In the Senate of the United States,
February 15, 2006.
Resolved, That the bill from the House of Representa-
tives (H.R. 32) entitled ‘‘An Act to amend title 18, United
States Code, to provide criminal penalties for trafficking in
counterfeit marks.’’, do pass with the following
AMENDMENT:
Strike out all after the enacting clause and insert:
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’’.
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(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 Pro-
tection estimates 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 nu-
merous industries, including those producing
auto parts, electrical appliances, medicines,
tools, toys, office equipment, clothing, and many
other products;
(E) ties have been established between coun-
terfeiting 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 counterfeiting will permit the United
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States to seek stronger anticounterfeiting provi-
sions 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 inten-
tionally traffics or attempts to traffic in labels, patch-
es, stickers, wrappers, badges, emblems, medallions,
charms, boxes, containers, cans, cases, hangtags, docu-
mentation, or packaging of any type or nature, know-
ing 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:
‘‘(b)(1) The following property shall be subject to for-
feiture to the United States and no property right shall
exist in such property:
‘‘(A) Any article bearing or consisting of a coun-
terfeit mark used in committing a violation of sub-
section (a).
‘‘(B) Any property used, in any manner or part,
to commit or to facilitate the commission of a viola-
tion of subsection (a).
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‘‘(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 con-
sisting of a counterfeit mark be destroyed or otherwise dis-
posed 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 for-
feit to the United States—
‘‘(i) any property constituting or derived from
any proceeds the person obtained, directly or indi-
rectly, as the result of the offense;
‘‘(ii) any of the person’s property used, or in-
tended 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
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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 in-
serting the following:
‘‘(A) a spurious mark—
‘‘(i) that is used in connection with
trafficking in any goods, services, labels,
patches, stickers, wrappers, badges, em-
blems, medallions, charms, boxes, con-
tainers, cans, cases, hangtags, documenta-
tion, or packaging of any type or nature;
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‘‘(ii) that is identical with, or substan-
tially indistinguishable from, a mark reg-
istered 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;
‘‘(iii) that is applied to or used in con-
nection 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, container, can, case, hangtag,
documentation, or packaging of any type or
nature that is designed, marketed, or other-
wise intended to be used on or in connection
with the goods or services for which the
mark is registered in the United States Pat-
ent 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 sub-
paragraph (B) to read as follows: