II 

109TH CONGRESS 

1ST SESSION S. 1984 

To safeguard the national security and economic health of the United States 

by improving the management, coordination, and effectiveness of domestic and international intellectual property rights enforcement, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 9, 2005 

Mr. BAYH (for himself and Mr. VOINOVICH) introduced the following bill; 

which was read twice and referred to the Committee on the Judiciary 

A BILL 

To safeguard the national security and economic health of 

the United States by improving the management, coordination, and effectiveness of domestic and international 

intellectual property rights enforcement, and for other 

purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘The Intellectual Prop5 erty Rights Enforcement Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress makes the following findings: 
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1 (1) Funds generated from intellectual property 

2 theft have financed acts of terrorism. 

3 (2) Terrorist groups have advocated the sale of 

4 counterfeit goods to finance their activities. 

5 (3) Counterfeit medicines and automobile and 

6 aviation parts have resulted in serious health prob7 lems and death. 

8 (4) The greatest economic assets of the United 

9 States are its innovators, entrepreneurs, and work10 ers. 

11 (5) Counterfeiting and piracy costs United 

12 States businesses, authors, and artists hundreds of 

13 billions of dollars annually. 

14 (6) Counterfeiting and piracy has resulted in 

15 the loss of hundreds of thousands of American jobs. 

16 (7) The World Customs Organization estimates 

17 that up to 7 percent of global trade is in counterfeit 

18 goods. 

19 (8) The World Customs Organization estimates 

20 that global trade in counterfeit and pirated goods 

21 has increased from $5,500,000,000 to more than 

22 $600,000,000,000 annually. 

23 (9) The domestic and international efforts of 

24 the United States to curb intellectual property theft 

25 have largely been ineffective. 
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1 (10) The efforts to enforce intellectual property 

2 rights should be elevated to the same level as the ef3 forts of the United States to combat other crimes, 

4 including money laundering. 

5 (11) The domestic and international efforts of 

6 the United States to combat money laundering 

7 serves as a useful model for strengthening domestic 

8 and international intellectual property rights en9 forcement. 

10 (12) The Financial Crimes Enforcement Net11 work (FinCEN) represents a key effort by the 

12 United States to combat money laundering and 

13 other financial crimes. 

14 (13) FinCEN has effectively enhanced the ex15 change of information relating to money laundering 

16 and terrorist financing, both domestically and inter17 nationally. 

18 (14) FinCEN combats money laundering inter19 nationally by partnering with other enforcement20 minded countries through the Financial Action Task 

21 Force (FATF) and Egmont. 

22 (15) FATF members have established effective 

23 standards that they collectively agree to implement 

24 and against which they agree to be assessed through 

25 peer review. 
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1 (16) The success of intellectual property rights 

2 enforcement requires that United States Government 

3 agencies form an effective network to share informa4 tion for the purpose of enhancing the enforcement 

5 capabilities of each agency. 

6 (17) The success of intellectual property en7 forcement requires that a network of government 

8 agencies work closely with Federal, State, and local 

9 law enforcement. 

10 (18) The success of international intellectual 

11 property rights enforcement requires that the United 

12 States partner with other countries that also suffer 

13 from extensive intellectual property theft. 

14 (19) The success of international intellectual 

15 property rights enforcement requires that the United 

16 States share intelligence within an effective inter17 national task force of countries that are dedicated to 

18 achieving results in the fight against intellectual 

19 property theft. 

20 (20) The success of international intellectual 

21 property rights enforcement will be enhanced if the 

22 United States and other reliable international part23 ners engage in joint enforcement operations. 

24 (21) An effective exchange of intelligence do25 mestically and internationally will enhance the abil-
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1 ity of the United States Trade Representative to en2 force violations of trade agreements. 

3 (22) The success of domestic and international 

4 intellectual property rights enforcement requires an 

5 effective partnership between the public and private 

6 sector, and other interested groups. 

7 SEC. 3. THE INTELLECTUAL PROPERTY ENFORCEMENT 

8 NETWORK. 

9 (a) ESTABLISHMENT.— 

10 (1) IN GENERAL.—There is established the In11 tellectual Property Enforcement Network (in this 

12 section referred to as the ‘‘Network’’). 

13 (2) MEMBERSHIP.—The Network shall consist 

14 of the following officials: 

15 (A) The Deputy Director for Management 

16 of the Office of Management and Budget 

17 (OMB), who shall serve as the chairperson of 

18 the Network. 

19 (B) The Deputy Attorney General. 

20 (C) The Deputy Secretary for Homeland 

21 Security. 

22 (D) The Under Secretary of Treasury for 

23 Terrorism and Financial Intelligence. 
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1 (E) The Under Secretary of Commerce for 

2 Intellectual Property and Director of the United 

3 States Patent and Trademark Office. 

4 (F) The Deputy Secretary of State. 

5 (G) The Deputy United States Trade Rep6 resentative. 

7 (H) The Under Secretary of Commerce for 

8 International Trade. 

9 (I) The Deputy Director of the Central In10 telligence Agency. 

11 (J) The Coordinator for Intellectual Prop12 erty Enforcement. 

13 (K) Such other officials as the members of 

14 the Network shall consider necessary and ap15 propriate. 

16 (b) ORGANIZATION.— 

17 (1) MEETINGS.—The Network shall meet at 

18 least once every 6 months to approve the ongoing 

19 operations of the Network, to provide overall direc20 tion, to approve the report referred to in subsection 

21 (h), and to approve the budget referred to in para22 graph (2)(B)(ii). 

23 (2) COORDINATOR.— 

24 (A) IN GENERAL.—The day-to-day func25 tions of the Network shall be carried out by a 
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1 Coordinator for Intellectual Property Enforce2 ment (in this Act referred to as the ‘‘Coordi3 nator’’) who shall be appointed by the Presi4 dent. 

5 (B) OTHER RESPONSIBILITIES.—In addi6 tion to the responsibilities described in subpara7 graph (A), the Coordinator shall be responsible 

8 for the following: 

9 (i) Developing for each fiscal year, 

10 with the advice of the officials of the Net11 work and any other departments and agen12 cies with responsibilities for intellectual 

13 property rights protection and intellectual 

14 property law enforcement, a budget pro15 posal to implement the policies, objectives, 

16 and priorities described in subsection (c). 

17 (ii) Drafting and transmitting to the 

18 President and the Congress the report ref19 erenced in subsection (h). 

20 (c) DUTIES.—The Network established under sub21 section (a) shall be responsible for the following: 

22 (1) Establishing policies, objectives, and prior23 ities concerning international intellectual property 

24 protection and intellectual property law enforcement. 

25 The policies, objectives, and priorities shall include— 
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1 (A) eliminating counterfeit and pirated 

2 goods from the international supply chain; 

3 (B) identifying individuals, companies, 

4 banks, and other entities involved in the financ5 ing, production, trafficking, and sale of counter6 feit and pirated goods; 

7 (C) arresting and prosecuting persons who 

8 are knowingly involved in the financing, produc9 tion, trafficking, and sale of counterfeit and pi10 rated goods; 

11 (D) disrupting and shutting down counter12 feit and piracy networks; 

13 (E) reducing the number of countries that 

14 fail to enforce laws that prevent the financing, 

15 production, trafficking, and sale of counterfeit 

16 and pirated goods; and 

17 (F) establishing international standards 

18 for effective intellectual property protection and 

19 enforcement. 

20 (2) Protecting United States intellectual prop21 erty rights overseas, including— 

22 (A) working with similar networks in for23 eign countries to create a small and effective 

24 international intellectual property enforcement 
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1 task force (in this Act referred to as the ‘‘inter2 national task force’’); 

3 (B) ensuring the international task force 

4 described in subparagraph (A) consists of net5 works in countries that— 

6 (i) have intellectual property theft 

7 problems that are similar to those of the 

8 United States; 

9 (ii) have adequate and effective laws 

10 protecting copyrights, trademarks, and 

11 patents; 

12 (iii) have legal regimes that permit 

13 enforcement, and are taking a serious ap14 proach to enforcement, including a track 

15 record of arresting and prosecuting intel16 lectual property criminals; 

17 (iv) have officials who have ex-officio 

18 authority to seize, inspect, and destroy pi19 rated and counterfeit goods at ports of 

20 entry (or are working toward providing 

21 their officials with the authority); 

22 (v) have officials who can order the 

23 seizure of pirated and counterfeit goods (or 

24 are working toward providing their officials 

25 with the authority); 
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1 (vi) have laws in place that permit of2 ficials to seize property used to produce pi3 rated and counterfeit goods (or are work4 ing toward providing their officials with 

5 the authority); 

6 (vii) are not on the Priority Watch 

7 List issued by the United States Trade 

8 Representative under the Trade Act of 

9 1974; and 

10 (viii) have met additional standards to 

11 be established by the international task 

12 force. 

13 (C) exchanging intelligence with networks 

14 in the international task force relating to indi15 viduals and entities involved in financing, pro16 duction, trafficking, and sale of pirated and 

17 counterfeit goods; 

18 (D) utilizing the intelligence to conduct en19 forcement activities in cooperation with the net20 works of other countries in the international 

21 task force; and 

22 (E) building a formal process for con23 sulting with companies, industry associations, 

24 labor unions, and other interested groups in the 
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1 countries that have networks in the inter2 national task force. 

3 (3) Coordinating and overseeing implementation 

4 by agencies with responsibility for intellectual prop5 erty protection and intellectual property law enforce6 ment of the policies, objectives, and priorities de7 scribed in paragraph (1) and the fulfillment of the 

8 responsibilities assigned to such agencies to complete 

9 the actions described in paragraph (2). 

10 (d) STAFF.— 

11 (1) IN GENERAL.—The Coordinator shall, in 

12 consultation with affected agencies, appoint, and fix 

13 the compensation of, such officers and employees of 

14 the Network as may be necessary to carry out the 

15 functions of the Network and may request the tem16 porary assignment of personnel from any depart17 ment or agency. 

18 (2) ASSIGNMENT AND COOPERATION OF OTHER

19 FEDERAL EMPLOYEES.—Each member of the Net20 work listed in subsection (a) shall designate per21 sonnel from their department or agency to work with 

22 the Network and shall ensure that all units in their 

23 agencies that have responsibility for intellectual 

24 property enforcement provide information and per25 sonnel to the Network in order for the Network to 
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1 achieve the priorities, objectives, and policies de2 scribed in subsection (c)(1). 

3 (3) CENTRAL INTELLIGENCE AGENCY INFORMA4 TION AND PERSONNEL.—The Deputy Director of the 

5 Central Intelligence Agency shall— 

6 (A) provide information to members and 

7 employees of the Network with appropriate se8 curity clearance; and 

9 (B) assign employees of the Central Intel10 ligence Agency to work on achieving the prior11 ities, objectives, and policies described in sub12 section (c). 

13 (e) RESPONSIBILITY OF AGENCIES REPRESENTED IN

14 THE NETWORK.—The agencies in the Network shall take 

15 the following actions: 

16 (1) Share amongst themselves the information 

17 they collect to increase the intelligence and effective18 ness of law enforcement with respect to intellectual 

19 property rights. 

20 (2) Coordinate civil and criminal actions with 

21 respect to persons who violate intellectual property 

22 rights. 

23 (3) Utilize information collected domestically, 

24 and from other countries in the international task 

25 force, to— 
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1 (A) investigate, arrest, and prosecute enti2 ties and individuals involved in financing, pro3 ducing, trafficking, and selling counterfeit and 

4 pirated goods; 

5 (B) aid the United States Bureau of Cus6 toms and Border Protection and other agencies 

7 in identifying, seizing, and destroying counter8 feit and pirated goods; 

9 (C) aid the United States Trade Rep10 resentative in bringing cases in the World 

11 Trade Organization against countries with a 

12 poor record of enforcing World Trade Organiza13 tion intellectual property rules; and 

14 (D) aid the United States Trade Rep15 resentative in bringing cases under the dispute 

16 settlement procedures of free trade agreements. 

17 (4) Establish a formal process for working with 

18 State and local government agencies to investigate, 

19 arrest, and prosecute entities and individuals in20 volved in the financing, production, trafficking, and 

21 sale of counterfeit and pirated goods. 

22 (5) Establish a formal process for consulting 

23 with companies, their designated representatives, 

24 and industry associations to strengthen enforcement. 
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1 (6) Establish a formal process for consulting 

2 with labor unions, writers and artists (and their or3 ganizations and unions), and other interested per4 sons and groups that suffer from counterfeiting and 

5 piracy. 

6 (f) CONSULTATION REQUIRED.—The members of the 

7 Network shall consult with the Register of Copyrights on 

8 law enforcement matters relating to copyright and related 

9 rights and matters. 

10 (g) PRIORITY IN INTERNATIONAL TALKS.—Consid11 ering the threat that counterfeit and pirated goods pose 

12 to the economic health and national security of the United 

13 States, the President and relevant agency officers, when 

14 meeting with foreign countries described in subsection 

15 (c)(2)(B), should— 

16 (1) stress the importance of establishing the 

17 international task force described in subsection 

18 (c)(2)(A); 

19 (2) strongly encourage countries to participate 

20 in the international task force; and 

21 (3) strongly encourage countries participating 

22 in the international task force to cooperate with the 

23 United States in ensuring the success of the inter24 national task force. 

25 (h) REPORT.— 
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1 (1) IN GENERAL.—The Director of the Office of 

2 Management and Budget and the Coordinator shall 

3 report annually on the Network’s enforcement and 

4 coordination activities to the President, and to the 

5 Committees on Homeland Security and Govern6 mental Affairs and Appropriations of the Senate, 

7 and the Committees on Government Reform and Ap8 propriations of the House of Representatives. 

9 (2) CONTENTS.—The report required by this 

10 subsection shall include the following information: 

11 (A) The progress made toward establishing 

12 an international task force described in sub13 section (c)(2). 

14 (B) The progress made in working with 

15 foreign networks in the international task force 

16 to investigate, arrest, and prosecute entities and 

17 individuals involved in the financing, produc18 tion, trafficking, and sale of counterfeit and pi19 rated goods. 

20 (C) The manner in which the agencies that 

21 are members of the Network are working to22 gether and sharing information to strengthen 

23 intellectual property enforcement. 

24 (D) For each foreign network admitted or 

25 denied entry into the international task force, 
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1 the rationale for admitting or denying entry to 

2 that network, including reasons for admitting 

3 networks from those countries that are cur4 rently on the Watch List issued by the United 

5 States Trade Representative. 

6 (E) The successes and challenges in shar7 ing intelligence with countries in the inter8 national task force. 

9 (F) The progress of the United States 

10 Trade Representative in bringing cases in the 

11 World Trade Organization against countries 

12 with a poor record of enforcing World Trade 

13 Organization intellectual property rules. 

14 (G) The progress made in establishing and 

15 improving the formal process described in sub16 section (e)(4). 

17 (H) The progress made in establishing and 

18 improving the formal process described in sub19 section (e)(5). 

20 (I) The progress made in establishing and 

21 improving the formal process described in sub22 section (e)(6). 

23 (i) GOVERNMENT ACCOUNTABILITY OFFICE RE24 PORT.—Not later than 1 year after the date of enactment 

25 of this Act, the Comptroller General of the United States 
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1 shall complete a report and submit the report to the Con2 gress on the progress made on the items described in sub3 section (h). 

4 (j) OTHER INTELLECTUAL PROPERTY ACTIVITIES.— 

5 If other government intellectual property initiatives in6 clude enforcement activities similar or identical to the ac7 tivities described in this Act, those activities should be con8 solidated into the work of the Network in order to prevent 

9 duplication. Other activities that may improve enforce10 ment may continue outside of the Network, including ca11 pacity building, outreach to countries that would not qual12 ify for membership in the international task force, and 

13 other bilateral and multilateral cooperative efforts. 

14 SEC. 4. NATIONAL INTELLECTUAL PROPERTY LAW EN15 FORCEMENT COORDINATION COUNCIL RE16 PEAL. 

17 Section 653 of the Treasury and General Government 

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

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