I
104TH CONGRESS
1ST SESSION
H. R. 2511
To control and prevent commercial counterfeiting, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 19, 1995
Mr. GOODLATTE (for himself, Mr. HYDE, Mr. CONYERS, Mr. MOORHEAD, Mr.
MCCOLLUM, Mr. FRANK of Massachusetts, Mr. GEKAS, Mr. SMITH of
Texas, Mr. COBLE, Mr. CANADY of Florida, Mr. BONO, Mr. HEINEMAN,
Mr. FLANAGAN, and Mr. DAVIS) introduced the following bill; which was
referred to the Committee on the Judiciary
A BILL
To control and prevent commercial counterfeiting, 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 ‘‘Anticounterfeiting
Consumer Protection Act of 1995’’.
SEC. 2. COUNTERFEITING AS RACKETEERING.
Section 1961(1)(B) of title 18, United States Code,
is amended by inserting ‘‘, section 2318 (relating to traf-
ficking in counterfeit labels for phonorecords, computer
programs or computer program documentation or packag-
ing and copies of motion pictures or other audiovisual
works), section 2319 (relating to criminal infringement of
a copyright), section 2320 (relating to trafficking in goods
or services bearing counterfeit marks)’’ after ‘‘sections
2314 and 2315 (relating to interstate transportation of
stolen property),’’.
SEC. 3. APPLICATION TO COMPUTER PROGRAMS, COM-
PUTER 
PROGRAM 
DOCUMENTATION, 
OR
PACKAGING.
Section 2318 of title 18, United States Code, is
amended—
(1) in subsection (a), by inserting ‘‘a computer
program or computer program documentation or
packaging or’’ after ‘‘copy of’’;
(2) in subsection (b)(3), by inserting ‘‘ ‘com-
puter program,’ ’’ after ‘‘ ‘motion picture,’ ’’; and
(3) in subsection (c)(3), by inserting ‘‘a copy of
a computer program or computer program docu-
mentation or packaging,’’ after ‘‘enclose,’’.
SEC. 4. TRAFFICKING IN COUNTERFEIT GOODS OR SERV-
ICES.
Section 2320 of title 18, United States Code, is
amended by adding at the end the following:
‘‘(e) Beginning with the first year after the date of
the enactment of this subsection, the Attorney General
shall include in the report of the Attorney General to Con-
gress on the business of the Department of Justice pre-
pared pursuant to section 522 of title 28, on a district
by district basis, for all actions involving trafficking in
counterfeit labels for phonorecords, copies of computer
programs or computer program documentation or packag-
ing, copies of motion pictures or other audiovisual works
(as defined in section 2318 of title 18), criminal infringe-
ment of copyrights (as defined in section 2319 of title 18),
or trafficking in goods or services bearing counterfeit
marks (as defined in section 2320 of title 18), an account-
ing of—
‘‘(1) the number of open investigations;
‘‘(2) the number of cases referred by the United
States Customs Service;
‘‘(3) the number of cases referred by other
agencies or sources; and
‘‘(4) the number and outcome, including settle-
ments, sentences, recoveries, and penalties, of all
prosecutions brought under sections 2318, 2319,
and 2320 to title 18.’’.
SEC. 5. SEIZURE OF COUNTERFEIT GOODS.
Section 34(d)(9) of the Act of July 5, 1946 (com-
monly known as the Lanham Act) (15 U.S.C. 1116(d)(9))
is amended by striking the first sentence and inserting the
following: ‘‘A court may order the seizure of an aircraft,
vehicle, or vessel used in connection with a violation of
this Act. The court shall order that service of a copy of
the order under this subsection shall be made by a Federal
law enforcement officer (such as a United States marshal
or an officer or agent of the United States Customs Serv-
ice, Secret Service, Federal Bureau of Investigation, or the
United States Postal Service) or may be made by a State
or local law enforcement officer, who, upon making serv-
ice, shall carry out the seizure under the order.’’.
SEC. 6. DISPOSITION OF MERCHANDISE BEARING COUN-
TERFEIT AMERICAN TRADEMARK AND CIVIL
PENALTIES.
Title VI of the Act of July 5, 1946 (commonly known
as the Lanham Act) (15 U.S.C. 1114 and following) is
amended by inserting after section 34 the following:
‘‘SEC. 34A. (a) Any merchandise bearing a counter-
feit mark (as defined in section 45) imported into the
United States in violation of section 42 shall be seized by
the appropriate Federal official and, in the absence of the
written consent of the trademark owner, forfeited. Upon
seizure of such merchandise, the appropriate official shall
notify the owner of the trademark, and shall, after forfeit-
ure, destroy the merchandise. Alternatively, if the mer-
chandise is not unsafe or a hazard to health, and the offi-
cial has the consent of the trademark owner, the appro-
priate official may obliterate the trademark where feasible
and dispose of the goods seized—
‘‘(1) by delivery to such Federal, State, and
local government agencies as in the opinion of the
appropriate official have a need for such merchan-
dise;
‘‘(2) by gift to such eleemosynary institutions
as in the opinion of the appropriate official have a
need for such merchandise; or
‘‘(3) more than 1 year after the date of forfeit-
ure, by sale by appropriate officials at public auc-
tion, except that before making any such sale the of-
ficial shall determine that no Federal, State, or local
government agency or eleemosynary institution has
established a need for such merchandise under para-
graph (1) or (2).
‘‘(b)(1) Any person who directs, assists financially or
otherwise, or is in any way concerned in the importation
of merchandise for sale or public distribution that is seized
under subsection (a) shall be subject to a civil fine.
‘‘(2) For the first such seizure, the fine shall be equal
to the value that the merchandise would have had if it
were genuine, according to the manufacturer’s suggested
retail price, as determined under regulations prescribed by
the Secretary of the Treasury.
‘‘(3) For the second seizure and thereafter, the fine
shall be equal to twice the value that the merchandise
would have had if it were genuine, according to the manu-
facturer’s suggested retail price, as determined under reg-
ulations prescribed by the Secretary of the Treasury.
‘‘(4) The imposition of a fine under this subsection
shall be within the discretion of the court, and shall be
in addition to any other civil or criminal penalty or other
remedy authorized by law.’’.
SEC. 7. RECOVERY FOR VIOLATION OF RIGHTS.
Section 35 of the Act of July 5, 1946 (commonly
known as the Lanham Act) ( 15 U.S.C. 1117), is amended
by adding at the end the following:
‘‘(c) In a case involving the use of a counterfeit mark
(as defined in section 34(d)) in connection with the sale,
offering for sale, or distribution of goods or services, the
plaintiff may elect, at any time before final judgment is
rendered by the trial court, to recover, instead of actual
damages and profits under subsection (a), an award of
statutory damages for any such use in the amount of—
‘‘(1) not less than $500 or more than $100,000
per counterfeit mark per type of goods or services
sold, offered for sale, or distributed, as the court
considers just; or
‘‘(2) if the court finds that the use of the coun-
terfeit mark was willful, not more than $1,000,000
per counterfeit mark per type of goods or services
sold, offered for sale, or distributed, as the court
considers just.’’.
SEC. 8. DISPOSITION OF EXCLUDED ARTICLES.
Section 603(c) of title 17, United States Code, is
amended in the second sentence by striking ‘‘as the case
may be;’’ and all that follows through the end and insert-
ing ‘‘as the case may be.’’.
SEC. 9. RECORDKEEPING REQUIREMENTS.
Section 42 of the Act of July 5, 1946 (commonly
known as the Lanham Act) ( 15 U.S.C. 1124) is
amended—
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 42.’’; and
(2) by adding at the end the following:
‘‘(b)(1) The owner, registrant, or authorized user of
a trademark registered under this Act, and any authorized
agent or representative thereof, shall be entitled to obtain
from the appropriate Federal officers in a timely manner
the following information when contained in a vessel or
aircraft manifest:
‘‘(A) The name and address of each importer or
consignee and the name and address of the shipper
to such importer or consignee, unless the importer
or consignee has made a biennial certification, in ac-
cordance with procedures adopted by the Secretary
of the Treasury, claiming confidential treatment of
such information.
‘‘(B) The general character of the cargo.
‘‘(C) The number of packages and gross weight.
‘‘(D) The name of the vessel or aircraft.
‘‘(E) The port of loading.
‘‘(F) The port of discharge.
‘‘(G) The country of origin of the shipment.
‘‘(2) The documentation relating to the entry into the
United States of imported merchandise shall contain such
information as may be necessary to determine whether the
merchandise bears an infringing trademark in violation of
subsection (a) or any other applicable law, including a
trademark appearing on goods or packaging.’’.
Æ