[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3632 Reported in House (RH)]
Union Calendar No. 360
108th CONGRESS
2d Session
H. R. 3632
[Report No. 108-600]
To prevent and punish counterfeiting of copyrighted copies and
phonorecords, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 21, 2003
Mr. Smith of Texas (for himself, Mr. Keller, Mr. Wexler, Mr. Goodlatte,
Mr. Gallegly, and Mr. Carter) introduced the following bill; which was
referred to the Committee on the Judiciary
July 13, 2004
Additional sponsor: Mrs. Blackburn
July 13, 2004
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on
November 21, 2003]
_______________________________________________________________________
A BILL
To prevent and punish counterfeiting of copyrighted copies and
phonorecords, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Anti-counterfeiting Amendments Act
of 2004''.
SEC. 2. PROHIBITION AGAINST TRAFFICKING IN COUNTERFEIT COMPONENTS.
(a) In General.--Section 2318 of title 18, United States Code, is
amended--
(1) by striking the section heading and inserting the
following:
``Sec. 2318. Trafficking in counterfeit labels, illicit labels, or
counterfeit 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 or illicit 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;
``(D) a copy of a literary work;
``(E) a copy of a pictorial, graphic, or sculptural
work;
``(F) a work of visual art; or
``(G) 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) in paragraph (2), by striking ``and'' after the
semicolon;
(B) in paragraph (3)--
(i) by striking ``and `audiovisual work'
have'' and inserting the following:
```audiovisual work', `literary work',
`pictorial, graphic, or sculptural work',
`sound recording', `work of visual art', and
`copyright owner' have''; and
(ii) by striking the period at the end and
inserting a semicolon; and
(C) by adding at the end the following:
``(4) the term `illicit label' means a genuine certificate,
licensing document, registration card, or similar labeling
component--
``(A) 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, a
copy of a literary work, a copy of a pictorial,
graphic, or sculptural work, a work of visual art, or
documentation or packaging is not counterfeit or
infringing of any copyright; and
``(B) that is, without the authorization of the
copyright owner--
``(i) distributed or intended for
distribution not in connection with the copy,
phonorecord, or work of visual art to which
such labeling component was intended to be
affixed by the respective copyright owner; or
``(ii) in connection with a genuine
certificate or licensing document, knowingly
falsified in order to designate a higher number
of licensed users or copies than authorized by
the copyright owner, unless that certificate or
document is used by the copyright owner solely
for the purpose of monitoring or tracking the
copyright owner's distribution channel and not
for the purpose of verifying that a copy or
phonorecord is noninfringing;
``(5) the term `documentation or packaging' means
documentation or packaging, in physical form, for a
phonorecord, copy of a computer program, copy of a motion
picture or other audiovisual work, copy of a literary work, copy of a
pictorial, graphic, or sculptural work, or work of visual art; and
``(6) the term `counterfeit documentation or packaging'
means documentation or packaging that appears to be genuine,
but is not.'';
(4) in subsection (c)--
(A) by striking paragraph (3) and inserting the
following:
``(3) the counterfeit label or illicit label is affixed to,
encloses, or accompanies, or is designed to be affixed to,
enclose, or accompany--
``(A) a phonorecord of a copyrighted sound
recording or copyrighted musical work;
``(B) a copy of a copyrighted computer program;
``(C) a copy of a copyrighted motion picture or
other audiovisual work;
``(D) a copy of a literary work;
``(E) a copy of a pictorial, graphic, or sculptural
work;
``(F) a work of visual art; or
``(G) copyrighted documentation or packaging; or'';
and
(B) in paragraph (4), by striking ``for a computer
program''; and
(5) in subsection (d)--
(A) by inserting ``or illicit labels'' after
``counterfeit labels'' each place it appears; and
(B) by inserting before the period at the end the
following: ``, and of any equipment, device, or
material used to manufacture, reproduce, or assemble
the counterfeit labels or illicit labels''.
(b) Civil Remedies.--Section 2318 of title 18, United States Code,
is further amended by adding at the end the following:
``(f) Civil Remedies.--
``(1) In general.--Any copyright owner who is injured, or
is threatened with injury, by a violation of subsection (a) may
bring a civil action in an appropriate 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 a violation of
subsection (a);
``(B) at any time while the action is pending, 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 reasonable cause to believe was involved
in a violation of subsection (a); and
``(C) may award to the injured party--
``(i) reasonable attorney fees and costs;
and
``(ii) (I) actual damages and any
additional 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
subsection (a), as provided in subparagraph (B)
of this paragraph; and
``(ii) any profits of the violator that are
attributable to a violation of subsection (a)
and are not taken into account in computing the
actual damages.
``(B) Calculation of damages.--The court shall
calculate actual damages by multiplying--
``(i) the value of the phonorecords,
copies, or works of visual art which are, or
are intended to be, affixed with, enclosed in,
or accompanied by any counterfeit labels,
illicit labels, or counterfeit documentation or
packaging, by
``(ii) the number of phonorecords, copies,
or works of visual art which are, or are
intended to be, affixed with, enclosed in, or
accompanied by any counterfeit labels, illicit
labels, or counterfeit documentation or
packaging.
``(C) Definition.--For purposes of this paragraph,
the `value' of a phonorecord, copy, or work of visual
art is--
``(i) in the case of a copyrighted sound
recording or copyrighted musical work, the
retail value of an authorized phonorecord of
that sound recording or musical work;
``(ii) in the case of a copyrighted
computer program, the retail value of an
authorized copy of that computer program;
``(iii) in the case of a copyrighted motion
picture or other audiovisual work, the retail
value of an authorized copy of that motion
picture or audiovisual work;
``(iv) in the case of a copyrighted
literary work, the retail value of an
authorized copy of that literary work;
``(v) in the case of a pictorial, graphic,
or sculptural work, the retail value of an
authorized copy of that work; and
``(vi) in the case of a work of visual art,
the retail value of that work.
``(4) Statutory damages.--The injured party may elect, at
any time before final judgment is rendered, to recover, instead
of actual damages and profits, an award of statutory damages
for each violation of subsection (a) in a sum of not less than
$2,500 or more than $25,000, as the court considers
appropriate.
``(5) Subsequent violation.--The court may increase an
award of damages under this subsection by 3 times the amount
that would otherwise be awarded, as the court considers
appropriate, if the court finds that a person has subsequently
violated subsection (a) within 3 years after a final judgment
was entered against that person for a violation of that
subsection.
``(6) Limitation on actions.--A civil action may not be
commenced under section unless it is commenced within 3 years
after the date on which the claimant discovers the violation of
subsection (a).''.
(c) Conforming Amendment.--The item relating to section 2318 in the
table of sections for chapter 113 of title 18, United States Code, is
amended to read as follows:
``2318. Trafficking in counterfeit labels, illicit labels, or
counterfeit documentation or packaging.''.
SEC. 3. OTHER RIGHTS NOT AFFECTED.
(a) Chapters 5 and 12 of Title 17; Electronic Transmissions.--The
amendments made by this Act--
(1) shall not enlarge, diminish, or otherwise affect any
liability or limitations on liability under sections 512, 1201
or 1202 of title 17, United States Code; and
(2) shall not be construed to apply--
(A) in any case, to the electronic transmission of
a genuine certificate, licensing document, registration
card, similar labeling component, or documentation or
packaging described in paragraph (4) or (5) of section
2318(b) of title 18, United States Code, as amended by
this Act; and
(B) in the case of a civil action under section
2318(f) of title 18, United States Code, to the
electronic transmission of a counterfeit label or
counterfeit documentation or packaging defined in
paragraph (1) or (6) of section 2318(b) of title 18,
United States Code.
(b) Fair Use.--The amendments made by this Act shall not affect the
fair use, under section 107 of title 17, United States Code, of a
genuine certificate, licensing document, registration card, similar
labeling component, or documentation or packaging described in
paragraph (4) or (5) of section 2318(b) of title 18, United States
Code, as amended by this Act.
Union Calendar No. 360
108th CONGRESS
2d Session
H. R. 3632
[Report No. 108-600]
_______________________________________________________________________
A BILL
To prevent and punish counterfeiting of copyrighted copies and
phonorecords, and for other purposes.
_______________________________________________________________________
July 13, 2004
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed