H. R. 32
One Hundred Ninth Congress
of the
United States of America 
AT THE SECOND SESSION 
Begun and held at the City of Washington on Tuesday, 
the third day of January, two thousand and six 
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 Representatives of 
the United States of America in Congress assembled,
SECTION 1. TRAFFICKING IN COUNTERFEIT MARKS. 
(a) SHORT TITLE; FINDINGS.—
(1) SHORT TITLE.—This section may be cited as the ‘‘Stop 
Counterfeiting in Manufactured Goods Act’’. 
(2) FINDINGS.—The Congress finds that—
(A) 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; 
(B) the Bureau of Customs and Border Protection esti-
mates that counterfeiting costs the United States $200 
billion annually; 
(C) counterfeit automobile parts, including brake pads, 
cost the auto industry alone billions of dollars in lost sales 
each year; 
(D) counterfeit products have invaded numerous indus-
tries, including those producing auto parts, electrical appli-
ances, medicines, tools, toys, office equipment, clothing, 
and many other products; 
(E) ties have been established between counterfeiting 
and terrorist organizations that use the sale of counterfeit 
goods to raise and launder money; 
(F) ongoing counterfeiting of manufactured goods poses 
a widespread threat to public health and safety; and 
(G) strong domestic criminal remedies against counter-
feiting will permit the United States to seek stronger 
anticounterfeiting provisions in bilateral and international 
agreements with trading partners. 
(b) 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 intentionally traffics or attempts 
to traffic in labels, patches, stickers, wrappers, badges, 
emblems, medallions, 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 follows:
H. R. 32—2
‘‘(b)(1) The following property shall be subject to forfeiture 
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). 
‘‘(B) Any property used, in any manner or part, to commit 
or to facilitate the commission of a violation of subsection 
(a). 
‘‘(2) The provisions of chapter 46 of this title relating to civil 
forfeitures, including section 983 of this title, shall extend to any 
seizure or civil forfeiture under this section. At the conclusion 
of the forfeiture 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 indirectly, as the result of 
the offense; 
‘‘(ii) any of the person’s property used, or intended to be 
used, in any manner or part, to commit, facilitate, aid, or 
abet the commission of the offense; and 
‘‘(iii) any article that bears or consists of a counterfeit 
mark used in committing the offense. 
‘‘(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 inserting the 
following: 
‘‘(A) a spurious mark—
‘‘(i) that is used in connection with trafficking in 
any goods, services, labels, patches, stickers, wrappers, 
badges, emblems, medallions, charms, boxes, con-
tainers, cans, cases, hangtags, documentation, or pack-
aging of any type or nature; 
‘‘(ii) that is identical with, or substantially indistin-
guishable from, a mark registered on the principal 
register in the United States Patent and Trademark 
Office and in use, whether or not the defendant knew 
such mark was so registered;
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‘‘(iii) that is applied to or used in connection with 
the goods or services for which the mark is registered 
with the United States Patent and Trademark Office, 
or is applied to or consists of a label, patch, sticker, 
wrapper, badge, emblem, medallion, charm, box, con-
tainer, can, case, hangtag, documentation, or packaging 
of any type or nature that is designed, marketed, or 
otherwise intended to be used on or in connection 
with the goods or services for which the mark is reg-
istered 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 
(B) by amending the matter following subparagraph 
(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 labels, patches, stickers, wrappers, badges, emblems, 
medallions, charms, boxes, containers, cans, cases, hangtags, 
documentation, or packaging of any type or nature used in 
connection with such goods or services, of which the manufac-
turer or producer was, at the time of the manufacture or 
production in question, authorized to use the mark or designa-
tion for the type of goods or services so manufactured or pro-
duced, by the holder of the right to use such mark or designa-
tion.’’. 
(4) Section 2320 is further amended—
(A) by redesignating subsection (f) as subsection (g); 
and 
(B) by inserting after subsection (e) the following: 
‘‘(f) Nothing in this section shall entitle the United States 
to bring a criminal cause of action under this section for the repack-
aging of genuine goods or services not intended to deceive or con-
fuse.’’. 
(c) SENTENCING GUIDELINES.—
(1) 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 subsection, shall review and, if appropriate, amend the 
Federal sentencing guidelines and policy statements applicable 
to persons convicted of any offense under section 2318 or 2320 
of title 18, United States Code. 
(2) 
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 expired. 
(3) RESPONSIBILITIES
OF
UNITED
STATES
SENTENCING 
COMMISSION.—In carrying out this subsection, the 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 sentencing guidelines is adequate 
to address situations in which the defendant has been convicted 
of one of the offenses listed in paragraph (1) and the item 
in which the defendant trafficked was not an infringing item 
but rather was intended to facilitate infringement, such as
H. R. 32—4
an anti-circumvention device, or the item in which the defend-
ant trafficked was infringing and also was intended to facilitate 
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). 
SEC. 2. TRAFFICKING DEFINED. 
(a) SHORT TITLE.—This section may be cited as the ‘‘Protecting 
American Goods and Services Act of 2005’’. 
(b) COUNTERFEIT GOODS OR SERVICES.—Section 2320(e) of title 
18, United States Code, is amended—
(1) by striking paragraph (2) and inserting the following: 
‘‘(2) the term ‘traffic’ means to transport, transfer, or other-
wise dispose of, to another, for purposes of commercial advan-
tage or private financial gain, or to make, import, export, obtain 
control of, or possess, with intent to so transport, transfer, 
or otherwise dispose of;’’; 
(2) by redesignating paragraph (3) as paragraph (4); and 
(3) by inserting after paragraph (2) the following: 
‘‘(3) the term ‘financial gain’ includes the receipt, or 
expected receipt, of anything of value; and’’. 
(c) CONFORMING AMENDMENTS.—
(1) SOUND RECORDINGS AND MUSIC VIDEOS OF LIVE MUSICAL 
PERFORMANCES.—Section 2319A(e) of title 18, United States 
Code, is amended by striking paragraph (2) and inserting the 
following: 
‘‘(2) the term ‘traffic’ has the same meaning as in section 
2320(e) of this title.’’. 
(2) COUNTERFEIT LABELS FOR PHONORECORDS, COMPUTER 
PROGRAMS, ETC.—Section 2318(b) of title 18, United States 
Code, is amended by striking paragraph (2) and inserting the 
following: 
‘‘(2) the term ‘traffic’ has the same meaning as in section 
2320(e) of this title;’’. 
(3) ANTI-BOOTLEGGING.—Section 1101 of title 17, United 
States Code, is amended by striking subsection (b) and inserting 
the following: 
‘‘(b) DEFINITION.—In this section, the term ‘traffic’ has the 
same meaning as in section 2320(e) of title 18.’’.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.