IB 
Union Calendar No. 360
108TH CONGRESS 
2D SESSION 
H. R. 3632
[Report No. 108–600] 
To prevent and punish counterfeiting of copyrighted copies and phonorecords, 
and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
NOVEMBER 21, 2003
Mr. SMITH of Texas (for himself, Mr. KELLER, Mr. WEXLER, Mr. GOOD-
LATTE, Mr. GALLEGLY, and Mr. CARTER) introduced the following bill; 
which was referred to the Committee on the Judiciary 
JULY 13, 2004
Additional sponsor: Mrs. BLACKBURN
JULY 13, 2004 
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 November 21, 2003] 
A BILL 
To prevent and punish counterfeiting of copyrighted copies 
and phonorecords, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Anti-counterfeiting 
Amendments Act of 2004’’. 
SEC. 2. PROHIBITION AGAINST TRAFFICKING IN COUNTER-
FEIT COMPONENTS. 
(a) IN GENERAL.—Section 2318 of title 18, United 
States Code, is amended—
(1) by striking the section heading and inserting 
the following: 
‘‘§ 2318. Trafficking in counterfeit labels, illicit labels, 
or counterfeit documentation or pack-
aging’’; 
(2) by striking subsection (a) and inserting the 
following: 
‘‘(a) Whoever, in any of the circumstances described 
in subsection (c), knowingly traffics in—
‘‘(1) a counterfeit label or illicit label affixed to, 
enclosing, or accompanying, or designed to be affixed 
to, enclose, or accompany—
‘‘(A) a phonorecord; 
‘‘(B) a copy of a computer program; 
‘‘(C) a copy of a motion picture or other 
audiovisual work; 
‘‘(D) a copy of a literary work; 
‘‘(E) a copy of a pictorial, graphic, or 
sculptural work;
‘‘(F) a work of visual art; or 
‘‘(G) documentation or packaging; or 
‘‘(2) counterfeit documentation or packaging, 
shall be fined under this title or imprisoned for not more 
than 5 years, or both.’’; 
(3) in subsection (b)—
(A) in paragraph (2), by striking ‘‘and’’ 
after the semicolon; 
(B) in paragraph (3)—
(i) by striking ‘‘and ‘audiovisual work’ 
have’’ and inserting the following: ‘‘ ‘audio-
visual work’, ‘literary work’, ‘pictorial, 
graphic, or sculptural work’, ‘sound record-
ing’, ‘work of visual art’, and ‘copyright 
owner’ have’’; and 
(ii) by striking the period at the end 
and inserting a semicolon; and 
(C) by adding at the end the following: 
‘‘(4) the term ‘illicit label’ means a genuine cer-
tificate, licensing document, registration card, or 
similar labeling component— 
‘‘(A) that is used by the copyright owner to 
verify that a phonorecord, a copy of a computer 
program, a copy of a motion picture or other 
audiovisual work, a copy of a literary work, a
copy of a pictorial, graphic, or sculptural work, 
a work of visual art, or documentation or pack-
aging is not counterfeit or infringing of any 
copyright; and 
‘‘(B) that is, without the authorization of 
the copyright owner— 
‘‘(i) distributed or intended for dis-
tribution not in connection with the copy, 
phonorecord, or work of visual art to which 
such labeling component was intended to be 
affixed by the respective copyright owner; or 
‘‘(ii) in connection with a genuine cer-
tificate or licensing document, knowingly 
falsified in order to designate a higher num-
ber of licensed users or copies than author-
ized by the copyright owner, unless that cer-
tificate or document is used by the copy-
right owner solely for the purpose of moni-
toring or tracking the copyright owner’s dis-
tribution channel and not for the purpose of 
verifying that a copy or phonorecord is 
noninfringing; 
‘‘(5) the term ‘documentation or packaging’ 
means documentation or packaging, in physical form, 
for a phonorecord, copy of a computer program, copy
of a motion picture or other audiovisual work, copy 
of a literary work, copy of a pictorial, graphic, or 
sculptural work, or work of visual art; and 
‘‘(6) the term ‘counterfeit documentation or 
packaging’ means documentation or packaging that 
appears to be genuine, but is not.’’; 
(4) in subsection (c)—
(A) by striking paragraph (3) and inserting 
the following: 
‘‘(3) the counterfeit label or illicit label is affixed 
to, encloses, or accompanies, or is designed to be af-
fixed to, enclose, or accompany—
‘‘(A) a phonorecord of a copyrighted sound 
recording or copyrighted musical work; 
‘‘(B) a copy of a copyrighted computer pro-
gram; 
‘‘(C) a copy of a copyrighted motion picture 
or other audiovisual work; 
‘‘(D) a copy of a literary work; 
‘‘(E) a copy of a pictorial, graphic, or 
sculptural work; 
‘‘(F) a work of visual art; or 
‘‘(G) copyrighted documentation or pack-
aging; or’’; and
(B) in paragraph (4), by striking ‘‘for a 
computer program’’; and 
(5) in subsection (d)—
(A) by inserting ‘‘or illicit labels’’ after 
‘‘counterfeit labels’’ each place it appears; and 
(B) by inserting before the period at the end 
the following: ‘‘, and of any equipment, device, 
or material used to manufacture, reproduce, or 
assemble the counterfeit labels or illicit labels’’. 
(b) CIVIL REMEDIES.—Section 2318 of title 18, United 
States Code, is further amended by adding at the end the 
following: 
‘‘(f) CIVIL REMEDIES.—
‘‘(1) IN GENERAL.—Any copyright owner who is 
injured, or is threatened with injury, by a violation 
of subsection (a) may bring a civil action in an ap-
propriate United States district court. 
‘‘(2) DISCRETION
OF
COURT.—In any action 
brought under paragraph (1), the court—
‘‘(A) may grant 1 or more temporary or 
permanent injunctions on such terms as the 
court determines to be reasonable to prevent or 
restrain a violation of subsection (a); 
‘‘(B) at any time while the action is pend-
ing, may order the impounding, on such terms
as the court determines to be reasonable, of any 
article that is in the custody or control of the al-
leged violator and that the court has reasonable 
cause to believe was involved in a violation of 
subsection (a); and 
‘‘(C) may award to the injured party—
‘‘(i) reasonable attorney fees and costs; 
and 
‘‘(ii) (I) actual damages and any addi-
tional profits of the violator, as provided in 
paragraph (3); or 
‘‘(II) statutory damages, as provided 
in paragraph (4). 
‘‘(3) ACTUAL DAMAGES AND PROFITS.—
‘‘(A) IN GENERAL.—The injured party is 
entitled to recover—
‘‘(i) the actual damages suffered by the 
injured party as a result of a violation of 
subsection (a), as provided in subparagraph 
(B) of this paragraph; and 
‘‘(ii) any profits of the violator that 
are attributable to a violation of subsection 
(a) and are not taken into account in com-
puting the actual damages.
‘‘(B) CALCULATION
OF
DAMAGES.—The 
court shall calculate actual damages by multi-
plying—
‘‘(i) the value of the phonorecords, cop-
ies, or works of visual art which are, or are 
intended to be, affixed with, enclosed in, or 
accompanied by any counterfeit labels, il-
licit labels, or counterfeit documentation or 
packaging, by 
‘‘(ii) the number of phonorecords, cop-
ies, or works of visual art which are, or are 
intended to be, affixed with, enclosed in, or 
accompanied by any counterfeit labels, il-
licit labels, or counterfeit documentation or 
packaging. 
‘‘(C) DEFINITION.—For purposes of this 
paragraph, the ‘value’ of a phonorecord, copy, or 
work of visual art is—
‘‘(i) in the case of a copyrighted sound 
recording or copyrighted musical work, the 
retail value of an authorized phonorecord of 
that sound recording or musical work; 
‘‘(ii) in the case of a copyrighted com-
puter program, the retail value of an au-
thorized copy of that computer program;
‘‘(iii) in the case of a copyrighted mo-
tion picture or other audiovisual work, the 
retail value of an authorized copy of that 
motion picture or audiovisual work; 
‘‘(iv) in the case of a copyrighted lit-
erary work, the retail value of an author-
ized copy of that literary work; 
‘‘(v) in the case of a pictorial, graphic, 
or sculptural work, the retail value of an 
authorized copy of that work; and 
‘‘(vi) in the case of a work of visual 
art, the retail value of that work. 
‘‘(4) STATUTORY DAMAGES.—The injured party 
may elect, at any time before final judgment is ren-
dered, to recover, instead of actual damages and prof-
its, an award of statutory damages for each violation 
of subsection (a) in a sum of not less than $2,500 or 
more than $25,000, as the court considers appro-
priate. 
‘‘(5) SUBSEQUENT VIOLATION.—The court may 
increase an award of damages under this subsection 
by 3 times the amount that would otherwise be 
awarded, as the court considers appropriate, if the 
court finds that a person has subsequently violated 
subsection (a) within 3 years after a final judgment
was entered against that person for a violation of that 
subsection. 
‘‘(6) LIMITATION ON ACTIONS.—A civil action 
may not be commenced under section unless it is com-
menced within 3 years after the date on which the 
claimant discovers the violation of subsection (a).’’. 
(c) CONFORMING AMENDMENT.—The item relating to 
section 2318 in the table of sections for chapter 113 of title 
18, United States Code, is amended to read as follows:
‘‘2318. Trafficking in counterfeit labels, illicit labels, or counterfeit documentation 
or packaging.’’.
SEC. 3. OTHER RIGHTS NOT AFFECTED. 
(a) CHAPTERS 5 AND 12 OF TITLE 17; ELECTRONIC 
TRANSMISSIONS.—The amendments made by this Act—
(1) shall not enlarge, diminish, or otherwise af-
fect any liability or limitations on liability under 
sections 512, 1201 or 1202 of title 17, United States 
Code; and 
(2) shall not be construed to apply—
(A) in any case, to the electronic trans-
mission of a genuine certificate, licensing docu-
ment, registration card, similar labeling compo-
nent, or documentation or packaging described 
in paragraph (4) or (5) of section 2318(b) of 
title 18, United States Code, as amended by this 
Act; and