Stop Counterfeiting in Manufactured Goods Act
PL 109-181 (H.R.32), enacted 03/16/2006

120 STAT. 285
PUBLIC LAW 109–181—MAR. 16, 2006
Public Law 109–181
109th Congress
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:
18 USC 2320
note.
Stop
Counterfeiting in
Manufactured
Goods Act.
18 USC 1 note.
Mar. 16, 2006
[H.R. 32]
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120 STAT. 286
PUBLIC LAW 109–181—MAR. 16, 2006
‘‘(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;
Courts.
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120 STAT. 287
PUBLIC LAW 109–181—MAR. 16, 2006
‘‘(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
Deadline.
28 USC 994 note.
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120 STAT. 288
PUBLIC LAW 109–181—MAR. 16, 2006
LEGISLATIVE HISTORY—H.R. 32 (S. 1699):
HOUSE REPORTS: No. 109–68 (Comm. on the Judiciary).
CONGRESSIONAL RECORD:
Vol. 151 (2005): May 23, considered and passed House.
Vol. 152 (2006): Feb. 15, considered and passed Senate, amended.
Mar. 7, House concurred in Senate amendment.
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.’’.
Approved March 16, 2006.
Protecting
American Goods
and Services Act
of 2005.
18 USC 1 note.
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