II 

Calendar No. 964 

110TH CONGRESS 

2D SESSION S. 3325 

To enhance remedies for violations of intellectual property laws, and for 

other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 24 (legislative day, JULY 23), 2008 

Mr. LEAHY (for himself, Mr. SPECTER, Mr. BAYH, Mr. VOINOVICH, Mrs. 

FEINSTEIN, Mr. CORNYN, Mr. WHITEHOUSE, Mr. CARDIN, and Mr. 

HATCH) introduced the following bill; which was read twice and referred 

to the Committee on the Judiciary 

SEPTEMBER 15, 2008 

Reported by Mr. LEAHY, with amendments 

[Omit the part struck through and insert the part printed in italic] 

A BILL 

To enhance remedies for violations of intellectual property 

laws, 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; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Enforcement of Intellectual Property Rights Act of 

6 2008’’. 


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1 (b) TABLE OF CONTENTS.—The table of contents is 

2 as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Reference. 

Sec. 3. Definition. 

TITLE I—AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT 

BY ATTORNEY GENERAL 

Sec. 101. Civil penalties for certain violations. 

TITLE II—ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY 

LAWS 

Sec. 201. Registration of claim. 

Sec. 202. Civil remedies for infringement. 

Sec. 203. Treble damages in counterfeiting cases. 

Sec. 204. Statutory damages in counterfeiting cases. 

Sec. 205. Transshipment and exportation of goods bearing infringing marks. 

Sec. 206. Importation, transshipment, and exportation. 

TITLE III—ENHANCEMENTS TO CRIMINAL INTELLECTUAL 

PROPERTY LAWS 

Sec. 301. Criminal copyright infringement. 

Sec. 302. Trafficking in counterfeit labels, illicit labels, or counterfeit documentation or packaging for works that can be copyrighted. 

Sec. 303. Unauthorized fixation. 

Sec. 304. Unauthorized recording of motion pictures. 

Sec. 305. Trafficking in counterfeit goods or services. 

Sec. 306. Forfeiture, destruction, and restitution. 

Sec. 307. Forfeiture under Economic Espionage Act. 

Sec. 308. Technical and conforming amendments. 

TITLE IV—COORDINATION AND STRATEGIC PLANNING OF 

FEDERAL EFFORT AGAINST COUNTERFEITING AND PIRACY 

Sec. 401. Intellectual property enforcement coordinator. 

Sec. 402. Definition. 

Sec. 403. Joint strategic plan. 

Sec. 404. Reporting. 

Sec. 405. Savings and repeals. 

Sec. 406. Authorization of appropriations. 

TITLE V—DEPARTMENT OF JUSTICE PROGRAMS 

Sec. 501. Local law enforcement grants. 

Sec. 502. Improved investigative and forensic resources for enforcement of laws 

related to intellectual property crimes. 

Sec. 503. Additional funding for resources to investigate and prosecute criminal 

activity involving computers. 

Sec. 504. International intellectual property law enforcement coordinators. 

Sec. 505. Annual reports. 

Sec. 506. Authorization of appropriations. 


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TITLE VI—MISCELLANEOUS 

Sec. 601. GAO study on protection of intellectual property of manufacturers. 

Sec. 602. Sense of Congress. 

1 SEC. 2. REFERENCE. 

2 Any reference in this Act to the ‘‘Trademark Act of 

3 1946’’ refers to the Act entitled ‘‘An Act to provide for 

4 the registration of trademarks used in commerce, to carry 

5 out the provisions of certain international conventions, 

6 and for other purposes’’, approved July 5, 1946 (15 

7 U.S.C. 1051 et seq.). 

8 SEC. 3. DEFINITION. 

9 In this Act, the term ‘‘United States person’’ 

10 means— 

11 (1) any United States resident or national, 

12 (2) any domestic concern (including any perma13 nent domestic establishment of any foreign concern), 

14 and 

15 (3) any foreign subsidiary or affiliate (including 

16 any permanent foreign establishment) of any domes17 tic concern that is controlled in fact by such domes18 tic concern, 

19 except that such term does not include an individual who 

20 resides outside the United States and is employed by an 

21 individual or entity other than an individual or entity de22 scribed in paragraph (1), (2), or (3). 


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1 TITLE I—AUTHORIZATION OF 

2 CIVIL COPYRIGHT ENFORCE3 MENT BY ATTORNEY GEN4 ERAL 

5 SEC. 101. CIVIL PENALTIES FOR CERTAIN VIOLATIONS. 

6 (a) IN GENERAL.—Chapter 5 of title 17, United 

7 States Code, is amended by inserting after section 506 the 

8 following: 

9 ‘‘SEC. 506a. CIVIL PENALTIES FOR VIOLATIONS OF SECTION 

10 506. 

11 ‘‘(a) IN GENERAL.—In lieu of a criminal action under 

12 section 506, the Attorney General may commence a civil 

13 action in the appropriate United States district court 

14 against any person who engages in conduct constituting 

15 an offense under section 506. Upon proof of such conduct 

16 by a preponderance of the evidence, such person shall be 

17 subject to a civil penalty under section 504 which shall 

18 be in an amount equal to the amount which would be 

19 awarded under section 3663(a)(1)(B) of title 18 and res20 titution to the copyright owner aggrieved by the conduct. 

21 ‘‘(b) OTHER REMEDIES.— 

22 ‘‘(1) IN GENERAL.—Imposition of a civil pen23 alty under this section does not preclude any other 

24 criminal or civil statutory, injunctive, common law, 


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1 or administrative remedy, which is available by law 

2 to the United States or any other person. 

3 ‘‘(2) OFFSET.—Any restitution received by a 

4 copyright owner as a result of a civil action brought 

5 under this section shall be offset against any award 

6 of damages in a subsequent copyright infringement 

7 civil action by that copyright owner for the conduct 

8 that gave rise to the civil action brought under this 

9 section.’’. 

10 (b) DAMAGES AND PROFITS.—Section 504 of title 17, 

11 United States Code, is amended— 

12 (1) in subsection (b)— 

13 (A) in the first sentence— 

14 (i) by inserting ‘‘, or the Attorney 

15 General in a civil action,’’ after ‘‘The copy16 right owner’’; and 

17 (ii) by striking ‘‘him or her’’ and in18 serting ‘‘the copyright owner’’; and 

19 (B) in the second sentence by inserting ‘‘, 

20 or the Attorney General in a civil action,’’ after 

21 ‘‘the copyright owner’’; and 

22 (2) in subsection (c)— 

23 (A) in paragraph (1), by inserting ‘‘, or the 

24 Attorney General in a civil action,’’ after ‘‘the 

25 copyright owner’’; and 


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1 (B) in paragraph (2), by inserting ‘‘, or 

2 the Attorney General in a civil action,’’ after 

3 ‘‘the copyright owner’’. 

4 (c) TECHNICAL AND CONFORMING AMENDMENT.— 

5 The table of sections for chapter 5 of title 17, United 

6 States Code, is amended by inserting after the item relat7 ing to section 506 the following: 

‘‘Sec. 506a. Civil penalties for violations of section 506.’’. 

8 TITLE II—ENHANCEMENTS TO 

9 CIVIL INTELLECTUAL PROP10 ERTY LAWS 

11 SEC. 201. REGISTRATION OF CLAIM. 

12 (a) LIMITATION TO CIVIL ACTIONS; HARMLESS

13 ERROR.—Section 411 of title 17, United States Code, is 

14 amended— 

15 (1) in the section heading, by inserting ‘‘CIVIL’’ 

16 before ‘‘INFRINGEMENT’’; 

17 (2) in subsection (a)— 

18 (A) in the first sentence, by striking ‘‘no 

19 action’’ and inserting ‘‘no civil action’’; and 

20 (B) in the second sentence, by striking ‘‘an 

21 action’’ and inserting ‘‘a civil action’’; 

22 (3) by redesignating subsection (b) as sub23 section (c); 


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1 (4) in subsection (c), as so redesignated by 

2 paragraph (3), by striking ‘‘506 and sections 509 

3 and’’ and inserting ‘‘505 and section’’; and 

4 (5) by inserting after subsection (a) the fol5 lowing: 

6 ‘‘(b)(1) A certificate of registration satisfies the re7 quirements of this section and section 412, regardless of 

8 whether the certificate contains any inaccurate informa9 tion, unless— 

10 ‘‘(A) the inaccurate information was included 

11 on the application for copyright registration with 

12 knowledge that it was inaccurate; and 

13 ‘‘(B) the inaccurateinaccuracy of the informa14 tion, if known, would have caused the Register of 

15 Copyrights to refuse registration. 

16 ‘‘(2) In any case in which inaccurate information de17 scribed under paragraph (1) is alleged, the court shall re18 quest the Register of Copyrights to advise the court 

19 whether the inaccurate information, if known, would have 

20 caused the Register of Copyrights to refuse registration.’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

22 (1) Section 412 of title 17, United States Code, 

23 is amended by striking ‘‘411(b)’’ and inserting 

24 ‘‘411(c)’’. 


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1 (2) The item relating to section 411 in the table 

2 of sections for chapter 4 of title 17, United States 

3 Code, is amended to read as follows: 

‘‘Sec. 411. Registration and civil infringement actions.’’. 

4 SEC. 202. CIVIL REMEDIES FOR INFRINGEMENT. 

5 (a) IN GENERAL.—Section 503(a) of title 17, United 

6 States Code, is amended— 

7 (1) by striking ‘‘and of all plates’’ and inserting 

8 ‘‘, of all plates’’; and 

9 (2) by striking the period and inserting ‘‘, and 

10 of records documenting the manufacture, sale, or re11 ceipt of things involved in such violation. The court 

12 shall enter, if appropriate, a protective order with re13 spect to discovery of any records that have been 

14 seized. The protective order shall provide for appro15 priate procedures to ensure that confidential infor16 mation contained in such records is not improperly 

17 disclosed to any party.’’. 

18 (b) PROTECTIVE ORDERS FOR SEIZED RECORDS.— 

19 Section 34(d)(1)(A) of the Trademark Act (15 U.S.C. 

20 1116(d)(1)(A)) is amended by adding at the end the fol21 lowing: ‘‘The court shall enter, if appropriate, a protective 

22 order with respect to discovery of any records that have 

23 been seized. The protective order shall provide for appro24 priate procedures to ensure that confidential information 


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1 contained in such records is not improperly disclosed to 

2 any party.’’ 

3 (a) IN GENERAL.—Section 503(a) of title 17, United 

4 States Code, is amended to read as follows: 

5 ‘‘(a)(1) At any time while an action under this title 

6 is pending, the court may order the impounding, on such 

7 terms as it may deem reasonable— 

8 ‘‘(A) of all copies or phonorecords claimed to 

9 have been made or used in violation of the exclusive 

10 right of the copyright owner; 

11 ‘‘(B) of all plates, molds, matrices, masters, 

12 tapes, film negatives, or other articles by means of 

13 which such copies of phonorecords may be reproduced; 

14 and 

15 ‘‘(C) of records documenting the manufacture, 

16 sale, or receipt of things involved in any such viola17 tion, provided that any records seized under this sub18 paragraph shall be taken into the custody of the court. 

19 ‘‘(2) For impoundments of records ordered under para20 graph (1)(C), the court shall enter an appropriate protec21 tive order with respect to discovery and use of any records 

22 or information that has been impounded. The protective 

23 order shall provide for appropriate procedures to ensure 

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1 mation contained in such records is not improperly dis2 closed or used. 

3 ‘‘(3) The relevant provisions of paragraphs (2) through 

4 (11) of section 34(d) of the Trademark Act (15 U.S.C. 

5 1116(d)(2) through (11)) shall extend to any impoundment 

6 of records ordered under paragraph (1)(C) that is based 

7 upon an ex parte application, notwithstanding the provi8 sions of rule 65 of the Federal Rules of Civil Procedure. 

9 Any references in paragraphs (2) through (11) of section 

10 34(d) of the Trademark Act to section 32 of such Act shall 

11 be read as references to section 501 of this title, and ref12 erences to use of a counterfeit mark in connection with the 

13 sale, offering for sale, or distribution of goods or services 

14 shall be read as references to infringement of a copyright.’’. 

15 (b) PROTECTIVE ORDER FOR SEIZED RECORDS.—Sec16 tion 34(d)(7) of the Trademark Act (15 U.S.C. 1116(d)(7)) 

17 is amended to read as follows: 

18 ‘‘(7) Any materials seized under this subsection 

19 shall be taken into the custody of the court. For sei20 zures made under this section, the court shall enter an 

21 appropriate protective order with respect to discovery 

22 and use of any records or information that has been 

23 seized. The protective order shall provide for appro24 priate procedures to ensure that confidential, private, 


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1 proprietary, or privileged information contained in 

2 such records is not improperly disclosed or used.’’. 

3 SEC. 203. TREBLE DAMAGES IN COUNTERFEITING CASES. 

4 Section 35(b) of the Trademark Act of 1946 (15 

5 U.S.C. 1117(b)) is amended to read as follows: 

6 ‘‘(b) In assessing damages under subsection (a) for 

7 any violation of section 32(1)(a) of this Act or section 

8 220506 of title 36, United States Code, in a case involving 

9 use of a counterfeit mark or designation (as defined in 

10 section 34(d) of this Act), the court shall, unless the court 

11 finds extenuating circumstances, enter judgment for three 

12 times such profits or damages, whichever amount is great13 er, together with a reasonable attorney’s fee, if the viola14 tion consists of— 

15 ‘‘(1) intentionally using a mark or designation, 

16 knowing such mark or designation is a counterfeit 

17 mark (as defined in section 34(d) of this Act), in 

18 connection with the sale, offering for sale, or dis19 tribution of goods or services; or 

20 ‘‘(2) providing goods or services necessary to 

21 the commission of a violation specified in paragraph 

22 (1), with the intent that the recipient of the goods 

23 or services would put the goods or services to use in 

24 committing the violation. 


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1 In such a case, the court may award prejudgment interest 

2 on such amount at an annual interest rate established 

3 under section 6621(a)(2) of the Internal Revenue Code of 

4 1986, beginning on the date of the service of the claim5 ant’s pleadings setting forth the claim for such entry of 

6 judgment and ending on the date such entry is made, or 

7 for such shorter time as the court considers appropriate.’’. 

8 SEC. 204. STATUTORY DAMAGES IN COUNTERFEITING 

9 CASES. 

10 Section 35(c) of the Trademark Act of 1946 (15 

11 U.S.C. 1117) is amended— 

12 (1) in paragraph (1)— 

13 (A) by striking ‘‘$500’’ and inserting 

14 ‘‘$1,000’’; and 

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

16 ‘‘$200,000’’; and 

17 (2) in paragraph (2), by striking ‘‘$1,000,000’’ 

18 and inserting ‘‘$2,000,000’’. 

19 SEC. 205. TRANSSHIPMENT AND EXPORTATION OF GOODS 

20 BEARING INFRINGING MARKS. 

21 Title VII of the Trademark Act of 1946 (15 U.S.C. 

22 1124) is amended— 

23 (1) in the title heading, by inserting after ‘‘IM24 PORTATION’’ the following: ‘‘TRANSSHIPMENT, 

25 OR EXPORTATION’’; and 


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1 (2) in section 42— 

2 (A) by striking ‘‘imported’’; and 

3 (B) by inserting after ‘‘customhouse of the 

4 United States’’ the following: ‘‘, nor shall any 

5 such article be transshipped through or ex6 ported from the United States’’. 

7 SEC. 206. IMPORTATION, TRANSSHIPMENT, AND EXPOR8 TATION. 

9 (a) IN GENERAL.—The heading for chapter 6 of title 

10 17, United States Code, is amended to read as follows: 

11 ‘‘CHAPTER 6—MANUFACTURING REQUIRE12 MENTS, IMPORTATION, TRANS13 SHIPMENT, AND EXPORTATION’’. 

14 (b) AMENDMENT ON EXPORTATION.—Section 602(a) 

15 of title 17, United States Code, is amended— 

16 (1) by redesignating paragraphs (1) through 

17 (3) as subparagraphs (A) through (C), respectively, 

18 and moving such subparagraphs 2 ems to the right; 

19 (2) by striking ‘‘(a)’’ and inserting ‘‘(a) IN20 FRINGING IMPORTATION, Transshipment, or Expor21 tation.— 

22 ‘‘(1) IMPORTATION.—’’; 

23 (3) by striking ‘‘This subsection does not apply 

24 to—’’ and inserting the following: 


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1 ‘‘(2) IMPORTATION, TRANSHIPMENT, OR EXPOR2 TATION OF INFRINGING ITEMS.—Importation into 

3 the United States, transshipment through the 

4 United States, or exportation from the United 

5 States, without the authority of the owner of copy6 right under this title, of copies or phonorecords, the 

7 making of which either constituted an infringement 

8 of copyright orcopyright, or which would have con9 stituted an infringement of copyright if this title had 

10 been applicable, is an infringement of the exclusive 

11 right to distribute copies or phonorecords under sec12 tion 106, actionable under sections 501 and 506. 

13 ‘‘(3) EXCEPTIONS.—This subsection does not 

14 apply to—’’; 

15 (4) in paragraph (3)(A) (as redesignated by 

16 this subsection) by inserting ‘‘or exportation’’ after 

17 ‘‘importation’’; and 

18 (5) in paragraph (3)(B) (as redesignated by 

19 this subsection)— 

20 (A) by striking ‘‘importation, for the pri21 vate use of the importer’’ and inserting ‘‘impor22 tation or exportation, for the private use of the 

23 importer or exporter’’; and 

24 (B) by inserting ‘‘or departing from the 

25 United States’’ after ‘‘United States’’. 


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1 (c) CONFORMING AMENDMENTS.—(1) Section 602 of 

2 title 17, United States Code, is further amended— 

3 (A) in the section heading, by inserting ‘‘or 

4 exportation’’ after ‘‘importation’’; and 

5 (B) in subsection (b)— 

6 (i) by striking ‘‘(b) In a case’’ and insert7 ing ‘‘(b) IMPORT PROHIBITION.—In a case’’; 

8 (ii) by striking ‘‘the United States Cus9 toms Service’’ and inserting ‘‘United States 

10 Customs and Border Protection’’; and 

11 (iii) by striking ‘‘the Customs Service’’ and 

12 inserting ‘‘United States Customs and Border 

13 Protection’’. 

14 (2) Section 601(b)(2) of title 17, United States Code, 

15 is amended by striking ‘‘the United States Customs Serv16 ice’’ and inserting ‘‘United States Customs and Border 

17 Protection’’. 

18 (3) The item relating to chapter 6 in the table of 

19 chapters for title 17, United States Code, is amended to 

20 read as follows: 

‘‘6. MANUFACTURING REQUIREMENTS, IMPORTATION, AND

EXPORTATION ........ 601’’. 


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1 TITLE III—ENHANCEMENTS TO 

2 CRIMINAL INTELLECTUAL 

3 PROPERTY LAWS 

4 SEC. 301. CRIMINAL COPYRIGHT INFRINGEMENT. 

5 (a) FORFEITURE AND DESTRUCTION; RESTITU6 TION.—Section 506(b) of title 17, United States Code, is 

7 amended to read as follows: 

8 ‘‘(b) FORFEITURE, DESTRUCTION, AND RESTITU9 TION.—Forfeiture, destruction, and restitution relating to 

10 this section shall be subject to section 2323 of title 18, 

11 to the extent provided in that section, in addition to any 

12 other similar remedies provided by law.’’. 

13 (b) SEIZURES AND FORFEITURES.— 

14 (1) REPEAL.—Section 509 of title 17, United 

15 States Code, is repealed. 

16 (2) TECHNICAL AND CONFORMING AMEND17 MENT.—The table of sections for chapter 5 of title 

18 17, United States Code, is amended by striking the 

19 item relating to section 509. 

20 SEC. 302. TRAFFICKING IN COUNTERFEIT LABELS, ILLICIT 

21 LABELS, OR COUNTERFEIT DOCUMENTATION 

22 OR PACKAGING FOR WORKS THAT CAN BE 

23 COPYRIGHTED. 

24 Section 2318 of title 18, United States Code, is 

25 amended— 


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1 (1) in subsection (a)— 

2 (A) by redesignating subparagraphs (A) 

3 through (G) as clauses (i) through (vii), respec4 tively; 

5 (B) by redesignating paragraphs (1) and 

6 (2) as subparagraphs (A) and (B), respectively; 

7 and 

8 (C) by striking ‘‘Whoever’’ and inserting 

9 ‘‘(1) Whoever’’; 

10 (2) by amending subsection (d) to read as fol11 lows: 

12 ‘‘(d) FORFEITURE AND DESTRUCTION OF PROPERTY; 

13 RESTITUTION.—Forfeiture, destruction, and restitution 

14 relating to this section shall be subject to section 2323, 

15 to the extent provided in that section, in addition to any 

16 other similar remedies provided by law.’’; and 

17 (3) by striking subsection (e) and redesignating 

18 subsection (f) as subsection (e). 

19 SEC. 303. UNAUTHORIZED FIXATION. 

20 (a) Section 2319A(b) of title 18, United States Code, 

21 is amended to read as follows: 

22 ‘‘(b) FORFEITURE AND DESTRUCTION OF PROPERTY; 

23 RESTITUTION.—Forfeiture, destruction, and restitution 

24 relating to this section shall be subject to section 2323, 


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1 to the extent provided in that section, in addition to any 

2 other similar remedies provided by law.’’. 

3 (b) Section 2319A(c) of title 18, United States Code, 

4 is amended by striking the second sentence and inserting: 

5 ‘‘The Secretary of Homeland Security shall issue regula6 tions by which any performer may, upon payment of a 

7 specified fee, be entitled to notification by United States 

8 Customs and Border Protection of the importation of cop9 ies or phonorecords that appear to consist of unauthorized 

10 fixations of the sounds or sounds and images of a live mu11 sical performance.’’. 

12 SEC. 304. UNAUTHORIZED RECORDING OF MOTION PIC13 TURES. 

14 Section 2319B(b) of title 18, United States Code, is 

15 amended to read as follows: 

16 ‘‘(b) FORFEITURE AND DESTRUCTION OF PROPERTY; 

17 RESTITUTION.—Forfeiture, destruction, and restitution 

18 relating to this section shall be subject to section 2323, 

19 to the extent provided in that section, in addition to any 

20 other similar remedies provided by law.’’. 

21 SEC. 305. TRAFFICKING IN COUNTERFEIT GOODS OR SERV22 ICES. 

23 (a) IN GENERAL.—Section 2320 of title 18, United 

24 States Code, is amended— 

25 (1) in subsection (a)— 


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1 (A) by striking ‘‘WHOEVER’’ and inserting 

2 ‘‘OFFENSE.—’’ 

3 ‘‘(1) IN GENERAL.—Whoever;’’; 

4 (B) by moving the remaining text 2 ems to 

5 the right; and 

6 (C) by adding at the end the following: 

7 ‘‘(2) SERIOUS BODILY HARM OR DEATH.— 

8 ‘‘(A) SERIOUS BODILY HARM.—If the of9 fender knowingly or recklessly causes or at10 tempts to cause serious bodily injury from con11 duct in violation of paragraph (1), the penalty 

12 shall be a fine under this title or imprisonment 

13 for not more than 20 years, or both. 

14 ‘‘(B) DEATH.—If the offender knowingly 

15 or recklessly causes or attempts to cause death 

16 from conduct in violation of paragraph (1), the 

17 penalty shall be a fine under this title or im18 prisonment for any term of years or for life, or 

19 both.’’. 

20 (b) FORFEITURE AND DESTRUCTION OF PROPERTY; 

21 RESTITUTION.—Section 2320(b) of title 18, United States 

22 Code, is amended to read as follows: 

23 ‘‘(b) FORFEITURE AND DESTRUCTION OF PROPERTY; 

24 RESTITUTION.—Forfeiture, destruction, and restitution 

25 relating to this section shall be subject to section 2323, 


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1 to the extent provided in that section, in addition to any 

2 other similar remedies provided by law.’’. 

3 SEC. 306. FORFEITURE, DESTRUCTION, AND RESTITUTION. 

4 (a) IN GENERAL.—Chapter 113 of title 18, United 

5 States Code, is amended by adding at the end the fol6 lowing: 

7 ‘‘SEC. 2323. FORFEITURE, DESTRUCTION, AND RESTITU8 TION. 

9 ‘‘(a) CIVIL FORFEITURE.— 

10 ‘‘(1) PROPERTY SUBJECT TO FORFEITURE.— 

11 The following property is subject to forfeiture to the 

12 United States Government: 

13 ‘‘(A) Any article, the making or trafficking 

14 of which is, prohibited under section 506 or 

15 1204 of title 17, or section 2318, 2319, 2319A, 

16 2319B, or 2320, or chapter 90, of this title. 

17 ‘‘(B) Any property used, or intended to be 

18 used, in any manner or part to commit or facili19 tate the commission of an offense referred to in 

20 subparagraph (A), except that property is sub21 ject to forfeiture under this subparagraph only 

22 if the United States Government establishes 

23 that there was a substantial connection between 

24 the property and the violation of an offense re25 ferred to in subparagraph (A). 


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1 ‘‘(C) Any property constituting or derived 

2 from any proceeds obtained directly or indi3 rectly as a result of the commission of an of4 fense referred to in subparagraph (A). 

5 ‘‘(2) PROCEDURES.—The provisions of chapter 

6 46 relating to civil forfeitures shall extend to any 

7 seizure or civil forfeiture under this section. For sei8 zures made under this section, the court shall enter an 

9 appropriate protective order with respect to discovery 

10 and use of any records or information that has been 

11 seized. The protective order shall provide for appro12 priate procedures to ensure that confidential, private, 

13 proprietary, or privileged information contained in 

14 such records is not improperly disclosed or used. At 

15 the conclusion of the forfeiture proceedings, unless 

16 otherwise requested by an agency of the United 

17 States, the court shall order that any property for18 feited under paragraph (1) be destroyed, or other19 wise disposed of according to law. 

20 ‘‘(b) CRIMINAL FORFEITURE.— 

21 ‘‘(1) PROPERTY SUBJECT TO FORFEITURE.— 

22 The court, in imposing sentence on a person con23 victed of an offense under section 506 or 1204 of 

24 title 17, or section 2318, 2319, 2319A, 2319B, or 

25 2320, or chapter 90, of this title, shall order, in adVerDate Aug 31 2005 00:06 Sep 16, 2008 Jkt 069200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S3325.RS S3325

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1 dition to any other sentence imposed, that the per2 son forfeit to the United States Government any 

3 property subject to forfeiture under subsection (a) 

4 for that offense. 

5 ‘‘(2) PROCEDURES.— 

6 ‘‘(A) IN GENERAL.—The forfeiture of 

7 property under paragraph (1), including any 

8 seizure and disposition of the property and any 

9 related judicial or administrative proceeding, 

10 shall be governed by the procedures set forth in 

11 section 413 of the Comprehensive Drug Abuse 

12 Prevention and Control Act of 1970 (21 U.S.C. 

13 853), other than subsection (d) of that section. 

14 ‘‘(B) DESTRUCTION.—At the conclusion of 

15 the forfeiture proceedings, the court, unless oth16 erwise requested by an agency of the United 

17 States shall order that any— 

18 ‘‘(i) forfeited article or component of 

19 an article bearing or consisting of a coun20 terfeit mark be destroyed or otherwise dis21 posed of according to law; and 

22 ‘‘(ii) infringing items or other prop23 erty described in subsection (a)(1)(A) and 

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1 section be destroyed or otherwise disposed 

2 of according to law. 

3 ‘‘(c) RESTITUTION.—When a person is convicted of 

4 an offense under section 506 or 1204 of title 17 or section 

5 2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of 

6 this title, the court, pursuant to sections 3556, 3663A, 

7 and 3664 of this title, shall order the person to pay res8 titution to any victim of the offense as an offense against 

9 property referred to in section 3663A(c)(1)(A)(ii) of this 

10 title.’’. 

11 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

12 The table of sections for chapter 113 of title 18, United 

13 States Code, is amended by adding at the end the fol14 lowing: 

‘‘Sec. 2323. Forfeiture, destruction, and restitution.’’. 

15 SEC. 307. FORFEITURE UNDER ECONOMIC ESPIONAGE ACT. 

16 Section 1834 of title 18, United States Code, is 

17 amended to read as follows: 

18 ‘‘SEC. 1834. CRIMINAL FORFEITURE. 

19 ‘‘Forfeiture, destruction, and restitution relating to 

20 this chapter shall be subject to section 2323, to the extent 

21 provided in that section, in addition to any other similar 

22 remedies provided by law.’’. 

23 SEC. 308. TECHNICAL AND CONFORMING AMENDMENTS. 

24 (a) AMENDMENTS TO TITLE 17, UNITED STATES

25 CODE.— 


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1 (1) Section 109 (b)(4) of title 17, United States 

2 Code, is amended by striking ‘‘505, and 509’’ and 

3 inserting ‘‘and 505’’. 

4 (2) Section 111 of title 17, United States Code, 

5 is amended— 

6 (A) in subsection (b), by striking ‘‘and 

7 509’’; 

8 (B) in subsection (c)— 

9 (i) in paragraph (2), by striking ‘‘and 

10 509’’; 

11 (ii) in paragraph (3), by striking ‘‘sec12 tions 509 and 510’’ and inserting ‘‘section 

13 510’’; and 

14 (iii) in paragraph (4), by striking 

15 ‘‘and section 509’’; and 

16 (C) in subsection (e)— 

17 (i) in paragraph (1), by striking ‘‘sec18 tions 509 and 510’’ and inserting ‘‘section 

19 510’’; and 

20 (ii) in paragraph (2), by striking ‘‘and 

21 509’’. 

22 (3) Section 115(c) of title 17, United States 

23 Code, is amended— 

24 (A) in paragraph (3)(G)(i), by striking 

25 ‘‘and 509’’; and 


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1 (B) in paragraph (6), by striking ‘‘and 

2 509’’. 

3 (4) Section 119(a) of title 17, United States 

4 Code, is amended— 

5 (A) in paragraph (6), by striking ‘‘sections 

6 509 and 510’’ and inserting ‘‘section 510’’; 

7 (B) in paragraph (7)(A), by striking ‘‘and 

8 509’’; 

9 (C) in paragraph (8), by striking ‘‘and 

10 509’’; and 

11 (D) in paragraph (13), by striking ‘‘and 

12 509’’. 

13 (5) Section 122 of title 17, United States Code, 

14 is amended— 

15 (A) in subsection (d), by striking ‘‘and 

16 509’’; 

17 (B) in subsection (e), by striking ‘‘sections 

18 509 and 510’’ and inserting ‘‘section 510’’; and 

19 (C) in subsection (f)(1), by striking ‘‘and 

20 509’’. 

21 (6) Section 411(b) of title 17, United States 

22 Code, is amended by striking ‘‘sections 509 and 

23 510’’ and inserting ‘‘section 510’’. 


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1 (b) OTHER AMENDMENTS.—Section 596(c)(2)(c) of 

2 the Tariff Act of 1950 (19 U.S.C. 1595a(c)(2)(c)) is 

3 amended by striking ‘‘or 509’’. 

4 TITLE IV—COORDINATION AND 

5 STRATEGIC PLANNING OF 

6 FEDERAL EFFORT AGAINST 

7 COUNTERFEITING AND PI8 RACYINFRINGEMENT 

9 SEC. 401. INTELLECTUAL PROPERTY ENFORCEMENT COOR10 DINATOR. 

11 (a) INTELLECTUAL PROPERTY ENFORCEMENT CO12 ORDINATOR.—The President shall appoint, by and with 

13 the advice and consent of the Senate, an Intellectual Prop14 erty Enforcement Coordinator (in this title referred to as 

15 the ‘‘IPEC’’) to serve within the Executive Office of the 

16 President. As an exercise of the rulemaking power of the 

17 Senate, any nomination of the IPEC submitted to the Sen18 ate for confirmation, and referred to a committee, shall 

19 be referred to the Committee on the Judiciary. 

20 (b) DUTIES OF IPEC.— 

21 (1) IN GENERAL.—The IPEC shall— 

22 (A) chair the interagency intellectual prop23 erty enforcement advisory committee estab24 lished under subsection (b)(3)(A); 


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1 (B) coordinate the development of the 

2 Joint Strategic Plan against counterfeiting and 

3 piracyinfringement by the advisory committee 

4 under section 403; 

5 (C) assist in the implementation of the 

6 Joint Strategic Plan by the departments and 

7 agencies listed in subsection (b)(3)(A); 

8 (D) facilitate the issuance of policy guid9 ance to departments and agencies on basic issues 

10 of policy and interpretation, to the extent nec11 essary to assure the coordination of intellectual 

12 property enforcement policy and consistency 

13 with other law; 

14 (DE) report directly to the President and 

15 Congress regarding domestic and international 

16 intellectual property enforcement programs; 

17 (EF) report to Congress, as provided in 

18 section 404, on the implementation of the Joint 

19 Strategic Plan, and make recommendations to 

20 Congress for improvements in Federal intellec21 tual property enforcement efforts; and 

22 (FG) carry out such other functions as the 

23 President may direct. 

24 (2) LIMITATION ON AUTHORITY.—The IPEC 

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1 cy in the exercise of its investigative or prosecutorial 

2 authority. 

3 (3) ADVISORY COMMITTEE.— 

4 (A) ESTABLISHMENT.—There is estab5 lished an interagency intellectual property en6 forcement advisory committee composed of the 

7 IPEC, who shall chair the committee, and Sen8 ate-confirmed representatives of the following 

9 departments and agencies who are involved in 

10 intellectual property enforcement, and who are, 

11 or are appointed by, the respective heads of 

12 those departments and agencies: 

13 (i) The Office of Management and 

14 Budget. 

15 (ii) The Department of Justice. 

16 (iii) The United States Patent and 

17 Trademark Office and other relevant units 

18 of the Department of Commerce. 

19 (iv) The Office of the United States 

20 Trade Representative. 

21 (v) The Department of State, the 

22 United States Agency for International 

23 Development, and the Bureau of Inter24 national Narcotics Law Enforcement. 


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1 (vi) The Department of Homeland Se2 curity, United States Customs and Border 

3 Protection, and United States Immigration 

4 and Customs Enforcement. 

5 (vii) The Food and Drug Administra6 tion of the Department of Health and 

7 Human Services. 

8 (viii) The United States Copyright Of9 fice. 

10 (ix) Any such other agencies as the 

11 President determines to be substantially 

12 involved in the efforts of the Federal Gov13 ernment to combat counterfeiting and pi14 racy. 

15 (A) ESTABLISHMENT.—There is established 

16 an interagency intellectual property enforcement 

17 advisory committee composed of the IPEC, who 

18 shall chair the committee, and— 

19 (i) Senate-confirmed representatives of 

20 the following departments and agencies who 

21 are involved in intellectual property en22 forcement, and who are, or are appointed 

23 by, the respective heads of those departments 

24 and agencies: 


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1 (I) The Office of Management and 

2 Budget. 

3 (II) The Department of Justice. 

4 (III) The United States Patent 

5 and Trademark Office and other rel6 evant units of the Department of Com7 merce. 

8 (IV) The Office of the United 

9 States Trade Representative. 

10 (V) The Department of State, the 

11 United States Agency for International 

12 Development, and the Bureau of Inter13 national Narcotics Law Enforcement. 

14 (VI) The Department of Home15 land Security, United States Customs 

16 and Border Protection, and United 

17 States Immigration and Customs En18 forcement. 

19 (VII) The Food and Drug Admin20 istration of the Department of Health 

21 and Human Services. 

22 (VIII) The Department of Agri23 culture. 

24 (IX) Any such other agencies as 

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1 tially involved in the efforts of the Fed2 eral Government to combat counter3 feiting and piracy; and 

4 (ii) the Register of Copyrights, or a 

5 senior representative of the United States 

6 Copyright Office appointed by the Register 

7 of Copyrights. 

8 (B) FUNCTIONS.—The advisory committee 

9 established under subparagraph (A) shall de10 velop the Joint Strategic Plan against counter11 feiting and piracyinfringement under section 

12 403. 

13 (c) COMPENSATION.—Section 5312 of title 5, United 

14 States Code, is amended by adding at the end the fol15 lowing: ‘‘United States Intellectual Property Enforcement 

16 Coordinator.’’. 

17 SEC. 402. DEFINITION. 

18 For purposes of this title, the term ‘‘intellectual prop19 erty enforcement’’ means matters relating to the enforce20 ment of laws protecting copyrights, patents, trademarks, 

21 other forms of intellectual property, and trade secrets, 

22 both in the United States and abroad, including in par23 ticular matters relating to combating counterfeit and pi24 ratedinfringed goods. 


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1 SEC. 403. JOINT STRATEGIC PLAN. 

2 (a) PURPOSE.—The objectives of the Joint Strategic 

3 Plan against counterfeiting and piracyinfringement that is 

4 referred to in section 401(b)(1)(B) (in this section re5 ferred to as the ‘‘joint strategic plan’’) are the following: 

6 (1) Reducing counterfeit and piratedinfringed 

7 goods in the domestic and international supply 

8 chain. 

9 (2) Identifying and addressing structural weak10 nesses, systemic flaws, or other unjustified impedi11 ments to effective enforcement action against the fi12 nancing, production, trafficking, or sale of counter13 feit or piratedinfringed goods. 

14 (3) Ensuring that information is identified and 

15 shared among the relevant departments and agen16 cies, to the extent permitted by law and consistent 

17 with law enforcement protocols for handling infor18 mation, to aid in the objective of arresting and pros19 ecuting individuals and entities that are knowingly 

20 involved in the financing, production, trafficking, or 

21 sale of counterfeit or piratedinfringed goods. 

22 (4) Disrupting and eliminating domestic and 

23 international counterfeiting and piracyinfringement 

24 networks. 

25 (5) Strengthening the capacity of other coun26 tries to protect and enforce intellectual property 


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1 rights, and reducing the number of countries that 

2 fail to enforce laws preventing the financing, produc3 tion, trafficking, and sale of counterfeit and pirat4 edinfringed goods. 

5 (6) Working with other countries to establish 

6 international standards and policies for the effective 

7 protection and enforcement of intellectual property 

8 rights. 

9 (7) Protecting intellectual property rights over10 seas by— 

11 (A) working with other countries and ex12 changing information with appropriate law en13 forcement agencies in other countries relating 

14 to individuals and entities involved in the fi15 nancing, production, trafficking, or sale of pi16 ratedinfringed or counterfeit goods; 

17 (B) using the information described in sub18 paragraph (A) to conduct enforcement activities 

19 in cooperation with appropriate law enforce20 ment agencies in other countries; and 

21 (C) building a formal process for con22 sulting with companies, industry associations, 

23 labor unions, and other interested groups in 

24 other countries with respect to intellectual prop25 erty enforcement. 


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1 (b) TIMING.—Not later than 12 months after the 

2 date of the enactment of this Act, and not later than De3 cember 31 of every third year thereafter, the IPEC shall 

4 submit the joint strategic plan to the Committee on the 

5 Judiciary and the Committee on Appropriations of the 

6 Senate, and to the Committee on the Judiciary and the 

7 Committee on Appropriations of the House of Representa8 tives. 

9 (c) RESPONSIBILITY OF THE IPEC.—During the de10 velopment of the joint strategic plan, the IPEC— 

11 (1) shall provide assistance to, and coordinate 

12 the meetings and efforts of, the appropriate officers 

13 and employees of departments and agencies rep14 resented on the advisory committee appointed under 

15 section 401(b)(3) who are involved in intellectual 

16 property enforcement; and 

17 (2) may consult with private sector experts in 

18 intellectual property enforcement in furtherance of 

19 providing assistance to the members of the advisory 

20 committee appointed under section 401(b)(3). 

21 (d) RESPONSIBILITIES OF OTHER DEPARTMENTS

22 AND AGENCIES.—In the development and implementation 

23 of the joint strategic plan, the heads of the departments 

24 and agencies identified under section 401(b)(3) shall— 


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1 (1) designate personnel with expertise and expe2 rience in intellectual property enforcement matters 

3 to work with the IPEC and other members of the 

4 advisory committee; and 

5 (2) share relevant department or agency infor6 mation with the IPEC and other members of the ad7 visory committee, including statistical information 

8 on the enforcement activities of the department or 

9 agency against counterfeiting or piracyinfringement, 

10 and plans for addressing the joint strategic plan. 

11 (e) CONTENTS OF THE JOINT STRATEGIC PLAN.— 

12 Each joint strategic plan shall include the following: 

13 (1) A detailed description of the priorities iden14 tified for carrying out the objectives in the joint 

15 strategic plan, including activities of the Federal 

16 Government relating to intellectual property enforce17 ment. 

18 (2) A detailed description of the means and 

19 methods to be employed to achieve the priorities, in20 cluding the means and methods for improving the 

21 efficiency and effectiveness of the Federal Govern22 ment’s enforcement efforts against counterfeiting 

23 and piracyinfringement. 

24 (3) Estimates of the resources necessary to ful25 fill the priorities identified under paragraph (1). 


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1 (4) The performance measures to be used to 

2 monitor results under the joint strategic plan during 

3 the following year. 

4 (5) An analysis of the threat posed by violations 

5 of intellectual property rights, including the costs to 

6 the economy of the United States resulting from vio7 lations of intellectual property laws, and the threats 

8 to public health and safety created by counterfeiting 

9 and piracyinfringement. 

10 (6) An identification of the departments and 

11 agencies that will be involved in implementing each 

12 priority under paragraph (1). 

13 (7) A strategy for ensuring coordination be14 tween the IPEC and the departments and agencies 

15 identified under paragraph (6), including a process 

16 for oversight by the executive branch of, and ac17 countability among, the departments and agencies 

18 responsible for carrying out the strategy. 

19 (8) Such other information as is necessary to 

20 convey the costs imposed on the United States econ21 omy by, and the threats to public health and safety 

22 created by, counterfeiting and piracyinfringement, 

23 and those steps that the Federal Government in24 tends to take over the period covered by the sucVerDate Aug 31 2005 00:06 Sep 16, 2008 Jkt 069200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3325.RS S3325

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1 ceeding joint strategic plan to reduce those costs and 

2 counter those threats. 

3 (f) ENHANCING ENFORCEMENT EFFORTS OF FOR4 EIGN GOVERNMENTS.—The joint strategic plan shall in5 clude programs to provide training and technical assist6 ance to foreign governments for the purpose of enhancing 

7 the efforts of such governments to enforce laws against 

8 counterfeiting and piracyinfringement. With respect to 

9 such programs, the joint strategic plan shall— 

10 (1) seek to enhance the efficiency and consist11 ency with which Federal resources are expended, 

12 and seek to minimize duplication, overlap, or incon13 sistency of efforts; 

14 (2) identify and give priority to those countries 

15 where programs of training and technical assistance 

16 can be carried out most effectively and with the 

17 greatest benefit to reducing counterfeit and pirat18 edinfringed products in the United States market, to 

19 protecting the intellectual property rights of United 

20 States persons and their licensees, and to protecting 

21 the interests of United States persons otherwise 

22 harmed by violations of intellectual property rights 

23 in those countries; 

24 (3) in identifying the priorities under paragraph 

25 (2), be guided by the list of countries identified by 


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1 the United States Trade Representative under sec2 tion 182(a) of the Trade Act of 1974 (19 U.S.C. 

3 2242(a)); and 

4 (4) develop metrics to measure the effectiveness 

5 of the Federal Government’s efforts to improve the 

6 laws and enforcement practices of foreign govern7 ments against counterfeiting and piracyinfringement. 

8 (g) DISSEMINATION OF THE JOINT STRATEGIC

9 PLAN.—The joint strategic plan shall be posted for public 

10 access on the website of the White House, and shall be 

11 disseminated to the public through such other means as 

12 the IPEC may identify. 

13 SEC. 404. REPORTING. 

14 (a) ANNUAL REPORT.—Not later than December 31 

15 of each calendar year beginning in 2009, the IPEC shall 

16 submit a report on the activities of the advisory committee 

17 during the preceding fiscal year. The annual report shall 

18 be submitted to Congress, and disseminated to the people 

19 of the United States, in the manner specified in sub20 sections (b) and (g) of section 403. 

21 (b) CONTENTS.—The report required by this section 

22 shall include the following: 

23 (1) The progress made on implementing the 

24 strategic plan and on the progress toward fulfillment 

25 of the priorities identified under section 403(e)(1). 


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1 (2) The progress made in efforts to encourage 

2 Federal, State, and local government departments 

3 and agencies to accord higher priority to intellectual 

4 property enforcement. 

5 (3) The progress made in working with foreign 

6 countries to investigate, arrest, and prosecute enti7 ties and individuals involved in the financing, pro8 duction, trafficking, and sale of counterfeit and pi9 ratedinfringed goods. 

10 (4) The manner in which the relevant depart11 ments and agencies are working together and shar12 ing information to strengthen intellectual property 

13 enforcement. 

14 (5) An assessment of the successes and short15 comings of the efforts of the Federal Government, 

16 including departments and agencies represented on 

17 the committee established under section 401(b)(3). 

18 (6) Recommendations for any changes in en19 forcement statutes, regulations, or funding levels 

20 that the advisory committee considers would signifi21 cantly improve the effectiveness or efficiency of the 

22 effort of the Federal Government to combat counter23 feiting and piracyinfringement and otherwise 

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1 ing through the elimination or consolidation of dupli2 cative programs or initiatives. 

3 (7) The progress made in strengthening the ca4 pacity of countries to protect and enforce intellectual 

5 property rights. 

6 (8) The successes and challenges in sharing 

7 with other countries information relating to intellec8 tual property enforcement. 

9 (9) The progress made under trade agreements 

10 and treaties to protect intellectual property rights of 

11 United States persons and their licensees. 

12 SEC. 405. SAVINGS AND REPEALS. 

13 (a) REPEAL OF COORDINATION COUNCIL.—Section 

14 653 of the Treasury and General Government Appropria15 tions Act, 2000 (15 U.S.C. 1128) is repealed. 

16 (a) TRANSITION FROM NIPLECC TO IPEC.— 

17 (1) REPEAL OF NIPLECC.—Section 653 of the 

18 Treasury and General Government Appropriations 

19 Act, 2000 (15 U.S.C. 1128) is repealed effective upon 

20 confirmation of the IPEC by the Senate and publica21 tion of such appointment in the Congressional 

22 Record. 

23 (2) CONTINUITY OF PERFORMANCE OF DUTIES.— 

24 Upon confirmation by the Senate, and notwith25 standing paragraph (1), the IPEC may use the servVerDate Aug 31 2005 00:06 Sep 16, 2008 Jkt 069200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6203 E:\BILLS\S3325.RS S3325

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1 ices and personnel of the National Intellectual Prop2 erty Law Enforcement Coordination Council, for such 

3 time as is reasonable, to perform any functions or du4 ties which in the discretion of the IPEC are necessary 

5 to facilitate the orderly transition of any functions or 

6 duties transferred from the Council to the IPEC pur7 suant to any provision of this Act or any amendment 

8 made by this Act. 

9 (b) CURRENT AUTHORITIES NOT AFFECTED.—Ex10 cept as provided in subsection (a), nothing in this title 

11 shall alter the authority of any department or agency of 

12 the United States (including any independent agency) that 

13 relates to— 

14 (1) the investigation and prosecution of viola15 tions of laws that protect intellectual property 

16 rights; 

17 (2) the administrative enforcement, at the bor18 ders of the United States, of laws that protect intel19 lectual property rights; or 

20 (3) the United States trade agreements pro21 gram or international trade. 

22 (c) REGISTER OF COPYRIGHTS.—Nothing in this title 

23 shall derogate from the duties and functions of the Reg24 ister of Copyrights. 


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1 (c) RULE OF CONSTRUCTION.—Nothing in this title 

2 shall derogate from the powers, duties, and functions of any 

3 of the agencies, departments, or other entities listed or in4 cluded under section 401(b)(3)(A). 

5 SEC. 406. AUTHORIZATION OF APPROPRIATIONS. 

6 (a) IN GENERAL.—There are authorized to be appro7 priated for each fiscal year such sums as may be necessary 

8 to carry out this title. 

9 TITLE V—DEPARTMENT OF 

10 JUSTICE PROGRAMS 

11 SEC. 501. LOCAL LAW ENFORCEMENT GRANTS. 

12 (a) AUTHORIZATION.—Section 2 of the Computer 

13 Crime Enforcement Act (42 U.S.C. 3713) is amended— 

14 (1) in subsection (b), by inserting after ‘‘com15 puter crime’’ each place it appears the following: ‘‘, 

16 including infringement of copyrighted works over the 

17 Internet’’; and 

18 (2) in subsection (e)(1), relating to authoriza19 tion of appropriations, by striking ‘‘fiscal years 2001 

20 through 2004’’ and inserting ‘‘fiscal years 2009 

21 through 2013’’. 

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

23 Department of Justice shall make grants to eligible State 

24 or local law enforcement entities, including law enforce25 ment agencies of municipal governments and public eduVerDate Aug 31 2005 00:06 Sep 16, 2008 Jkt 069200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S3325.RS S3325

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1 cational institutions, for training, prevention, enforce2 ment, and prosecution of intellectual property theft and 

3 infringement crimes (in this subsection referred to as ‘‘IP– 

4 TIC grants’’), in accordance with the following: 

5 (1) USE OF IP–TIC GRANT AMOUNTS.—IP–TIC 

6 grants may be used to establish and develop pro7 grams to do the following with respect to the en8 forcement of State and local true name and address 

9 laws and State and local criminal laws on anti-pi10 racy, anti-counterfeiting, and unlawful acts with re11 spect to goods by reason of their protection by a pat12 ent, trademark, service mark, trade secret, or other 

13 intellectual property right under State or Federal 

14 law: 

15 (A) Assist State and local law enforcement 

16 agencies in enforcing those laws, including by 

17 reimbursing State and local entities for ex18 penses incurred in performing enforcement op19 erations, such as overtime payments and stor20 age fees for seized evidence. 

21 (B) Assist State and local law enforcement 

22 agencies in educating the public to prevent, 

23 deter, and identify violations of those laws. 

24 (C) Educate and train State and local law 

25 enforcement officers and prosecutors to conduct 


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1 investigations and forensic analyses of evidence 

2 and prosecutions in matters involving those 

3 laws. 

4 (D) Establish task forces that include per5 sonnel from State or local law enforcement enti6 ties, or both, exclusively to conduct investiga7 tions and forensic analyses of evidence and 

8 prosecutions in matters involving those laws. 

9 (E) Assist State and local law enforcement 

10 officers and prosecutors in acquiring computer 

11 and other equipment to conduct investigations 

12 and forensic analyses of evidence in matters in13 volving those laws. 

14 (F) Facilitate and promote the sharing, 

15 with State and local law enforcement officers 

16 and prosecutors, of the expertise and informa17 tion of Federal law enforcement agencies about 

18 the investigation, analysis, and prosecution of 

19 matters involving those laws and criminal in20 fringement of copyrighted works, including the 

21 use of multijurisdictional task forces. 

22 (2) ELIGIBILITY.—To be eligible to receive an 

23 IP–TIC grant, a State or local government entity 

24 shall provide to the Attorney General— 


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1 (A) assurances that the State in which the 

2 government entity is located has in effect laws 

3 described in paragraph (1); 

4 (B) an assessment of the resource needs of 

5 the State or local government entity applying 

6 for the grant, including information on the need 

7 for reimbursements of base salaries and over8 time costs, storage fees, and other expenditures 

9 to improve the investigation, prevention, or en10 forcement of laws described in paragraph (1); 

11 and 

12 (C) a plan for coordinating the programs 

13 funded under this section with other federally 

14 funded technical assistance and training pro15 grams, including directly funded local programs 

16 such as the Edward Byrne Memorial Justice 

17 Assistance Grant Program authorized by sub18 part 1 of part E of title I of the Omnibus 

19 Crime Control and Safe Streets Act of 1968 

20 (42 U.S.C. 3750 et seq.). 

21 (3) MATCHING FUNDS.—The Federal share of 

22 an IP–TIC grant may not exceed 9075 percent of 

23 the costs of the program or proposal funded by the 

24 IP–TIC grant, unless the Attorney General waives, 

25 in whole or in part, the 90 percent requirement. 


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1 (4) AUTHORIZATION OF APPROPRIATIONS.— 

2 (A) AUTHORIZATION.—There is authorized 

3 to be appropriated to carry out this subsection 

4 the sum of $25,000,000 for each of fiscal years 

5 2009 through 2013. 

6 (B) LIMITATION.—Of the amount made 

7 available to carry out this subsection in any fis8 cal year, not more than 3 percent may be used 

9 by the Attorney General for salaries and admin10 istrative expenses. 

11 SEC. 502. IMPROVED INVESTIGATIVE AND FORENSIC RE12 SOURCES FOR ENFORCEMENT OF LAWS RE13 LATED TO INTELLECTUAL PROPERTY 

14 CRIMES. 

15 (a) IN GENERAL.—Subject to the availability of ap16 propriations to carry out this subsection, the Attorney 

17 General, in consultation with the Director of the Federal 

18 Bureau of Investigation, shall, with respect to crimes re19 lated to the theft of intellectual property— 

20 (1) create an operational unit of the Federal 

21 Bureau of Investigation— 

22 (A) to work with the Computer Crime and 

23 Intellectual Property section of the Department 

24 of Justice on the investigation and coordination 

25 of intellectual property crimes that are complex, 


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1 committed in more than 1 judicial district, or 

2 international; 

3 (B) that consists of at least 10 agents of 

4 the Bureau; and 

5 (C) that is located at the headquarters of 

6 the Bureau; 

7 (2) ensure that any unit in the Department of 

8 Justice responsible for investigating computer hack9 ing or intellectual property crimes is as10 signedsupported by at least 2 agents of the Federal 

11 Bureau of Investigation (in addition to any agent as12 signed tosupporting such unit as of the date of the 

13 enactment of this Act) to support such unit for the 

14 purpose of investigating or prosecuting intellectual 

15 property crimes; and 

16 (3) ensure that all Computer Hacking and Intel17 lectual Property Crime Units located at an office of 

18 a United States Attorney are assigned at least 2 As19 sistant United States Attorneys responsible for inves20 tigating and prosecuting computer hacking or intel21 lectual property crimes; and 

22 (34) implement a comprehensive program— 

23 (A) the purpose of which is to train agents 

24 of the Federal Bureau of Investigation in the 

25 investigation and prosecution of such crimes 


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1 and the enforcement of laws related to intellec2 tual property crimes; 

3 (B) that includes relevant forensic training 

4 related to investigating and prosecuting intellec5 tual property crimes; and 

6 (C) that requires such agents who inves7 tigate or prosecute intellectual property crimes 

8 to attend the program annually. 

9 (b) ORGANIZED CRIME TASK FORCE.—Subject to the 

10 availability of appropriations to carry out this subsection, 

11 and not later than 120 days after the date of the enact12 ment of this Act, the Attorney General, through the 

13 United States Attorneys’ Offices, the Computer Crime and 

14 Intellectual Property section, and the Organized Crime 

15 and Racketeering section of the Department of Justice, 

16 and in consultation with the Federal Bureau of Investiga17 tion and other Federal law enforcement agencies, shall 

18 create a Task Force to develop and implement a com19 prehensive, long-range plan to investigate and prosecute 

20 international organized crime syndicates engaging in or 

21 supporting crimes relating to the theft of intellectual prop22 erty. 

23 (c) AUTHORIZATION.—There are authorized to be ap24 propriated to carry out this section $12,000,000 for each 

25 of fiscal years 2009 through 2013. 


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1 SEC. 503. ADDITIONAL FUNDING FOR RESOURCES TO IN2 VESTIGATE AND PROSECUTE CRIMINAL AC3 TIVITY INVOLVING COMPUTERS. 

4 (a) ADDITIONAL FUNDING FOR RESOURCES.— 

5 (1) AUTHORIZATION.—In addition to amounts 

6 otherwise authorized for resources to investigate and 

7 prosecute criminal activity involving computers, 

8 there are authorized to be appropriated for each of 

9 the fiscal years 2009 through 2013— 

10 (A) $10,000,000 to the Director of the 

11 Federal Bureau of Investigation; and 

12 (B) $10,000,000 to the Attorney General 

13 for the Criminal Division of the Department of 

14 Justice. 

15 (2) AVAILABILITY.—Any amounts appropriated 

16 under paragraph (1) shall remain available until ex17 pended. 

18 (b) USE OF ADDITIONAL FUNDING.—Funds made 

19 available under subsection (a) shall be used by the Direc20 tor of the Federal Bureau of Investigation and the Attor21 ney General, for the Federal Bureau of Investigation and 

22 the Criminal Division of the Department of Justice, re23 spectively, to— 

24 (1) hire and train law enforcement officers to— 

25 (A) investigate crimes committed through 

26 the use of computers and other information 


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1 technology, including through the use of the 

2 Internet; and 

3 (B) assist in the prosecution of such 

4 crimes; and 

5 (2) procure advanced tools of forensic science to 

6 investigate, prosecute, and study such crimes. 

7 SEC. 504. INTERNATIONAL INTELLECTUAL PROPERTY LAW 

8 ENFORCEMENT COORDINATORS. 

9 (a) DEPLOYMENT OF ADDITIONAL COORDINA10 TORS.—Subject to the availability of appropriations to 

11 carry out this section, the Attorney General shall, within 

12 180 days after the date of the enactment of this Act, de13 ploy 5 Intellectual Property Law Enforcement Coordina14 tors, in addition to those serving in such capacity on such 

15 date of enactment. Such deployments shall be made to 

16 those countries and regions where the activities of such 

17 a coordinator can be carried out most effectively and with 

18 the greatest benefit to reducing counterfeit and pirat19 edinfringed products in the United States market, to pro20 tecting the intellectual property rights of United States 

21 persons and their licensees, and to protecting the interests 

22 of United States persons otherwise harmed by violations 

23 of intellectual property rights in those countries. The mis24 sion of all International Intellectual Property Law En25 forcement Coordinators shall include the following: 


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1 (1) Acting as liaison with foreign law enforce2 ment agencies and other foreign officials in criminal 

3 matters involving intellectual property rights. 

4 (2) Performing outreach and training to build 

5 the enforcement capacity of foreign governments 

6 against intellectual property-related crime in the re7 gions in which the coordinators serve. 

8 (3) CoordinatingAssisting in the coordination of 

9 United States law enforcement activities against in10 tellectual property-related crimes in the regions in 

11 which the coordinators serve. 

12 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated for each fiscal year such 

14 sums as may be necessary for the deployment and support 

15 of all International Intellectual Property Enforcement Co16 ordinators of the Department of Justice, including those 

17 deployed under subsection (a). 

18 SEC. 505. ANNUAL REPORTS. 

19 Not later than 1 year after the date of the enactment 

20 of this Act, and annually thereafter, the Attorney General 

21 shall submit to the Committees on the Judiciary of the 

22 Senate and the House of Representatives a report on ac23 tions taken to carry out this title. 


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1 SEC. 506. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated for each fis3 cal year such sums as may be necessary to carry out this 

4 title. 

5 TITLE VI—MISCELLANEOUS 

6 SEC. 601. GAO STUDY ON PROTECTION OF INTELLECTUAL 

7 PROPERTY OF MANUFACTURERS. 

8 (a) STUDY.—The Comptroller General of the Untied 

9 States shall conduct a study to help determine how the Fed10 eral Government could better protect the intellectual prop11 erty of manufacturers by quantification of the impacts of 

12 imported and domestic counterfeit goods on— 

13 (1) the manufacturing industry in the United 

14 States; and 

15 (2) the overall economy of the United States. 

16 (b) CONTENTS.—In conducting the study required 

17 under subsection (a), the Comptroller General shall exam18 ine— 

19 (1) the extent that counterfeit manufactured 

20 goods are actively being trafficked in and imported 

21 into the United States; 

22 (2) the impacts on domestic manufacturers in 

23 the United States of current law regarding defending 

24 intellectual property, including patent, trademark, 

25 and copyright protections; 


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1 (3) the nature and scope of current statutory law 

2 and case law regarding protecting trade dress from 

3 being illegally copied; 

4 (4) the extent which such laws are being used to 

5 investigate and prosecute acts of trafficking in coun6 terfeit manufactured goods; 

7 (5) any effective practices or procedures that are 

8 protecting all types of intellectual property; and 

9 (6) any changes to current statutes or rules that 

10 would need to be implemented to more effectively pro11 tect the intellectual property rights of manufacturers. 

12 (c) REPORT.—Not later than 1 year after the date of 

13 the enactment of this Act, the Comptroller General shall 

14 submit to Congress a report on the results of the study re15 quired under subsection (a). 

16 SEC. 602. SENSE OF CONGRESS. 

17 It is the sense of Congress that— 

18 (1) the United States intellectual property indus19 tries have created millions of high-skill, high-paying 

20 United States jobs and pay billions of dollars in an21 nual United States tax revenues; 

22 (2) the United States intellectual property indus23 tries continue to represent a major source of cre24 ativity and innovation, business start-ups, skilled job 


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1 creation, exports, economic growth, and competitive2 ness; 

3 (3) counterfeiting and infringement results in 

4 billions of dollars in lost revenue for United States 

5 companies each year and even greater losses to the 

6 United States economy in terms of reduced job 

7 growth, exports, and competitiveness; 

8 (4) the growing number of willful violations of 

9 existing Federal criminal laws involving counter10 feiting and infringement by actors in the United 

11 States and, increasingly, by foreign-based individuals 

12 and entities is a serious threat to the long-term vital13 ity of the United States economy and the future com14 petitiveness of United States industry; 

15 (5) effective criminal enforcement of the intellec16 tual property laws against such violations in all cat17 egories of works should be among the highest priorities 

18 of the Attorney General; and 

19 (6) with respect to criminal counterfeiting and 

20 infringement of computer software, the Attorney Gen21 eral should give priority to cases— 

22 (A) involving the willful theft of intellectual 

23 property for purposes of commercial advantage 

24 or private financial gain; 


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1 (B) where the theft of intellectual property 

2 is central to the sustainability and viability of 

3 the commercial activity of the enterprise (or sub4 sidiary) involved in the violation; 

5 (C) where the counterfeited or infringing 

6 goods or services enables the enterprise to un7 fairly compete against the legitimate rights hold8 er; 

9 (D) where there is actual knowledge of the 

10 theft of intellectual property by the directors or 

11 officers of the enterprise; and 

12 (E) where the enterprise involved in the 

13 theft of intellectual property is owned or con14 trolled by a foreign enterprise or other foreign 

15 entity. 


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Calendar No. 964 

110TH CONGRESS 

2D SESSION S. 3325 

A BILL 

To enhance remedies for violations of intellectual 

property laws, and for other purposes. 

SEPTEMBER 15, 2008 

Reported with amendments 


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