IB 
Union Calendar No. 34 
109TH CONGRESS 
1ST SESSION 
H. R. 32 
[Report No. 109–68] 
To amend title 18, United States Code, to provide criminal penalties for 
trafficking in counterfeit marks. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 4, 2005 
Mr. KNOLLENBERG (for himself, Mr. GREEN of Wisconsin, Mr. EHLERS, Mr. 
SIMMONS, Mr. GILLMOR, Mr. SMITH
of Texas, Mr. COBLE, Mr. 
MCCOTTER, Mr. CAMP, Mr. UPTON, Mr. ROGERS of Michigan, Mr. 
WEXLER, Mr. LEVIN, Mr. ROHRABACHER, Mr. GOODLATTE, Mr. 
WELDON of Pennsylvania, Mrs. MILLER of Michigan, Mr. HOEKSTRA, 
Mr. CHABOT, Ms. KAPTUR, Mr. MCGOVERN, and Mr. TERRY) introduced 
the following bill; which was referred to the Committee on the Judiciary 
MAY 3, 2005 
Additional sponsors: Mr. Manzullo, Mrs. BLACKBURN, Mr. SMITH of Wash-
ington, Mr. PENCE, Mr. SOUDER, Ms. VELA´ZQUEZ, Mr. CALVERT, Mr. 
SCHWARZ of Michigan, Mr. ROYCE, Mr. GUTKNECHT, Mr. ACKERMAN, 
Mr. FLAKE, Mr. GERLACH, Mr. JENKINS, Mr. MCKEON, Mr. KILDEE, 
Mr. PLATTS, Mr. WILSON of South Carolina, Mr. HOSTETTLER, Mrs. 
MALONEY, Mr. WEINER, Mr. MENENDEZ, Mr. GARRETT of New Jersey, 
Mr. BROWN of Ohio, Mr. FEENEY, MR. RYAN of Ohio, Ms. Watson, Mr. 
FITZPATRICK of Pennsylvania, Mr. KANJORSKI, Ms. HART, Mrs. BONO, 
Mr. GALLEGLY, Mr. FORTUN˜O, Mr. ROTHMAN, Mr. CHOCOLA, Mr. PE-
TERSON of Minnesota, Mr. GOHMERT, and Mr. GORDON, 
MAY 3, 2005 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on January 4, 2005] 
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 Bureau of Customs and Border Protec-
tion estimates that counterfeiting costs the United 
States $200 billion annually; 
(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 amend-
ed 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 labels, patch-
es, stickers, wrappers, badges, emblems, medallions, 
charms, boxes, containers, cans, cases, hangtags, docu-
mentation, or packaging of any type or nature, know-
ing that a counterfeit mark has been applied thereto, 
the use of which is likely to cause confusion, to cause 
mistake, or to deceive,’’. 
(2) Subsection (b) is amended to read as follows:
‘‘(b)(1) Upon a determination by a preponderance of 
the evidence that any article in the possession of a defend-
ant in a prosecution under this section bears or consists 
of a counterfeit mark, the court shall order the forfeiture 
and destruction of such article, regardless of whether the 
defendant is convicted of an offense under this section. 
‘‘(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 commit, 
facilitate, aid, or abet the commission of such viola-
tion, if the court in its discretion so determines, tak-
ing into account the nature, scope, and proportion-
ality of the use of the property in the offense. 
‘‘(3) When a person is convicted of an offense under 
this section, or pleads guilty or nolo contendre to an offense 
under this section, the court, pursuant to sections 3556, 
3663A, and 3664, shall order the person to pay restitution 
to the owner of the mark and any other victim of the offense
as an offense against property referred to in section 
3663A(c)(1)(A)(ii). 
‘‘(4) The term ‘victim’, as used in paragraph (3), has 
the meaning given that term in section 3663A(a)(2).’’. 
(3) Subsection (e)(1) is amended— 
(A) by striking subparagraph (A) and in-
serting the following: 
‘‘(A) a spurious mark— 
‘‘(i) that is used in connection with 
trafficking in any goods, services, labels, 
patches, stickers, wrappers, badges, em-
blems, medallions, charms, boxes, con-
tainers, cans, cases, hangtags, documenta-
tion, or packaging of any type or nature; 
‘‘(ii) that is identical with, or substan-
tially indistinguishable from, a mark reg-
istered on the principal register in the 
United States Patent and Trademark Office 
and in use, whether or not the defendant 
knew such mark was so registered; 
‘‘(iii) that is applied to or used in con-
nection with the goods or services for which 
the mark is registered with the United 
States Patent and Trademark Office, or is 
applied to or consists of a label, patch,
sticker, wrapper, badge, emblem, medallion, 
charm, box, container, can, case, hangtag, 
documentation, or packaging of any type or 
nature that is capable of being applied to or 
used in connection with the goods or serv-
ices for which the mark is registered in the 
United States Patent and Trademark Of-
fice; and 
‘‘(iv) the use of which is likely to cause 
confusion, to cause mistake, or to deceive; 
or’’; and 
(B) in the matter following subparagraph 
(B), by striking ‘‘used in connection with goods 
or services’’ and inserting ‘‘that is applied to 
goods, or used in connection with services,’’. 
(4) Section 2320 is further amended— 
(A) by redesignating subsection (f) as sub-
section (g); and 
(B) by inserting after subsection (e) the fol-
lowing: 
‘‘(f) Nothing in this section shall entitle the United 
States to bring a criminal cause of action under this section 
for the repackaging of genuine goods or services not in-
tended to deceive or confuse.’’.
Union Calendar No. 34 
109TH CONGRESS 
1ST SESSION 
H. R. 32 
[Report No. 109–68] 
A BILL 
To amend title 18, United States Code, to provide 
criminal penalties for trafficking in counterfeit 
marks. 
MAY 3, 2005 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed