfeiting activity subject to a maximum statutory damage 

award of $2,000,000. 

Lastly, to address reciprocity concerns, the Act explicitly makes 

it a violation of the Lanham Act and Copyright Act to export counterfeit or pirated goods from the United States, and also clarifies 

that the willful importation of pirated goods can constitute a criminal copyright offense. 

ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAW

Title II effectuates a number of enhancements to copyright and 

trademark law that will facilitate criminal prosecution of repeat 

copyright infringers, harmonize forfeiture laws related to intellectual property offenses, and increase penalties for counterfeiting violations that endanger public health and safety. 

Under current law, penalties for the repeat offense of three major 

criminal copyright acts—infringement for commercial advantage or 

private financial gain, infringement for non-commercial purposes 

above a certain threshold, and infringement of pre-release works 

over a publicly accessible computer network—automatically subject 

the infringer to enhanced penalties. For enhanced penalties to 

apply under current law, however, the repeat offender must commit the same offense twice. DOJ recommends, and the Committee 

agrees, that if a person has been convicted for any one of these 

acts, a second conviction for any of these acts should be considered 

a repeat offense for purposes of enhanced damages. 

Under current law, there are substantial variations among the 

civil and criminal forfeiture laws for violations of various criminal 

statutes prohibiting piracy and counterfeiting, as well as with regard to restitution orders. DOJ has recommended that this patchwork of provisions, enacted at various times over the past three 

decades, all be harmonized at the current standard adopted by 

Congress in 2006 with regard to trafficking in counterfeit goods. 

This would increase the consistency and predictability of the law, 

and would facilitate seizure of the proceeds of counterfeiting and 

piracy, and the tools used to carry out these crimes, in appropriate 

cases. Thus, the Act amends the forfeiture provisions of 18 U.S.C. 

§§ 2318, 2319, 2319A, and 2319B, to bring them closer in line with 

18 U.S.C. § 2320. The Act adds safeguards, however, including in 

Chapter 46 of Title 18, to ensure that civil forfeiture of property involved in the commission of the offense is restricted to property 

owned or predominantly controlled by the violator, a co-conspirator, 

or an aider and abettor of the crime, and that the property has a 

substantial connection to the offense. 

The Act also directs the U.S. Sentencing Commission to review 

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ing manufacturing, importing, and uploading of infringing items 

should be expanded to include exportation of such items. 

Lastly, to address the increasing dangers that counterfeit goods 

pose to public health and safety, the Act increases maximum penalties for trafficking in counterfeit goods where the defendant 

knowingly or recklessly causes or attempts to cause serious bodily 

injury or death. 

ESTABLISH AND INSTITUTIONALIZE EFFECTIVE INTELLECTUAL PROP- ERTY ENFORCEMENT LEADERSHIP AND COORDINATION MECHANISMS

The Administration has made a number of efforts to address the 

threat of counterfeiting and piracy, which have led to increases in 

intellectual property enforcement activity. These increases, however, have not kept pace with the volume of counterfeit and pirated 

goods appearing in the United States and in other countries around 

the world. Thus, while enforcement has been aggressively pursued, 

the effect on IP crime has been insufficient to meet the challenges 

posed by IP thieves. 

In recent reports and testimony to Congress, GAO identified a 

number of flaws in current Federal intellectual property enforcement efforts. One of the most significant deficiencies identified is 

the lack of permanent and effective leadership in coordinating 

these efforts. Federal enforcement actions have increased over the 

course of fiscal years 2001 through 2006, but the key agencies have 

not taken important steps necessary to assess their achievements. 

For example, most do not systematically analyze their IP enforcement statistics to inform management and resource allocation decisions, collect data on their efforts to address IP crimes that affect 

public health and safety, or establish IP-related performance measures or targets to assess their achievements. Also, GAO has pointed out, based on available information, that Customs and Border 

Protection’s enforcement of exclusion orders, which stop certain IPinfringing goods from entering the country, has been limited in 

part due to certain procedural weaknesses. Finally, enforcement of 

intellectual property has not been a top priority within the agencies 

and thus has not received adequate resources. 

Currently, there are programs to provide for interagency strategic planning and implementation of a national strategy. Many objective observers and participants, however, believe these processes 

have not resulted in a cohesive plan or in adequate assurances of 

accountability for implementation. 

The challenges in coordinating Federal enforcement efforts in 

support of intellectual property rights are considerable. GAO has 

pointed out that eight different Federal agencies, and several entities within these agencies, play some role in supporting intellectual 

property rights. Among those agencies, five play a key role in IP 

enforcement efforts. Each of these bodies has its own mission and 

its own set of priorities; and thus, the protection and enforcement 

of IP rights does not have the same priority in each agency. GAO 

has classified government efforts into either policy initiatives, 

training and technical assistance programs, or law enforcement. 

Most agencies and offices involved in IP-related issues participate 

in at least two of these types of activities. Under current conditions, it is not surprising that most of these agencies undertake 

similar—and in some cases duplicative—activities and programs. 


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16 Another interagency IP enforcement coordination mechanism mentioned by GAO is the National Intellectual Property Rights Coordination Center. The Center was created by the Executive Branch in 2000 to serve as an interagency mechanism to coordinate Federal investigative 

efforts. The Center, however, has not achieved its mission, and staff levels have decreased. Currently, only one agency participates in the Center’s activities, and the Center’s focus is on private sector outreach. Agencies have lacked a common understanding of the Center’s purpose and 

their role in its mission. GAO March 2008 Report, supra note 3, at 36-39. 17 Id. at 35-37. 18GAO June 2005 Testimony, supra note 12, at 11; GAO November 2006 Report, supra note 

12, at 26; GAO April 2007 Report, supra note 12, at 10. 19GAO April 2007 Testimony, supra note 12, at 9. 

With so many entities dedicated to different purposes, setting different priorities, and under different direct leadership, coordinated 

cross-agency planning and implementation is needed to optimize effectiveness and efficiency. GAO has identified two main mechanisms for the coordination of Federal intellectual property enforcement efforts—the National Intellectual Property Law Enforcement 

Coordination Council (NIPLECC) and the Strategy Targeting Organized Piracy (‘‘STOP’’) initiative.16

NIPLECC was statutorily created in 1999 to coordinate domestic 

and international intellectual property enforcement activities. The 

Council’s membership is dictated by statute, and includes the Director of the United States Patent and Trademark Office (USPTO), 

the Assistant Attorney General of the Department of Justice’s 

Criminal Division, the Undersecretary of State for Economic and 

Agricultural Affairs, the Deputy United States Trade Representative, the Commissioner of Customs, and the Undersecretary of 

Commerce for International Trade. The USPTO Director and the 

Assistant Attorney General are designated co-chairs of the Council. 

According to GAO, many in the intellectual property community 

believe that NIPLECC has been unsuccessful in its mission to 

serve as a facilitator of interagency coordination for domestic and 

international IP enforcement. NIPLECC has lacked consistent leadership for most of its existence and has struggled to define its mission.17 In 2004, Congress passed amendments to clarify its role and 

provide additional funding. These amendments also created a Coordinator for International Intellectual Property Enforcement to head 

the Council. Further GAO analysis, however, concludes that 

NIPLECC continues to suffer from inactivity and ineffectiveness.18

In contrast to NIPLECC, GAO has found that the STOP initiative is perceived to have achieved a higher degree of success in its 

multi-agency IP protection and enforcement coordination mission.19

STOP was created in 2004 as a presidential initiative led by the 

White House under the auspices of the National Security Council. 

The STOP initiative includes representatives of the Departments of 

Homeland Security, Commerce, Justice, and State, the Office of the 

United States Trade Representative (USTR), and the Food and 

Drug Administration (FDA). The STOP initiative is widely viewed 

as successful in increasing attention to intellectual property issues. 

Government officials have found that STOP has been an effective 

means of sharing ideas and supporting common goals. The private 

sector has praised the STOP initiative for improving communication between the business community and government agencies on 

intellectual property issues. GAO, however, has pointed out that 

the STOP initiative lacks several elements of an effective national 

strategic plan. Most importantly, GAO reports that the STOP initiative: 1) does not have defined performance measures such as a 


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20 Id. at 14-15. GAO did note that in recent years NIPLECC has provided information concerning intellectual property enforcement efforts taken under the STOP initiative in its annual 

reports, but this exercise is merely a catalogue of activities and lacks any real evaluation of 

their effectiveness. 

clear articulation of priorities or a process to monitor and report on 

the progress of its efforts; 2) does not provide a clear articulation 

of the resources needed to achieve its goals and from where these 

resources will come; and 3) lacks permanence and could cease existence with the end of the current Administration in January 

2009.20

To address the need for permanent and effective leadership to 

prioritize and coordinate United States intellectual property enforcement efforts across agencies, Title III establishes an Intellectual Property Enforcement Representative (IPER) within the Executive Office of the President. The IPER’s directive is to coordinate 

with all eight Federal agencies, and in some instances multiple entities within an agency. By placing the IPER in the Executive Office of the President, it is envisioned that the IPER will have the 

influence and credibility to serve as an effective coordinator of intellectual property enforcement efforts. The IPER will be a principal advisor to and a spokesperson for the President concerning IP 

enforcement issues. The IPER will also be responsible for advising 

Congress on the IP enforcement challenges the country faces, as 

well as reporting to Congress on the progress made towards implementing the Joint Strategic Plan (JSP). 

It is envisioned that the JSP will serve as the framework for coordinating and assessing Federal efforts to combat piracy and counterfeiting. The JSP will include detailed information on the threats 

of piracy and counterfeiting to the United States economy and to 

public health and safety; outline the various roles and responsibilities that government agencies will have in tackling intellectual 

property enforcement efforts; provide priorities and goals that will 

guide IP enforcement efforts; provide an accounting of the resources that will be needed to carry out the plan; and provide performance measures to gauge the success of the JSP in curbing 

counterfeiting and piracy. 

Title III also establishes an Intellectual Property Enforcement 

Advisory Committee (Advisory Committee) composed of, at least, 

representatives of the Departments of Homeland Security, Justice 

and State, the USPTO, the USTR, the Food and Drug Administration, the United States International Trade Commission, and the 

United States Copyright Office. It is envisioned that each member 

of the Advisory Committee will participate in the development of 

the JSP, which shall serve as the chief mechanism by which coordination of government efforts to combat piracy and counterfeiting 

will occur. The JSP is intended to be more than individual agency 

and department documents that are compiled by the IPER. 

The primary function of the IPER is to produce a strategic plan 

for the United States in combating counterfeiting and piracy. In 

the rare event that there is a substantial dispute that can not be 

resolved among members of the Advisory Committee, it is envisioned that the IPER, as chair of the Advisory Committee, will seek 

resolution of the dispute by the President. The Committee believes 

that the need for Presidential resolution will be a rare occurrence, 


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21ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT, THE ECONOMIC IMPACT OF

COUNTERFEITING AND PIRACY, Executive Summary (2007). 

and will be triggered only when there is substantial disagreement 

among the Advisory Committee members. 

Finally, although the IPER is expected to make recommendations 

to agencies for implementation of the JSP, it is not intended that 

the IPER have operational or other direct control over the everyday 

activities of United States intellectual property protection, enforcement actions, or other efforts. Activities the IPER is specifically 

prohibited from conducting include those directly affecting prosecutorial decisions. Additionally, the IPER’s critical coordination and 

planning role should concentrate on the enforcement of IP laws and 

not on the development of underlying substantive laws. While the 

IPER is empowered to issue housekeeping regulations relevant to 

the IPER’s activities, this legislation does not authorize the IPER 

to, for instance, undertake rule-making proceedings on matters of 

substantive intellectual property. 

IMPROVING INTERNATIONAL INTELLECTUAL PROPERTY

ENFORCEMENT EFFORTS

Federal efforts to protect and enforce intellectual property rights 

domestically and internationally are crucial to preventing billions 

of dollars in losses to the United States economy. Although improving, IP protection in many parts of the world is inadequate. According to the Organization for Economic Cooperation and Development, governments and private companies report a recent expansion in IP crimes, noting that organized criminal networks are increasingly moving into this domain due to high profit potential, 

ease of market entry, and relatively low risk.21

To counter this growing threat, Federal agencies and members of 

NIPLECC report they have taken steps to strengthen IP laws and 

enforcement globally. They assert that they have put IP protection 

and enforcement at the forefront of multilateral and bilateral relationships, have built effective global IP training and capacity-building programs, and have placed IP experts in American embassies 

overseas. 

In October 2007, the Subcommittee on Courts, the Internet, and 

Intellectual Property held a hearing on international piracy at 

which GAO and others testified on IP risks and enforcement challenges. In December 2007, the Subcommittee held a hearing on 

H.R. 4279. These hearings demonstrated that while there has been 

an increased Federal effort to enforce IP rights, our domestic efforts alone will not effectively protect American businesses, our 

markets, or the U.S. economy, unless there is a corresponding effort overseas. 

Title IV provides additional intellectual property attache ́s to promote stronger and more effective enforcement of intellectual property laws in key overseas markets. Currently, the Department of 

Commerce has placed eight attache ́s in six United States embassies 

or diplomatic missions around the world. This Act would expand 

that program by authorizing ten additional intellectual property 

attache ́s. The intellectual property attache ́ program will provide 

U.S. businesses intellectual property-related assistance in securing 


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22 H.R. 4279, The Prioritizing Resources and Organization for Intellectual Property Act of 2007, 

before the H. Comm. on the Judiciary, Subcomm. on Courts, the Internet, and Intellectual Property, 110th Cong. 3 (Dec. 2007) (statement of Sigal P. Mandelker, Deputy Assistant Attorney 

General, Criminal Division, Department of Justice). 23The International Intellectual Property Law Enforcement Coordinators act as liaisons with 

foreign law enforcement agencies and officials to assist U.S. right holders with enforcement of 

their intellectual property rights abroad. 

and protecting their rights in an expanded number of countries 

than the current Department of Commerce program provides. 

INCREASED RESOURCES FOR INTELLECTUAL PROPERTY-RELATED

INVESTIGATIONS AND PROSECUTIONS

Increased investigation and prosecution activities at the Department of Justice in the last few years have yielded some successes. 

Specifically, the Department filed 217 intellectual property cases in 

FY 2007, representing a 7% increase over cases reported in FY 

2006 (204), and a 33% increase over cases reported in FY 2005 

(169). Also in FY 2007, 287 defendants were sentenced for intellectual property crimes, representing a 35% increase over FY 2006 

(213) and a 92% increase over FY 2005 (149).22

Notwithstanding the increase in efforts by the Department of 

Justice to combat intellectual property crimes, there is a widespread perception among the stakeholders that additional resources 

and personnel are required to investigate, enforce, and prosecute 

infringers to the level that is needed to serve as a strong deterrent 

to future acts of piracy and counterfeiting. The data bears out that 

perception. Fewer than one in 300 Federal prosecutions, or less 

than one half of 1 percent of DOJ cases in FY 2006, were related 

to IP enforcement. This low number is not due to a lack of criminal 

activity to pursue. A recent study, conducted by the Gallup Organization at the request of the U.S. Chamber of Commerce, demonstrated the widespread availability of pirated material to the extent that 25% of the population of Los Angeles County admitted to 

knowingly purchasing, copying, or downloading illegal goods. The 

number of IP crime prosecutions is inadequate given the effect that 

such crimes have on this country’s businesses, jobs, and overall economic well-being.23

To ensure DOJ’s IP enforcement efforts keep better pace with the 

level of intellectual property theft domestically and abroad, this 

legislation provides DOJ with more resources to combat IP crimes. 

Currently, much of DOJ’s intellectual property enforcement activities are carried out by Computer Hacking and Intellectual Property 

(CHIP) units assigned to various United States Attorney Offices. 

Title V will provide at least two additional FBI agents and one additional Assistant United States Attorney to each CHIP unit. Title 

V also authorizes the Attorney General to deploy an additional five 

International Intellectual Property Law Enforcement Coordinators 

to facilitate international IP criminal investigations and provide increased training and technical assistance to foreign law enforcement personnel. 

Title V also provides grants to local and State law enforcement 

for activities directed at combating intellectual property violations. 

Encouraging increased cooperation and communication across jurisdictions and agencies is a primary goal of this legislation and the 

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feiting. Day-to-day piracy and counterfeiting enforcement operations often fall to State and local entities, thus the Federal Government should provide monetary assistance, especially in light of 

the fact that a local department’s hierarchy of public safety priorities typically dictates that piracy and counterfeiting crimes do not 

receive the attention or resources they deserve. Moreover, counterfeiting investigations and operations are typically lengthy, trigger 

overtime for the participating officers, and require uncommon expenditures (such as evidence storage for vast quantities of confiscated contraband), cutting into a State or local agency’s already 

lean budget. For these reasons, this legislation establishes a new 

grant program in the Department of Justice’s Office of Justice Programs to assist State and local law enforcement entities engaged 

in anti-piracy and counterfeiting crime prevention, investigation, 

enforcement, or prosecution. 

Lastly, to ensure that DOJ places a greater priority on investigating and prosecuting intellectual property crimes, this legislation reorganizes IP enforcement responsibilities within the Department. In addition to CHIPS units, DOJ’s intellectual property enforcement efforts are also carried out by the Computer Crime and 

Intellectual Property Section at DOJ headquarters in Washington, 

D.C. Instead of combining intellectual property with computer 

crime, Title V establishes a separate division for intellectual property enforcement within DOJ headquarters. This division will be 

headed by an Intellectual Property Enforcement Officer who reports directly to the Deputy Attorney General, and who will be responsible for coordinating all DOJ efforts related to IP enforcement. 

Many of these changes, particularly the reorganization of resources within DOJ, will increase the importance that DOJ places 

on intellectual property enforcement. In addition, these changes address GAO’s concerns about a lack of sufficient institutionalized 

leadership and are consistent with GAO’s recommendations as well 

as those provided by the CACP. 

In developing the above changes, particularly to the organizational structure of intellectual property enforcement personnel, 

input from DOJ was actively sought. DOJ’s responses have not 

been particularly substantive or responsive to the Committee’s goal 

of increasing the effectiveness of DOJ’s current IP enforcement 

mechanisms. The Committee believes that substantial changes are 

necessary to permanently elevate the priority of IP enforcement 

within DOJ. 

ECONOMIC BENEFITS OF INCREASED INTELLECTUAL PROPERTY

ENFORCEMENT

While the economic cost and the threat to American health and 

safety caused by counterfeiting and piracy are well documented, 

from a fiscal standpoint it is also important to quantify the benefits 

that can be expected from increased efforts to enforce intellectual 

property rights. A recent study conducted by Dr. Laura Tyson, with 

the respected economic firm of LECG, LLC, provides a cost-benefit 

analysis of the CACP initiative, from which many provisions of this 

Act were derived. The report conservatively estimates the expected 

budgetary costs of increasing enforcement on the high side of the 


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24Laura Tyson, Economic Analysis of the Proposed CACP Anti-Counterfeiting and Piracy Initiative, prepared for the Coalition Against Counterfeiting and Piracy (2007). 25 Id. at v-vi. 

likely range, and estimates benefits of the initiative’s implementation on the low side of the likely range.24

The report reaches the following conclusions about the costs and 

benefits of implementing the CACP initiative: 

[T]he CACP initiative is a sound investment for the Federal 

Government. Even under very conservative assumptions, it 

would produce sizeable reductions in business losses caused by 

piracy and counterfeiting, it would generate meaningful increases in output and employment levels in the US economy, 

and it would increase Federal Government revenues by substantially more than its costs. 

For every dollar spent prudently on the CACP initiative, Federal tax revenues would increase by at least $2.9 and by as 

much as $9.7 with an intermediate range of $4.9 to $5.7. These 

Federal tax revenue increases are due to the increase in U.S. 

output and employment that would occur as a result of implementing the CACP initiative. For every dollar spent on the 

CACP initiative, U.S. output would increase by at least $38 

and would increase by as much as $127 with an intermediate 

range of $64 to $75.3. The increase in output due to implementing the CACP program will result in the creation of between 174,000 and 348,000 new jobs during the third year. 

Therefore, the return to the Federal Government and the economy of investing in the CACP initiative is very high. In addition, State and local governments can expect to receive incremental revenues between $1.25 billion and $1.50 billion, in 

present value terms, over 3 years, if the CACP initiative is implemented. 

Over time, by enabling the IP-intensive industries to earn a 

higher return, the CACP measures would encourage more investment and foster faster U.S. economic growth. In addition 

to these quantifiable benefits, enactment of the CACP initiative would increase the protection of American consumers 

against the health and safety risks of counterfeited and pirated 

goods. Finally, more effective policies to combat piracy and 

counterfeiting are an important complement to policies to combat organized crime and terrorism and to enhance national security.25

The Committee believes that enactment of H.R. 4279 will produce 

similar benefits to the United States economy. 

HEARINGS

The Committee’s Subcommittee on Courts, the Internet, and Intellectual Property held 1 day of hearings on H.R. 4279 on December 13, 2007. Testimony was received from Sigal P. Mandelker, 

Deputy Assistant Attorney General, Criminal Division, United 

States Department of Justice; James P. Hoffa, General President, 

International Brotherhood of Teamsters; Gigi B. Sohn, President 

and Co-Founder, Public Knowledge; and Rick Cotton, Executive 


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Vice President and General Counsel, NBC Universal, New York, 

N.Y. 

In addition to this hearing, the Subcommittee on Courts, the 

Internet, and Intellectual Property held 1 day of hearings on the 

subject of International Piracy: The Challenges of Protecting Intellectual Property in the 21st Century, on October 18, 2007. Testimony was received from Victoria A. Espinel, Assistant United 

States Trade Representative for Intellectual Property & Innovation, 

Office of the United States Trade Representative; Eric H. Smith, 

President, International Intellectual Property Alliance; Loren 

Yager, Director of International Affairs and Trade, United States 

General Accounting Office; Mark MacCarthy, Senior Vice President 

for Global Public Policy, Visa Incorporated. 

COMMITTEE CONSIDERATION

On March 6, 2008, the Subcommittee on Courts, the Internet, 

and Intellectual Property met in open session and ordered the bill 

H.R. 4279 favorably reported, as amended, by voice vote, a quorum 

being present. On April 30, 2007, the Committee met in open session and ordered the bill H.R. 4279 favorably reported, as amended, by voice vote, a quorum being present. 

COMMITTEE VOTES

In compliance with clause 3(b) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that there were 

no recorded votes during the Committee’s consideration of H.R. 

4279. 

COMMITTEE OVERSIGHT FINDINGS

In compliance with clause 3(c)(1) of rule XIII of the Rules of the 

House of Representatives, the Committee advises that the findings 

and recommendations of the Committee, based on oversight activities under clause 2(b)(1) of rule X of the Rules of the House of Representatives, are incorporated in the descriptive portions of this report. 

NEW BUDGET AUTHORITY AND TAX EXPENDITURES

Clause 3(c)(2) of rule XIII of the Rules of the House of Representatives is inapplicable because this legislation does not provide new 

budgetary authority or increased tax expenditures. 

CONGRESSIONAL BUDGET OFFICE COST ESTIMATE

In compliance with clause 3(c)(3) of rule XIII of the Rules of the 

House of Representatives, the Committee sets forth, with respect to 

the bill, H.R. 4279, the following estimate and comparison prepared 

by the Director of the Congressional Budget Office under section 

402 of the Congressional Budget Act of 1974: 


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U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, May 5, 2008. 

Hon. JOHN CONYERS, Jr., Chairman, 

Committee on the Judiciary, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 4279, the Prioritizing Resources and Organization for Intellectual Property Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Leigh Angres. 

Sincerely, 

PETER R. ORSZAG, 

DIRECTOR. 

Enclosure 

cc: Honorable Lamar S. Smith. 

Ranking Member 

H.R. 4279—Prioritizing Resources and Organization for Intellectual 

Property Act of 2008. 

SUMMARY

H.R. 4279 would authorize additional resources for the Executive 

Office of the President, the Patent and Trademark Office (PTO), 

and the Department of Justice (DOJ) to enforce intellectual property laws and to reduce counterfeiting and piracy of protected intellectual property. CBO estimates that implementing the bill would 

cost $435 million over the 2009–2013 period, subject to the appropriation of the necessary amounts. The legislation could affect direct spending and revenues, but we estimate that any such effects 

would be less than $500,000 annually. 

H.R. 4279 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would 

impose no costs on state, local, or tribal governments. 

ESTIMATED COST TO THE FEDERAL GOVERNMENT

The estimated budgetary impact of H.R. 4279 is shown in the following table. The costs of this legislation fall within budget functions 750 (administration of justice), 370 (commerce and housing 

credit), and 800 (general government). 


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By Fiscal Year, in Millions of Dollars 

2009 2010 2011 2012 2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Title III: Executive Office of the President Enforcement Activities 

Estimated Authorization Level 10 15 20 25 30 

Estimated Outlays 9 14 19 24 29 

Title IV: PTO Enforcement Activities 

Estimated Authorization Level 12 18 18 20 20 

Estimated Outlays 10 17 18 19 20 

Title V: DOJ Enforcement Activities 

Estimated Authorization Level 62 67 72 72 47 

Estimated Outlays 22 43 58 66 67 

Total Changes 

Estimated Authorization Level 84 100 110 117 97 

Estimated Outlays 41 74 95 109 116 

1Note: PTO = Patent and Trademark Office; DOJ = Department of Justice. 

BASIS OF ESTIMATE

For this estimate CBO assumes that the bill would be enacted 

by the beginning of fiscal year 2009. 

Spending Subject to Appropriation 

CBO estimates that implementing the bill would cost $435 million over the 2009–2013 period, subject to the appropriation of the 

necessary amounts. Those amounts would be used to enhance activities to enforce intellectual property rights by the Executive Office of the President, PTO, and DOJ. 

Title III: Executive Office of the President Enforcement 

Activities. Title III would establish an Office of the United States 

Intellectual Property Enforcement Representative within the Executive Office of the President. The representative would be appointed by the President and confirmed by the Senate to advise the 

President and report to the Congress. The representative would develop, coordinate, and provide recommendations on governmentwide policies for enforcing intellectual property rights, including 

the protection of copyrights, patents, and trademarks, both within 

the United States and abroad. In addition, the representative 

would chair an interagency committee and be primarily responsible 

for developing and implementing a plan for eliminating counterfeiting and piracy of intellectual property. 

Based on the costs of similar offices and programs, CBO estimates that the new office would need about $30 million a year to 

carry out its responsibilities under title III. CBO expects that the 

office would steadily expand its staff over the next five years to 

reach that level of effort. We estimate that implementing title III 

would cost $95 million over the 2009–2013 period, assuming appropriation of the necessary amounts. 

Title IV: PTO Enforcement Activities. Title IV would authorize the Department of Commerce to appoint at least 10 intellectual 

property attache ́s to serve in United States embassies or other diplomatic missions. The attache ́s would work with foreign governments to enforce intellectual property laws generally and to reduce 

counterfeiting and piracy of protected intellectual property. The 

Patent and Trademark Office (PTO) would be responsible for trainVerDate Aug 31 2005 13:24 May 06, 2008 Jkt 069006 PO 00000 Frm 00035 Fmt 6659 Sfmt 6601 E:\HR\OC\HR617.XXX HR617

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ing the attache ́s and providing managerial and administrative support. 

The bill would authorize the appropriation of such sums as necessary for both the intellectual property attache ́s authorized by 

title IV as well as other Department of Commerce personnel already serving as intellectual property attache ́s. Currently, eight 

attache ́s are working in Brazil, China, Egypt, India, Russia, and 

Thailand at a cost of about $8 million a year. Based on that cost, 

CBO estimates that implementing title IV of the bill would cost 

$84 million over the 2009–2013 period, assuming appropriation of 

the necessary amounts. 

Title V: DOJ Enforcement Activities. Title V would reorganize DOJ’s activities involving enforcement of intellectual property 

rights, authorize additional resources for attorneys and the Federal 

Bureau of Investigation (FBI), and authorize state grants to combat 

cyber-crime (crime related to computer and Internet activities). 

CBO estimates that implementing title V would cost $256 million 

over the 2009–2013 period, subject to the appropriation of the necessary amounts. 

DOJ Intellectual Property Enforcement Division and FBI Unit. 

Title V would create an Intellectual Property Enforcement Division 

within DOJ. Existing DOJ activities relating to the criminal enforcement of intellectual property rights and trade secrets would be 

transferred to the new division. Under the bill, the head of the division would be the Intellectual Property Enforcement Officer, who 

would be responsible for coordinating efforts at DOJ for combating 

counterfeiting and piracy of intellectual property and serving as the 

DOJ liaison to the Office of the United States Intellectual Property 

Representative. Because most of the activities of the new division 

are being performed under current law, CBO estimates that the 

cost for creating this new division would be less than $500,000 a 

year over the 2009–2013 period, subject to the availability of appropriated funds. Most of that amount would be for hiring the Enforcement Officer and for other administrative costs. 

Title V also would create an operational unit of not less than five 

agents at the FBI headquarters to work with the new DOJ division 

to coordinate complex, multidistrict, and international intellectual 

property cases. CBO estimates that hiring five new agents would 

cost about $5 million over the 2009–2013 period. 

Expansion of Computer Hacking and Intellectual Property (CHIP) 

Units. The bill would create 10 new CHIP units in different Federal judicial districts in addition to the 25 existing units. CHIP 

units, currently staffed by approximately 80 Assistant United 

States Attorneys (AUSAs) nationwide, are located in regions that 

experience a high incidence of intellectual property and cybercrime. Enforcement activities are supported by FBI agents. CBO 

estimates that creating the new CHIP units would involve hiring 

40 new AUSAs, 20 new FBI agents, and 10 additional support 

staff. 

The bill also would expand the size of the existing CHIP units 

by adding at least 25 AUSAs and 50 supporting FBI agents. Based 

on personnel cost information provided by DOJ, CBO estimates 

that the cost to create and expand CHIP operations would total $77 

million over the 2009–2013 period. 


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State Grants for Cyber-Crime. Title V would authorize the appro- priation of $25 million annually over the 2009–2013 period for DOJ 

to make grants to states for programs to combat computer crime. 

Title V also would authorize the appropriation of $25 million annually over the 2009–2012 period for grants to state and local governments for programs to combat intellectual property crimes. Assuming appropriation of the authorized amounts, CBO estimates that 

implementing those provisions would cost $162 million over the 

2009–2013 period. 

International Intellectual Property Law Enforcement Coordinators. The bill would require the deployment of five additional coordinators in addition to those serving under current law. The coordinators manage U.S. law enforcement activities to combat intellectual property crimes in foreign countries. Based on information 

provided by DOJ, increasing the number of coordinators would cost 

$12 million over the 2009–2013 period. 

Direct Spending and Revenues 

H.R. 4279 would increase civil damages and penalties for certain 

intellectual property offenses. Criminal fines are recorded as revenues, deposited into the Crime Victims Fund, and later spent. In 

addition, proceeds from forfeited cash and the sale of assets are recorded as revenues, deposited into the Assets Forfeiture Fund, and 

spent mostly in the same year. Thus, enacting H.R. 4279 could increase revenues and direct spending; however, CBO expects that 

any such impact would not be significant. 

Title III would allow the Office of the United States Intellectual 

Property Enforcement Representative to accept and use gifts, and 

therefore, the legislation could increase revenues and direct spending. However, CBO estimates that any revenues from contributions 

and subsequent direct spending would be less than $500,000 annually. 

INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

H.R. 4279 contains no intergovernmental or private-sector mandates as defined in UMRA. The bill would benefit state and local 

law enforcement agencies by authorizing grants for enforcement 

and prosecutorial activities. 

ESTIMATE PREPARED BY: 

Federal Costs: Leigh Angres, Mark Grabowicz, Susan Willie, and 

Matthew Pickford 

Impact on State, Local, and Tribal Governments: Melissa Merrell 

Impact on the Private Sector: Paige Piper/Bach 

ESTIMATE APPROVED BY: 

Theresa Gullo 

Deputy Assistant Director for Budget Analysis 

PERFORMANCE GOALS AND OBJECTIVES

The Committee states, pursuant to clause 3(c)(4) of rule XIII of 

the Rules of the House of Representatives, H.R. 4279 will strengthen civil and criminal intellectual property laws to better address 

commercial-scale intellectual property theft, strengthen the organiVerDate Aug 31 2005 13:24 May 06, 2008 Jkt 069006 PO 00000 Frm 00037 Fmt 6659 Sfmt 6601 E:\HR\OC\HR617.XXX HR617

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26 15 U.S.C. §§ 1051 et seq. (2007). 

zation of Federal intellectual property enforcement efforts, and provide greater resources to law enforcement agencies so that they can 

investigate and prosecute more intellectual property crimes. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds the authority for this legislation in article I, section 8, clauses 3 and 8 of the Constitution. 

ADVISORY ON EARMARKS

In accordance with clause 9 of rule XXI of the Rules of the House 

of Representatives, H.R. 4279 does not contain any congressional 

earmarks, limited tax benefits, or limited tariff benefits as defined 

in clause 9(d), 9(e), or 9(f) of Rule XXI. 

SECTION-BY-SECTION ANALYSIS

Sec. 1. Short Title; Table of Contents. Section 1 sets forth the 

short title of the bill as the ‘‘Prioritizing Resources and Organization for Intellectual Property Act of 2008.’’ It also includes a table 

of contents for the bill. 

Sec. 2. Reference. Section 2 clarifies that any reference in the bill 

to the ‘‘Trademark Act of 1946’’ is intended to refer to ‘‘An Act to 

provide for the registration of trademarks used in commerce, to 

carry out the provisions of certain international conventions, and 

for other purposes,’’ approved July 5, 1946.26

Sec. 3. Definition. Section 3 sets out for United States person as 

used in this Act. 

TITLE I. ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

Sec. 101. Registration of Claim. Section 101 amends 17 U.S.C. 

§ 410, which sets forth the duties of the Register of Copyrights in 

registering and issuing to an applicant a certificate of registration. 

Under current law, section 410(b) requires the Register to refuse 

registration if the material deposited does not constitute copyrighted material or if the claim is invalid for any other reason. Section 101 of the bill amends this provision by adding a new subsection (c), to provide that a certificate of registration shall satisfy 

the registration requirements regardless of any inaccurate information on the registration application, unless the incorrect information was included on the application with the knowledge that it 

was incorrect, and unless the inaccurate information, if known, 

would have caused the Register of Copyrights to refuse registration. In any case in which inaccuracies in the application are alleged, the legislation requires the court to request the Register of 

Copyrights to advise the court as to whether the inaccuracy would 

have resulted in a refusal of the registration application. 

The savings clause stating that ‘‘Nothing in this section shall affect any rights, obligations, or requirements of a person related to 

information contained in a registration certificate except for the institution of and remedies for infringement actions under §§ 411 and 

412 of Title 17 of the United States Code’’ is intended, in part, to 

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27See Computer Crime and Intellectual Property Section, U.S. Dept. Of Justice, Prosecuting 

Intellectual Property Crime § II.B.1.d (3d ed. 2006). 28 15 U.S.C. § 1116(d)(1)(A) (2007). 

spect to claims, including adverse claims, of authorship and ownership apart from the jurisdictional and remedial provisions of sections 411 and 412, at any time, in any judicial or administrative 

forum, and without any procedural or substantive limitation except 

as set forth in other provisions of the Copyright Act. 

Sec. 102. Registration and Infringement Actions. Section 102 of 

the bill amends 17 U.S.C. § 411, which provides that ‘‘[n]o action 

for infringement of the copyright in any United States work shall 

be instituted until registration of the copyright claim has been 

made.’’ Section 102 amends this provision to clarify that this rule 

only applies to civil infringement actions and not to criminal prosecutions. This provision is consistent with established DOJ policy.27

It makes no change in existing practices of how and when prosecutors prove the existence of a copyright in an infringement case, and 

it does not affect any pending cases. The Committee does not believe that this clarification will exacerbate the problem of orphan 

works, nor will it reduce the incentives for creators and authors to 

register their works. A copyright holder would not give up his or 

her ability to file a civil suit, collect statutory damages, and get attorney’s fees on the hope that a prosecutor will prosecute an infringer of the copyrighted work. On the other hand, some small, individual copyright holders, such as photographers or journalists 

who often do not have sufficient resources to register their works 

or to pursue expensive litigation, would benefit from this change 

because it clarifies that DOJ is still able to prosecute the violation 

in these circumstances. Section 102 does not have any effect on the 

enforcement authority of United States Customs and Border Protection under sections 602 or 603 of title 17 of the United States 

Code. 

Sec. 103. Civil Remedies for Infringement. Section 103 of the bill 

amends 17 U.S.C. § 503(a) to authorize a court to order the impounding of records documenting manufacture, sale, or receipt of 

things involved in infringing activity. This section also directs the 

court to enter a protective order to provide appropriate procedures 

to assure that confidential information contained in the records is 

not improperly disclosed. A similar provision exists in the Lanham 

Act, which authorizes a court to issue an ex parte order for the seizure not only of counterfeit goods and marks and the means of 

making them, but also of ‘‘records documenting the manufacture, 

sale or receipt of things involved in such violation.’’ 28 Since copyright pirates are just as likely to destroy evidence as trademark 

counterfeiters (indeed, it is not uncommon for the same violator to 

be engaged in both activities), it is appropriate to update the list 

of items subject to impoundment under the Copyright Act. 

Sec. 104. Treble Damages in Counterfeiting Cases. Section 104 

amends 15 U.S.C. § 1117 to direct courts to award treble damages 

and attorney’s fees, absent extenuating circumstances, when someone is found to have intentionally induced another to engage in an 

act that violates the anti-counterfeiting prohibitions of the Lanham 

Act or to have supplied goods or services necessary to the commission of such a violation of the Lanham Act, with the intent that the 

recipient of the goods or services would put the goods or services 


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to use in committing the violation. Under section 1117 as amended, 

proof of intent is required only for the mandatory imposition of treble damages (and attorney’s fees) on a party contributing to counterfeiting. Section 104 does not change the standards the courts 

have applied to determine liability for contributory trademark infringement. Nor would it restrict in any way the courts’ existing 

discretion, under section 35(a) of the Lanham Act, to impose treble 

damages in any case involving infringement of a registered mark, 

or a false designation of origin in violation of section 43(a). 

Sec. 105. Statutory Damages in Counterfeiting Cases. Section 105 

increases statutory damages in counterfeiting cases, by raising the 

minimum award from $500 to $1000, and the maximum award 

from $100,000 to $200,000 for use of a counterfeit mark, and raises 

the maximum from $1,000,000 to $2,000,000 for willful use of a 

counterfeit mark. 

Sec. 106. Exportation of Goods Bearing Infringing Marks. Section 

106 amends the Lanham Act to provide that exportation of counterfeit merchandise is in violation of the law, similar to importation 

under current law. 

Sec. 107. Importation and Exportation. Section 107 amends 17 

U.S.C. § 602, which currently only addresses infringing importations, to specify that exportation of infringing copies is also prohibited and considered an infringement of the exclusive right to distribute copies or phonorecords to the public. This section also 

makes importation and exportation of infringing copies a criminal 

copyright violation, prosecutable under 17 U.S.C. § 506, and makes 

conforming changes to section 602(b). The language used in section 

107 to describe the goods whose importation or exportation may attract criminal liability—‘‘where the making of copies or 

phonorecords would have constituted an infringement of copyright 

if this title had been applicable’’—was chosen to conform to current 

language already in section 602(b). Section 107 is not intended to 

alter, amend, or otherwise change current law, regulation, or practice relating to the manufacture, importation, exportation, or distribution of genuine products, made under authority of the United 

States intellectual property rights holder or its designee. 

TITLE II. ENHANCEMENTS TO CRIMINAL INTELLECTUAL

PROPERTY LAWS

Sec. 201. Criminal Infringement of a Copyright. Section 201 addresses repeat offender penalties for the three major criminal acts 

contained in the criminal copyright statute: infringement for commercial advantage or private financial gain; infringement for noncommercial purposes above a certain threshold; and infringement 

of pre-release works over a publicly-accessible computer network. 

Currently, to be a repeat offender, an individual must be convicted 

of committing the same criminal act twice. If an individual commits an act of infringement for commercial advantage or private financial gain first, and then releases a pre-release work over a computer network, and was convicted of felony criminal copyright infringement on both occasions, the individual currently would not be 

considered for repeat offender penalties. This section amends 18 

U.S.C. § 2319 to allow the felony violations to be interchangeable 

for repeat offender enhanced penalties. 


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29 511 U.S. 164 (1994). 

Sec. 202. Harmonization of Forfeiture Procedures for Intellectual 

Property Offenses. Section 202 harmonizes all forfeiture and restitution laws for intellectual property offenses by amending 18 

U.S.C. §§ 2318, 2319, 2319A, 2319B to bring these provisions substantially in line with 18 U.S.C. § 2320, which was enacted into law 

last year. The new provisions contain additional safeguards, such 

as the requirement that property involved in the commission of an 

offense be owned or predominantly controlled by the violator, a coconspirator, or an aider and abettor of the violation in order to be 

seized under the civil forfeiture provisions. The definition of aiding 

and abetting is taken from Central Bank of Denver, NA. v. First 

Interstate Bank of Denver, N.A.29 Furthermore, such property is not 

subject to seizure unless a substantial connection between the 

property and the offense is proven. Use by a violator (or co-conspirator or aider or abetter) of commercially valuable digital communications or e-commerce services for, e.g., electronic mail or data 

storage, absent extraordinary circumstances, would not constitute 

predominant control of the servers and similar facilities used to 

provide the services. If, however, a computer were used by a violator (or co-conspirator or aider or abetter) primarily to store data 

used to further the infringement, the violator could be held to have 

substantially controlled the property and the computer would be 

subject to forfeiture. Another safeguard contained in this Act is the 

requirement that, for seizure under a criminal facilitation theory, 

the property be used to substantially facilitate the crime. 

Sec. 203. Directive to United States Sentencing Commission. Section 203 directs the U.S. Sentencing Commission to review the Sentencing Guidelines to consider whether the two-level enhancement 

that already applies under 2B5.3 of the Guidelines to criminal infringement that involves manufacturing, importing, and uploading 

of infringing items should be expanded to also include exporting 

such items. 

Sec. 204. Trafficking in Counterfeit Goods or Services. Section 

204 provides enhanced maximum statutory penalties for counterfeiting offenses that endanger public health and safety. It increases 

maximum penalties for 18 U.S.C. § 2320 offenses from 10 years imprisonment to 20 years where the defendant knowingly or recklessly causes or attempts to cause serious bodily injury. It increases 

the maximum penalty to life imprisonment where the defendant 

knowingly or recklessly causes or attempts to cause death. 

TITLE III. COORDINATION AND STRATEGIC PLANNING OF

FEDERAL EFFORT AGAINST COUNTERFEITING AND PIRACY

Sec. 301. Office of the United States Intellectual Property Enforcement Representative. Section 301 establishes within the Executive 

Office of the President, the Office of the United States Intellectual 

Property Enforcement Representative and the position of the 

United States Intellectual Property Enforcement Representative 

(IPER). The IPER is appointed by the President of the United 

States with the advice and consent of the Senate. The IPER will 

serve as a principal advisor to the President on domestic and international intellectual property enforcement policy and will report 

and provide advice to the President and to Congress. In order to 


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carry out these efforts, the IPER will chair an interagency Intellectual Property Enforcement Advisory Committee (‘‘Advisory Committee’’), formed pursuant to this section, which includes senior 

representatives from every Federal department and agency involved in the protection and enforcement of intellectual property 

rights. The Advisory Committee, under the guidance of the IPER, 

develops the Joint Strategic Plan (JSP). The Advisory Committee 

is specifically exempted from the Federal Advisory Committee Act. 

Sec. 302. Definition. Section 302 defines intellectual property enforcement as relating to the enforcement of laws protecting copyrights, patents, trademarks, and other forms of intellectual property and trade secrets, both within the United States and abroad. 

Sec. 321. Joint Strategic Plan. Section 321 specifies the objectives 

and content of the JSP against counterfeiting and piracy that shall 

be developed by the interagency Advisory Committee, under the 

guidance of the IPER. 

Sec. 322. Reporting. Section 322 requires the Office of the United 

States Intellectual Property Enforcement Representative to submit 

an annual report to the President and to the House and Senate 

Committees on the Judiciary regarding the activities of the Office 

during the preceding fiscal year, and to also disseminate that report to the public. The report will provide progress updates on the 

implementation of the JSP, including the manner in which the relevant departments and agencies of the U.S. government are working together and sharing information toward advancing the recommendations, goals, and priorities contained within the JSP. This 

section also provides for the IPER to provide recommendations for 

the consolidation of Federal intellectual property activities to prevent duplicative efforts and to ensure maximum efficiency and effectiveness of governments efforts. 

Sec. 323. Savings and Repeals. Section 323 abolishes NIPLECC, 

which is superseded by the structure created by this Act, and preserves the existing authority of the agencies in areas such as criminal investigation and prosecution, administrative enforcement at 

U.S. borders, and international trade. The purpose of this section 

is to ensure cross-agency cooperation, consolidation, and implementation with regard to enforcement of the laws concerning intellectual property laws. 

Sec. 324. Authorization of Appropriations. Section 324 authorizes 

the appropriation of such funds as may be necessary to carry out 

title III of the bill. It also contains a requirement that the United 

States Intellectual Property Enforcement Representative submit a 

proposed budget annually for the projected amount of funds for the 

succeeding fiscal year. 

TITLE IV. INTERNATIONAL ENFORCEMENT AND COORDINATION

Sec. 401. Intellectual Property Attache ́s. Section 401 directs the 

Undersecretary of Commerce for Intellectual Property and the Director of the United Stated Patent and Trademark Office, in consultation with the Director General of the U.S. Foreign Commercial 

Service, to appoint, within the next 2 years, ten intellectual property attache ́s to serve in U.S. embassies. These personnel are intended to be in addition to persons already serving in a similar capacity as the intellectual property attache ́s as of the date of enactment. 


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Sec. 402. Duties and Responsibilities of Intellectual Property 

Attache ́s. Section 402 specifies the duties and responsibilities of the 

intellectual property attache ́s. Specifically, the attache ́s are responsible for promoting cooperation with foreign governments in enforcement of IP laws; assisting U.S. persons in efforts to combat 

counterfeiting and piracy in the host countries; chairing IP task 

forces; coordinating with embassies or missions of other countries 

in information sharing and other forms of cooperation; engaging in 

public education efforts; coordinating training and technical assistance of U.S. government expertise with host countries; assisting in 

the coordination of the efforts of the IPER, Federal agencies, and 

private organizations; and identifying and promoting other means 

of combating counterfeiting and piracy. This section also provides 

the Undersecretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office with the 

authority to provide such managerial, administrative, research, and 

other services as the Secretary of Commerce considers necessary to 

assist the intellectual property attache ́s in carrying out their responsibilities. 

Sec. 403. Training and Designation of Assignment. Section 403 

requires the Director of the USPTO to ensure that attache ́s are 

fully trained and, when considering in which countries to deploy 

attache ́s, to give priority to countries where the attache ́ can be 

most effective and offer the greatest benefit in reducing counterfeit 

and pirated products in the United States. 

Sec. 404. Coordination. Section 404 specifies that the activities of 

title IV of the bill must be carried out in coordination with the 

IPER appointed under section 301. This section also requires the 

submission of an annual report to Congress on the activities of all 

Department of Commerce attache ́s serving at United States embassies or other diplomatic missions. 

Sec. 405. Authorization of Appropriations. Section 405 authorizes 

to be appropriated each fiscal year such sums as may be necessary 

for the training and support of the intellectual property attache ́s. 

TITLE V. DEPARTMENT OF JUSTICE PROGRAMS

Sec. 501. Intellectual Property Enforcement Officer. Section 501 

establishes within the Office of the Deputy Attorney General in the 

Department of Justice the Intellectual Property Enforcement Division. The head of the Intellectual Property Enforcement Division 

will be the Intellectual Property Enforcement Officer, who will be 

appointed by the Attorney General and will report directly to the 

Deputy Attorney General. The functions of the existing Computer 

Crime and Intellectual Property Section (CCIPS), currently part of 

the Criminal Division of the Department of Justice, are divided, 

with the intellectual property law enforcement functions moving to 

the new Intellectual Property Enforcement Division. In addition, 

the current and newly added International Intellectual Property 

Law Enforcement Coordinators (IIPLEC), specified in section 521, 

will also become part of the Intellectual Property Enforcement Division. The Intellectual Property Enforcement Officer will head the 

new division, and will be responsible for: 1) coordinating all efforts 

at the Department of Justice relating to combating counterfeiting 

and piracy; 2) serving on the Advisory Committee as the Department of Justice liaison with the Office of the United States IntellecVerDate Aug 31 2005 13:24 May 06, 2008 Jkt 069006 PO 00000 Frm 00043 Fmt 6659 Sfmt 6601 E:\HR\OC\HR617.XXX HR617

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tual Property Enforcement Representative established under Title 

III of this Act; and 3) undertaking any other related duties that 

may be assigned by the Deputy Attorney General. 

Sec. 511. Local Law Enforcement Grants. Section 511 authorizes 

grants to State and local law enforcement entities for training, prevention, enforcement, and prosecution of intellectual property theft 

and infringement cases. Grants may be used to assist State and 

local law enforcement agencies in enforcing IP-related crimes, including to reimburse State and local entities for expenses incurred 

from enforcement operations; to assist State and local agencies in 

educating the public to prevent, deter, and identify IP-related 

crimes; to educate and train State and local entities to conduct investigations and forensic analyses of evidence; to establish dedicated task forces to conduct investigations; to assist police and 

prosecutors in acquiring computer and other equipment to conduct 

investigations; and to facilitate and promote sharing of Federal law 

enforcement expertise with State and local agencies. The eligibility 

requirements that must be met for receipt of such a grant are specified in this section. 

Sec. 512. CHIP Units, Training, and Additional Resources. Section 512 requires DOJ to review established Computer Hacking 

and Intellectual Property (CHIP) units to improve effectiveness; ensure they are established and funded in every judicial district in 

which they can be effectively deployed; upgrade training and expertise of DOJ personnel participating in CHIP units; and improve coordination of CHIP unit activities with corresponding State and 

local entities. This Act provides for CHIP units to be establish and 

staffed in at least ten Federal judicial districts in addition to those 

districts in which CHIP units exist on the date of the enactment 

of this Act. In addition, section 512 requires the Attorney General 

to establish and staff at least ten additional CHIP units, and ensure that each is supported by at least two additional FBI agents 

and at least one additional assistant United States Attorney 

(AUSA) for the specific purpose of investigating or prosecuting intellectual property crimes. An operational unit at FBI headquarters 

is created consisting of five FBI agents dedicated to working with 

CCIPS on the development, investigation and coordination of complex, multi-district and international criminal IP cases. The AUSAs 

will ensure coordination with State or local law enforcement. Section 512 also sets additional standards for training and funding of 

DOJ personnel involved in investigating and prosecuting intellectual property crimes. 

Sec. 513. Transparency of Prosecutorial Decision-Making. Section 

513 specifies that all U.S. Attorneys must review their current 

standards for accepting or declining prosecution of criminal IP 

cases, consider whether the current standards should be modified, 

and review their procedures for advising complainants and victims 

of intellectual property violations that are declined for prosecution. 

Sec. 514. Authorization of Appropriations. Section 514 authorizes 

such sums as may be necessary to carry out the subtitle. 

Sec. 521. International Intellectual Property Law Enforcement Coordinators. Section 521 requires the Attorney General to deploy 

five IIPLECs, in addition to those serving in that capacity on the 

date of enactment of this Act, to countries and regions where the 

IIPLECs can be best utilized. The IIPLECs will act as liaisons with 


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foreign law enforcement agencies and officials, perform outreach 

and training to build enforcement capacity of foreign governments, 

coordinate U.S. law enforcement activities against intellectual 

property crimes in the regions, coordinate with the intellectual 

property attache ́s specified in Title IV, and report to the Department of Justice Intellectual Property Enforcement Officer. 

Sec. 522. International Training Activities of the Computer Crime 

and Intellectual Property Section. Section 522 directs the Attorney 

General to increase the Department of Justice’s efforts to provide 

training and technical assistance to foreign governments to more 

effectively combat counterfeiting and piracy activities. This section 

specifies that priority shall be given to countries where programs 

can be carried out effectively and with the greatest likelihood of reducing counterfeit and pirated products. 

Sec. 531. Coordination. Section 531 states that all activities of 

title V of the bill must be carried out in a manner consistent with 

the JSP developed under section 321. 

Sec. 532. Annual Reports. Section 532 specifies that the Attorney 

General shall ensure that the requirements set forth in title V are 

met no later than 1 year after enactment. Annually thereafter, the 

Attorney General must submit a report to the House and Senate 

Judiciary Committees on actions taken to carry out those requirements. 

CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic existing law in which no change is proposed is shown in roman): 

TITLE 17, UNITED STATES CODE 

Chapter Sec. 

1. SUBJECT MATTER AND SCOPE OF COPYRIGHT ................ 101 

* * * * * * * 

ø6 MANUFACTURING REQUIREMENTS AND IMPORTATION .... 601¿ 

6. MANUFACTURING REQUIREMENTS, IMPORTATION, AND

EXPORTATION ............................................................... 601 

* * * * * * * 

CHAPTER 4—COPYRIGHT NOTICE, DEPOSIT, AND 

REGISTRATION 

* * * * * * * 

§ 410. Registration of claim and issuance of certificate 

(a) * * * 

* * * * * * * 

(c)(1) A certificate of registration satisfies the requirements of section 411 and section 412 regardless of any inaccurate information 

contained in the certificate, unless—


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(A) the inaccurate information was included on the application for copyright registration with knowledge that it was inaccurate; and 

(B) the inaccuracy of the information, if known, would have 

caused the Register of Copyrights to refuse registration. 

(2) In any case in which inaccuracies described under paragraph 

(1) are alleged, the court shall request the Register of Copyrights to 

advise the court whether the inaccuracy of the information, if 

known, would have caused the Register of Copyrights to refuse registration. The Register shall respond to the court’s request within 45 

days after the request is made. 

(3) Nothing in this subsection shall affect any rights, obligations, 

or requirements of a person related to information contained in a 

registration certificate except for the institution of and remedies in 

infringement actions under sections 411 and 412. 

ø(c)¿ (d) In any judicial proceedings the certificate of a registration made before or within five years after first publication of the 

work shall constitute prima facie evidence of the validity of the 

copyright and of the facts stated in the certificate. The evidentiary 

weight to be accorded the certificate of a registration made thereafter shall be within the discretion of the court. 

ø(d)¿ (e) The effective date of a copyright registration is the day 

on which an application, deposit, and fee, which are later determined by the Register of Copyrights or by a court of competent jurisdiction to be acceptable for registration, have all been received 

in the Copyright Office. 

§ 411. Registration and civil infringement actions 

(a) Except for an action brought for a violation of the rights of 

the author under section 106A(a), and subject to the provisions of 

subsection (b), no civil action for infringement of the copyright in 

any United States work shall be instituted until preregistration or 

registration of the copyright claim has been made in accordance 

with this title. In any case, however, where the deposit, application, and fee required for registration have been delivered to the 

Copyright Office in proper form and registration has been refused, 

the applicant is entitled to institute an action for infringement if 

notice thereof, with a copy of the complaint, is served on the Register of Copyrights. The Register may, at his or her option, become 

a party to the action with respect to the issue of registrability of 

the copyright claim by entering an appearance within sixty days 

after such service, but the Register’s failure to become a party shall 

not deprive the court of jurisdiction to determine that issue. 

(b) In the case of a work consisting of sounds, images, or both, 

the first fixation of which is made simultaneously with its transmission, the copyright owner may, either before or after such fixation takes place, institute an action for infringement under section 

501, fully subject to the remedies provided by sections 502 through 

ø506 and sections 509 and¿ 505 and section 510, if, in accordance 

with requirements that the Register of Copyrights shall prescribe 

by regulation, the copyright owner—

(1) * * * 

* * * * * * * 


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CHAPTER 5—COPYRIGHT INFRINGEMENT AND 

REMEDIES 

Sec. 

501. Infringement of copyright. 

* * * * * * * 

ø509. Seizure and forfeiture.¿ 

* * * * * * * 

* * * * * * * 

§ 503. Remedies for infringement: Impounding and disposition of infringing articles 

(a) At any time while an action under this title is pending, the 

court may order the impounding, on such terms as it may deem 

reasonable, of all copies or phonorecords claimed to have been 

made or used in violation of the copyright owner’s exclusive rights, 

øand of all plates¿ of all plates, molds, matrices, masters, tapes, 

film negatives, or other articles by means of which such copies or 

phonorecords may be reproducedø.¿, and records documenting the 

manufacture, sale, or receipt of things involved in such violation. 

The court shall enter an appropriate protective order with respect to 

discovery by the applicant of any records that have been seized. The 

protective order shall provide for appropriate procedures to assure 

that confidential information contained in such records is not improperly disclosed to the applicant. 

* * * * * * * 

§ 506. Criminal offenses 

(a) * * * 

(b) FORFEITURE AND DESTRUCTION.—When any person is convicted of any violation of subsection (a), the court in its judgment 

of conviction shall, in addition to the penalty therein prescribed, 

order the forfeiture and destruction øor other disposition of all infringing copies or phonorecords and all implements, devices, or 

equipment used in the manufacture of such infringing copies or 

phonorecords.¿ of property as prescribed by section 2319(g) of title 

18. 

* * * * * * * 

ø§ 509. Seizure and forfeiture 

ø(a) All copies or phonorecords manufactured, reproduced, distributed, sold, or otherwise used, intended for use, or possessed 

with intent to use in violation of section 506(a), and all plates, 

molds, matrices, masters, tapes, film negatives, or other articles by 

means of which such copies or phonorecords may be reproduced, 

and all electronic, mechanical, or other devices for manufacturing, 

reproducing, or assembling such copies or phonorecords may be 

seized and forfeited to the United States. 

ø(b) The applicable procedures relating to (i) the seizure, summary and judicial forfeiture, and condemnation of vessels, vehicles, 

merchandise, and baggage for violations of the customs laws contained in title 19, (ii) the disposition of such vessels, vehicles, merchandise, and baggage or the proceeds from the sale thereof, (iii) 

the remission or mitigation of such forfeiture, (iv) the compromise 


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of claims, and (v) the award of compensation to informers in respect of such forfeitures, shall apply to seizures and forfeitures incurred, or alleged to have been incurred, under the provisions of 

this section, insofar as applicable and not inconsistent with the 

provisions of this section; except that such duties as are imposed 

upon any officer or employee of the Treasury Department or any 

other person with respect to the seizure and forfeiture of vessels, 

vehicles, merchandise, and baggage under the provisions of the customs laws contained in title 19 shall be performed with respect to 

seizure and forfeiture of all articles described in subsection (a) by 

such officers, agents, or other persons as may be authorized or designated for that purpose by the Attorney General.¿ 

* * * * * * * 

øCHAPTER 6—MANUFACTURING REQUIREMENTS AND 

IMPORTATION¿ 

CHAPTER 6—MANUFACTURING REQUIREMENTS, 

IMPORTATION, AND EXPORTATION 

* * * * * * * 

§ 601. Manufacture, importation, and public distribution of 

certain copies 

(a) * * * 

(b) The provisions of subsection (a) do not apply— (1) * * * 

(2) where øthe United States Customs Service¿ U.S. Customs and Border Protection is presented with an import statement issued under the seal of the Copyright Office, in which 

case a total of no more than two thousand copies of any one 

such work shall be allowed entry; the import statement shall 

be issued upon request to the copyright owner or to a person 

designated by such owner at the time of registration for the 

work under section 408 or at any time thereafter; 

* * * * * * * 

§ 602. Infringing importation or exportation of copies or 

phonorecords 

ø(a)¿ (a) INFRINGING IMPORTATION AND EXPORTATION.—

(1) IMPORTATION.—Importation into the United States, without the authority of the owner of copyright under this title, of 

copies or phonorecords of a work that have been acquired outside the United States is an infringement of the exclusive right 

to distribute copies or phonorecords under section 106, actionable under section 501. øThis subsection does not apply to—¿ 

(2) IMPORTATION OR EXPORTATION OF INFRINGING ITEMS.—

Importation into the United States or exportation from the 

United States, without the authority of the owner of copyright 

under this title, of copies or phonorecords, the making of which 

either constituted an infringement of copyright or would have 

constituted an infringement of copyright if this title had been 

applicable, is an infringement of the exclusive right to distribute copies or phonorecords under section 106, actionable 

under sections 501 and 506. 


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(3) EXCEPTIONS.—This subsection does not apply to— ø(1)¿ (A) importation or exportation of copies or 

phonorecords under the authority or for the use of the 

Government of the United States or of any State or political subdivision of a State, but not including copies or 

phonorecords for use in schools, or copies of any audiovisual work imported for purposes other than archival use; 

ø(2) importation, for the private use of the importer¿ (B) 

importation or exportation, for the private use of the importer or exporter and not for distribution, by any person 

with respect to no more than one copy or phonorecord of 

any one work at any one time, or by any person arriving 

from outside the United States or departing from the 

United States with respect to copies or phonorecords forming part of such person’s personal baggage; or 

ø(3)¿ (C) importation by or for an organization operated 

for scholarly, educational, or religious purposes and not for 

private gain, with respect to no more than one copy of an 

audiovisual work solely for its archival purposes, and no 

more than five copies or phonorecords of any other work 

for its library lending or archival purposes, unless the importation of such copies or phonorecords is part of an activity consisting of systematic reproduction or distribution, 

engaged in by such organization in violation of the provisions of section 108(g)(2). 

ø(b) In a case¿ (b) IMPORT PROHIBITION.—In a case where the 

making of the copies or phonorecords would have constituted an infringement of copyright if this title had been applicable, their importation is prohibited. In a case where the copies or phonorecords 

were lawfully made, øthe United States Customs Service¿ U.S. 

Customs and Border Protection has no authority to prevent their 

importation unless the provisions of section 601 are applicable. In 

either case, the Secretary of the Treasury is authorized to prescribe, by regulation, a procedure under which any person claiming 

an interest in the copyright in a particular work may, upon payment of a specified fee, be entitled to notification by øthe Customs 

Service¿ U.S. Customs and Border Protection of the importation of 

articles that appear to be copies or phonorecords of the work. 

* * * * * * * 

TRADEMARK ACT OF 1946 

* * * * * * * 

TITLE VI—REMEDIES 

* * * * * * * 

SEC. 35.(a) * * * 

ø(b) In assessing damages under subsection (a), the court shall, 

unless the court finds extenuating circumstances, enter judgment 

for three times such profits or damages, whichever is greater, together with a reasonable attorney’s fee in the case of any violation 

of section 32(1)(a) of this Act (15 U.S.C. 1114(1)(a)) or section 

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ignation is a counterfeit mark (as defined in section 34(d) of this 

Act (15 U.S.C. 1116(d)), in connection with the sale, offering for 

sale, or distribution of goods or services. In such cases, the court 

may in its discretion award prejudgment interest on such amount 

at an annual interest rate established under such 6621(a)(2) of the 

Internal Revenue Code of 1986, commencing on the date of the 

service of the claimant’s pleadings setting forth the claim for such 

entry and ending on the date such entry is made, or for such shorter time as the court deems appropriate.¿ 

(b) In assessing damages under subsection (a) for any violation of 

section 32(1)(a) of this Act or section 220506 of title 36, United 

States Code, in a case involving use of a counterfeit mark or designation (as defined in section 34(d) of this Act), the court shall, unless the court finds extenuating circumstances, enter judgment for 

three times such profits or damages, whichever amount is greater, 

together with a reasonable attorney’s fee, if the violation consists 

of—

(1) intentionally using a mark or designation, knowing such 

mark or designation is a counterfeit mark (as defined in section 

34(d) of this Act), in connection with the sale, offering for sale, 

or distribution of goods or services; 

(2) intentionally inducing another to engage in a violation 

specified in paragraph (1); or 

(3) providing goods or services necessary to the commission of 

a violation specified in paragraph (1), with the intent that the 

recipient of the goods or services would put the goods or services 

to use in committing the violation. 

In such a case, the court may award prejudgment interest on such 

amount at an annual interest rate established under section 

6621(a)(2) of the Internal Revenue Code of 1986, beginning on the 

date of the service of the claimant’s pleadings setting forth the claim 

for such entry of judgment and ending on the date such entry is 

made, or for such shorter time as the court considers appropriate. 

(c) In a case involving the use of a counterfeit mark (as defined 

in section 34(d) (15 U.S.C. 1116(d)) in connection with the sale, offering for sale, or distribution of goods or services, the plaintiff may 

elect, at any time before final judgment is rendered by the trial 

court, to recover, instead of actual damages and profits under subsection (a), an award of statutory damages for any such use in connection with the sale, offering for sale, or distribution of goods or 

services in the amount of—

(1) not less than ø$500¿ $1,000 or more than ø$100,000¿ 

$200,000 per counterfeit mark per type of goods or services 

sold, offered for sale, or distributed, as the court considers just; 

or 

(2) if the court finds that the use of the counterfeit mark was 

willful, not more than ø$1,000,000¿ $2,000,000 per counterfeit 

mark per type of goods or services sold, offered for sale, or distributed, as the court considers just. 

* * * * * * * 


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TITLE VII—IMPORTATION OR EXPORTATION FORBIDDEN 

OF GOODS BEARING INFRINGING MARKS OR NAMES 

SEC. 42. Except as provided in subsection (d) of section 526 of the 

Tariff Act of 1930, no article of øimported¿ merchandise which 

shall copy or simulate the name of any domestic manufacture, or 

manufacturer, or trader, or of any manufacturer or trader located 

in any foreign country which, by treaty, convention, or law affords 

similar privileges to citizens of the United States, or which shall 

copy or simulate a trademark registered in accordance with the 

provisions of this Act or shall bear a name or mark calculated to 

induce the public to believe that the article is manufactured in the 

United States, or that it is manufactured in any foreign country or 

locality other than the country or locality in which it is in fact 

manufactured, shall be admitted to entry at any customhouse of 

the United States, nor shall any such article be exported from the 

United States; and, in order to aid the officers of the customs in enforcing this prohibition, any domestic manufacturer or trader, and 

any foreign manufacturer or trader, who is entitled under the provisions of a treaty, convention, declaration, or agreement between 

the United States and any foreign country to the advantages afforded by law to citizens of the United States in respect to trademarks and commercial names, may require his name and residence, and the name of the locality in which his goods are manufactured, and a copy of the certificate of registration of his trademark, issued in accordance with the provisions of this Act, to be 

recorded in books which shall be kept for this purpose in the Department of the Treasury, under such regulations as the Secretary 

of the Treasury shall prescribe, and may furnish to the Department 

facsimiles of his name, the name of the locality in which his goods 

are manufactured, or of his registered trademark, and thereupon 

the Secretary of the Treasury shall cause one or more copies of the 

same to be transmitted to each collector or other proper officer of 

customs. 

* * * * * * * 

TITLE 18, UNITED STATES CODE 

* * * * * * * 

PART I—CRIMES 

* * * * * * * 

CHAPTER 113—STOLEN PROPERTY 

* * * * * * * 

§ 2318. Trafficking in counterfeit labels, illicit labels, or 

counterfeit documentation or packaging 

(a) * * * 

* * * * * * * 

ø(d) When any person is convicted of any violation of subsection 

(a), the court in its judgment of conviction shall in addition to the 


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penalty therein prescribed, order the forfeiture and destruction or 

other disposition of all counterfeit labels or illicit labels and all articles to which counterfeit labels or illicit labels have been affixed 

or which were intended to have had such labels affixed, and of any 

equipment, device, or material used to manufacture, reproduce, or 

assemble the counterfeit labels or illicit labels. 

ø(e) Except to the extent they are inconsistent with the provisions of this title, all provisions of section 509, title 17, United 

States Code, are applicable to violations of subsection (a).¿ 

(d) FORFEITURE AND DESTRUCTION; RESTITUTION.—

(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to forfeiture to the United States: 

(i) Any counterfeit documentation or packaging, and any 

counterfeit label or illicit label and any article to which a 

counterfeit label or illicit label has been affixed, which a 

counterfeit label or illicit label encloses or accompanies, or 

which was intended to have had such label affixed, enclosing, or accompanying. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or facilitate the commission of a violation of subsection (a) 

that is owned or predominantly controlled by the violator 

or by a person conspiring with or aiding and abetting the 

violator in committing the violation, except that property is 

subject to forfeiture under this clause only if the Government establishes that there was a substantial connection 

between the property and the violation of subsection (a). 

(B) The provisions of chapter 46 relating to civil forfeitures 

shall extend to any seizure or civil forfeiture under subparagraph (A). At the conclusion of the forfeiture proceedings, the 

court shall order that any forfeited counterfeit labels or illicit 

labels and any article to which a counterfeit label or illicit label 

has been affixed, which a counterfeit label or illicit label encloses or accompanies, or which was intended to have had such 

label affixed, enclosing, or accompanying, be destroyed or otherwise disposed of according to law. 

(C) In this paragraph, the term ‘‘aiding and abetting’’ means 

knowingly providing aid to the violator with the intent to facilitate the violation. 

(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in 

imposing sentence on a person convicted of an offense under 

this section, shall order, in addition to any other sentence imposed, that the person forfeit to the United States the following 

property: 

(i) Any counterfeit documentation or packaging, and any 

counterfeit label or illicit label, that was used, intended for 

use, or possessed with intent to use in the commission of an 

offense under subsection (a), and any article to which such 

a counterfeit label or illicit label has been affixed, which 

such a counterfeit label or illicit label encloses or accompanies, or which was intended to have had such label affixed, enclosing, or accompanying. 


yshivers on PROD1PC66 with HEARING
53 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or substantially facilitate the commission of an offense 

under subsection (a). 

(B) The forfeiture of property under subparagraph (A), including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be governed 

by the procedures set forth in section 413 of the Comprehensive 

Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 

853), other than subsection (d) of that section. At the conclusion 

of the forfeiture proceedings, the court shall order that any 

counterfeit label or illicit label and any article to which a counterfeit label or illicit label has been affixed, which a counterfeit 

label or illicit label encloses or accompanies, or which was intended to have had such label affixed, enclosing, or accompanying, be destroyed or otherwise disposed of according to law. 

(3) RESTITUTION.—When a person is convicted of an offense 

under this section, the court, pursuant to sections 3556, 3663A, 

and 3664, shall order the person to pay restitution to the owner 

of the marks or copyrighted works involved in the offense and 

any other victim of the offense as an offense against property referred to in section 3663A(c)(1)(A)(ii). 

ø(f)¿ (e) CIVIL REMEDIES.—

(1) * * * 

* * * * * * * 

§ 2319. Criminal infringement of a copyright 

(a) * * * 

(b) Any person who commits an offense under section 506(a)(1)(A) 

of title 17— (1) * * * 

(2) shall be imprisoned not more than 10 years, or fined in 

the amount set forth in this title, or both, if the offense is a 

felony and is a second or subsequent offense under øparagraph 

(1)¿ subsection (a); and 

* * * * * * * 

(c) Any person who commits an offense under section 506(a)(1)(B) 

of title 17—

(1) * * * 

(2) shall be imprisoned not more than 6 years, or fined in the 

amount set forth in this title, or both, if the offense is a felony 

and is a second or subsequent offense under øparagraph (1)¿ 

subsection (a); and 

* * * * * * * 

(d) Any person who commits an offense under section 

506(a)(1)(C) of title 17—

(1) * * * 

* * * * * * * 

(3) shall be imprisoned not more than 6 years, fined under 

this title, or both, if the offense is a felony and is a second or 

subsequent offense under subsection (a); and 


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(4) shall be imprisoned not more than 10 years, fined under 

this title, or both, if the offense is a felony and is a second or 

subsequent offense under paragraph (2). 

* * * * * * * 

(g) FORFEITURE AND DESTRUCTION; RESTITUTION.—

(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to forfeiture to the United States: 

(i) Any copies or phonorecords manufactured, reproduced, 

distributed, sold, or otherwise used, intended for use, or 

possessed with intent to use in violation of section 506(a) of 

title 17, any plates, molds, matrices, masters, tapes, film 

negatives, or other articles by means of which such copies 

or phonorecords may be made, and any devices for manufacturing, reproducing, or assembling such copies or 

phonorecords. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of section 506(a) of title 17. 

(iii) Any property used, or intended to be used, to commit 

or facilitate the commission of a violation of section 506(a) 

of title 17 that is owned or predominantly controlled by the 

violator or by a person conspiring with or aiding and abetting the violator in committing the violation, except that 

property is subject to forfeiture under this clause only if the 

Government establishes that there was a substantial connection between the property and the violation of section 

506(a) of title 17. 

(B) The provisions of chapter 46 relating to civil forfeitures 

shall extend to any seizure or civil forfeiture under this section. 

At the conclusion of the forfeiture proceedings, the court shall 

order that any forfeited infringing copies or phonorecords, and 

any plates, molds, matrices, masters, tapes, and film negatives 

by means of which such unauthorized copies or phonorecords 

may be made, be destroyed or otherwise disposed of according 

to law. 

(C) In this paragraph, the term ‘‘aiding and abetting’’ means 

knowingly providing aid to the violator with the intent to facilitate the violation. 

(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in 

imposing sentence on a person convicted of an offense under 

subsection (a), shall order, in addition to any other sentence imposed, that the person forfeit to the United States the following 

property: 

(i) Any copies or phonorecords manufactured, reproduced, 

distributed, sold, or otherwise used, intended for use, or 

possessed with intent to use in the commission of an offense 

under subsection (a), any plates, molds, matrices, masters, 

tapes, film negatives, or other articles by means of which 

the copies or phonorecords may be reproduced, and any 

electronic, mechanical, or other devices for manufacturing, 

reproducing, or assembling such copies or phonorecords. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 


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(iii) Any property used, or intended to be used, to commit 

or substantially facilitate the commission of an offense 

under subsection (a). 

(B) The forfeiture of property under subparagraph (A), including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be governed 

by the procedures set forth in section 413 of the Comprehensive 

Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 

853), other than subsection (d) of that section. At the conclusion 

of the forfeiture proceedings, the court shall order that any forfeited infringing copies or phonorecords, and any plates, molds, 

matrices, masters, tapes, and film negatives by means of which 

such infringing copies or phonorecords may be made, be destroyed or otherwise disposed of according to law. 

(3) RESTITUTION.—When a person is convicted of an offense 

under this section, the court, pursuant to sections 3556, 3663A, 

and 3664, shall order the person to pay restitution to the copyright owner and any other victim of the offense as an offense 

against property referred to in section 3663A(c)(1)(A)(ii). 

§ 2319A. Unauthorized fixation of and trafficking in sound 

recordings and music videos of live musical performances 

(a) * * * 

ø(b) FORFEITURE AND DESTRUCTION.—When a person is convicted 

of a violation of subsection (a), the court shall order the forfeiture 

and destruction of any copies or phonorecords created in violation 

thereof, as well as any plates, molds, matrices, masters, tapes, and 

film negatives by means of which such copies or phonorecords may 

be made. The court may also, in its discretion, order the forfeiture 

and destruction of any other equipment by means of which such 

copies or phonorecords may be reproduced, taking into account the 

nature, scope, and proportionality of the use of the equipment in 

the offense. 

ø(c) SEIZURE AND FORFEITURE.—If copies or phonorecords of 

sounds or sounds and images of a live musical performance are 

fixed outside of the United States without the consent of the performer or performers involved, such copies or phonorecords are subject to seizure and forfeiture in the United States in the same manner as property imported in violation of the customs laws. The Secretary of the Treasury shall, not later than 60 days after the date 

of the enactment of the Uruguay Round Agreements Act, issue regulations to carry out this subsection, including regulations by 

which any performer may, upon payment of a specified fee, be entitled to notification by the United States Customs Service of the importation of copies or phonorecords that appear to consist of unauthorized fixations of the sounds or sounds and images of a live musical performance.¿ 

(b) FORFEITURE AND DESTRUCTION; RESTITUTION.— (1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to forfeiture to the United States: 

(i) Any copies or phonorecords of a live musical performance described in subsection (a)(1) that are made without 

the consent of the performer or performers involved, and 

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tives by means of which such copies or phonorecords may 

be made. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or facilitate the commission of a violation of subsection (a) 

that is owned or predominantly controlled by the violator 

or by a person conspiring with or aiding and abetting the 

violator in committing the violation, except that property is 

subject to forfeiture under this clause only if the Government establishes that there was a substantial connection 

between the property and the violation of subsection (a). 

(B) The provisions of chapter 46 relating to civil forfeitures 

shall extend to any seizure or civil forfeiture under paragraph 

(1). At the conclusion of the forfeiture proceedings, the court 

shall order that any forfeited unauthorized copies or 

phonorecords of live musical performances, and any plates, 

molds, matrices, maters, tapes, and film negatives by means of 

which such unauthorized copies or phonorecords may be made, 

be destroyed or otherwise disposed of according to law. 

(C) In this paragraph, the term ‘‘aiding and abetting’’ means 

knowingly providing aid to the violator with the intent to facilitate the violation. 

(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in 

imposing sentence on a person convicted of an offense under 

this section, shall order, in addition to any other sentence imposed, that the person forfeit to the United States the following 

property: 

(i) Any unauthorized copies or phonorecords of a live musical performance that were used, intended for use, or possessed with intent to use in the commission of an offense 

under subsection (a), and any plates, molds, matrices, masters, tapes, and film negatives by means of which such copies or phonorecords may be made. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or substantially facilitate the commission of an offense 

under subsection (a). 

(B) The forfeiture of property under subparagraph (A), including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be governed 

by the procedures set forth in section 413 of the Comprehensive 

Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 

853), other than subsection (d) of that section. At the conclusion 

of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies or phonorecords of live musical performances, and any plates, molds, matrices, masters, tapes, and 

film negatives by means of which such unauthorized copies of 

phonorecords may be made, be destroyed or otherwise disposed 

of according to law. 

(3) NOTIFICATION OF IMPORTATION.—The Secretary of Homeland Security shall issue regulations by which any performer 


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may, upon payment of a specified fee, be entitled to notification 

by U.S. Customs and Border Protection of the importation of 

copies or phonorecords that appear to consist of unauthorized 

fixations of the sounds or sounds and images of a live musical 

performance prohibited by this section. 

(4) RESTITUTION.—When a person is convicted of an offense 

under this section, the court, pursuant to sections 3556, 3663A, 

and 3664, shall order the person to pay restitution to the performer or performers involved, and any other victim of the offense as an offense against property referred to in section 

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

ø(d)¿ (c) VICTIM IMPACT STATEMENT.—(1) * * * 

* * * * * * * 

ø(e)¿ (d) DEFINITIONS.—As used in this section— (1) * * * 

* * * * * * * 

ø(f)¿ (e) APPLICABILITY.—This section shall apply to any Act or 

Acts that occur on or after the date of the enactment of the Uruguay Round Agreements Act, except that the forfeiture provisions 

under subsection (b)(2), as added by the Prioritizing Resources and 

Organization for Intellectual Property Act, shall apply only in a 

case in which the underlying act or acts occur on or after the date 

of the enactment of that Act. 

§ 2319B. Unauthorized recording of Motion pictures in a Motion picture exhibition facility 

(a) * * * 

ø(b) FORFEITURE AND DESTRUCTION.—When a person is convicted 

of a violation of subsection (a), the court in its judgment of conviction shall, in addition to any penalty provided, order the forfeiture 

and destruction or other disposition of all unauthorized copies of 

motion pictures or other audiovisual works protected under title 17, 

or parts thereof, and any audiovisual recording devices or other 

equipment used in connection with the offense.¿ 

(b) FORFEITURE AND DESTRUCTION; RESTITUTION.—

(1) CIVIL FORFEITURE PROCEEDINGS.—(A) The following property is subject to forfeiture to the United States: 

(i) Any copies of a motion picture or other audiovisual 

work protected under title 17 that are made without the authorization of the copyright owner. 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of a violation of subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or facilitate the commission of a violation of subsection (a) 

that is owned or predominantly controlled by the violator 

or by a person conspiring with or aiding and abetting the 

violator in committing the violation, except that property is 

subject to forfeiture under this clause only if the Government establishes that there was a substantial connection 

between the property and the violation of subsection (a). 

(B) The provisions of chapter 46 relating to civil forfeitures 

shall extend to any seizure or civil forfeiture under this section. 

At the conclusion of the forfeiture proceedings, the court shall 


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order that any forfeited unauthorized copies or phonorecords of 

a motion picture or other audiovisual work, or part thereof, and 

any plates, molds, matrices, masters, tapes, and film negatives 

by means of which such unauthorized copies or phonorecords 

may be made, be destroyed or otherwise disposed of according 

to law. 

(C) In this paragraph, the term ‘‘aiding and abetting’’ means 

knowingly providing aid to the violator with the intent to facilitate the violation. 

(2) CRIMINAL FORFEITURE PROCEEDINGS.—(A) The court, in 

imposing sentence on a person convicted of an offense under 

this section, shall order, in addition to any other sentence imposed, that the person forfeit to the United States the following 

property: 

(i) Any unauthorized copies of a motion picture or other 

audiovisual work protected under title 17, or part thereof, 

that were used, intended for use, or possessed with intent 

to use in the commission of an offense under subsection (a). 

(ii) Any property constituting or derived from any proceeds obtained directly or indirectly as a result of an offense under subsection (a). 

(iii) Any property used, or intended to be used, to commit 

or substantially facilitate the commission of an offense 

under subsection (a). 

(B) The forfeiture of property under subparagraph (A), including any seizure and disposition of the property and any related judicial or administrative proceeding, shall be governed 

by the procedures set forth in section 413 of the Comprehensive 

Drug Abuse Prevention and Control Act of 1970 (21 U.S.C. 

853), other than subsection (d) of that section. At the conclusion 

of the forfeiture proceedings, the court shall order that any forfeited unauthorized copies or phonorecords of a motion picture 

or other audiovisual work, or part thereof, and any plates, 

molds, matrices, masters, tapes, and film negatives by means of 

which such unauthorized copies or phonorecords may be made, 

be destroyed or otherwise disposed of according to law. 

(3) RESTITUTION.—When a person is convicted of an offense 

under this chapter, the court, pursuant to sections 3556, 3663A, 

and 3664, shall order the person to pay restitution to the owner 

of the copyright in the motion picture or other audiovisual work 

and any other victim of the offense as an offense against property referred to in section 3663A(c)(1)(A)(ii). 

* * * * * * * 

§ 2320. Trafficking in counterfeit goods or services 

(a) øWhoever¿ OFFENSE.— (1) IN GENERAL.—Whoever intentionally traffics or attempts 

to traffic in goods or services and knowingly uses a counterfeit 

mark on or in connection with such goods or services, or intentionally traffics or attempts to traffic in labels, patches, stickers, wrappers, badges, emblems, medallions, charms, boxes, 

containers, cans, cases, hangtags, documentation, or packaging 

of any type or nature, knowing that a counterfeit mark has 

been applied thereto, the use of which is likely to cause confusion, to cause mistake, or to deceive, shall, if an individual, be 


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fined not more than $2,000,000 or imprisoned not more than 

10 years, or both, and, if a person other than an individual, be 

fined not more than $5,000,000. In the case of an offense by 

a person under this section that occurs after that person is convicted of another offense under this section, the person convicted, if an individual, shall be fined not more than $5,000,000 

or imprisoned not more than 20 years, or both, and if other 

than an individual, shall be fined not more than $15,000,000. 

(2) SERIOUS BODILY HARM OR DEATH.— (A) SERIOUS BODILY HARM.—If the offender knowingly or 

recklessly causes or attempts to cause serious bodily injury 

from conduct in violation of paragraph (1), the penalty 

shall be a fine under this title or imprisonment for not 

more than 20 years, or both. 

(B) DEATH.—If the offender knowingly or recklessly 

causes or attempts to cause death from conduct in violation 

of paragraph (1), the penalty shall be a fine under this title 

or imprisonment for any term of years or for life, or both. 

(b)(1) The following property shall be subject to forfeiture to the 

United States and no property right shall exist in such property: 

(A) Any article bearing or consisting of a counterfeit mark 

used in committing a violation of subsection (a). 

(B) Any property constituting or derived from any proceeds 

obtained directly or indirectly as a result of a violation of subsection (a). 

ø(B)¿ (C) Any property used, in any manner or part, to commit or to facilitate the commission of a violation of subsection 

(a). 

* * * * * * * 

SECTION 182 OF THE TRADE ACT OF 1974 

* * * * * * * 

SEC. 182. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE 

PROTECTION, OR MARKET ACCESS, FOR INTELLECTUAL 

PROPERTY RIGHTS. 

(a) * * * 

(b) SPECIAL RULES FOR IDENTIFICATIONS.—

(1) * * * 

(2) In identifying priority foreign countries under subsection 

(a)(2), the Trade Representative shall—

(A) consult with the United States Intellectual Property 

Enforcement Representative, the Register of Copyrights, 

the Under Secretary of Commerce for Intellectual Property 

and Director of the United States Patent and Trademark 

Office, other appropriate officers of the Federal Government, and 

* * * * * * * 

TITLE 5, UNITED STATES CODE 

* * * * * * * 


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PART III—EMPLOYEES 

* * * * * * * 

SUBPART D—PAY AND ALLOWANCES 

* * * * * * * 

CHAPTER 53—PAY RATES AND SYSTEMS 

* * * * * * * 

SUBCHAPTER II—EXECUTIVE SCHEDULE PAY RATES 

§ 5312. Positions at level I 

Level I of the Executive Schedule applies to the following positions for which the annual rate of basic pay shall be the rate determined with respect to such level under chapter 11 of title 2, as adjusted by section 5318 of this title: 

Secretary of State. 

* * * * * * * 

United States Intellectual Property Enforcement Representative. 

* * * * * * * 

TREASURY AND GENERAL GOVERNMENT 

APPROPRIATIONS ACT, 2000 

* * * * * * * 

TITLE VI—GENERAL PROVISIONS 

DEPARTMENTS, AGENCIES, AND CORPORATIONS 

* * * * * * * 

øSEC. 653. (a) ESTABLISHMENT.—There is established the National Intellectual Property Law Enforcement Coordination Council 

(in this section referred to as the ‘‘Council’’). The Council shall consist of the following members—

ø(1) The Assistant Secretary of Commerce and Commissioner of 

Patents and Trademarks, who shall serve as co-chair of the Council. 

ø(2) The Assistant Attorney General, Criminal Division, who 

shall serve as co-chair of the Council. 

ø(3) The Under Secretary of State for Economic and Agricultural 

Affairs. 

ø(4) The Ambassador, Deputy United States Trade Representative. 

ø(5) The Commissioner of Customs. 

ø(6) The Under Secretary of Commerce for International Trade. 

ø(7) The Coordinator for International Intellectual Property Enforcement.’’ after ‘‘Under Secretary of Commerce for International 

Trade. 


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ø(b) DUTIES.—The Council established in subsection (a) shall coordinate domestic and international intellectual property law enforcement among federal and foreign entities. 

ø(c) CONSULTATION REQUIRED.—The Council shall consult with 

the Register of Copyrights on law enforcement matters relating to 

copyright and related rights and matters. 

ø(d) NON-DEROGATION.—Nothing in this section shall derogate 

from the duties of the Secretary of State or from the duties of the 

United States Trade Representative as set forth in section 141 of 

the Trade Act of 1974 (19 U.S.C. 2171), or from the duties and 

functions of the Register of Copyrights, or otherwise alter current 

authorities relating to copyright matters. 

ø(e) REPORT.—The Council shall report annually on its coordination activities to the President, and to the Committees on Appropriations and on the Judiciary of the Senate and the House of Representatives. 

ø(f) FUNDING.—Notwithstanding section 1346 of title 31, United 

States Code, or section 610 of this Act, funds made available for 

fiscal year 2000 and hereafter by this or any other Act shall be 

available for interagency funding of the National Intellectual Property Law Enforcement Coordination Council.¿ 

* * * * * * * 

COMPUTER CRIME ENFORCEMENT ACT 

* * * * * * * 

SEC. 2. STATE GRANT PROGRAM FOR TRAINING AND PROSECUTION 

OF COMPUTER CRIMES. 

(a) * * * 

(b) USE OF GRANT AMOUNTS.—Grants under this section may be 

used to establish and develop programs to—

(1) assist State and local law enforcement agencies in enforcing State and local criminal laws relating to computer crime, 

including infringement of copyrighted works over the Internet; 

(2) assist State and local law enforcement agencies in educating the public to prevent and identify computer crime, including infringement of copyrighted works over the Internet; 

(3) educate and train State and local law enforcement officers and prosecutors to conduct investigations and forensic 

analyses of evidence and prosecutions of computer crime, including infringement of copyrighted works over the Internet; 

* * * * * * * 

(e) AUTHORIZATION OF APPROPRIATIONS.—

(1) IN GENERAL.—There is authorized to be appropriated to 

carry out this section $25,000,000 for each of øfiscal years 2001 

through 2004¿ fiscal years 2009 through 2013. 

* * * * * * * 


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COMMITTEE JURISDICTION LETTERS


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