II 

109TH CONGRESS 

2D SESSION S. 3800 

To amend the Foreign Assistance Act of 1961 to require recipients of United 

States foreign assistance to certify that the assistance will not be used 

to intentionally traffic in goods or services that contain counterfeit marks 

or for other purposes that promote the improper use of intellectual 

property, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 3, 2006 

Mr. HAGEL introduced the following bill; which was read twice and referred 

to the Committee on Foreign Relations 

A BILL 

To amend the Foreign Assistance Act of 1961 to require 

recipients of United States foreign assistance to certify 

that the assistance will not be used to intentionally traffic in goods or services that contain counterfeit marks 

or for other purposes that promote the improper use 

of intellectual property, 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 ‘‘Stop Assistance to 

5 Counterfeiters Act’’. 


hmoore on PROD1PC68 with HMBILLS
2 

•S 3800 IS

1 SEC. 2. CERTIFICATION REQUIREMENT RELATING TO 

2 TRAFFICKING IN GOODS OR SERVICES THAT 

3 CONTAIN COUNTERFEIT MARKS. 

4 (a) AMENDMENTS.—Chapter 1 of part III of the For5 eign Assistance Act of 1961 (22 U.S.C. 2351 et seq.) is 

6 amended— 

7 (1) by redesignating the second section 620G 

8 (as added by section 149 of Public Law 104–164 

9 (110 Stat. 1436)) as section 620J; and 

10 (2) by adding at the end the following new sec11 tion: 

12 ‘‘SEC. 620K. CERTIFICATION REQUIREMENT RELATING TO 

13 TRAFFICKING IN GOODS OR SERVICES THAT 

14 CONTAIN COUNTERFEIT MARKS. 

15 ‘‘(a) REQUIREMENT FOR CERTIFICATION.— 

16 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

17 assistance may not be provided to a person seeking 

18 United States assistance for a fiscal year until such 

19 person submits to the President a certification de20 scribed in subsection (c) for that fiscal year. 

21 ‘‘(2) EXCEPTION FOR FOREIGN GOVERN22 MENTS.—The certification requirement set out in 

23 paragraph (1) shall not be applied to assistance pro24 vided under this Act or any other Act directly to the 

25 government of a foreign country or an entity of such 

26 government or to an international organization that 


hmoore on PROD1PC68 with HMBILLS
3 

•S 3800 IS

1 is an association of representatives of national gov2 ernments, including the United Nations. 

3 ‘‘(b) DEFINITIONS.—In this section: 

4 ‘‘(1) COUNTERFEIT MARK.—The term ‘counter5 feit mark’ has the meaning given that term in sec6 tion 2320 of title 18, United States Code. 

7 ‘‘(2) PERSON SEEKING UNITED STATES ASSIST8 ANCE.—The term ‘person seeking United States as9 sistance’ means a person, including an international 

10 or domestic organization that is not an association 

11 of national governments, that— 

12 ‘‘(A) is seeking assistance under this Act 

13 or any other Act directly from the United 

14 States; or 

15 ‘‘(B) subsequently receives such assistance 

16 pursuant to a contract, grant, cooperative 

17 agreement, or other agreement. 

18 ‘‘(3) TRAFFIC.—The term ‘traffic’ has the 

19 meaning given that term in section 2320 of title 18, 

20 United States Code. 

21 ‘‘(c) CERTIFICATION.— 

22 ‘‘(1) IN GENERAL.—A certification described in 

23 this subsection is a certification made by a person 

24 seeking United States assistance that— 


hmoore on PROD1PC68 with HMBILLS
4 

•S 3800 IS

1 ‘‘(A) such assistance will not be used to in2 tentionally traffic in goods or services that con3 tain counterfeit marks; 

4 ‘‘(B) such assistance will not be used by 

5 any person that has had an administrative or 

6 judicial determination issued against the person 

7 for infringement, counterfeiting, or piracy of in8 tellectual property in the United States or a 

9 foreign country; 

10 ‘‘(C) any material or product, including a 

11 material or product in electronic form, that was 

12 developed, in whole or in part, using such as13 sistance will not be imported into the United 

14 States— 

15 ‘‘(i) in violation of section 2320 of 

16 title 18, United States Code; or 

17 ‘‘(ii) in violation of section 526(a) of 

18 the Tariff Act of 1930 (19 U.S.C. 

19 1526(a)); and 

20 ‘‘(D) if such assistance will be used for a 

21 contract, grant, cooperative agreement, or other 

22 agreement that includes use of any intellectual 

23 property, provides evidence of the right to use 

24 the intellectual property, including a written li25 cense agreement for the use, the date of the 


hmoore on PROD1PC68 with HMBILLS
5 

•S 3800 IS

1 first commercial use of the intellectual property, 

2 and any registration for the use with an appro3 priate government. 

4 ‘‘(2) REQUIREMENTS FOR SUBMISSION OF CER5 TIFICATION.—A certification described in paragraph 

6 (1) shall be submitted to the President by a person 

7 seeking United States assistance prior to the provi8 sion of any assistance under this Act or any other 

9 Act and at the beginning of each subsequent fiscal 

10 year for which such person will receive the assist11 ance. 

12 ‘‘(d) SUSPENSION AND TERMINATION OF ASSIST13 ANCE.—The President shall suspend or terminate the pro14 vision of assistance under this Act or any other Act, in 

15 whole or in part, to a person seeking United States assist16 ance if the President determines that such person has 

17 used the assistance to carry out an activity in violation 

18 of a certification made under subsection (c). 

19 ‘‘(e) NATIONAL SECURITY WAIVER.—The President 

20 may waive a provision of this section if the President— 

21 ‘‘(1) determines that such a waiver is necessary 

22 to the national security interests of the United 

23 States; and 


hmoore on PROD1PC68 with HMBILLS
6 

•S 3800 IS

1 ‘‘(2) promptly submits to Congress a notifica2 tion of the waiver and of the reasons for the waiv3 er.’’. 

4 (b) EFFECTIVE DATE.—The certification require5 ments under section 620K of the Foreign Assistance Act 

6 of 1961, as added by subsection (a) of this section, apply 

7 with respect to the provision of assistance by the President 

8 for a fiscal year after fiscal year 2006. 

Æ 


hmoore on PROD1PC68 with HMBILLS