# EUR-Lex - 52011PC0380 - EN

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# 52011PC0380

**Proposal for a COUNCIL DECISION on the conclusion of the Anti-Counterfeiting Trade Agreement between the European Union and its Member States, Australia, Canada, Japan, the Republic of Korea, the United Mexican States, the Kingdom of Morocco, New Zealand, the Republic of Singapore, the Swiss Confederation and the United States of America /* COM/2011/0380 final - 2011/0167 (NLE) */**

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EXPLANATORY MEMORANDUM

1.           ACTA aims to establish a
comprehensive international framework that will assist the EU in its efforts to
effectively combat the infringement of intellectual property rights (IPR). This
infringement undermines legitimate trade and the EU's competitiveness with the
subsequent negative repercussions on growth and jobs. ACTA includes
state-of-the-art provisions on the enforcement of IPR, including provisions on
civil, criminal, border and digital environment enforcement measures, robust cooperation mechanisms among ACTA
Parties to assist in their enforcement efforts, and the establishment of best
practices for effective IPR enforcement.

2.           Although ACTA does not
modify the EU acquis, because EU law is already considerably more advanced
than the current international standards, it will introduce a new international
standard, building upon the World Trade Organisation's TRIPS Agreement (adopted
in 1994). Thus, it will provide benefits for EU exporting right-holders
operating in the global market who currently suffer systematic and widespread
infringements of their copyrights, trademarks, patents, designs and
geographical indications abroad.

3.           At the same time, ACTA is
a balanced agreement, because it fully respects the rights of citizens and the
concerns of important stakeholders such as consumers, internet providers and
partners in developing countries.

4.           Further to the adoption of
the negotiating directives by the Council on 14 April 2008, negotiations were launched
on 3 June 2008. The agreement was concluded on 15 November 2010 and the text
was initialled on 25 November, after 11 rounds of negotiations.

5.           The EU Member States were
kept informed of the negotiations orally and in writing via the Council's Trade
Policy Committee. The rotating EU Presidency led the negotiations on matters of
penal enforcement, based on positions unanimously agreed and adopted by Council
in COREPER. The European Parliament has also been kept regularly informed on
developments via its Committee on International Trade (INTA) and by
Commissioner De Gucht in three plenary debates in 2010. On 24 November 2010,
the European Parliament adopted a Resolution supporting ACTA.

6.           ACTA contains a number of
provisions on criminal enforcement that fall within the scope of Article 83(2)
TFEU. Those parts of the agreement, in distinction to those parts falling under
Article 207, fall under the area of shared competences (Article 2(2) TFEU).
Where a matter falls under shared competence either the European Union or
Member States may legislate and adopt legally binding acts. Regarding the
signature and conclusion of ACTA, the Commission has opted not to propose that
the European Union exercise its potential competence in the area of criminal
enforcement pursuant to Article 83(2) TFEU. The Commission considers this
appropriate because it has never been the intention, as regards the negotiation
of ACTA to modify the EU acquis or to harmonise EU legislation as
regards criminal enforcement of intellectual property rights. For this
reason, the Commission proposes that ACTA be signed and concluded both by the
EU and by all the Member States.

7.           The Commission's position
as regards ACTA and Article 83(2) TFEU is without prejudice to the position of
the Commission on future exercise by the EU of the shared competences foreseen
by Article 83(2) TFEU as regards other initiatives.

2011/0167 (NLE)

Proposal for a

COUNCIL DECISION

on the conclusion of the
Anti-Counterfeiting Trade Agreement between the European Union and its Member
States, Australia, Canada, Japan, the Republic of Korea, the United Mexican
States, the Kingdom of Morocco, New Zealand, the Republic of Singapore, the
Swiss Confederation and the United States of America

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the
Functioning of the European Union, and in particular Article 207 (4), 1st
subparagraph, in conjunction with Article 218(6)(a)(v) thereof,

Having regard to the proposal from the
European Commission,

Having regard to the consent of the
European Parliament[1],

Whereas:

(1)
On 14 April 2008 the Council authorised the
Commission to negotiate a plurilateral anti-counterfeiting trade agreement, on
behalf of the European Union and its Member States.

(2)
Those negotiations have been concluded and an
Anti-Counterfeiting Trade Agreement between the European Union and its Member
States, Australia, Canada, Japan, the Republic of Korea, the United Mexican
States, the Kingdom of Morocco,
New Zealand, the Republic of Singapore,
the Swiss Confederation and the
United States of America, was
initialled on 25 November 2010.

(3)
In accordance with Council Decision No .../2010/EU
of ...[2] the Agreement was signed on
behalf of the Union on ....

(4)
The Agreement should be approved,

HAS ADOPTED THIS DECISION:

Article 1

The Anti-Counterfeiting Trade Agreement
between the European Union and its Member States, Australia, Canada, Japan, the
Republic of Korea, the United Mexican States, the
Kingdom of Morocco, New Zealand, the Republic of Singapore, the Swiss Confederation and the United
States of America,[3] is hereby approved on behalf of
the European Union.

The text of the Agreement to be concluded
is attached to this Decision.

Article 2

The President of the Council shall
designate the person empowered to proceed, on behalf of the European Union, to
the deposit of the instrument of approval of the Agreement, in order to express
the consent of the European Union to be bound by the Agreement.

Article 3

This Decision shall enter into force on the
day of its adoption. It shall be published in the Official Journal of the
European Union.

The date of entry into force of the
Agreement shall be published in the Official Journal of the European Union.

Done at Brussels,

For
the Council

The
President

ANNEX

Anti-Counterfeiting
Trade Agreement between the European Union and its Member States, Australia,
Canada, Japan, the Republic of Korea, the United Mexican States, the Kingdom of
Morocco, New Zealand, the Republic of Singapore, the Swiss Confederation and
the United States of America

The
Parties to this Agreement,

Noting that
effective enforcement of intellectual property rights is critical to sustaining
economic growth across all industries and globally;

Noting
further that the proliferation of counterfeit and
pirated goods, as well as of services that distribute infringing material, undermines legitimate trade and sustainable development of the world
economy, causes significant financial losses for right holders and for
legitimate businesses, and, in
some cases, provides a source of revenue for organized crime and otherwise poses risks to the public;

Desiring to
combat such proliferation through enhanced international cooperation and more
effective international enforcement;

Intending to
provide effective and appropriate means, complementing the TRIPS Agreement, for
the enforcement of intellectual property rights, taking into account
differences in their respective legal systems and practices;

Desiring to
ensure that measures and procedures to enforce intellectual property rights do
not themselves become barriers to legitimate trade;

Desiring to
address the problem of infringement of intellectual property rights, including infringement taking place in the digital
environment, in particular with respect to copyright or related rights, in a manner that balances the rights and interests of the relevant right holders,
service providers, and users;

Desiring to
promote cooperation between service providers and right holders to address
relevant infringements in the digital environment;

Desiring that
this Agreement operates in a manner mutually supportive of
international enforcement work and cooperation conducted within relevant
international organizations;

Recognizing the principles set forth in the Doha Declaration on the
TRIPS Agreement and Public Health, adopted on 14 November 2001, at the Fourth WTO Ministerial Conference;

Hereby
agree as follows:

Chapter I: Initial Provisions and General Definitions

Section 1: Initial
Provisions

Article 1: Relation to Other Agreements

Nothing in this Agreement shall derogate
from any obligation of a Party with respect
to any other Party under existing agreements, including the TRIPS Agreement.

Article 2: Nature and Scope of Obligations

1.           Each Party shall give
effect to the provisions of this Agreement. A Party may implement in its law
more extensive enforcement of intellectual property rights than is required by
this Agreement, provided that such enforcement does not contravene the
provisions of this Agreement. Each Party shall be free to determine the
appropriate method of implementing the provisions of this Agreement within its
own legal system and practice.

2.           Nothing in this Agreement
creates any obligation with respect to the distribution of resources as between
enforcement of intellectual property rights and enforcement of law in general.

3.           The objectives and principles set forth in Part
I of the TRIPS Agreement, in particular in
Articles 7 and 8, shall apply, mutatis mutandis, to this Agreement.

Article 3: Relation to
Standards concerning the Availability and Scope of Intellectual Property Rights

1.           This Agreement shall be
without prejudice to provisions in a Party’s law governing the availability,
acquisition, scope, and maintenance of intellectual
property rights.

2.           This Agreement does not
create any obligation on a Party to apply measures where a right in
intellectual property is not protected under its laws and regulations.

Article 4: Privacy and Disclosure of Information

1.           Nothing
in this Agreement shall require a Party to disclose:

a)      information, the disclosure of which
would be contrary to its law, including laws protecting privacy rights, or international agreements to which it is party;

b)      confidential information, the
disclosure of which would impede law enforcement or otherwise be contrary to
the public interest; or

c)      confidential
information, the disclosure of
which would prejudice the legitimate commercial interests of particular
enterprises, public or private.

2.           When
a Party provides written information pursuant to the
provisions of this Agreement, the Party receiving the
information shall, subject to its law and practice, refrain from disclosing or
using the information for a purpose other than that for which the information was
provided, except with the prior consent of the Party providing the information.

Section 2: General
Definitions

Article 5: General Definitions

For the purposes of this Agreement, unless
otherwise specified:

a)      ACTA means the
Anti-Counterfeiting Trade Agreement;

b)      Committee means the ACTA Committee established
under Chapter V (Institutional Arrangements);

c)      competent authorities includes the
appropriate judicial, administrative, or law enforcement authorities under a Party’s law;

d)      counterfeit trademark goods means any goods, including packaging,
bearing without authorization a
trademark which is identical to the trademark
validly registered in respect of such goods, or which cannot be distinguished in its essential aspects from such a
trademark, and which thereby
infringes the rights of the owner of the trademark in question under the law of
the country in which the procedures set forth in Chapter II (Legal Framework for
Enforcement of Intellectual Property Rights) are
invoked;

e)      country is to be understood to have the same meaning as that
set forth in the Explanatory Notes to the WTO Agreement;

f)       customs transit means the customs procedure under which goods are transported under customs
control from one customs office to another;

g)      days means calendar days;

h)      intellectual property refers to all categories of intellectual
property that are the subject of Sections 1 through 7 of Part II of the TRIPS Agreement;

i)       in-transit goods means goods
under customs transit or transhipment;

j)       person means a natural person or a legal person;

k)      pirated copyright goods means any goods which are copies made without the consent of
the right holder or person duly authorized by the right holder in the country of production and which are made directly or indirectly from
an article where the making of that copy would have constituted an infringement
of a copyright or a related right under the law of the country in
which the procedures set forth in Chapter II (Legal
Framework for Enforcement of Intellectual Property Rights) are invoked;

l)       right holder includes a
federation or an association having the legal standing to assert rights in intellectual property;

m)     territory, for the purposes of Section 3 (Border Measures) of Chapter II (Legal
Framework for Enforcement of Intellectual Property Rights), means the customs territory and all free zones[4] of a Party;

n)      transhipment means the customs procedure under which goods are
transferred under customs control from the importing means of transport to the
exporting means of transport
within the area of one customs office which is the office of both importation
and exportation;

o)      TRIPS Agreement means the Agreement
on Trade-Related Aspects of Intellectual Property Rights, contained in
Annex 1C to the WTO Agreement;

p)      WTO means the World Trade
Organization; and

q)      WTO
Agreement means the Marrakesh Agreement
Establishing the World Trade Organization, done
on 15 April 1994.

Chapter II: Legal Framework For Enforcement of Intellectual Property Rights

Section 1: General Obligations

Article 6: General Obligations with Respect to Enforcement

1.           Each
Party shall ensure that enforcement procedures are available under its law so as to permit effective action
against any act of infringement of intellectual property rights covered by this
Agreement, including expeditious remedies to prevent infringements and remedies
which constitute a deterrent to further infringements. These procedures shall
be applied in such a manner as to avoid the creation of barriers to legitimate
trade and to provide for safeguards against their abuse.

2.           Procedures adopted,
maintained, or applied to implement the provisions of this Chapter shall be fair
and equitable, and shall provide for the rights of
all participants subject to such procedures to be appropriately protected. These procedures shall not be
unnecessarily complicated or costly, or entail unreasonable time-limits or
unwarranted delays.

3.           In
implementing the provisions of this Chapter, each Party
shall take into account the
need for proportionality between the seriousness of the infringement, the
interests of third parties, and
the applicable measures, remedies and penalties.

4.           No
provision of this Chapter shall
be construed to require a Party to make its officials subject to liability for
acts undertaken in the performance of their official duties.

Section 2: Civil
Enforcement[5]

Article 7:
Availability of Civil Procedures

1.           Each Party shall make
available to right holders civil judicial procedures concerning the enforcement
of any intellectual property right as specified in this
Section.

2.           To the extent that any civil
remedy can be ordered as a result of administrative procedures on the merits of
a case, each Party shall provide that such procedures shall
conform to principles equivalent in substance to those
set forth in this Section.

Article 8: Injunctions

1.           Each Party shall provide
that, in civil judicial proceedings concerning the
enforcement of intellectual property rights, its judicial authorities have the
authority to issue an order against a party to desist from an infringement, and inter
alia, an order to that party or, where appropriate,
to a third party over whom the
relevant judicial authority
exercises jurisdiction, to prevent goods that involve
the infringement of an intellectual property right from entering into the channels of commerce.

2.           Notwithstanding the other
provisions of this Section, a Party may limit the remedies available against
use by governments, or by third parties authorized by a government, without the
authorization of the right holder, to the payment of remuneration, provided
that the Party complies with the provisions of Part II of the TRIPS Agreement
specifically addressing such use. In other cases, the
remedies under this Section
shall apply or, where these remedies are inconsistent with a Party’s law,
declaratory judgments and adequate compensation shall be available.

Article 9: Damages

1.           Each Party shall provide
that, in civil judicial
proceedings concerning the enforcement of intellectual
property rights, its judicial authorities have the
authority to order the infringer who, knowingly or with reasonable grounds to know, engaged in infringing
activity to pay the right holder damages adequate to compensate for the injury
the right holder has suffered as a result of the infringement. In determining the
amount of damages for
infringement of intellectual property rights, a Party’s judicial authorities shall have the authority
to consider, inter alia, any legitimate measure of value the right holder submits, which may include
lost profits, the value of the infringed goods or services
measured by the market price, or the suggested retail price.

2.           At least in cases of copyright or related rights infringement and
trademark counterfeiting, each Party shall provide that, in civil judicial
proceedings, its judicial authorities have the authority to order the infringer
to pay the right holder the infringer’s profits that are attributable to the infringement. A Party may presume those profits to be the amount of damages
referred to in paragraph 1.

3.           At least with respect to infringement of
copyright or related rights protecting works,
phonograms, and performances, and in cases of trademark counterfeiting, each
Party shall also establish or maintain a system that provides for one or more
of the following:

a)      pre-established damages; or

b)      presumptions[6] for determining the amount of
damages sufficient to compensate the right holder for the harm caused by the
infringement; or

c)      at least for copyright, additional
damages.

4.           Where a Party provides the
remedy referred to in subparagraph 3(a) or the presumptions referred to in subparagraph
3(b), it shall ensure that either its judicial authorities or the right holder has
the right to choose such a remedy or presumptions as
an alternative to the remedies referred to in paragraphs 1 and 2.

5.           Each Party shall provide that its judicial authorities, where appropriate, have the authority to order, at the conclusion of civil judicial
proceedings concerning infringement of at least copyright or related rights, or trademarks, that the prevailing party be awarded payment by the
losing party of court costs or fees and appropriate attorney’s fees, or any other expenses as provided for under that Party’s law.

Article 10: Other Remedies

1.           At least with respect to
pirated copyright goods and
counterfeit trademark goods, each Party shall provide
that, in civil judicial proceedings, at the right holder’s request, its judicial authorities have the authority to order that such infringing
goods be destroyed, except in
exceptional circumstances, without compensation of any
sort.

2.           Each
Party shall further provide that its judicial authorities have the authority to
order that materials and implements, the predominant use of which has been in the manufacture or creation of such infringing goods, be,
without undue delay and without compensation of any sort, destroyed or disposed
of outside the channels of commerce in such a manner as to minimize the risks of further infringements.

3.           A Party may provide for
the remedies described in this Article to be carried out at the infringer’s expense.

Article 11: Information
Related to Infringement

Without prejudice to its law governing privilege, the protection of
confidentiality of information sources, or the processing of personal data, each Party shall provide that, in civil judicial proceedings concerning the enforcement of intellectual property rights, its judicial
authorities have the authority,
upon a justified request of the right holder, to order the infringer or, in the alternative, the alleged infringer, to provide to the right holder
or to the judicial authorities, at least for the
purpose of collecting evidence, relevant information
as provided for in its applicable laws and
regulations that the infringer or alleged infringer
possesses or controls. Such information may include
information regarding any person involved in any aspect of the infringement or alleged infringement and regarding the means of production or the channels of
distribution of the
infringing or allegedly infringing goods or services,
including the identification of third persons alleged
to be involved in the production and distribution of such goods
or services and of their channels of
distribution.

Article 12: Provisional
Measures

1.           Each Party shall provide that its judicial authorities have the authority to order prompt
and effective provisional measures:

a)      against a party or, where appropriate,
a third party over whom the relevant judicial authority exercises jurisdiction,
to prevent an infringement of any intellectual property right from occurring,
and in particular, to prevent goods that involve the infringement of an
intellectual property right from entering into the channels of commerce;

b)      to preserve relevant evidence in
regard to the alleged infringement.

2.           Each Party shall provide that its judicial authorities
have the authority to adopt provisional measures inaudita altera parte
where appropriate, in particular where any delay is likely to cause irreparable
harm to the right holder, or where there is a demonstrable risk of evidence
being destroyed. In proceedings conducted inaudita altera parte, each Party shall provide its judicial authorities with
the authority to act expeditiously on requests for provisional measures and to
make a decision without undue delay.

3.           At least in cases of
copyright or related rights infringement and trademark counterfeiting, each
Party shall provide that, in civil judicial proceedings, its judicial
authorities have the authority to order the seizure or other taking into
custody of suspect goods, and of materials and implements relevant to the act
of infringement, and, at least for trademark counterfeiting, documentary
evidence, either originals or copies thereof, relevant to the infringement.

4.           Each Party shall provide
that its authorities have the authority to require the applicant, with respect
to provisional measures, to provide any reasonably available evidence in order
to satisfy themselves with a sufficient degree of certainty that the applicant’s
right is being infringed or that such infringement is imminent, and to order
the applicant to provide a security or equivalent assurance sufficient to
protect the defendant and to prevent abuse. Such security or equivalent
assurance shall not unreasonably deter recourse to procedures for such
provisional measures.

5.           Where the provisional
measures are revoked or where they lapse due to
any act or omission by the applicant, or where it is subsequently found that
there has been no infringement of an intellectual property right, the judicial
authorities shall have the authority to order the applicant, upon request of
the defendant, to provide the defendant appropriate compensation for any injury
caused by these measures.

Section 3: Border
Measures[7], [8]

Article 13: Scope of the Border Measures[9]

In providing, as appropriate, and consistent
with its domestic system of intellectual property
rights protection and without prejudice to the
requirements of the TRIPS Agreement, for effective border enforcement of
intellectual property rights, a Party should do so in a manner that does not
discriminate unjustifiably
between intellectual property rights and that avoids the creation of barriers
to legitimate trade.

Article 14: Small Consignments and Personal Luggage

1.           Each Party shall include
in the application of this Section goods of a commercial
nature sent in small consignments.

2.           A Party may exclude from
the application of this Section small quantities of goods of a non-commercial
nature contained in travellers’ personal luggage.

Article 15: Provision of Information from the Right
Holder

Each Party shall permit its competent authorities to request a right
holder to supply relevant information to assist the competent authorities in
taking the border measures
referred to in this Section. A
Party may also allow a right holder to supply relevant information to its competent authorities.

Article 16: Border measures

1.           Each Party shall adopt or
maintain procedures with respect to import and export shipments under which:

a)      its customs
authorities may act upon their own initiative to suspend the release of suspect goods; and

b)      where appropriate, a right holder may request its competent authorities to suspend the release of suspect
goods.

2.           A Party may adopt or
maintain procedures with respect to suspect in-transit
goods or in other situations where the goods are under customs control under which:

a)      its customs authorities may act upon their own initiative to suspend the
release of, or to detain,
suspect goods; and

b)      where
appropriate, a right holder may request its competent authorities to suspend the release of, or
to detain, suspect goods.

Article 17: Application by the Right
Holder

1.           Each Party shall provide that its competent
authorities require a right holder that requests the procedures described in subparagraphs
1(b) and 2(b) of Article 16 (Border Measures) to
provide adequate evidence to satisfy the competent
authorities that, under the law of the Party providing
the procedures, there is prima facie an infringement of the right
holder's intellectual property right, and to supply sufficient information that may reasonably be
expected to be within the right holder’s knowledge to make the suspect goods
reasonably recognizable by the competent authorities. The requirement to provide sufficient information shall not
unreasonably deter recourse to the procedures described in subparagraphs 1(b) and 2(b) of Article 16 (Border Measures).

2.           Each
Party shall provide for applications to suspend the release of, or to detain, any suspect goods[10]
under customs control in its territory. A Party may
provide for such applications to apply to multiple shipments. A Party may provide that, at the request of the right holder, the application to suspend the release of, or to detain,
suspect goods may
apply to selected points of entry and exit under customs control.

3.           Each Party shall ensure that its competent
authorities inform the applicant within a reasonable period
whether they have accepted the application. Where its
competent authorities have accepted the application, they shall also inform the applicant of the
period of validity of the application.

4.           A
Party may provide that, where the applicant has abused the procedures described in subparagraphs 1(b) and 2(b) of Article 16
(Border Measures), or where there is due cause, its competent authorities have the authority to deny, suspend, or
void an application.

Article 18: Security or Equivalent
Assurance

Each Party shall provide that its competent
authorities have the authority to require a right holder that requests the
procedures described in subparagraphs 1(b) and 2(b) of Article
16 (Border Measures) to provide a reasonable security or equivalent assurance sufficient
to protect the defendant and the competent authorities and to prevent abuse.
Each Party shall provide that such security or equivalent assurance shall not
unreasonably deter recourse to these procedures. A Party may provide that such
security may be in the form of a bond conditioned to hold the defendant
harmless from any loss or damage resulting from any suspension of the release
of, or detention of, the goods in the event the
competent authorities determine that the goods are not infringing.
A Party may, only in exceptional
circumstances or pursuant to a judicial order, permit
the defendant to obtain possession of suspect goods by posting a bond or other
security.

Article 19: Determination as to
Infringement

Each Party shall adopt or maintain
procedures by which its competent
authorities may determine, within a reasonable period after the initiation of
the procedures described in Article
16 (Border Measures), whether the suspect goods infringe an intellectual
property right.

Article 20: Remedies

1.           Each Party shall provide that its competent authorities have the authority to order the destruction
of goods following a determination referred to in Article 19 (Determination as to Infringement) that
the goods are infringing. In cases where
such goods are not destroyed, each Party shall ensure that,
except in exceptional circumstances, such goods are
disposed of outside the channels of commerce in such a manner as to avoid any
harm to the right holder.

2.           In regard to counterfeit
trademark goods, the simple removal of the trademark unlawfully affixed shall
not be sufficient, other than in exceptional cases, to permit release of the goods into the channels of commerce.

3.           A Party may provide that its competent authorities have the authority to impose administrative
penalties following a determination referred to in Article 19 (Determination as
to Infringement) that the goods are
infringing.

Article 21: Fees

Each Party shall provide that any
application fee, storage fee, or destruction fee to be assessed by its competent authorities in connection with
the procedures described
in this Section shall not be used to unreasonably deter recourse to these
procedures.

Article 22: Disclosure of Information

Without prejudice to a Party’s laws
pertaining to the privacy or
confidentiality of information:

a)      Party may
authorize its competent
authorities to provide a right
holder with information about specific shipments of goods, including the
description and quantity of the goods, to assist in the detection of infringing goods;

b)      a Party may
authorize its competent
authorities to provide a right
holder with information about goods, including, but not limited to, the description and quantity of the
goods, the name and address of
the consignor, importer, exporter, or consignee, and, if known, the country of origin of the goods, and the name and
address of the manufacturer of the goods, to assist in the determination referred to in Article 19
(Determination as to Infringement);

c)      unless a Party has provided its competent authorities with the
authority described in subparagraph
(b), at least in cases of imported goods, where its competent authorities have seized suspect goods or, in the alternative, made
a determination referred to in Article
19 (Determination as to Infringement) that the goods
are infringing, the Party shall authorize
its competent authorities to provide a right holder, within thirty days[11]
of the seizure or
determination, with information about such goods, including,
but not limited to, the description and quantity of the goods, the name and
address of the consignor, importer, exporter, or consignee, and, if known, the country of origin of the goods, and the
name and address of the manufacturer of the goods.

Section 4: Criminal Enforcement

Article 23:
Criminal Offences

1.           Each Party shall provide for criminal procedures and penalties to be
applied at least in cases of wilful trademark counterfeiting or copyright or
related rights piracy on a commercial scale.[12] For the purposes of
this Section, acts carried out on a commercial scale include at least those
carried out as commercial activities for direct or indirect economic or
commercial advantage.

2.           Each Party shall provide for criminal procedures and penalties to be
applied in cases of wilful importation[13] and domestic use, in the course of trade and on a commercial scale,
of labels or packaging:[14]

a)      to which a mark has been applied
without authorization which is identical to, or cannot
be distinguished from, a trademark registered in its
territory; and

b)      which are intended to be used in the course of trade on goods or in relation
to services which are identical to goods or services for which such trademark is registered.

3.           A Party may provide
criminal procedures and penalties in appropriate cases for the unauthorized copying of cinematographic works from a
performance in a motion picture exhibition facility generally open to the
public.

4.           With respect to the
offences specified in this Article for which a Party
provides criminal procedures and penalties, that Party
shall ensure that criminal liability
for aiding and abetting is available under its law.

5.           Each Party shall adopt such measures as may be necessary, consistent
with its legal principles, to establish the liability, which may be criminal,
of legal persons for the offences specified in this Article for which the Party provides criminal
procedures and penalties. Such liability shall be without prejudice to the criminal liability of the natural persons who have
committed the criminal offences.

Article 24:
Penalties

For offences
specified in paragraphs
1, 2, and 4 of Article 23 (Criminal Offences), each
Party shall provide penalties that include imprisonment as well as monetary fines[15]
sufficiently high to provide a deterrent to future acts of infringement, consistently with the level
of penalties applied for crimes of a corresponding gravity.

Article 25: Seizure, Forfeiture, and
Destruction

1.           With respect to the
offences specified in paragraphs 1, 2, 3, and 4 of Article 23 (Criminal
Offences) for which a Party provides criminal
procedures and penalties, that Party shall provide that
its competent authorities have the authority to order the seizure of suspected
counterfeit trademark goods or pirated copyright goods, any related materials
and implements used in the commission of the alleged offence, documentary
evidence relevant to the alleged offence, and the assets derived from, or obtained directly or indirectly
through, the alleged infringing
activity.

2.           Where
a Party requires the identification of items subject to seizure as a
prerequisite for issuing an order referred to in paragraph 1, that Party shall
not require the items to be described in greater detail than necessary to identify them for the purpose of seizure.

3.           With
respect to the offences specified in paragraphs 1, 2, 3, and 4 of Article 23
(Criminal Offences) for which a Party provides criminal
procedures and penalties, that Party shall provide that
its competent authorities have the authority to order
the forfeiture or destruction of all counterfeit trademark goods or pirated copyright goods. In cases where counterfeit trademark goods and pirated copyright
goods are not destroyed, the competent authorities shall ensure that, except in
exceptional circumstances, such goods shall be disposed of outside the channels
of commerce in such a manner as to avoid causing any harm to the right holder. Each Party shall ensure that the forfeiture or destruction of
such goods shall occur without compensation of any sort to the infringer.

4.           With
respect to the offences specified in paragraphs 1, 2, 3, and 4 of Article 23
(Criminal Offences) for which a Party provides criminal procedures and penalties, that Party shall provide that its competent authorities have the
authority to order the forfeiture
or destruction of materials and implements predominantly used in the creation
of counterfeit trademark goods or pirated copyright goods and, at least for serious offences, of the assets derived from, or obtained
directly or indirectly through, the infringing activity. Each Party shall ensure that the forfeiture or destruction of such materials, implements,
or assets shall occur without compensation of any sort to the infringer.

5.           With respect to the offences
specified in paragraphs 1, 2, 3, and 4 of Article 23 (Criminal Offences) for which a Party
provides criminal procedures and penalties, that Party
may provide that its judicial authorities have the authority to order:

a)      the seizure of assets the value of which corresponds to that of the assets derived from, or obtained directly or indirectly through, the allegedly infringing activity; and

b)      the forfeiture
of assets the value of which corresponds to that of the
assets derived from, or obtained directly or indirectly through, the infringing activity.

Article 26: Ex Officio Criminal Enforcement

Each Party shall provide that, in appropriate cases, its competent authorities may act upon their own initiative to initiate investigation or legal action with respect
to the criminal offences specified in paragraphs 1, 2,
3, and 4 of Article 23 (Criminal Offences) for which that Party provides criminal procedures and penalties.

Section 5: Enforcement
of Intellectual Property Rights in the Digital Environment

Article 27: Enforcement in the Digital
Environment

1.           Each Party shall ensure
that enforcement procedures, to the extent set forth in Sections 2 (Civil Enforcement) and 4 (Criminal Enforcement), are available
under its law so as to permit effective action against an act of infringement of intellectual property rights which takes place in the digital
environment, including expeditious remedies to prevent infringement and
remedies which constitute a deterrent to further infringements.

2.           Further to paragraph 1, each Party’s enforcement procedures shall apply to infringement of copyright or related rights over digital networks, which may
include the unlawful use of means of widespread distribution for infringing
purposes. These procedures shall be implemented in a
manner that avoids the creation of barriers to legitimate activity, including
electronic commerce, and, consistent with that Party’s law, preserves fundamental principles such as freedom
of expression, fair process, and
privacy.[16]

3.           Each Party shall endeavour
to promote cooperative efforts within the business community to effectively
address trademark and copyright
or related rights infringement while preserving legitimate
competition and, consistent
with that Party’s law,
preserving fundamental principles
such as freedom of expression,
fair process, and privacy.

4.           A Party may provide, in
accordance with its laws and regulations, its competent authorities with the
authority to order an online service provider to disclose expeditiously to a
right holder information
sufficient to identify a subscriber whose account was allegedly used for
infringement, where that right holder has filed a legally sufficient claim of trademark
or copyright or related rights infringement, and where such information is being sought for the purpose of
protecting or enforcing those rights. These procedures
shall be implemented in a manner that avoids the creation of barriers to
legitimate activity, including electronic commerce, and, consistent with that
Party’s law, preserves fundamental principles such as freedom
of expression, fair process,
and privacy.

5.           Each Party shall provide
adequate legal protection and effective legal remedies against the
circumvention of effective technological measures[17] that are used by authors,
performers or producers of
phonograms in connection with the exercise of their rights in, and that restrict acts in respect of, their works, performances, and phonograms, which are not authorized by the authors, the performers or the producers of phonograms concerned or
permitted by law.

6.           In order to provide the
adequate legal protection and effective legal remedies referred to in paragraph
5, each Party shall provide protection at least against:

a)      to the extent provided by its law:

i)        the unauthorized circumvention of an effective
technological measure carried
out knowingly or with
reasonable grounds to know; and

ii)       the offering to the public by
marketing of a device or product, including
computer programs, or a service, as a means
of circumventing an effective technological measure;
and

b)      the manufacture, importation, or distribution of a
device or product, including computer programs, or
provision of a service that:

i)        is primarily
designed or produced for the purpose of circumventing an effective
technological measure; or

ii)       has only a
limited commercially significant purpose other than circumventing an effective technological measure. [18]

7.           To
protect electronic rights management information,[19] each Party shall provide
adequate legal protection and
effective legal remedies against any person knowingly performing without authority any of the following acts
knowing, or with respect to civil remedies, having reasonable grounds to know, that it will induce, enable, facilitate, or conceal an infringement of any copyright or related rights:

a)      to remove or alter any electronic
rights management information;

b)      to distribute, import for distribution, broadcast, communicate, or make available
to the public copies of works, performances, or phonograms, knowing that
electronic rights management information has been removed or altered without
authority.

8.           In providing adequate
legal protection and effective legal remedies pursuant to the provisions of
paragraphs 5 and 7, a Party may adopt or maintain appropriate limitations or
exceptions to measures implementing the provisions of paragraphs 5, 6, and 7.
The obligations set forth in paragraphs 5, 6, and 7 are without prejudice to the rights, limitations, exceptions, or
defences to copyright or
related rights infringement under a Party’s law.

Chapter III:
Enforcement Practices

Article 28: Enforcement Expertise,
Information, and Domestic Coordination

1.           Each Party shall encourage the development of specialized expertise within its competent authorities responsible for the enforcement of
intellectual property rights.

2.           Each Party shall promote the collection and analysis of statistical data and other relevant
information concerning intellectual property rights infringements as well as the collection of information on best practices to prevent and combat infringements.

3.           Each Party shall, as appropriate, promote internal coordination among, and facilitate joint actions by, its competent authorities responsible for the enforcement of intellectual property rights.

4.           Each Party shall endeavour to promote, where
appropriate, the establishment and maintenance of formal
or informal mechanisms, such as advisory groups, whereby its competent authorities may receive the
views of right holders and
other relevant stakeholders.

Article 29: Management of Risk at Border

1.           In order to enhance the
effectiveness of border enforcement of intellectual property rights, the competent authorities of a Party may:

a)      consult with the
relevant stakeholders, and the competent
authorities of other Parties responsible
for the enforcement of intellectual
property rights to identify and address significant risks, and promote
actions to mitigate those risks; and

b)      share information with the competent authorities
of other Parties on border enforcement of intellectual property rights,
including relevant information to better identify and target for inspection
shipments suspected of containing infringing goods.

2.           Where a Party seizes
imported goods infringing an intellectual property right, its competent
authorities may provide the Party of export with information necessary for
identification of the parties and goods involved in the exportation of the
seized goods. The competent authorities of the Party of export may take action against those parties and future
shipments in accordance with that Party’s law.

Article 30: Transparency

To promote
transparency in the administration of its intellectual property
rights enforcement system, each
Party shall take appropriate measures, pursuant to its law
and policies, to publish or otherwise make available to the public information on:

a)      procedures
available under its law for enforcing
intellectual property rights, its competent authorities responsible for such
enforcement, and contact points available for
assistance;

b)      relevant laws, regulations, final
judicial decisions, and
administrative rulings of general application pertaining to the enforcement
of intellectual property rights; and

c)      its efforts to
ensure an effective system of enforcement and
protection of intellectual property rights.

Article 31: Public Awareness

Each Party shall, as appropriate, promote the adoption of measures to enhance public
awareness of the importance of respecting intellectual property rights and the detrimental effects of
intellectual property rights
infringement.

Article 32: Environmental Considerations
in Destruction of Infringing Goods

The destruction of
goods infringing intellectual property rights shall be done consistently with the laws and regulations on environmental matters of
the Party in which the destruction takes place.

Chapter IV

International Cooperation

Article 33: International Cooperation

1.           Each
Party recognizes that
international cooperation is
vital to realizing effective protection of intellectual property rights and that it should be encouraged regardless of the origin of the goods infringing
intellectual property rights, or the location or nationality of the right holder.

2.           In order to combat intellectual property rights infringement, in particular trademark counterfeiting and copyright or related rights piracy, the Parties shall
promote cooperation, where appropriate, among their competent authorities responsible for the enforcement of intellectual property rights. Such cooperation may include law enforcement cooperation with respect to criminal enforcement and
border measures covered by this Agreement.

3.           Cooperation under this
Chapter shall be conducted consistent with relevant international agreements, and subject to the laws,
policies, resource allocation, and law enforcement priorities of each Party.

Article 34: Information Sharing

Without prejudice
to the provisions of Article 29 (Management of Risk at Border), each Party
shall endeavour to exchange with other Parties:

a)      information the
Party collects under the provisions of Chapter III (Enforcement
Practices), including statistical data and information
on best practices;

b)      information on its legislative and regulatory measures related to the
protection and enforcement of intellectual property rights; and

c)      other information as appropriate and
mutually agreed.

Article 35: Capacity Building and
Technical Assistance

1.           Each Party shall endeavour to
provide, upon request and on
mutually agreed terms and conditions, assistance in capacity building and
technical assistance in improving the enforcement of intellectual property rights
to other Parties to this Agreement and, where
appropriate, to prospective Parties. The capacity building and technical
assistance may cover such areas as:

a)      enhancement
of public awareness on intellectual property rights;

b)      development
and implementation of national legislation related to the enforcement of
intellectual property rights;

c)      training of
officials on the enforcement of intellectual property rights; and

d)      coordinated
operations conducted at the regional and multilateral levels.

2.           Each Party shall endeavour to work closely with other Parties and, where
appropriate, non-Parties to this Agreement for
the purpose of implementing the provisions of paragraph 1.

3.           A Party may undertake the activities described in this Article in conjunction with relevant private sector or international organizations. Each Party shall strive to avoid
unnecessary duplication between the activities described in this
Article and other international cooperation activities.

Chapter V

Institutional Arrangements

Article 36: The ACTA Committee

1.           The Parties hereby
establish the ACTA Committee. Each
Party shall be represented on the Committee.

2.           The Committee shall:

a)      review the implementation and
operation of this Agreement;

b)      consider matters concerning the
development of this Agreement;

c)      consider any proposed amendments to
this Agreement in accordance with Article 42 (Amendments);

d)      decide, in accordance with paragraph 2 of Article 43 (Accession), upon the terms of accession to this Agreement of any Member of the WTO;
and

e)      consider any other matter that may
affect the implementation and operation of this Agreement.

3.           The Committee may decide
to:

a)      establish ad hoc committees or
working groups to assist the Committee in carrying out its responsibilities
under paragraph 2, or to assist
a prospective Party upon its request in acceding to this Agreement in accordance with Article 43 (Accession);

b)      seek the advice of non-governmental
persons or groups;

c)      make recommendations regarding the implementation and operation of this Agreement, including by endorsing best practice guidelines
related thereto;

d)      share information and best practices with third parties on reducing intellectual
property rights infringements, including techniques for identifying and
monitoring piracy and counterfeiting; and

e)      take other actions in the exercise of its functions.

4.           All decisions of the
Committee shall be taken by consensus, except as the Committee may otherwise
decide by consensus. The Committee
shall be deemed to have acted by consensus on a matter submitted for its
consideration, if no Party present at the meeting when the decision is taken
formally objects to the proposed decision. English
shall be the working language of the Committee and the documents supporting its work shall
be in the English language.

5.           The Committee shall adopt
its rules and procedures within a reasonable period after the entry into force of this Agreement, and shall invite those Signatories not Parties to this
Agreement to participate in the Committee’s
deliberations on those rules and procedures. The rules and procedures:

a)      shall address such matters as chairing
and hosting meetings, and the performance of organizational duties relevant to
this Agreement and its operation; and

b)      may also address such matters as granting observer status, and any other matter the
Committee decides necessary for its proper operation.

6.           The Committee may amend
the rules and procedures.

7.           Notwithstanding
the provisions of paragraph 4, during the first five years following the entry into force of this
Agreement, the Committee’s decisions to adopt or amend the rules and procedures
shall be taken by consensus of the Parties and those Signatories not Parties to
this Agreement.

8.           After
the period specified in paragraph 7, the Committee may adopt or amend the rules and procedures upon the consensus of the
Parties to this Agreement.

9.           Notwithstanding
the provisions of paragraph 8, the Committee may decide that the
adoption or amendment of a particular rule or procedure requires the consensus of the Parties and those
Signatories not Parties to this Agreement.

10.         The
Committee shall convene at
least once every year unless the Committee decides otherwise. The first meeting
of the Committee shall be held within a reasonable period after the entry into force of this Agreement.

11.         For
greater certainty, the
Committee shall not oversee or supervise domestic or international enforcement
or criminal investigations of
specific intellectual property cases.

12.         The
Committee shall strive to avoid unnecessary duplication between its activities
and other international efforts regarding the enforcement of intellectual
property rights.

Article 37: Contact Points

1.           Each Party shall designate
a contact point to facilitate communications between the Parties on any matter covered by this Agreement.

2.           On the request of another Party, a
Party’s contact point shall identify an appropriate
office or official to whom the requesting Party’s
inquiry may be addressed, and assist, as necessary, in
facilitating communications
between the office or official concerned and the requesting Party.

Article 38:Consultations

1.           A Party may request in writing consultations with another Party with
respect to any matter affecting the implementation of this Agreement. The
requested Party shall accord sympathetic consideration to such a request, provide a response, and afford adequate
opportunity to consult.

2.           The consultations, including particular
positions taken by consulting Parties, shall be kept confidential and be without prejudice
to the rights or positions of either Party in any other proceeding, including a proceeding under the auspices of the Understanding
on Rules and Procedures Governing the Settlement of Disputes contained in Annex 2 to the WTO Agreement.

3.           The
consulting Parties may, by
mutual consent, notify the Committee of the result of their consultations under
this Article.

Chapter VI: Final Provisions

Article 39: Signature

This Agreement shall remain open for
signature by participants in its negotiation,[20]
and by any other WTO Members the participants may agree
to by consensus, from 31 March 2011 until 31 March
2013.

Article 40: Entry Into
Force

1.           This
Agreement shall enter into force thirty days after the date of deposit of the sixth instrument of ratification, acceptance, or
approval as between those Signatories that have deposited their respective instruments of ratification,
acceptance, or approval.

2.           This Agreement shall enter
into force for each Signatory that deposits its instrument of ratification,
acceptance, or approval after the deposit of the sixth instrument of
ratification, acceptance, or approval, thirty days after the date of deposit by such Signatory of its instrument
of ratification, acceptance, or
approval.

Article 41: Withdrawal

A Party may withdraw from this Agreement by means of a
written notification to the Depositary. The withdrawal shall take effect 180 days after the
Depositary receives the notification.

Article 42: Amendments

1.           A Party may propose amendments to this Agreement to the Committee. The
Committee shall decide whether to present a proposed amendment to the Parties
for ratification, acceptance, or
approval.

2.           Any
amendment shall enter into force ninety days after the date that all the
Parties have deposited their respective instruments of ratification, acceptance, or approval with the
Depositary.

Article 43: Accession

1.           After the expiration of
the period provided in Article 39 (Signature), any Member of the WTO may apply to accede to this Agreement.

2.           The Committee shall decide
upon the terms of accession for each applicant.

3.           This Agreement shall enter
into force for the applicant
thirty days after the date of deposit of its instrument of accession based
upon the terms of accession
referred to in paragraph 2.

Article 44:
Texts of the Agreement

This Agreement
shall be signed in a single original in the English, French, and Spanish languages, each version being
equally authentic.

Article 45: Depositary

The Government of Japan shall be the Depositary of this
Agreement.

[1]               OJ C , , p. .

[2]               OJ: please insert the number and publication
reference of the decision.

[3]               OJ: please insert in footnote 1 the publication
reference of the Agreement.

[4]               For greater certainty, the
Parties acknowledge that free zone means a part of the territory of a
Party where any goods introduced are generally regarded, insofar as import
duties and taxes are concerned, as being outside the customs territory.

[5]               A Party may exclude patents and protection of undisclosed information from
the scope of this Section.

[6]               The presumptions referred to
in subparagraph 3(b) may include a presumption that the
amount of damages is: (i) the quantity of the goods
infringing the right holder’s intellectual property right in question and actually assigned to third
persons, multiplied by the amount of profit per unit of goods which would have
been sold by the right holder if there had not been the act of infringement; or (ii) a reasonable royalty; or (iii) a lump sum on the basis of
elements such as at least the amount of
royalties or fees which would have been due if the infringer had requested
authorization to use the
intellectual property right in question.

[7]               Where a Party has dismantled substantially all
controls over movement of goods across its border with another Party with which
it forms part of a customs union, it shall not be required to apply the
provisions of this Section at that border.

[8]               It is understood that there
shall be no obligation to apply the procedures set forth in this Section to goods put on the market in another country by or with the consent
of the right holder.

[9]               The Parties agree that patents and protection of
undisclosed information do not fall within the scope of this Section.

[10]             The requirement to provide for
such applications is subject to the obligations to provide procedures referred
to in subparagraphs 1(b) and 2(b) of Article 16 (Border Measures).

[11]             For the
purposes of this Article, days means business days.

[12]             Each Party shall treat wilful
importation or exportation of counterfeit trademark goods or pirated copyright
goods on a commercial scale as unlawful activities subject to criminal penalties
under this Article. A Party may comply with its obligation relating to importation and exportation
of counterfeit trademark goods or pirated
copyright goods by providing for
distribution, sale or offer for sale of such goods on a commercial scale as
unlawful activities subject to criminal penalties.

[13]             A Party may comply with its obligation relating to
importation of labels or packaging through its measures concerning
distribution.

[14]             A Party may comply with its obligations under this paragraph by providing for criminal procedures and penalties to be applied to
attempts to commit a trademark offence.

[15]             It is understood that there is no obligation for a
Party to provide for the possibility of imprisonment and monetary fines to be
imposed in parallel.

[16]             For instance, without prejudice
to a Party’s law, adopting or maintaining a regime
providing for limitations on the liability of, or on the remedies available
against, online service providers while preserving the legitimate interests of right holder.

[17]             For the purposes of this Article, technological measures means any technology, device, or
component that, in the normal course of its operation, is designed to prevent
or restrict acts, in respect of works, performances, or phonograms, which are not authorized by authors,
performers or producers of phonograms, as provided for by a Party’s law.
Without prejudice to the scope of copyright or related rights contained in a
Party’s law, technological measures shall be
deemed effective where the use of protected works, performances, or phonograms
is controlled by authors, performers or producers of phonograms through the
application of a relevant access control or protection process, such as
encryption or scrambling, or a copy control mechanism, which achieves the
objective of protection.

[18]             In implementing paragraphs 5
and 6, no Party shall be
obligated to require that the design of, or the design and selection of parts
and components for, a consumer electronics,
telecommunications, or computing product provide for a response to any
particular technological measure, so long as the product does not otherwise contravene
its measures
implementing these paragraphs.

[19]             For the
purposes of this Article, rights
management information means:

(a)           information that
identifies the work, the performance, or the phonogram; the author of the work, the
performer of the performance, or the producer of the phonogram; or the owner of
any right in the work, performance, or phonogram;

(b)           information about the
terms and conditions of use of the work, performance, or phonogram; or

(c)           any numbers or codes
that represent the information described in (a) and (b) above;           
when any of these items of information is attached to a copy of a work, performance, or phonogram, or appears in connection with the communication or making available
of a work, performance, or phonogram
to the public.

[20]             Australia, the Republic of Austria, the Kingdom of Belgium, the Republic of Bulgaria, Canada, the Republic of Cyprus, the Czech Republic, the Kingdom of Denmark, the Republic of Estonia, the European Union, the Republic of
Finland, the French Republic, the Federal Republic of Germany, the Hellenic Republic, the Republic of Hungary,
Ireland, the Italian Republic, Japan, the Republic of Korea, the Republic of Latvia, the Republic of Lithuania, the Grand Duchy of Luxembourg, the Republic of Malta, the United Mexican
States, the Kingdom of Morocco,
the Kingdom of the Netherlands,
New Zealand, the Republic of Poland,
the Portuguese Republic, Romania, the Republic of Singapore, the Slovak Republic, the Republic
of Slovenia, the Kingdom of Spain, the Kingdom of Sweden, the Swiss Confederation, the United Kingdom of Great Britain and Northern Ireland, and
the United States of America.