SEC. 2. FINDINGS. 
The Congress makes the following findings: 
(1) The greatest economic assets of the United 
States are its innovators, entrepreneurs, and work-
ers. 
(2) Counterfeiting and piracy cost United 
States businesses, authors, and artists hundreds of 
billions of dollars annually. 
(3) Counterfeiting and piracy have resulted in 
the loss of hundreds of thousands of jobs in the 
United States. 
(4) Counterfeit medicines and automobile and 
aviation parts may result in serious health problems 
and death. 
(5) The World Customs Organization estimates 
that up to 7 percent of global trade is in counterfeit 
goods. 
(6) The World Customs Organization estimates 
that global trade in counterfeit and pirated goods 
has increased from $5,500,000,000 to more than 
$600,000,000,000 annually. 
(7) Small- and medium-sized businesses are 
particularly vulnerable to intellectual property theft 
because they often lack the resources to pursue re-
course overseas or absorb the financial losses stem-
ming from counterfeiting and piracy. 
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(8) Terrorist groups have used the sale of coun-
terfeit goods to finance their activities. 
(9) Funds generated from intellectual property 
theft have financed acts of terrorism. 
(10) The domestic and international efforts of 
the United States to curb intellectual property rights 
violations would be enhanced through hands-on lead-
ership by the President, increased coordination 
among agencies, and a strategic partnership with 
like-minded countries. 
(11) Congress finds that no less than 9 United 
States Government agencies bear responsibility for 
supporting intellectual property rights, including the 
Department of the Treasury. 
(12) The efforts to enforce intellectual property 
rights should be elevated across agencies due to the 
increasing cost to the economy and the threat to the 
health and safety of United States citizens. 
(13) The success of intellectual property en-
forcement requires that a network of Government 
agencies work closely with Federal, State, and local 
law enforcement agencies. 
(14) The domestic and international efforts of 
the United States to combat money laundering 
serves as a useful model for strengthening domestic 
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and international intellectual property rights en-
forcement. 
(15) The Financial Crimes Enforcement Net-
work (FinCEN) represents a key effort by the 
United States to combat money laundering and 
other financial crimes. 
(16) FinCEN has effectively enhanced the ex-
change of information relating to money laundering 
and terrorist financing, both domestically and inter-
nationally. 
(17) FinCEN combats money laundering inter-
nationally by partnering with other enforcement- 
minded countries through the Financial Action Task 
Force (FATF). 
(18) FATF members have established effective 
standards that they collectively agree to implement 
and against which they agree to be assessed through 
peer review. 
(19) The success of intellectual property rights 
enforcement requires that United States Government 
agencies form an effective network to take advan-
tage of their diverse capabilities and to share infor-
mation for the purpose of enhancing the enforce-
ment capabilities of each agency and the United 
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States Government-wide intellectual property rights 
enforcement effort. 
(20) The Department of the Treasury’s Office 
of Terrorism and Financial Intelligence would be an 
effective tool in combating intellectual property 
theft. 
(21) The success of international intellectual 
property rights enforcement requires that the United 
States partner with other countries that also suffer 
from extensive intellectual property theft. 
(22) The success of international intellectual 
property rights enforcement requires that the United 
States share information within an effective inter-
national task force of countries that are dedicated to 
achieving results in the fight against intellectual 
property theft. 
(23) The success of international intellectual 
property rights enforcement will be enhanced if the 
United States and other reliable international part-
ners engage in joint enforcement operations and 
work to strengthen the intellectual property rights 
enforcement capacity of countries with a poor record 
of intellectual property rights enforcement. 
(24) An effective exchange of information do-
mestically and internationally will enhance the abil-
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ity of the United States Trade Representative to en-
force violations of trade agreements. 
(25) The success of domestic and international 
intellectual property rights enforcement requires an 
effective partnership between the public and private 
sector and other interested groups. 
SEC. 3. NATIONAL INTELLECTUAL PROPERTY LAW EN-
FORCEMENT COORDINATION COUNCIL RE-
PEAL. 
Section 653 of the Treasury and General Government 
Appropriations Act, 2000 (15 U.S.C. 1128) is repealed. 
SEC. 4. THE INTELLECTUAL PROPERTY ENFORCEMENT 
NETWORK. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—There is established the In-
tellectual Property Enforcement Network (in this 
section referred to as the ‘‘IPEN’’). 
(2) MEMBERSHIP.—The IPEN shall consist of 
the following officials or their designees: 
(A) The Deputy Director for Management 
of the Office of Management and Budget, who 
shall serve as the chairperson of the IPEN. 
(B) The Coordinator for Intellectual Prop-
erty Enforcement, described in subsection 
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(b)(2)(A), who shall serve as vice chairperson of 
the IPEN. 
(C) The Deputy Attorney General. 
(D) The Deputy Secretary for Homeland 
Security. 
(E) The Deputy Secretary of the Treasury. 
(F) The Deputy Secretary of Commerce. 
(G) The Deputy Secretary of State. 
(H) A Deputy United States Trade Rep-
resentative, as determined by the United States 
Trade Representative. 
(I) Such other officials as the members of 
the IPEN shall consider necessary and appro-
priate. 
(3) RELEVANT AGENCIES.—In this section, the 
term ‘‘relevant agency’’ means an agency of which 
an official listed in paragraph (2) is a member, in-
cluding an agency of which an official identified by 
the IPEN under paragraph (2)(I) is a member. 
(b) ORGANIZATION.— 
(1) MEETINGS.—The IPEN shall meet at least 
once every 6 months to approve the ongoing oper-
ations of the IPEN, to provide overall direction for 
the IPEN, to approve the strategic plan referred to 
in subsection (h) and the report referred to in sub-
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section (i), and to approve the budget referred to in 
paragraph (2)(B)(i). 
(2) COORDINATOR.— 
(A) IN
GENERAL.—The day-to-day func-
tions of the IPEN shall be carried out by a Co-
ordinator for Intellectual Property Enforcement 
(in this Act referred to as the ‘‘Coordinator’’) 
who shall be appointed by the President. 
(B) OTHER RESPONSIBILITIES.—In addi-
tion to the responsibilities described in subpara-
graph (A), the Coordinator shall be responsible 
for the following: 
(i) Developing for each fiscal year, 
with the advice of the officials of the IPEN 
and the relevant agencies, a budget pro-
posal to implement the policies, objectives, 
and priorities described in subsection (c). 
(ii) Drafting and transmitting to the 
President and the Congress the strategic 
plan referred to in subsection (h) and the 
report referred to in subsection (i). 
(c) DUTIES.—The IPEN, established under sub-
section (a), shall be responsible for the following: 
(1) Coordinating and facilitating implementa-
tion by the relevant agencies of the policies, objec-
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tives, and priorities described in paragraph (2), and 
fulfilling the responsibilities assigned to such agen-
cies to complete the actions described in paragraph 
(3). 
(2) Establishing policies, objectives, and prior-
ities concerning international intellectual property 
protection and intellectual property law enforcement. 
The policies, objectives, and priorities shall include— 
(A) eliminating counterfeit and pirated 
goods from the international supply chain; 
(B) identifying individuals, companies, 
banks, and other entities involved in the financ-
ing, production, trafficking, and sale of counter-
feit and pirated goods; 
(C) identifying and sharing information 
among the relevant agencies for the purpose of 
arresting and prosecuting persons who are 
knowingly involved in the financing, production, 
trafficking, and sale of counterfeit and pirated 
goods; 
(D) disrupting and shutting down counter-
feit and piracy networks; 
(E) strengthening the capacity of other 
countries to protect and enforce intellectual 
property rights and reducing the number of 
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countries that fail to enforce laws that prevent 
the financing, production, trafficking, and sale 
of counterfeit and pirated goods; and 
(F) working with like-minded countries to 
establish international standards and policies 
for the effective protection and enforcement of 
intellectual property rights. 
(3) Protecting United States intellectual prop-
erty rights overseas, including— 
(A) working with similar networks in for-
eign countries to create an effective inter-
national intellectual property enforcement task 
force (in this Act referred to as the ‘‘inter-
national task force’’); 
(B) ensuring the international task force 
described in subparagraph (A) consists of net-
works in countries that— 
(i) suffer substantial intellectual prop-
erty theft problems similar to those of the 
United States; 
(ii) have adequate and effective laws 
protecting copyrights, trademarks, and 
patents; 
(iii) have legal regimes that enforce 
their own domestic intellectual property 
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laws, and have a proven track record of 
permanently shutting down piracy oper-
ations, and arresting and prosecuting those 
who commit intellectual property crimes 
and offenses; 
(iv) have officials who have ex officio 
authority to seize, inspect, and destroy pi-
rated and counterfeit goods at ports of 
entry (or are working toward providing of-
ficials with such authority); 
(v) have officials who can order the 
seizure of pirated and counterfeit goods (or 
are working toward providing officials with 
such authority); 
(vi) have laws in place that permit of-
ficials to seize property used to produce pi-
rated and counterfeit goods (or are work-
ing toward providing officials with such au-
thority); 
(vii) are not on the Priority Watch 
List issued by the United States Trade 
Representative under title III of the Trade 
Act of 1974 (19 U.S.C. 2411 et seq.); and 
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(viii) have met additional standards to 
be established by the international task 
force; 
(C) exchanging information with networks 
in the international task force relating to indi-
viduals and entities involved in financing, pro-
duction, trafficking, and sale of pirated and 
counterfeit goods; 
(D) utilizing the information to conduct 
enforcement activities in cooperation with the 
networks of other countries in the international 
task force; and 
(E) building a formal process for con-
sulting with companies, industry associations, 
labor unions, and other interested groups in the 
countries that have networks in the inter-
national task force. 
(d) STAFF.— 
(1) IN
GENERAL.—The Coordinator shall, in 
consultation with the relevant agencies, appoint, and 
fix the compensation of, such officers and employees 
of the IPEN as may be necessary to carry out the 
functions of the IPEN and may request the tem-
porary assignment of personnel from the relevant 
agencies. 
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(2) ASSIGNMENT AND COOPERATION OF OTHER 
FEDERAL EMPLOYEES.—Each member of the IPEN 
listed in subsection (a) shall designate personnel 
from the member’s relevant agency to work with the 
IPEN and shall ensure that all units in the mem-
ber’s relevant agency that have responsibility for the 
protection and enforcement of intellectual property 
rights provide information and personnel to the 
IPEN in order for the IPEN to achieve the prior-
ities, objectives, and policies described in subsection 
(c)(2). 
(e) RESPONSIBILITY OF RELEVANT AGENCIES.—The 
relevant agencies shall take the following actions: 
(1) Share information collected to increase the 
intelligence and effectiveness of the protection and 
enforcement of intellectual property rights. 
(2) Coordinate civil and criminal actions with 
respect to persons who violate intellectual property 
rights. 
(3) Utilize information collected domestically, 
and from other countries in the international task 
force, to— 
(A) investigate, arrest, and prosecute enti-
ties and individuals involved in financing, pro-
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dustry associations to strengthen enforcement. Such 
processes shall include the development of resources 
designed to assist businesses, industry associations, 
and their representatives in addressing intellectual 
property issues both domestically and internation-
ally. 
(6) Establish a formal process for consulting 
with writers and artists (and their organizations and 
unions), labor unions, and other interested persons 
and groups that suffer from counterfeiting and pi-
racy. 
(f) CONSULTATION REQUIRED.—The members of the 
IPEN shall consult with the Register of Copyrights on law 
enforcement matters relating to copyright and related 
rights and matters. 
(g) PRIORITY IN INTERNATIONAL TALKS.—Consid-
ering the threat that counterfeit and pirated goods pose 
to the economic health of the United States, and the 
health and safety of United States citizens, the President 
and officers of the relevant agencies, when meeting with 
foreign countries described in subsection (c)(3)(B), 
should— 
(1) stress the importance of establishing the 
international task force described in subsection 
(c)(3)(A); 
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(2) strongly encourage countries to participate 
in the international task force; and 
(3) strongly encourage countries participating 
in the international task force to cooperate with the 
United States in ensuring the success of the inter-
national task force. 
(h) STRATEGIC PLAN.— 
(1) IN GENERAL.—Within 6 months of the date 
of the enactment of this Act, and once every 2 years 
thereafter, the Director of the Office of Management 
and Budget and the Coordinator shall submit a stra-
tegic plan to the President, and to the Committees 
on the Judiciary, Homeland Security and Govern-
mental Affairs, and Appropriations of the Senate, 
and the Committees on the Judiciary, Oversight and 
Government Reform, and Appropriations of the 
House of Representatives. 
(2) CONTENTS.—The strategic plan required by 
this subsection shall include the following: 
(A) A detailed description of the goals, ob-
jectives, and priorities of the IPEN, including 
those described in subsection (c)(2). 
(B) An analysis of the threat posed by vio-
lations of intellectual property rights, including 
targets, risks, and threats of intellectual prop-
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erty theft, and the costs to the economy of the 
United States resulting from violations of intel-
lectual property laws. 
(C) Proposed methods for achieving suc-
cess, including through the growth of the inter-
national intellectual property enforcement task 
force described in subsection (c)(3). 
(D) The performance measures that will be 
used to monitor results. 
(E) An estimate of the resources necessary 
to achieve the goals, objectives, and priorities 
described in subparagraph (A), and an estimate 
of the cost of such resources. 
(F) An identification of the relevant agen-
cies that will be involved in coordinating the 
IPEN and implementing each priority. 
(G) A strategy for ensuring coordination 
between the chairperson and vice chairperson of 
the IPEN, and the relevant agencies, including 
a process for oversight of, and accountability 
among, the relevant agencies carrying out the 
strategy. 
(H) A description of how the IPEN will 
carry out its oversight and accountability re-
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sponsibilities to monitor and implement the 
strategy. 
(i) REPORT.— 
(1) IN GENERAL.—The Director of the Office of 
Management and Budget and the Coordinator shall 
report annually on the IPEN’s enforcement and co-
ordination activities for the fiscal year to the Presi-
dent, and to the Committees on the Judiciary, 
Homeland Security and Governmental Affairs, and 
Appropriations of the Senate, and the Committees 
on the Judiciary, Government Reform, and Appro-
priations of the House of Representatives. 
(2) CONTENTS.—The report required by this 
subsection shall include the following information: 
(A) The progress made toward establishing 
an international task force described in sub-
section (c)(3). 
(B) The progress made in working with 
foreign networks in the international task force 
to investigate, arrest, and prosecute entities and 
individuals involved in the financing, produc-
tion, trafficking, and sale of counterfeit and pi-
rated goods. 
(C) The manner in which the relevant 
agencies are working together and sharing in-
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formation to strengthen the protection and en-
forcement of intellectual property rights. 
(D) For each foreign network admitted or 
denied entry into the international task force, 
an explanation of the reasons for admitting or 
denying entry to the international task force, 
including reasons for admitting networks from 
those countries that are currently on the Pri-
ority Watch List issued by the United States 
Trade Representative under title III of the 
Trade Act of 1974 (19 U.S.C. 2411 et seq.). 
(E) The progress made in strengthening 
the capacity of countries denied entry into the 
international task force to protect and enforce 
intellectual property rights. 
(F) The successes and challenges in shar-
ing information with countries in the inter-
national task force. 
(G) The progress of the United States 
Trade Representative in taking appropriate ac-
tion under any trade agreement or treaty to 
which the United States is a signatory. 
(H) The progress made in establishing and 
improving the formal process described in sub-
section (e)(4). 
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(I) The progress made in establishing and 
improving the formal process described in sub-
section (e)(5). 
(J) The progress made in establishing and 
improving the formal process described in sub-
section (e)(6). 
(K) The progress made in implementing 
the strategy in subsection (h)(2). 
(j) GOVERNMENT
ACCOUNTABILITY
OFFICE
RE-
PORT.—Not later than 1 year after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall complete a report and submit the report to 
the Congress on the progress made on the items described 
in subsections (h) and (i). 
(k) OTHER
INTELLECTUAL
PROPERTY
ACTIVI-
TIES.—If other government intellectual property initia-
tives include enforcement activities similar or identical to 
the activities described in this Act, those activities should 
be consolidated into the work of the IPEN in order to 
prevent duplication. Other activities that may improve en-
forcement may continue outside of the IPEN, including— 
(1) capacity building; 
(2) outreach to countries that would not qualify 
for membership in the international task force; and 
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(3) other bilateral and multilateral cooperative 
efforts. 
(l) PROHIBITED ACTIONS.—This section shall not be 
construed to require any act, measure, or other conduct 
by any department, agency, or other instrumentality of the 
United States that is prohibited by any law, regulation, 
or rule of procedure. 
SEC. 5. AUTHORIZATION OF APPROPRIATIONS. 
There are authorized to be appropriated for each fis-
cal year such sums as may be necessary to carry out this 
Act. 
SEC. 6. EFFECTIVE DATE. 
This Act shall take effect on the date of the enact-
ment of this Act. 
Æ 
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