I 
108TH CONGRESS 
2D SESSION 
H. R. 4358
To amend title 18, United States Code, to provide criminal penalties for 
trafficking in counterfeit marks. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2004
Mr. KNOLLENBERG (for himself and Mr. GREEN of Wisconsin) introduced the 
following bill; which was referred to the Committee on the Judiciary 
A BILL 
To amend title 18, United States Code, to provide criminal 
penalties for trafficking in counterfeit marks.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; FINDINGS. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘Stop Counterfeiting in Manufactured Goods Act’’. 
(b) FINDINGS.—The Congress finds that—
(1) the United States economy is losing millions 
of dollars in tax revenue and tens of thousands of 
jobs because of the manufacture, distribution, and 
sale of counterfeit goods;
(2) the International Chamber of Commerce es-
timates that seven percent of world trade is in coun-
terfeit manufactured goods, and the counterfeit mar-
ket is worth $350,000,000,000; 
(3) counterfeit automobile parts, including 
brake pads, cost the auto industry alone billions of 
dollars in lost sales each year; 
(4) counterfeit products have invaded numerous 
industries including those producing auto parts, elec-
trical appliances, medicines, tools, toys, office equip-
ment, clothing, and many other products; 
(5) ties have been established between counter-
feiting and terrorist organizations that use the sale 
of counterfeit goods to raise and launder money; 
(6) ongoing counterfeiting of manufactured 
goods poses a widespread threat to public health and 
safety; and 
(7) strong domestic criminal remedies against 
counterfeiting will permit the United States to seek 
stronger anticounterfeiting provisions in bilateral 
and international agreements with trading partners. 
SEC. 2. TRAFFICKING IN COUNTERFEIT MARKS. 
Section 2320 of title 18, United States Code, is 
amended as follows:
(1) Subsection (a) is amended by inserting after 
‘‘such goods or services’’ the following: ‘‘or inten-
tionally traffics or attempts to traffic in counterfeit 
marks’’. 
(2) Subsection (b) is amended to read as fol-
lows: 
‘‘(b)(1) Upon a determination by a preponderance of 
the evidence that any articles in the possession of a de-
fendant in a prosecution under this section bear or are 
counterfeit marks, the court shall order the forfeiture and 
destruction of such articles, regardless of the criminal cul-
pability of the defendant. 
‘‘(2) The court, in imposing a sentence upon a person 
convicted of a violation of this section, or upon a person 
who pleads guilty or nolo contendre to a violation of this 
section, shall order, in addition to any other sentence im-
posed, that the person forfeit to the United States—
‘‘(A) any property constituting or derived from 
any proceeds the person obtained, directly or indi-
rectly, as the result of such violation; and 
‘‘(B) any of the person’s property used, or in-
tended to be used, in any manner or part, to com-
mit, facilitate, aid, or abet the commission of such 
violation,
if the court in its discretion so determines, taking into ac-
count the nature, scope, and proportionality of the use of 
the property in the offense. 
‘‘(3) When a person is convicted of a violation of this 
section, or pleads guilty or nolo contendre to a violation 
of this section, the court, pursuant to sections 3556, 
3663A(c)(1)(A)(ii), and 3664, shall order the person to 
pay restitution to the owner of the mark and any other 
victim of the offense. 
‘‘(4) The term ‘victim’, as used in paragraph (3), 
shall have the meaning given that term in section 
3663A(a)(2).’’. 
(3) Subsection (e)(1) is amended—
(A) in subparagraph (A)(iii), by striking 
‘‘or’’ after the semicolon; and 
(B) by inserting after subparagraph (B) 
the following: 
‘‘(C) a spurious mark—
‘‘(i) that is identical with, or substan-
tially indistinguishable from, a mark reg-
istered on the principal register in the 
United States Patent and Trademark Of-
fice under section 1 of the Lanham Act 
and in use, whether or not the defendant 
knew such mark was so registered; and
‘‘(ii) that is applied to or consists of 
a label, patch, sticker, wrapper, badge, em-
blem, medallion, charm, box, container, 
can, case, hangtag, documentation, or 
packaging of any type or nature that is de-
signed to be affixed to, distributed with, 
consist of, or otherwise accompany goods 
or services; or 
‘‘(D) a spurious mark—
‘‘(i) that is used in connection with 
the trafficking of goods or services; and 
‘‘(ii) that is identical with, or substan-
tially indistinguishable from, a famous 
mark that is registered on the principal 
register in the United States Patent and 
Trademark Office under section 1 of the 
Lanham Act and in use, regardless of the 
goods or services or class of goods or serv-
ices for which the famous mark is reg-
istered, and regardless of whether or not 
the defendant knew such mark was so reg-
istered and famous;’’. 
(4) Section 2320 is further amended—
(A) by redesignating subsection (f) as sub-
section (g); and