(1) by striking the section heading and insert-
ing the following: 
‘‘§ 2318. Trafficking in counterfeit labels or counter-
feit documentation or packaging’’; 
(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 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; or 
‘‘(D) 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) by striking paragraph (1) and insert-
ing the following: 
‘‘(1) the term ‘counterfeit label’ means—
‘‘(A) an identifying label or container that 
appears to be genuine, but is not; or
‘‘(B) a genuine certificate, licensing docu-
ment, registration card, or similar labeling com-
ponent—
‘‘(i) 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, or docu-
mentation or packaging is not counterfeit 
or infringing of any copyright; and 
‘‘(ii) that is, without the authorization 
of the copyright owner—
‘‘(I) distributed or intended for 
distribution not in connection with the 
copy or phonorecord to which such la-
beling component was intended to be 
affixed by the respective copyright 
owner; or 
‘‘(II) in the case of a computer 
program, altered or removed to falsify 
the number of authorized copies or 
users, type of authorized user, or edi-
tion or version of the computer pro-
gram;’’; 
(B) in paragraph (2), by striking ‘‘and’’ at 
the end;
(C) in paragraph (3)—
(i) by striking ‘‘and ‘audiovisual work’ 
have’’ and inserting the following: ‘‘, 
‘audiovisual work’, ‘sound recording’, and 
‘copyright owner’ have’’; and 
(ii) by striking the period at the end 
and inserting ‘‘; and’’ ; and 
(D) by adding at the end the following: 
‘‘(4) the term ‘documentation or packaging’ 
means documentation or packaging for a phono-
record, copy of a computer program, or copy of a 
motion picture or other audiovisual work.’’; 
(4) in subsection (c)—
(A) by striking paragraph (3) and insert-
ing the following: 
‘‘(3) the counterfeit label is affixed to, encloses, 
or accompanies, or is designed to be affixed to, en-
close, or accompany—
‘‘(A) a phonorecord of a copyrighted sound 
recording; 
‘‘(B) a copy of a copyrighted computer 
program; 
‘‘(C) a copy of a copyrighted motion pic-
ture or other audiovisual work; or
‘‘(D) copyrighted documentation or pack-
aging; or’’; and 
(B) in paragraph (4), by striking ‘‘for a 
computer program’’; 
(5) in subsection (d), by inserting before the pe-
riod at the end the following: ‘‘, and of any equip-
ment, device, or material used to manufacture, re-
produce, or assemble the counterfeit labels’’; and 
(6) by adding at the end the following: 
‘‘(f) CIVIL REMEDIES FOR VIOLATION.—
‘‘(1) IN GENERAL.—Any copyright owner who 
is injured, or is threatened with injury, by a viola-
tion of this section 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 violations of this section; 
‘‘(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 
alleged violator and that the court has reason-
able cause to believe was involved in a violation 
of this section; 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 this section, as provided in subpara-
graph (B); and 
‘‘(ii) any profits of the violator that 
are attributable to a violation of this sec-
tion and are not taken into account in 
computing the actual damages. 
‘‘(B) CALCULATION
OF
DAMAGES.—The 
court shall calculate actual damages by multi-
plying—