I 
109TH CONGRESS 
1ST SESSION 
H. R. 32
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 
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 U.S. Customs Service and Border Pro-
tection estimates that counterfeiting costs the U.S. 
$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 
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 to which a counterfeit mark is knowingly 
applied,’’. 
(2) Subsection (b) is amended to read as fol-
lows: 
‘‘(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 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 an offense under 
this section, or pleads guilty or nolo contendre to an of-
fense under this section, the court, pursuant to sections 
3556, 3663A, and 3664, shall order the person to pay res-
titution 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 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 capable 
of being applied to or used in connection 
with the goods or services for which the 
mark is registered in the United States 
Patent and Trademark Office; and 
‘‘(iv) the use of which is likely to 
cause confusion, to cause mistake, or to 
deceive; or’’; and