II 

110TH CONGRESS 

1ST SESSION S. 522 

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

safety of United States citizens 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 

FEBRUARY 7, 2007 

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 economic health of the United States and 

the health and safety of United States citizens 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 ‘‘Intellectual Property 

5 Rights Enforcement Act’’. 

6 SEC. 2. FINDINGS. 

7 The Congress makes the following findings: 


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1 (1) The greatest economic assets of the United 

2 States are its innovators, entrepreneurs, and work3 ers. 

4 (2) Counterfeiting and piracy cost United 

5 States businesses, authors, and artists hundreds of 

6 billions of dollars annually. 

7 (3) Counterfeiting and piracy have resulted in 

8 the loss of hundreds of thousands of jobs in the 

9 United States. 

10 (4) Counterfeit medicines and automobile and 

11 aviation parts may result in serious health problems 

12 and death. 

13 (5) The World Customs Organization estimates 

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

15 goods. 

16 (6) The World Customs Organization estimates 

17 that global trade in counterfeit and pirated goods 

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

19 $600,000,000,000 annually. 

20 (7) Small- and medium-sized businesses are 

21 particularly vulnerable to intellectual property theft 

22 because they often lack the resources to pursue re23 course overseas or absorb the financial losses stem24 ming from counterfeiting and piracy. 


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1 (8) Terrorist groups have used the sale of coun2 terfeit goods to finance their activities. 

3 (9) Funds generated from intellectual property 

4 theft have financed acts of terrorism. 

5 (10) The domestic and international efforts of 

6 the United States to curb intellectual property rights 

7 violations would be enhanced through hands-on lead8 ership by the President, increased coordination 

9 among agencies, and a strategic partnership with 

10 like-minded countries. 

11 (11) Congress finds that no less than 9 United 

12 States Government agencies bear responsibility for 

13 supporting intellectual property rights, including the 

14 Department of the Treasury. 

15 (12) The efforts to enforce intellectual property 

16 rights should be elevated across agencies due to the 

17 increasing cost to the economy and the threat to the 

18 health and safety of United States citizens. 

19 (13) The success of intellectual property en20 forcement requires that a network of Government 

21 agencies work closely with Federal, State, and local 

22 law enforcement agencies. 

23 (14) The domestic and international efforts of 

24 the United States to combat money laundering 

25 serves as a useful model for strengthening domestic 


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1 and international intellectual property rights en2 forcement. 

3 (15) The Financial Crimes Enforcement Net4 work (FinCEN) represents a key effort by the 

5 United States to combat money laundering and 

6 other financial crimes. 

7 (16) FinCEN has effectively enhanced the ex8 change of information relating to money laundering 

9 and terrorist financing, both domestically and inter10 nationally. 

11 (17) FinCEN combats money laundering inter12 nationally by partnering with other enforcement13 minded countries through the Financial Action Task 

14 Force (FATF). 

15 (18) FATF members have established effective 

16 standards that they collectively agree to implement 

17 and against which they agree to be assessed through 

18 peer review. 

19 (19) The success of intellectual property rights 

20 enforcement requires that United States Government 

21 agencies form an effective network to take advan22 tage of their diverse capabilities and to share infor23 mation for the purpose of enhancing the enforce24 ment capabilities of each agency and the United 


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1 States Government-wide intellectual property rights 

2 enforcement effort. 

3 (20) The Department of the Treasury’s Office 

4 of Terrorism and Financial Intelligence would be an 

5 effective tool in combating intellectual property 

6 theft. 

7 (21) The success of international intellectual 

8 property rights enforcement requires that the United 

9 States partner with other countries that also suffer 

10 from extensive intellectual property theft. 

11 (22) The success of international intellectual 

12 property rights enforcement requires that the United 

13 States share information within an effective inter14 national task force of countries that are dedicated to 

15 achieving results in the fight against intellectual 

16 property theft. 

17 (23) The success of international intellectual 

18 property rights enforcement will be enhanced if the 

19 United States and other reliable international part20 ners engage in joint enforcement operations and 

21 work to strengthen the intellectual property rights 

22 enforcement capacity of countries with a poor record 

23 of intellectual property rights enforcement. 

24 (24) An effective exchange of information do25 mestically and internationally will enhance the abilVerDate Aug 31 2005 21:23 Feb 09, 2007 Jkt 059200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S522.IS S522

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1 ity of the United States Trade Representative to en2 force violations of trade agreements. 

3 (25) 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. NATIONAL INTELLECTUAL PROPERTY LAW EN8 FORCEMENT COORDINATION COUNCIL RE9 PEAL. 

10 Section 653 of the Treasury and General Government 

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

12 SEC. 4. THE INTELLECTUAL PROPERTY ENFORCEMENT 

13 NETWORK. 

14 (a) ESTABLISHMENT.— 

15 (1) IN GENERAL.—There is established the In16 tellectual Property Enforcement Network (in this 

17 section referred to as the ‘‘IPEN’’). 

18 (2) MEMBERSHIP.—The IPEN shall consist of 

19 the following officials or their designees: 

20 (A) The Deputy Director for Management 

21 of the Office of Management and Budget, who 

22 shall serve as the chairperson of the IPEN. 

23 (B) The Coordinator for Intellectual Prop24 erty Enforcement, described in subsection 


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1 (b)(2)(A), who shall serve as vice chairperson of 

2 the IPEN. 

3 (C) The Deputy Attorney General. 

4 (D) The Deputy Secretary for Homeland 

5 Security. 

6 (E) The Deputy Secretary of the Treasury. 

7 (F) The Deputy Secretary of Commerce. 

8 (G) The Deputy Secretary of State. 

9 (H) A Deputy United States Trade Rep10 resentative, as determined by the United States 

11 Trade Representative. 

12 (I) Such other officials as the members of 

13 the IPEN shall consider necessary and appro14 priate. 

15 (3) RELEVANT AGENCIES.—In this section, the 

16 term ‘‘relevant agency’’ means an agency of which 

17 an official listed in paragraph (2) is a member, in18 cluding an agency of which an official identified by 

19 the IPEN under paragraph (2)(I) is a member. 

20 (b) ORGANIZATION.— 

21 (1) MEETINGS.—The IPEN shall meet at least 

22 once every 6 months to approve the ongoing oper23 ations of the IPEN, to provide overall direction for 

24 the IPEN, to approve the strategic plan referred to 

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1 section (i), and to approve the budget referred to in 

2 paragraph (2)(B)(i). 

3 (2) COORDINATOR.— 

4 (A) IN GENERAL.—The day-to-day func5 tions of the IPEN shall be carried out by a Co6 ordinator for Intellectual Property Enforcement 

7 (in this Act referred to as the ‘‘Coordinator’’) 

8 who shall be appointed by the President. 

9 (B) OTHER RESPONSIBILITIES.—In addi10 tion to the responsibilities described in subpara11 graph (A), the Coordinator shall be responsible 

12 for the following: 

13 (i) Developing for each fiscal year, 

14 with the advice of the officials of the IPEN 

15 and the relevant agencies, a budget pro16 posal to implement the policies, objectives, 

17 and priorities described in subsection (c). 

18 (ii) Drafting and transmitting to the 

19 President and the Congress the strategic 

20 plan referred to in subsection (h) and the 

21 report referred to in subsection (i). 

22 (c) DUTIES.—The IPEN, established under sub23 section (a), shall be responsible for the following: 

24 (1) Coordinating and facilitating implementa25 tion by the relevant agencies of the policies, objecVerDate Aug 31 2005 21:23 Feb 09, 2007 Jkt 059200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S522.IS S522

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1 tives, and priorities described in paragraph (2), and 

2 fulfilling the responsibilities assigned to such agen3 cies to complete the actions described in paragraph 

4 (3). 

5 (2) Establishing policies, objectives, and prior6 ities concerning international intellectual property 

7 protection and intellectual property law enforcement. 

8 The policies, objectives, and priorities shall include— 

9 (A) eliminating counterfeit and pirated 

10 goods from the international supply chain; 

11 (B) identifying individuals, companies, 

12 banks, and other entities involved in the financ13 ing, production, trafficking, and sale of counter14 feit and pirated goods; 

15 (C) identifying and sharing information 

16 among the relevant agencies for the purpose of 

17 arresting and prosecuting persons who are 

18 knowingly involved in the financing, production, 

19 trafficking, and sale of counterfeit and pirated 

20 goods; 

21 (D) disrupting and shutting down counter22 feit and piracy networks; 

23 (E) strengthening the capacity of other 

24 countries to protect and enforce intellectual 

25 property rights and reducing the number of 


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1 countries that fail to enforce laws that prevent 

2 the financing, production, trafficking, and sale 

3 of counterfeit and pirated goods; and 

4 (F) working with like-minded countries to 

5 establish international standards and policies 

6 for the effective protection and enforcement of 

7 intellectual property rights. 

8 (3) Protecting United States intellectual prop9 erty rights overseas, including— 

10 (A) working with similar networks in for11 eign countries to create an effective inter12 national intellectual property enforcement task 

13 force (in this Act referred to as the ‘‘inter14 national task force’’); 

15 (B) ensuring the international task force 

16 described in subparagraph (A) consists of net17 works in countries that— 

18 (i) suffer substantial intellectual prop19 erty theft problems similar to those of the 

20 United States; 

21 (ii) have adequate and effective laws 

22 protecting copyrights, trademarks, and 

23 patents; 

24 (iii) have legal regimes that enforce 

25 their own domestic intellectual property 


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1 laws, and have a proven track record of 

2 permanently shutting down piracy oper3 ations, and arresting and prosecuting those 

4 who commit intellectual property crimes 

5 and offenses; 

6 (iv) have officials who have ex officio 

7 authority to seize, inspect, and destroy pi8 rated and counterfeit goods at ports of 

9 entry (or are working toward providing of10 ficials with such authority); 

11 (v) have officials who can order the 

12 seizure of pirated and counterfeit goods (or 

13 are working toward providing officials with 

14 such authority); 

15 (vi) have laws in place that permit of16 ficials to seize property used to produce pi17 rated and counterfeit goods (or are work18 ing toward providing officials with such au19 thority); 

20 (vii) are not on the Priority Watch 

21 List issued by the United States Trade 

22 Representative under title III of the Trade 

23 Act of 1974 (19 U.S.C. 2411 et seq.); and 


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1 (viii) have met additional standards to 

2 be established by the international task 

3 force; 

4 (C) exchanging information with networks 

5 in the international task force relating to indi6 viduals and entities involved in financing, pro7 duction, trafficking, and sale of pirated and 

8 counterfeit goods; 

9 (D) utilizing the information to conduct 

10 enforcement activities in cooperation with the 

11 networks of other countries in the international 

12 task force; and 

13 (E) building a formal process for con14 sulting with companies, industry associations, 

15 labor unions, and other interested groups in the 

16 countries that have networks in the inter17 national task force. 

18 (d) STAFF.— 

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

20 consultation with the relevant agencies, appoint, and 

21 fix the compensation of, such officers and employees 

22 of the IPEN as may be necessary to carry out the 

23 functions of the IPEN and may request the tem24 porary assignment of personnel from the relevant 

25 agencies. 


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1 (2) ASSIGNMENT AND COOPERATION OF OTHER

2 FEDERAL EMPLOYEES.—Each member of the IPEN 

3 listed in subsection (a) shall designate personnel 

4 from the member’s relevant agency to work with the 

5 IPEN and shall ensure that all units in the mem6 ber’s relevant agency that have responsibility for the 

7 protection and enforcement of intellectual property 

8 rights provide information and personnel to the 

9 IPEN in order for the IPEN to achieve the prior10 ities, objectives, and policies described in subsection 

11 (c)(2). 

12 (e) RESPONSIBILITY OF RELEVANT AGENCIES.—The 

13 relevant agencies shall take the following actions: 

14 (1) Share information collected to increase the 

15 intelligence and effectiveness of the protection and 

16 enforcement of intellectual property rights. 

17 (2) Coordinate civil and criminal actions with 

18 respect to persons who violate intellectual property 

19 rights. 

20 (3) Utilize information collected domestically, 

21 and from other countries in the international task 

22 force, to— 

23 (A) investigate, arrest, and prosecute enti24 ties and individuals involved in financing, proVerDate Aug 31 2005 21:23 Feb 09, 2007 Jkt 059200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S522.IS S522

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1 ducing, trafficking, and selling counterfeit and 

2 pirated goods; 

3 (B) provide assistance to the Department 

4 of Homeland Security, the Department of Jus5 tice, and other relevant agencies in identifying, 

6 seizing, and destroying counterfeit and pirated 

7 goods; 

8 (C) provide assistance to the United States 

9 Trade Representative in taking appropriate ac10 tion against countries that have violated World 

11 Trade Organization rules regarding the protec12 tion of intellectual property rights; and 

13 (D) provide assistance to the United States 

14 Trade Representative in taking appropriate ac15 tion under any trade agreement or treaty to 

16 which the United States is a signatory. 

17 (4) Establish a formal process for consulting 

18 and working with State and local government agen19 cies to investigate, arrest, and prosecute entities and 

20 individuals involved in the financing, production, 

21 trafficking, and sale of counterfeit and pirated 

22 goods. 

23 (5) Establish a formal process for consulting 

24 with companies, including small and medium-sized 

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1 dustry associations to strengthen enforcement. Such 

2 processes shall include the development of resources 

3 designed to assist businesses, industry associations, 

4 and their representatives in addressing intellectual 

5 property issues both domestically and internation6 ally. 

7 (6) Establish a formal process for consulting 

8 with writers and artists (and their organizations and 

9 unions), labor unions, and other interested persons 

10 and groups that suffer from counterfeiting and pi11 racy. 

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

13 IPEN shall consult with the Register of Copyrights on law 

14 enforcement matters relating to copyright and related 

15 rights and matters. 

16 (g) PRIORITY IN INTERNATIONAL TALKS.—Consid17 ering the threat that counterfeit and pirated goods pose 

18 to the economic health of the United States, and the 

19 health and safety of United States citizens, the President 

20 and officers of the relevant agencies, when meeting with 

21 foreign countries described in subsection (c)(3)(B), 

22 should— 

23 (1) stress the importance of establishing the 

24 international task force described in subsection 

25 (c)(3)(A); 


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1 (2) strongly encourage countries to participate 

2 in the international task force; and 

3 (3) strongly encourage countries participating 

4 in the international task force to cooperate with the 

5 United States in ensuring the success of the inter6 national task force. 

7 (h) STRATEGIC PLAN.— 

8 (1) IN GENERAL.—Within 6 months of the date 

9 of the enactment of this Act, and once every 2 years 

10 thereafter, the Director of the Office of Management 

11 and Budget and the Coordinator shall submit a stra12 tegic plan to the President, and to the Committees 

13 on the Judiciary, Homeland Security and Govern14 mental Affairs, and Appropriations of the Senate, 

15 and the Committees on the Judiciary, Oversight and 

16 Government Reform, and Appropriations of the 

17 House of Representatives. 

18 (2) CONTENTS.—The strategic plan required by 

19 this subsection shall include the following: 

20 (A) A detailed description of the goals, ob21 jectives, and priorities of the IPEN, including 

22 those described in subsection (c)(2). 

23 (B) An analysis of the threat posed by vio24 lations of intellectual property rights, including 

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1 erty theft, and the costs to the economy of the 

2 United States resulting from violations of intel3 lectual property laws. 

4 (C) Proposed methods for achieving suc5 cess, including through the growth of the inter6 national intellectual property enforcement task 

7 force described in subsection (c)(3). 

8 (D) The performance measures that will be 

9 used to monitor results. 

10 (E) An estimate of the resources necessary 

11 to achieve the goals, objectives, and priorities 

12 described in subparagraph (A), and an estimate 

13 of the cost of such resources. 

14 (F) An identification of the relevant agen15 cies that will be involved in coordinating the 

16 IPEN and implementing each priority. 

17 (G) A strategy for ensuring coordination 

18 between the chairperson and vice chairperson of 

19 the IPEN, and the relevant agencies, including 

20 a process for oversight of, and accountability 

21 among, the relevant agencies carrying out the 

22 strategy. 

23 (H) A description of how the IPEN will 

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1 sponsibilities to monitor and implement the 

2 strategy. 

3 (i) REPORT.— 

4 (1) IN GENERAL.—The Director of the Office of 

5 Management and Budget and the Coordinator shall 

6 report annually on the IPEN’s enforcement and co7 ordination activities for the fiscal year to the Presi8 dent, and to the Committees on the Judiciary, 

9 Homeland Security and Governmental Affairs, and 

10 Appropriations of the Senate, and the Committees 

11 on the Judiciary, Government Reform, and Appro12 priations of the House of Representatives. 

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

14 subsection shall include the following information: 

15 (A) The progress made toward establishing 

16 an international task force described in sub17 section (c)(3). 

18 (B) The progress made in working with 

19 foreign networks in the international task force 

20 to investigate, arrest, and prosecute entities and 

21 individuals involved in the financing, produc22 tion, trafficking, and sale of counterfeit and pi23 rated goods. 

24 (C) The manner in which the relevant 

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1 formation to strengthen the protection and en2 forcement of intellectual property rights. 

3 (D) For each foreign network admitted or 

4 denied entry into the international task force, 

5 an explanation of the reasons for admitting or 

6 denying entry to the international task force, 

7 including reasons for admitting networks from 

8 those countries that are currently on the Pri9 ority Watch List issued by the United States 

10 Trade Representative under title III of the 

11 Trade Act of 1974 (19 U.S.C. 2411 et seq.). 

12 (E) The progress made in strengthening 

13 the capacity of countries denied entry into the 

14 international task force to protect and enforce 

15 intellectual property rights. 

16 (F) The successes and challenges in shar17 ing information with countries in the inter18 national task force. 

19 (G) The progress of the United States 

20 Trade Representative in taking appropriate ac21 tion under any trade agreement or treaty to 

22 which the United States is a signatory. 

23 (H) The progress made in establishing and 

24 improving the formal process described in sub25 section (e)(4). 


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1 (I) The progress made in establishing and 

2 improving the formal process described in sub3 section (e)(5). 

4 (J) The progress made in establishing and 

5 improving the formal process described in sub6 section (e)(6). 

7 (K) The progress made in implementing 

8 the strategy in subsection (h)(2). 

9 (j) GOVERNMENT ACCOUNTABILITY OFFICE RE10 PORT.—Not later than 1 year after the date of the enact11 ment of this Act, the Comptroller General of the United 

12 States shall complete a report and submit the report to 

13 the Congress on the progress made on the items described 

14 in subsections (h) and (i). 

15 (k) OTHER INTELLECTUAL PROPERTY ACTIVI16 TIES.—If other government intellectual property initia17 tives include enforcement activities similar or identical to 

18 the activities described in this Act, those activities should 

19 be consolidated into the work of the IPEN in order to 

20 prevent duplication. Other activities that may improve en21 forcement may continue outside of the IPEN, including— 

22 (1) capacity building; 

23 (2) outreach to countries that would not qualify 

24 for membership in the international task force; and 


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1 (3) other bilateral and multilateral cooperative 

2 efforts. 

3 (l) PROHIBITED ACTIONS.—This section shall not be 

4 construed to require any act, measure, or other conduct 

5 by any department, agency, or other instrumentality of the 

6 United States that is prohibited by any law, regulation, 

7 or rule of procedure. 

8 SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 

9 There are authorized to be appropriated for each fis10 cal year such sums as may be necessary to carry out this 

11 Act. 

12 SEC. 6. EFFECTIVE DATE. 

13 This Act shall take effect on the date of the enact14 ment of this Act. 

Æ 


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