IIB 
109TH CONGRESS 
1ST SESSION 
H. R. 32
IN THE SENATE OF THE UNITED STATES 
MAY 24, 2005
Received; read twice and referred to the Committee on the Judiciary 
AN ACT 
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,
HR 32 RFS 
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, 
electrical appliances, medicines, tools, toys, office 
equipment, 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
HR 32 RFS 
(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 labels, 
patches, stickers, wrappers, badges, emblems, medal-
lions, charms, boxes, containers, cans, cases, 
hangtags, documentation, or packaging of any type 
or nature, knowing 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 fol-
lows: 
‘‘(b)(1) The following property shall be subject to for-
feiture to the United States and no property right shall 
exist in such property: 
‘‘(A) Any article bearing or consisting of a 
counterfeit mark used in committing a violation of 
subsection (a).
HR 32 RFS 
‘‘(B) Any property used, in any manner or part, 
to commit or to facilitate the commission of a viola-
tion of subsection (a). 
‘‘(2) The provisions of chapter 46 of this title relating 
to civil forfeitures shall extend to any seizure or civil for-
feiture under this section. At the conclusion of the for-
feiture proceedings, the court, unless otherwise requested 
by an agency of the United States, shall order that any 
forfeited article bearing or consisting of a counterfeit 
mark be destroyed or otherwise disposed of according to 
law. 
‘‘(3)(A) The court, in imposing sentence on a person 
convicted of an offense under this section, shall order, in 
addition to any other sentence imposed, that the person 
forfeit to the United States—
‘‘(i) any property constituting or derived from 
any proceeds the person obtained, directly or indi-
rectly, as the result of the offense; 
‘‘(ii) 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 the of-
fense; and 
‘‘(iii) any article that bears or consists of a 
counterfeit mark used in committing the offense.
HR 32 RFS 
‘‘(B) The forfeiture of property under subparagraph 
(A), including any seizure and disposition of the property 
and any related judicial or administrative proceeding, shall 
be governed by the procedures set forth in section 413 
of the Comprehensive Drug Abuse Prevention and Control 
Act of 1970 (21 U.S.C. 853), other than subsection (d) 
of that section. Notwithstanding section 413(h) of that 
Act, at the conclusion of the forfeiture proceedings, the 
court shall order that any forfeited article or component 
of an article bearing or consisting of a counterfeit mark 
be destroyed. 
‘‘(4) When a person is convicted of 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). 
‘‘(5) The term ‘victim’, as used in paragraph (4), 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,
HR 32 RFS 
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 Of-
fice and in use, whether or not the defend-
ant 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 Of-
fice, or is applied to or consists of a label, 
patch, sticker, wrapper, badge, emblem, 
medallion, charm, box, container, can, 
case, hangtag, documentation, or pack-
aging of any type or nature that is de-
signed, marketed, or otherwise intended to 
be used on or in connection with the goods 
or services for which the mark is registered 
in the United States Patent and Trade-
mark Office; and
HR 32 RFS 
‘‘(iv) the use of which is likely to 
cause confusion, to cause mistake, or to 
deceive; or’’; and 
(B) by amending the matter following sub-
paragraph (B) to read as follows: 
‘‘but such term does not include any mark or 
designation used in connection with goods or 
services, or a mark or designation applied to la-
bels, patches, stickers, wrappers, badges, em-
blems, medallions, charms, boxes, containers, 
cans, cases, hangtags, documentation, or pack-
aging of any type or nature used in connection 
with such goods or services, of which the manu-
facturer or producer was, at the time of the 
manufacture or production in question, author-
ized to use the mark or designation for the type 
of goods or services so manufactured or pro-
duced, by the holder of the right to use such 
mark or designation.’’. 
(4) Section 2320 is further amended—
(A) by redesignating subsection (f) as sub-
section (g); and 
(B) by inserting after subsection (e) the 
following:
HR 32 RFS 
‘‘(f) Nothing in this section shall entitle the United 
States to bring a criminal cause of action under this sec-
tion for the repackaging of genuine goods or services not 
intended to deceive or confuse.’’. 
SEC. 3. SENTENCING GUIDELINES. 
(a) REVIEW AND AMENDMENT.—Not later than 180 
days after the date of enactment of this Act, the United 
States Sentencing Commission, pursuant to its authority 
under section 994 of title 28, United States Code, and 
in accordance with this section, shall review and, if appro-
priate, amend the Federal sentencing guidelines and policy 
statements applicable to persons convicted of any offense 
under—
(1) section 1204 of title 17, United States 
Code; or 
(2) section 2318 or 2320 of title 18, United 
States Code. 
(b) AUTHORIZATION.—The United States Sentencing 
Commission may amend the Federal sentencing guidelines 
in accordance with the procedures set forth in section 
21(a) of the Sentencing Act of 1987 (28 U.S.C. 994 note) 
as though the authority under that section had not ex-
pired. 
(c) RESPONSIBILITIES
OF UNITED STATES SEN-
TENCING COMMISSION.—In carrying out this section, the
HR 32 RFS 
United States Sentencing Commission shall determine 
whether the definition of ‘‘infringement amount’’ set forth 
in application note 2 of section 2B5.3 of the Federal sen-
tencing guidelines is adequate to address situations in 
which the defendant has been convicted of one of the of-
fenses listed in subsection (a) and the item in which the 
defendant trafficked was not an infringing item but rather 
was intended to facilitate infringement, such as an anti-
circumvention device, or the item in which the defendant 
trafficked was infringing and also was intended to facili-
tate infringement in another good or service, such as a 
counterfeit label, documentation, or packaging, taking into 
account cases such as U.S. v. Sung, 87 F.3d 194 (7th 
Cir. 1996).
Passed the House of Representatives May 23, 2005. 
Attest: 
JEFF TRANDAHL, 
Clerk.