This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

4347 

Vol. 78, No. 14 

Tuesday, January 22, 2013 

DEPARTMENT OF HOMELAND 

SECURITY 

Office of the Secretary 

6 CFR Part 5 

[Docket No. DHS–2012–0035] 

Privacy Act of 1974: Implementation of 

Exemptions; Department of Homeland 

Security; U.S. Customs and Border 

Protection; DHS/CBP–004-Intellectual 

Property Rights e-Recordation and 

Search Systems, System of Records 

AGENCY: Privacy Office, DHS. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Department of Homeland 

Security is giving concurrent notice of a 

newly established system of records 

pursuant to the Privacy Act of 1974 for 

the ‘‘Department of Homeland Security/ 

U.S. Customs and Border Protection; 

DHS/CBP–004-Intellectual Property 

Rights e-Recordation and Search 

Systems (IPRRSS), System of Records’’ 

and this proposed rulemaking. In this 

proposed rulemaking, the Department 

proposes to exempt portions of the 

system of records from one or more 

provisions of the Privacy Act because of 

criminal, civil, and administrative 

enforcement requirements. 

DATES: Comments must be received on 

or before February 21, 2013. 

ADDRESSES: You may submit comments, 

identified by docket number DHS– 

2012–0035, by one of the following 

methods: 

• Federal e-Rulemaking Portal: 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: 202–343–4010. 

• Mail: Jonathan R. Cantor, Acting 

Chief Privacy Officer, Privacy Office, 

Department of Homeland Security, 

Washington, DC 20528. 

Instructions: All submissions received 

must include the agency name and 

docket number for this notice. All 

comments received will be posted 

without change to http:// 

www.regulations.gov, including any 

personal information provided. 

Docket: For access to the docket to 

read background documents or 

comments received, go to http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: For 

general questions please contact: 

Laurence E. Castelli (202–325–0280), 

CBP Privacy Officer, Office of 

International Trade/Regulations and 

Rulings, U.S. Customs and Border 

Protection, Mint Annex, 799 9th Street 

NW., Washington, DC 20229–1177. For 

privacy issues please contact: Jonathan 

R. Cantor (202–343–1717), Acting Chief 

Privacy Officer, Privacy Office, 

Department of Homeland Security, 

Washington, DC 20528. 

SUPPLEMENTARY INFORMATION: 

I. Background 

In accordance with the Privacy Act of 

1974, 5 U.S.C. 552a, the Department of 

Homeland Security (DHS), U.S. Customs 

and Border Protection (CBP) proposes to 

establish a new DHS system of records 

titled, ‘‘DHS/CBP–004-Intellectual 

Property Rights e-Recordation and 

Search Systems System of Records.’’ 

The Intellectual Property Rights eRecordation and Search Systems 

(IPRRSS) collect, use, and maintain 

records related to intellectual property 

rights recordations and their owners. 

The purpose of IPRRSS is to aid in the 

enforcement of intellectual property 

rights by making intellectual property 

recordations available to the public and 

to CBP officials. 

IPRRSS collectively encompasses 

three separate systems. The first system 

is the online Intellectual Property Rights 

e-Recordation (IPRR) system, which 

allows intellectual property owners to 

submit applications for trademark and 

copyright recordations. The IPRR 

system shares information with the 

public Intellectual Property Rights 

Search (IPRS) system and the CBP 

Intellectual Property Rights Internal 

Search (IPRiS) system. Because CBP 

may collect personally identifiable 

information (PII) about intellectual 

property rights holders, their agents, or 

their licensees in IPRR, IPRS, and IPRiS 

(collectively IPRRSS), CBP is providing 

the public notice about how CBP 

collects, uses, and maintains records 

related to intellectual property rights 

recordations. 

The authority for this system derives 

from Section 42 of the Lanham Act 

(Trademark Act of 1946), as amended, 

15 U.S.C. 1124; Sections 101 and 602 

through 603 of the Copyright Act of 

1976, as amended, 17 U.S.C. 101, 602– 

603; and Sections 526, 595a, and 624 of 

the Tariff Act of 1930, as amended, 19 

U.S.C. 1526, 1595a, and 1624. The cited 

sections provide that intellectual 

property rights owners may submit 

information to CBP to enable CBP 

officials to identify infringing articles at 

the borders and prevent the importation 

of counterfeit or pirated merchandise. 

Owners seeking to have merchandise 

excluded from entry must provide proof 

to CBP of the validity of the intellectual 

property rights they seek to protect. 

Pursuant to the Independent Offices 

Appropriations Act of 1952, 31 U.S.C. 

9701, and regulations at 19 CFR 133.3, 

133.13, and 133.33, intellectual property 

rights owners or their agents must pay 

a fee when they apply for the 

recordation with CBP of their 

trademark, trade name, or copyright. 

Through IPRR’s web-based interface, the 

user will be prompted through several 

steps that capture the user’s required 

application information. Once the 

applicant has entered all required 

application information, IPRR will 

guide the applicant through a series of 

prompts seeking his/her billing name, 

billing address, and credit card 

information. IPRR forwards this 

payment information to Pay.gov for 

payment processing, and the applicant 

name and an IPRR tracking number to 

the DHS/CBP–003 Credit/Debit Card 

Data System (CDCDS) System of 

Records for payment reconciliation. 

Pay.gov sends a nightly activity file, 

including the last four digits of the 

credit card, authorization number, 

billing name, billing address, IPRR 

tracking number, and Pay.gov tracking 

numbers to CDCDS. Pay.gov also sends 

a daily batch file with the necessary 

payment information to a commercial 

bank for settlement processing. After 

processing, the commercial bank sends 

a settlement file, including the full 

credit card number, authorization 

number, card type, transaction date, 

amount, and IPRR tracking number to 

CDCDS. Once IPRR receives 

confirmation from Pay.gov that the 

payment has been processed 

successfully, IPRR will retain the 

Pay.gov tracking number for payment 


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4348 Federal Register / Vol. 78, No. 14 / Tuesday, January 22, 2013 / Proposed Rules 

reconciliation purposes in accordance 

with the CDCDS system of records 

retention schedule. 

When an applicant enters the 

registration number of a copyright or 

trademark he or she would like to 

record with CBP, the IPRR system must 

receive a positive match response from 

the U.S. Patent and Trademark Office 

(USPTO) and U.S. Copyright Office Web 

sites in order for the application to 

proceed. Only the registration number is 

shared with the USPTO and U.S. 

Copyright Office Web sites. If the 

registration number entered in IPRR 

does not match an entry in either of 

these Web sites, the applicant cannot 

record their trademark or copyright with 

CBP. Once a positive match response is 

received from these systems, certain 

fields in the application are 

automatically populated with public 

data taken directly from the U.S. 

Copyright Office or USPTO Web sites. 

All of the information copied from the 

U.S. Copyright Office or USPTO Web 

sites is publicly available at 

www.uspto.gov and www.copyright.gov. 

The public may search for trademark, 

trade name, and copyright information 

in IPRS, the public facing portion of this 

system of records. The IPRS database 

collects and retains only a portion of the 

information entered by the right holder 

in IPRR, such as the name, address, and 

phone number of the right holder or 

representative, along with a text 

description of the recorded trademark or 

copyright. This information allows 

retailers, consumers, and other 

businesses to contact the right owner to 

ensure that they are not obtaining goods 

that infringe on the owner’s intellectual 

property rights. 

CBP and U.S. Immigration and 

Customs Enforcement (ICE) officials 

have access to IPRiS to assist in the 

enforcement of intellectual property 

rights. IPRiS provides a central 

searchable database of all trademark, 

trade name, and copyright recordation 

information. IPRiS contains the same 

information as IPRS, but with additional 

fields containing confidential 

information submitted by the right 

holder, including the names of entities 

who have used the trademark or 

copyright, the country of manufacture of 

merchandise, images of the recorded 

trademark or copyright, lists of 

licensees, and any additional 

information relating to enforcement of 

the intellectual property right. Only CBP 

and ICE officials may search IPRiS. 

Only a few users within CBP have 

access to an administrative interface to 

process IPRR recordations. Those 

authorized CBP users with 

administrative access process the 

renewals of existing trademark and 

copyright recordations, trade name 

recordations, and information about 

ownership changes or cancellations. 

Consistent with DHS’ informationsharing mission, information stored in 

the DHS/CBP–004-Intellectual Property 

Rights e-Recordation and Intellectual 

Property Rights Search Systems may be 

shared with other DHS components 

with a need to know the information. In 

addition, these records may be shared 

with appropriate federal, state, local, 

tribal, territorial, foreign, or 

international government agencies so 

long as the recipient has a need to know 

the information to carry out functions 

consistent with the routine uses set 

forth in the system of records notice 

(SORN). 

The Department of Homeland 

Security is issuing this Notice of 

Proposed rulemaking to exempt this 

system of records from certain 

provisions of the Privacy Act, 

concurrent with the system of records 

notice. DHS is not exempting any data 

in the system regarding an individual’s 

application for recordation of his or her 

trademark, trade name, or copyright. 

This system, however, may contain 

records or information pertaining to the 

accounting of disclosures of records 

pertaining to persons or entities, who 

are alleged to have made an infringing 

use of a recorded intellectual property 

right, made from this system to other 

national security, law enforcement, or 

intelligence agencies (federal, state, 

local, foreign, international or tribal) in 

accordance with the published routine 

uses or statutory basis for disclosure 

under 5 U.S.C. 552a(b). For the 

accounting of these disclosures only, in 

accordance with 5 U.S.C. 552a (j)(2) and 

(k)(2), DHS will claim exemptions for 

these records or information. 

II. Privacy Act 

The Privacy Act embodies fair 

information practice principles in a 

statutory framework governing the 

means by which the federal government 

collects, maintains, uses, and 

disseminates personally identifiable 

information. The Privacy Act applies to 

information that is maintained in a 

‘‘system of records.’’ A ‘‘system of 

records’’ is a group of any records under 

the control of an agency from which 

information is retrieved by the name of 

the individual or by some identifying 

number, symbol, or other identifying 

particular assigned to the individual. In 

the Privacy Act, an individual is defined 

to encompass U.S. citizens and lawful 

permanent residents. As a matter of 

policy, DHS extends administrative 

Privacy Act protections to all persons, 

regardless of citizenship, where systems 

of records maintain information on U.S. 

citizens, lawful permanent residents, 

and visitors. 

The Privacy Act allows government 

agencies to exempt certain records from 

the access and amendment provisions. If 

an agency claims an exemption, 

however, it must issue a Notice of 

Proposed Rulemaking to make clear to 

the public the reasons why a particular 

exemption is claimed. 

DHS is claiming exemptions from 

certain requirements of the Privacy Act 

for DHS/CBP–004-Intellectual Property 

Rights e-Recordation and Intellectual 

Property Rights Search Systems System 

of Records. Some information in DHS/ 

CBP–004-Intellectual Property Rights eRecordation and Intellectual Property 

Rights Search Systems System of 

Records relates to official DHS national 

security, law enforcement or 

intelligence activities, and that 

information includes records or 

information pertaining to the accounting 

of disclosures made from this system to 

other law enforcement or intelligence 

agencies (federal, state, local, foreign, 

international, or tribal) in accordance 

with the published routine uses or 

statutory basis for disclosure pursuant 

to 5 U.S.C. 552a(b). In addition, some 

information in DHS/CBP–004- 

Intellectual Property Rights eRecordation and Intellectual Property 

Rights Search Systems System of 

Records relates to information or 

records about individuals who may 

have used an intellectual property right 

without the intellectual property right 

owner’s authorization. These 

exemptions are needed to protect 

information relating to DHS national 

security, law enforcement, or 

intelligence activities from disclosure to 

subjects or others related to these 

activities. Specifically, the exemptions 

are required to preclude subjects of 

these activities from frustrating these 

processes and to avoid disclosure of 

activity techniques. Disclosure of 

information to the subject of the inquiry 

could also permit the subject to avoid 

detection or apprehension. 

The exemptions proposed here are 

standard intelligence, law enforcement, 

and national security exemptions 

exercised by a large number of federal 

law enforcement and intelligence 

agencies. In appropriate circumstances, 

when compliance would not appear to 

interfere with or adversely affect the law 

enforcement purposes of this system 

and the overall law enforcement 

process, the applicable exemptions may 

be waived on a case by case basis. 

A notice of system of records for DHS/ 

CBP–004-Intellectual Property Rights eVerDate Mar<15>2010 17:29 Jan 18, 2013 Jkt 229001 PO 00000 Frm 00002 Fmt 4702 Sfmt 4702 E:\FR\FM\22JAP1.SGM 22JAP1

tkelley on DSK3SPTVN1PROD with 
Federal Register / Vol. 78, No. 14 / Tuesday, January 22, 2013 / Proposed Rules 4349 

Recordation and Search Systems System 

of Records is also published in this 

issue of the Federal Register. 

List of Subjects in 6 CFR Part 5 

Freedom of information; Privacy. 

For the reasons stated in the 

preamble, DHS proposes to amend 

Chapter I of Title 6, Code of Federal 

Regulations, as follows: 

PART 5—DISCLOSURE OF RECORDS 

AND INFORMATION 

■ 1. The authority citation for Part 5 

continues to read as follows: 

Authority: Pub. L. 107–296, 116 Stat. 

2135; (6 U.S.C. 101 et seq.); 5 U.S.C. 301. 

Subpart A also issued under 5 U.S.C. 552. 

Subpart B also issued under 5 U.S.C. 552a. 

■ 2. Add at the end of Appendix C to 

Part 5, the following new paragraph 

‘‘69’’: 

Appendix C to Part 5—DHS Systems of 

Records Exempt From the Privacy Act 

* * * * * 

69. The DHS/CBP–004 Intellectual 

Property Rights e-Recordation and Search 

Systems System of Records consists of 

electronic and paper records and will be used 

by DHS and its components. The DHS/CBP– 

004-Intellectual Property Rights eRecordation and Search Systems System of 

Records is a repository of information held 

by DHS in connection with its several and 

varied missions and functions, including, but 

not limited to, the enforcement of civil and 

criminal laws; investigations, inquiries, and 

proceedings; national security; and 

intelligence activities. The DHS/CBP–004- 

Intellectual Property Rights e-Recordation 

and Search Systems System of Records 

contains information that is collected by, on 

behalf of, in support of, or in cooperation 

with DHS and its components and may 

contain personally identifiable information 

collected by other federal, state, local, tribal, 

territorial, foreign, or international 

government agencies. CBP will not assert any 

exemptions with respect to information in 

the systems submitted by the intellectual 

property right owner or the owner’s 

representative. Information in the system 

pertaining to persons alleged to have 

infringed on an intellectual property right 

may be shared with national security, law 

enforcement, or intelligence agencies 

pursuant to the published routine uses. The 

Privacy Act requires DHS to maintain an 

accounting of the disclosures made pursuant 

to all routines uses. Disclosing the fact that 

national security, law enforcement or 

intelligence agencies have sought particular 

records may affect ongoing national security, 

law enforcement, or intelligence activity. As 

such, pursuant to 5 U.S.C. 552a(j)(2), DHS 

will claim exemption from subsections (c)(3), 

(e)(8), and (g) of the Privacy Act of 1974, as 

amended, as necessary and appropriate to 

protect this information. In addition, because 

the system may contain information or 

records about the unauthorized use of 

intellectual property rights and disclosure of 

that information could impede law 

enforcement investigations, DHS will claim, 

pursuant to 5 U.S.C. 552a(k)(2), exemption 

from subsections (c)(3), (d), (e)(1), (e)(4)(G), 

(e)(4)(H), (e)(4)(I), and (f) of the Privacy Act 

of 1974, as necessary and appropriate to 

protect this information. 

Exemptions from these particular 

subsections are justified, on a case-by-case 

basis to be determined at the time a request 

is made, for the following reasons: 

(a) From subsection (c)(3) (Accounting for 

Disclosures) because release of the 

accounting of disclosures could alert the 

subject of an investigation of an actual or 

potential criminal, civil, or regulatory 

violation to the existence of that investigation 

and reveal investigative interest on the part 

of DHS as well as the recipient agency. 

Disclosure of the accounting would therefore 

present a serious impediment to law 

enforcement efforts and/or efforts to preserve 

national security. Disclosure of the 

accounting would also permit the individual 

who is the subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension, which would undermine the 

entire investigative process. 

(b) From subsection (d) (Access to Records) 

because access to the records contained in 

this system of records could inform the 

subject of an investigation of an actual or 

potential criminal, civil, or regulatory 

violation to the existence of that investigation 

and reveal investigative interest on the part 

of DHS or another agency. Access to the 

records could permit the individual who is 

the subject of a record to impede the 

investigation, to tamper with witnesses or 

evidence, and to avoid detection or 

apprehension. Amendment of the records 

could interfere with ongoing investigations 

and law enforcement activities and would 

impose an unreasonable administrative 

burden by requiring investigations to be 

continually reinvestigated. In addition, 

permitting access and amendment to such 

information could disclose security-sensitive 

information that could be detrimental to 

homeland security. 

(c) From subsection (e)(1) (Relevancy and 

Necessity of Information) because in the 

course of investigations into potential 

violations of federal law, the accuracy of 

information obtained or introduced 

occasionally may be unclear, or the 

information may not be strictly relevant or 

necessary to a specific investigation. In the 

interests of effective law enforcement, it is 

appropriate to retain all information that may 

aid in establishing patterns of unlawful 

activity. 

(d) From subsections (e)(4)(G), (e)(4)(H), 

and (e)(4)(I) (Agency Requirements) and (f) 

(Agency Rules), because portions of this 

system are exempt from the individual access 

provisions of subsection (d) for the reasons 

noted above, and therefore DHS is not 

required to establish requirements, rules, or 

procedures with respect to such access. 

Providing notice to individuals with respect 

to existence of records pertaining to them in 

the system of records or otherwise setting up 

procedures pursuant to which individuals 

may access and view records pertaining to 

themselves in the system would undermine 

investigative efforts and reveal the identities 

of witnesses, and potential witnesses, and 

confidential informants. 

(e) From subsection (e)(8) (Notice on 

Individuals) because compliance would 

interfere with DHS’s ability to obtain, serve, 

and issue subpoenas, warrants, and other law 

enforcement mechanisms that may be filed 

under seal and could result in disclosure of 

investigative techniques, procedures, and 

evidence. 

(f) From subsection (g)(1) (Civil Remedies) 

to the extent that the system is exempt from 

other specific subsections of the Privacy Act. 

Jonathan R. Cantor, 

Acting Chief Privacy Officer, Department of 

Homeland Security. 

[FR Doc. 2013–01049 Filed 1–18–13; 8:45 am] 

BILLING CODE 9110–06–P 

FEDERAL DEPOSIT INSURANCE 

CORPORATION 

12 CFR Part 360 

RIN 3064–AD99 

Records of Failed Insured Depository 

Institutions 

AGENCY: Federal Deposit Insurance 

Corporation (FDIC). 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The FDIC is proposing a rule, 

with request for comments, that would 

implement section 11(d)(15)(D) of the 

Federal Deposit Insurance Act (12 

U.S.C. 1821(d)(15)(D)). This statutory 

provision provides time frames for the 

retention of records of a failed insured 

depository institution. The proposed 

rule incorporates the statutory time 

frames and defines the term ‘‘records.’’ 

DATES: Written comments on the Rule 

must be received by the FDIC no later 

than March 25, 2013. 

ADDRESSES: You may submit comments 

by any of the following methods: 

• Agency Web Site: http:// 

www.fdic.gov/regulations/laws/federal. 

Follow instructions for Submitting 

comments on the Agency Web Site. 

• Email: Comments@FDIC.gov. 

Include ‘‘RIN 3064–AD99’’ in the 

subject line of the message. 

• Mail: Robert E. Feldman, Executive 

Secretary, Attention: Comments, Federal 

Deposit Insurance Corporation, 550 17th 

Street, NW., Washington, DC 20429 

• Hand Delivery/Courier: Guard 

station at the rear of the 550 17th Street 

Building (located on F Street) on 

business days between 7 a.m. and 5 p.m. 

(EST). 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 


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