H. Rept. 110-617 - 110th Congress (2007-2008)
May 05, 2008, As Reported by the Judiciary Committee

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House Report 110-617 - PRIORITIZING RESOURCES AND ORGANIZATION FOR INTELLECTUAL PROPERTY ACT OF 2008




[House Report 110-617]
[From the U.S. Government Printing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-617

======================================================================
 
 PRIORITIZING RESOURCES AND ORGANIZATION FOR INTELLECTUAL PROPERTY ACT 
                                OF 2008

                                _______
                                

  May 5, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Conyers, from the Committee on the Judiciary, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 4279]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on the Judiciary, to whom was referred the 
bill (H.R. 4279) to enhance remedies for violations of 
intellectual property laws, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
The Amendment....................................................     1
Purpose and Summary..............................................    20
Background and Need for the Legislation..........................    20
Hearings.........................................................    32
Committee Consideration..........................................    33
Committee Votes..................................................    33
Committee Oversight Findings.....................................    33
New Budget Authority and Tax Expenditures........................    33
Congressional Budget Office Cost Estimate........................    33
Performance Goals and Objectives.................................    37
Constitutional Authority Statement...............................    38
Advisory on Earmarks.............................................    38
Section-by-Section Analysis......................................    38
Changes in Existing Law Made by the Bill, as Reported............    45
Committee Jurisdiction Letters...................................    62

                             The Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Prioritizing 
Resources and Organization for Intellectual Property Act of 2008''.
  (b) Table of Contents.--The table of contents is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reference.
Sec. 3. Definition.

       TITLE I--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

Sec.  101.  Registration of claim.
Sec.  102.  Registration and infringement actions.
Sec.  103.  Civil remedies for infringement.
Sec.  104.  Treble damages in counterfeiting cases.
Sec.  105.  Statutory damages in counterfeiting cases.
Sec.  106.  Exportation of goods bearing infringing marks.
Sec.  107.  Importation and exportation.

     TITLE II--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

Sec.  201.  Criminal infringement of a copyright.
Sec.  202.  Harmonization of forfeiture procedures for intellectual 
property offenses.  
Sec.  203.  Directive to United States Sentencing Commission.
Sec.  204.  Trafficking in counterfeit goods or services.

   TITLE III--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT 
                   AGAINST COUNTERFEITING AND PIRACY

     Subtitle A--Office of the United States Intellectual Property 
                       Enforcement Representative

Sec.  301.  Office of the United States Intellectual Property 
Enforcement Representative.
Sec.  302.  Definition.

                    Subtitle B--Joint Strategic Plan

Sec.  321.  Joint Strategic Plan.
Sec.  322.  Reporting.
Sec.  323.  Savings and repeals.
Sec.  324.  Authorization of appropriations.

          TITLE IV--INTERNATIONAL ENFORCEMENT AND COORDINATION

Sec.  401.  Intellectual property attaches.
Sec.  402.  Duties and responsibilities of intellectual property 
attaches.
Sec.  403.  Training and designation of assignment.
Sec.  404.  Coordination.
Sec.  405.  Authorization of appropriations.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

                        Subtitle A--Coordination

Sec.  501.  Intellectual Property Enforcement Officer.

                 Subtitle B--Law Enforcement Resources

Sec.  511.  Local law enforcement grants.
Sec.  512.  CHIP units, training, and additional resources.
Sec.  513.  Transparency of prosecutorial decisionmaking.
Sec.  514.  Authorization of appropriations.

                  Subtitle C--International Activities

Sec.  521.  International intellectual property law enforcement 
coordinators.
Sec.  522.  International training activities of the computer crime and 
intellectual property section.

        Subtitle D--Coordination, Implementation, and Reporting

Sec.  531.  Coordination.
Sec.  532.  Annual reports.

SEC. 2. REFERENCE.

  Any reference in this Act to the ``Trademark Act of 1946'' refers to 
the Act entitled ``An Act to provide for the registration of trademarks 
used in commerce, to carry out the provisions of certain international 
conventions, and for other purposes'', approved July 5, 1946 (15 U.S.C. 
1051 et seq.).

SEC. 3. DEFINITION.

  In this Act, the term ``United States person'' means--
          (1) any United States resident or national,
          (2) any domestic concern (including any permanent domestic 
        establishment of any foreign concern), and
          (3) any foreign subsidiary or affiliate (including any 
        permanent foreign establishment) of any domestic concern that 
        is controlled in fact by such domestic concern,
except that such term does not include an individual who resides 
outside the United States and is employed by an individual or entity 
other than an individual or entity described in paragraph (1), (2), or 
(3).

       TITLE I--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

SEC. 101. REGISTRATION OF CLAIM.

  Section 410 of title 17, United States Code, is amended--
          (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (e), respectively; and
          (2) by inserting after subsection (b) the following:
  ``(c)(1) A certificate of registration satisfies the requirements of 
section 411 and section 412 regardless of any inaccurate information 
contained in the certificate, unless--
          ``(A) the inaccurate information was included on the 
        application for copyright registration with knowledge that it 
        was inaccurate; and
          ``(B) the inaccuracy of the information, if known, would have 
        caused the Register of Copyrights to refuse registration.
  ``(2) In any case in which inaccuracies described under paragraph (1) 
are alleged, the court shall request the Register of Copyrights to 
advise the court whether the inaccuracy of the information, if known, 
would have caused the Register of Copyrights to refuse registration. 
The Register shall respond to the court's request within 45 days after 
the request is made.
  ``(3) Nothing in this subsection shall affect any rights, 
obligations, or requirements of a person related to information 
contained in a registration certificate except for the institution of 
and remedies in infringement actions under sections 411 and 412.''.

SEC. 102. REGISTRATION AND INFRINGEMENT ACTIONS.

  (a) Registration in Civil Infringement Actions.--Section 411 of title 
17, United States Code, is amended--
          (1) in the section heading, by inserting ``civil'' after 
        ``and'' ; and
          (2) in subsection (a), by striking ``no action'' and 
        inserting ``no civil action''.
  (b) Technical and Conforming Amendment.--Section 411(b) of title 17, 
United States Code, is amended by striking ``506 and sections 509 and'' 
and inserting ``505 and section''.

SEC. 103. CIVIL REMEDIES FOR INFRINGEMENT.

  Section 503(a) of title 17, United States Code, is amended--
          (1) by striking ``and of all plates'' and inserting ``of all 
        plates''; and
          (2) by striking the period at the end and inserting the 
        following: ``, and records documenting the manufacture, sale, 
        or receipt of things involved in such violation. The court 
        shall enter an appropriate protective order with respect to 
        discovery by the applicant of any records that have been 
        seized. The protective order shall provide for appropriate 
        procedures to assure that confidential information contained in 
        such records is not improperly disclosed to the applicant.''.

SEC. 104. TREBLE DAMAGES IN COUNTERFEITING CASES.

  Section 35(b) of the Trademark Act of 1946 (15 U.S.C. 1117(b)) is 
amended to read as follows:
  ``(b) In assessing damages under subsection (a) for any violation of 
section 32(1)(a) of this Act or section 220506 of title 36, United 
States Code, in a case involving use of a counterfeit mark or 
designation (as defined in section 34(d) of this Act), the court shall, 
unless the court finds extenuating circumstances, enter judgment for 
three times such profits or damages, whichever amount is greater, 
together with a reasonable attorney's fee, if the violation consists 
of--
          ``(1) intentionally using a mark or designation, knowing such 
        mark or designation is a counterfeit mark (as defined in 
        section 34(d) of this Act), in connection with the sale, 
        offering for sale, or distribution of goods or services;
          ``(2) intentionally inducing another to engage in a violation 
        specified in paragraph (1); or
          ``(3) providing goods or services necessary to the commission 
        of a violation specified in paragraph (1), with the intent that 
        the recipient of the goods or services would put the goods or 
        services to use in committing the violation.
In such a case, the court may award prejudgment interest on such amount 
at an annual interest rate established under section 6621(a)(2) of the 
Internal Revenue Code of 1986, beginning on the date of the service of 
the claimant's pleadings setting forth the claim for such entry of 
judgment and ending on the date such entry is made, or for such shorter 
time as the court considers appropriate.''.

SEC. 105. STATUTORY DAMAGES IN COUNTERFEITING CASES.

  Section 35(c) of the Trademark Act of 1946 (15 U.S.C. 1117) is 
amended--
          (1) in paragraph (1)--
                  (A) by striking ``$500'' and inserting ``$1,000''; 
                and
                  (B) by striking ``$100,000'' and inserting 
                ``$200,000''; and
          (2) in paragraph (2), by striking ``$1,000,000'' and 
        inserting ``$2,000,000''.

SEC. 106. EXPORTATION OF GOODS BEARING INFRINGING MARKS.

  Title VII of the Trademark Act of 1946 (15 U.S.C. 1124) is amended--
          (1) in the title heading, by inserting after ``IMPORTATION'' 
        the following: ``OR EXPORTATION''; and
          (2) in section 42--
                  (A) by striking the word ``imported''; and
                  (B) by inserting after ``customhouse of the United 
                States'' the following: ``, nor shall any such article 
                be exported from the United States''.

SEC. 107. IMPORTATION AND EXPORTATION.

  (a) In General.--The heading for chapter 6 of title 17, United States 
Code, is amended to read as follows:

       ``CHAPTER 6--MANUFACTURING REQUIREMENTS, IMPORTATION, AND 
                             EXPORTATION''.

  (b) Amendment on Exportation.--Section 602(a) of title 17, United 
States Code, is amended--
          (1) by redesignating paragraphs (1) through (3) as 
        subparagraphs (A) through (C), respectively, and moving such 
        subparagraphs 2 ems to the right;
          (2) by striking ``(a)'' and inserting ``(a) Infringing 
        Importation and Exportation.--
          ``(1) Importation.--'';
          (3) by striking ``This subsection does not apply to--'' and 
        inserting the following:
          ``(2) Importation or exportation of infringing items.--
        Importation into the United States or exportation from the 
        United States, without the authority of the owner of copyright 
        under this title, of copies or phonorecords, the making of 
        which either constituted an infringement of copyright or would 
        have constituted an infringement of copyright if this title had 
        been applicable, is an infringement of the exclusive right to 
        distribute copies or phonorecords under section 106, actionable 
        under sections 501 and 506.
          ``(3) Exceptions.--This subsection does not apply to--'';
          (4) in paragraph (3)(A) (as redesignated by this subsection) 
        by inserting ``or exportation'' after ``importation''; and
          (5) in paragraph (3)(B) (as redesignated by this 
        subsection)--
                  (A) by striking ``importation, for the private use of 
                the importer'' and inserting ``importation or 
                exportation, for the private use of the importer or 
                exporter''; and
                  (B) by inserting ``or departing from the United 
                States'' after ``United States''.
  (c) Conforming Amendments.--(1) Section 602 of title 17, United 
States Code, is further amended--
          (A) in the section heading, by inserting ``or exportation'' 
        after ``importation''; and
          (B) in subsection (b)--
                  (i) by striking ``(b) In a case'' and inserting ``(b) 
                Import Prohibition.--In a case'';
                  (ii) by striking ``the United States Customs 
                Service'' and inserting ``U.S. Customs and Border 
                Protection''; and
                  (iii) by striking ``the Customs Service'' and 
                inserting ``U.S. Customs and Border Protection''.
  (2) Section 601(b)(2) of title 17, United States Code, is amended by 
striking ``the United States Customs Service'' and inserting ``U.S. 
Customs and Border Protection''.
  (3) The item relating to chapter 6 in the table of chapters for title 
17, United States Code, is amended to read as follows:

``6. Manufacturing Requirements, Importation, and Exportation ........ 
                                 601''.

     TITLE II--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

SEC. 201. CRIMINAL INFRINGEMENT OF A COPYRIGHT.

  Section 2319 of title 18, United States Code, is amended--
          (1) in subsection (b)(2)--
                  (A) by inserting ``is a felony and'' after 
                ``offense'' the first place such term appears; and
                  (B) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)'';
          (2) in subsection (c)(2)--
                  (A) by inserting ``is a felony and'' after 
                ``offense'' the first place such term appears; and
                  (B) by striking ``paragraph (1)'' and inserting 
                ``subsection (a)'';
          (3) in subsection (d)(3)--
                  (A) by inserting ``is a felony and'' after 
                ``offense'' the first place such term appears; and
                  (B) by inserting ``under subsection (a)'' before the 
                semicolon; and
          (4) in subsection (d)(4), by inserting ``is a felony and'' 
        after ``offense'' the first place such term appears.

SEC. 202. HARMONIZATION OF FORFEITURE PROCEDURES FOR INTELLECTUAL 
                    PROPERTY OFFENSES.

  (a) Trafficking in Counterfeit Labels.--Section 2318 of title 18, 
United States Code, is amended--
          (1) by amending subsection (d) to read as follows:
  ``(d) Forfeiture and Destruction; Restitution.--
          ``(1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  ``(i) Any counterfeit documentation or packaging, and 
                any counterfeit label or illicit label and any article 
                to which a counterfeit label or illicit label has been 
                affixed, which a counterfeit label or illicit label 
                encloses or accompanies, or which was intended to have 
                had such label affixed, enclosing, or accompanying.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                a violation of subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or facilitate the commission of a violation of 
                subsection (a) that is owned or predominantly 
                controlled by the violator or by a person conspiring 
                with or aiding and abetting the violator in committing 
                the violation, except that property is subject to 
                forfeiture under this clause only if the Government 
                establishes that there was a substantial connection 
                between the property and the violation of subsection 
                (a).
          ``(B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil forfeiture 
        under subparagraph (A). At the conclusion of the forfeiture 
        proceedings, the court shall order that any forfeited 
        counterfeit labels or illicit labels and any article to which a 
        counterfeit label or illicit label has been affixed, which a 
        counterfeit label or illicit label encloses or accompanies, or 
        which was intended to have had such label affixed, enclosing, 
        or accompanying, be destroyed or otherwise disposed of 
        according to law.
          ``(C) In this paragraph, the term `aiding and abetting' means 
        knowingly providing aid to the violator with the intent to 
        facilitate the violation.
          ``(2) Criminal forfeiture proceedings.--(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 the 
        following property:
                  ``(i) Any counterfeit documentation or packaging, and 
                any counterfeit label or illicit label, that was used, 
                intended for use, or possessed with intent to use in 
                the commission of an offense under subsection (a), and 
                any article to which such a counterfeit label or 
                illicit label has been affixed, which such a 
                counterfeit label or illicit label encloses or 
                accompanies, or which was intended to have had such 
                label affixed, enclosing, or accompanying.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                an offense under subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or substantially facilitate the commission of an 
                offense under subsection (a).
          ``(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. At the 
        conclusion of the forfeiture proceedings, the court shall order 
        that any counterfeit label or illicit label and any article to 
        which a counterfeit label or illicit label has been affixed, 
        which a counterfeit label or illicit label encloses or 
        accompanies, or which was intended to have had such label 
        affixed, enclosing, or accompanying, be destroyed or otherwise 
        disposed of according to law.
          ``(3) Restitution.--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 marks or copyrighted works involved in the 
        offense and any other victim of the offense as an offense 
        against property referred to in section 3663A(c)(1)(A)(ii).'';
          (2) by striking subsection (e); and
          (3) by redesignating subsection (f) as subsection (e).
  (b) Criminal Infringement of a Copyright.--
          (1) In general.--Section 2319 of title 18, United States 
        Code, is amended by adding at the end the following:
  ``(g) Forfeiture and Destruction; Restitution.--
          ``(1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  ``(i) Any copies or phonorecords manufactured, 
                reproduced, distributed, sold, or otherwise used, 
                intended for use, or possessed with intent to use in 
                violation of section 506(a) of title 17, any plates, 
                molds, matrices, masters, tapes, film negatives, or 
                other articles by means of which such copies or 
                phonorecords may be made, and any devices for 
                manufacturing, reproducing, or assembling such copies 
                or phonorecords.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                a violation of section 506(a) of title 17.
                  ``(iii) Any property used, or intended to be used, to 
                commit or facilitate the commission of a violation of 
                section 506(a) of title 17 that is owned or 
                predominantly controlled by the violator or by a person 
                conspiring with or aiding and abetting the violator in 
                committing the violation, except that property is 
                subject to forfeiture under this clause only if the 
                Government establishes that there was a substantial 
                connection between the property and the violation of 
                section 506(a) of title 17.
          ``(B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil forfeiture 
        under this section. At the conclusion of the forfeiture 
        proceedings, the court shall order that any forfeited 
        infringing copies or phonorecords, and any plates, molds, 
        matrices, masters, tapes, and film negatives by means of which 
        such unauthorized copies or phonorecords may be made, be 
        destroyed or otherwise disposed of according to law.
          ``(C) In this paragraph, the term `aiding and abetting' means 
        knowingly providing aid to the violator with the intent to 
        facilitate the violation.
          ``(2) Criminal forfeiture proceedings.--(A) The court, in 
        imposing sentence on a person convicted of an offense under 
        subsection (a), shall order, in addition to any other sentence 
        imposed, that the person forfeit to the United States the 
        following property:
                  ``(i) Any copies or phonorecords manufactured, 
                reproduced, distributed, sold, or otherwise used, 
                intended for use, or possessed with intent to use in 
                the commission of an offense under subsection (a), any 
                plates, molds, matrices, masters, tapes, film 
                negatives, or other articles by means of which the 
                copies or phonorecords may be reproduced, and any 
                electronic, mechanical, or other devices for 
                manufacturing, reproducing, or assembling such copies 
                or phonorecords.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                an offense under subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or substantially facilitate the commission of an 
                offense under subsection (a).
          ``(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. At the 
        conclusion of the forfeiture proceedings, the court shall order 
        that any forfeited infringing copies or phonorecords, and any 
        plates, molds, matrices, masters, tapes, and film negatives by 
        means of which such infringing copies or phonorecords may be 
        made, be destroyed or otherwise disposed of according to law.
          ``(3) Restitution.--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 copyright owner and any other victim of the offense as an 
        offense against property referred to in section 
        3663A(c)(1)(A)(ii).''.
          (2) Conforming amendments.--(A) Section 506(b) of title 17, 
        United States Code, is amended by striking all that follows 
        ``destruction'' and inserting the following: ``of property as 
        prescribed by section 2319(g) of title 18.''.
          (B) Section 509 of title 17, United States Code, relating 
        seizure and forfeiture, and the item relating to section 509 in 
        the table of sections at the beginning of chapter 5 of title 
        17, United States Code, are repealed.
  (c) Unauthorized Fixation and Trafficking.--
          (1) In general.--Section 2319A of title 18, United States 
        Code, is amended--
                  (A) by striking subsection (c) and redesignating 
                subsections (d), (e), and (f) as subsections (c), (d), 
                and (e), respectively; and
                  (B) by amending subsection (b) to read as follows:
  ``(b) Forfeiture and Destruction; Restitution.--
          ``(1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  ``(i) Any copies or phonorecords of a live musical 
                performance described in subsection (a)(1) that are 
                made without the consent of the performer or performers 
                involved, and any plates, molds, matrices, masters, 
                tapes, and film negatives by means of which such copies 
                or phonorecords may be made.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                a violation of subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or facilitate the commission of a violation of 
                subsection (a) that is owned or predominantly 
                controlled by the violator or by a person conspiring 
                with or aiding and abetting the violator in committing 
                the violation, except that property is subject to 
                forfeiture under this clause only if the Government 
                establishes that there was a substantial connection 
                between the property and the violation of subsection 
                (a).
          ``(B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil forfeiture 
        under paragraph (1). At the conclusion of the forfeiture 
        proceedings, the court shall order that any forfeited 
        unauthorized copies or phonorecords of live musical 
        performances, and any plates, molds, matrices, maters, tapes, 
        and film negatives by means of which such unauthorized copies 
        or phonorecords may be made, be destroyed or otherwise disposed 
        of according to law.
          ``(C) In this paragraph, the term `aiding and abetting' means 
        knowingly providing aid to the violator with the intent to 
        facilitate the violation.
          ``(2) Criminal forfeiture proceedings.--(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 the 
        following property:
                  ``(i) Any unauthorized copies or phonorecords of a 
                live musical performance that were used, intended for 
                use, or possessed with intent to use in the commission 
                of an offense under subsection (a), and any plates, 
                molds, matrices, masters, tapes, and film negatives by 
                means of which such copies or phonorecords may be made.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                an offense under subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or substantially facilitate the commission of an 
                offense under subsection (a).
          ``(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. At the 
        conclusion of the forfeiture proceedings, the court shall order 
        that any forfeited unauthorized copies or phonorecords of live 
        musical performances, and any plates, molds, matrices, masters, 
        tapes, and film negatives by means of which such unauthorized 
        copies of phonorecords may be made, be destroyed or otherwise 
        disposed of according to law.
          ``(3) Notification of importation.--The Secretary of Homeland 
        Security shall issue regulations by which any performer may, 
        upon payment of a specified fee, be entitled to notification by 
        U.S. Customs and Border Protection of the importation of copies 
        or phonorecords that appear to consist of unauthorized 
        fixations of the sounds or sounds and images of a live musical 
        performance prohibited by this section.
          ``(4) Restitution.--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 performer or performers involved, and any other victim of 
        the offense as an offense against property referred to in 
        section 3663A(c)(1)(A)(ii).''.
          (2) Applicability.--Section 2319A(e), as redesignated by 
        paragraph (1) of this subsection, is amended by inserting 
        before the period the following: ``, except that the forfeiture 
        provisions under subsection (b)(2), as added by the 
        Prioritizing Resources and Organization for Intellectual 
        Property Act, shall apply only in a case in which the 
        underlying act or acts occur on or after the date of the 
        enactment of that Act''.
  (d) Unauthorized Recording of Motion Pictures.--Section 2319B(b) of 
title 18, United States Code, is amended to read as follows:
  ``(b) Forfeiture and Destruction; Restitution.--
          ``(1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  ``(i) Any copies of a motion picture or other 
                audiovisual work protected under title 17 that are made 
                without the authorization of the copyright owner.
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                a violation of subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or facilitate the commission of a violation of 
                subsection (a) that is owned or predominantly 
                controlled by the violator or by a person conspiring 
                with or aiding and abetting the violator in committing 
                the violation, except that property is subject to 
                forfeiture under this clause only if the Government 
                establishes that there was a substantial connection 
                between the property and the violation of subsection 
                (a).
          ``(B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil forfeiture 
        under this section. At the conclusion of the forfeiture 
        proceedings, the court shall order that any forfeited 
        unauthorized copies or phonorecords of a motion picture or 
        other audiovisual work, or part thereof, and any plates, molds, 
        matrices, masters, tapes, and film negatives by means of which 
        such unauthorized copies or phonorecords may be made, be 
        destroyed or otherwise disposed of according to law.
          ``(C) In this paragraph, the term `aiding and abetting' means 
        knowingly providing aid to the violator with the intent to 
        facilitate the violation.
          ``(2) Criminal forfeiture proceedings.--(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 the 
        following property:
                  ``(i) Any unauthorized copies of a motion picture or 
                other audiovisual work protected under title 17, or 
                part thereof, that were used, intended for use, or 
                possessed with intent to use in the commission of an 
                offense under subsection (a).
                  ``(ii) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                an offense under subsection (a).
                  ``(iii) Any property used, or intended to be used, to 
                commit or substantially facilitate the commission of an 
                offense under subsection (a).
          ``(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. At the 
        conclusion of the forfeiture proceedings, the court shall order 
        that any forfeited unauthorized copies or phonorecords of a 
        motion picture or other audiovisual work, or part thereof, and 
        any plates, molds, matrices, masters, tapes, and film negatives 
        by means of which such unauthorized copies or phonorecords may 
        be made, be destroyed or otherwise disposed of according to 
        law.
          ``(3) Restitution.--When a person is convicted of an offense 
        under this chapter, the court, pursuant to sections 3556, 
        3663A, and 3664, shall order the person to pay restitution to 
        the owner of the copyright in the motion picture or other 
        audiovisual work and any other victim of the offense as an 
        offense against property referred to in section 
        3663A(c)(1)(A)(ii).''.
  (e) Applicability.--The amendments made by this section shall apply 
only in a case in which the underlying act or acts occur on or after 
the date of the enactment of this Act.

SEC. 203. DIRECTIVE TO UNITED STATES SENTENCING COMMISSION.

  (a) Review and Amendment.--The United States Sentencing Commission, 
pursuant to its authority under section 994 of title 28, United States 
Code, shall review and, if appropriate, amend the Federal sentencing 
guidelines and policy statements applicable in any case sentenced under 
section 2B5.3 of the Federal sentencing guidelines for exporting 
infringing items in violation of section 602(a)(2) of title 17, United 
States Code, to determine whether a defendant in such case should 
receive an upward adjustment in the offense level, on the grounds that 
exportation introduces infringing items into the stream of foreign 
commerce in a manner analogous to the manner in which manufacturing, 
importing, and uploading such items introduces them into the stream of 
commerce.
  (b) Authorization.--The United States Sentencing Commission may amend 
the Federal sentencing guidelines under subsection (a) 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.

SEC. 204. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.

  (a) In General.--Section 2320 of title 18, United States Code, is 
amended--
          (1) in subsection (a)--
                  (A) by striking ``Whoever'' and inserting 
                ``Offense.--
          ``(1) In general.--Whoever'';
                  (B) by moving the remaining text 2 ems to the right; 
                and
                  (C) by adding at the end the following:
          ``(2) Serious bodily harm or death.--
                  ``(A) Serious bodily harm.--If the offender knowingly 
                or recklessly causes or attempts to cause serious 
                bodily injury from conduct in violation of paragraph 
                (1), the penalty shall be a fine under this title or 
                imprisonment for not more than 20 years, or both.
                  ``(B) Death.--If the offender knowingly or recklessly 
                causes or attempts to cause death from conduct in 
                violation of paragraph (1), the penalty shall be a fine 
                under this title or imprisonment for any term of years 
                or for life, or both.''; and
          (2) in subsection (b)(l)--
                  (A) by redesignating subparagraph (B) as subparagraph 
                (C); and
                  (B) by inserting after subparagraph (A) the 
                following:
                  ``(B) Any property constituting or derived from any 
                proceeds obtained directly or indirectly as a result of 
                a violation of subsection (a).''.

   TITLE III--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT 
                   AGAINST COUNTERFEITING AND PIRACY

     Subtitle A--Office of the United States Intellectual Property 
                       Enforcement Representative

SEC. 301. OFFICE OF THE UNITED STATES INTELLECTUAL PROPERTY ENFORCEMENT 
                    REPRESENTATIVE.

  (a) Establishment Within Executive Office of the President.--There is 
established within the Executive Office of the President the Office of 
the United States Intellectual Property Enforcement Representative (in 
this title referred to as ``the Office'').
  (b) United States Intellectual Property Enforcement Representative.--
The head of the Office shall be the United States Intellectual Property 
Enforcement Representative (in this title referred to as the ``IP 
Enforcement Representative'') who shall be appointed by the President, 
by and with the advice and consent of the Senate. As an exercise of the 
rulemaking power of the Senate, any nomination of the IP Enforcement 
Representative submitted to the Senate for confirmation, and referred 
to a committee, shall be referred to the Committee on the Judiciary.
  (c) Duties of IP Enforcement Representative.--
          (1) In general.--The IP Enforcement Representative shall--
                  (A) have primary responsibility for developing the 
                Joint Strategic Plan against counterfeiting and piracy 
                under section 321 and facilitating the implementation 
                of the Joint Strategic Plan by the departments and 
                agencies listed in subsection (d)(2)(A);
                  (B) serve as a principal advisor to the President on 
                domestic and international intellectual property 
                enforcement policy;
                  (C) assist the United States Trade Representative--
                          (i) concerning negotiations on behalf of the 
                        United States relating to international 
                        intellectual property enforcement, including 
                        negotiations on any intellectual property 
                        enforcement matter considered under the 
                        auspices of the World Trade Organization or in 
                        the course of commodity or direct investment 
                        negotiations in which the United States 
                        participates; and
                          (ii) in the programs of the United States 
                        Trade Representative to monitor and enforce 
                        intellectual property enforcement obligations 
                        of other countries under trade agreements with 
                        the United States;
                  (D) coordinate the issuance of policy guidance to 
                departments and agencies on basic issues of policy and 
                interpretation that arise in the exercise of domestic 
                and international intellectual property enforcement 
                functions, to the extent necessary to assure the 
                coordination of intellectual property enforcement 
                policy and consistency with any other law;
                  (E) act as a principal spokesperson of the President 
                on domestic and international intellectual property 
                enforcement matters;
                  (F) report directly to the President and the Congress 
                regarding domestic and international intellectual 
                property enforcement programs;
                  (G) advise the President and the Congress with 
                respect to domestic and international intellectual 
                property enforcement challenges and priorities;
                  (H) report to the Congress, as provided in section 
                322, on the implementation of the Joint Strategic Plan, 
                and make recommendations to the Congress for 
                improvements in Federal intellectual property 
                enforcement efforts;
                  (I) chair the interagency intellectual property 
                enforcement advisory committee established under 
                subsection (d)(2), and consult with such advisory 
                committee in the performance of the functions of the IP 
                Enforcement Representative; and
                  (J) carry out such other functions as the President 
                may direct.
          (2) Sense of congress.--It is the sense of the Congress that 
        the IP Enforcement Representative should--
                  (A) be a senior representative on any body that the 
                President may establish for the purpose of providing to 
                the President advice on overall policies in which 
                intellectual property enforcement matters predominate; 
                and
                  (B) be included as a participant in economic summit 
                and other international meetings at which international 
                intellectual property enforcement is a significant 
                topic.
          (3) Delegation.--The IP Enforcement Representative may--
                  (A) delegate any of the IP Enforcement 
                Representative's functions, powers, and duties to such 
                officers and employees of the Office as the IP 
                Enforcement Representative may designate; and
                  (B) authorize such successive redelegations of such 
                functions, powers, and duties to such officers and 
                employees of the Office as the IP Enforcement 
                Representative considers appropriate.
  (d) Coordination of Intellectual Property Enforcement Actions.--
          (1) In general.--In carrying out the functions of the IP 
        Enforcement Representative, the IP Enforcement Representative 
        shall develop recommendations on the allocation of Federal 
        resources for intellectual property enforcement.
          (2) Advisory committee.--
                  (A) Establishment.--There is established an 
                interagency intellectual property enforcement advisory 
                committee composed of the IP Enforcement 
                Representative, who shall chair the committee, and 
                senior representatives of the following departments and 
                agencies who are involved in intellectual property 
                enforcement, and are appointed by the respective heads 
                of those departments and agencies:
                          (i) The Department of Justice (including the 
                        Intellectual Property Enforcement Officer 
                        appointed under section 501).
                          (ii) The United States Patent and Trademark 
                        Office and other relevant units of the 
                        Department of Commerce.
                          (iii) The Office of the United States Trade 
                        Representative.
                          (iv) The Department of State (including the 
                        United States Agency for International 
                        Development and the Bureau of International 
                        Narcotics Law Enforcement).
                          (v) The Department of Homeland Security 
                        (including U.S. Customs and Border Protection 
                        and U.S. Immigration and Customs Enforcement).
                          (vi) The United States International Trade 
                        Commission.
                          (vii) The Food and Drug Administration of the 
                        Department of Health and Human Services.
                          (viii) The United States Copyright Office.
                          (ix) Such other agencies as the IP 
                        Enforcement Representative determines to be 
                        substantially involved in the efforts of the 
                        Federal Government to combat counterfeiting and 
                        piracy.
                  (B) Functions.--The advisory committee established 
                under subparagraph (A) shall, under the guidance of the 
                IP Enforcement Representative, develop the Joint 
                Strategic Plan against counterfeiting and piracy under 
                section 321.
          (3) Exemption from federal advisory committee act.--The 
        Federal Advisory Committee Act shall not apply to the 
        interagency intellectual property enforcement advisory 
        committee established under paragraph (2) or to any of the 
        activities conducted by the IP Enforcement Representative in 
        developing the Joint Strategic Plan under section 321.
  (e) Identification of Countries That Deny Adequate Protection of 
Intellectual Property Rights.--Section 182(b)(2)(A) of the Trade Act of 
1974 (19 U.S.C. 2242(b)(2)(A)) is amended by inserting ``the United 
States Intellectual Property Enforcement Representative,'' after 
``consult with''.
  (f) Powers of IP Enforcement Representative.--In carrying out the 
responsibilities under this title, the IP Enforcement Representative 
may--
          (1) select, appoint, employ, and fix the compensation of such 
        officers and employees as may be necessary to carry out those 
        responsibilities;
          (2) request the head of a department, agency, or program of 
        the Federal Government to place personnel of such department, 
        agency, or program who are engaged in intellectual property 
        enforcement activities on temporary detail to the Office of the 
        IP Enforcement Representative to assist in carrying out those 
        responsibilities;
          (3) use, with the consent of the Federal, State, and local 
        government agencies concerned, the available services, 
        equipment, personnel, and facilities of such Federal, State, 
        and local government agencies;
          (4) procure the services of experts and consultants in 
        accordance with section 3109 of title 5, United States Code, 
        relating to the procurement of temporary and intermittent 
        services, at rates of compensation for individuals not to 
        exceed the daily equivalent of the rate of pay payable under 
        level IV of the Executive Schedule under section 5315 of title 
        5, United States Code, and while such experts and consultants 
        are so serving away from their homes or regular place of 
        business, pay such employees travel expenses and per diem in 
        lieu of subsistence at rates authorized by section 5703 of 
        title 5, United States Code, for persons in Government service 
        employed intermittently;
          (5) issue such regulations as may be necessary to carry out 
        the functions vested in the IP Enforcement Representative;
          (6) enter into and perform such contracts, leases, 
        cooperative agreements, or other transactions as may be 
        necessary in the conduct of the work of the Office and on such 
        terms as the IP Enforcement Representative considers 
        appropriate, with any department, agency, or instrumentality of 
        the United States, or with any public or private person, firm, 
        association, corporation, or institution;
          (7) accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 1342 of title 31, 
        United States Code;
          (8) adopt an official seal, which shall be judicially 
        noticed; and
          (9) accept, hold, administer, and use gifts, devises, and 
        bequests of property, both real and personal, for the purpose 
        of aiding or facilitating the work of the Office.
  (g) Compensation.--Section 5312 of title 5, United States Code, is 
amended by adding at the end the following:
          ``United States Intellectual Property Enforcement 
        Representative.''.

SEC. 302. DEFINITION.

  For purposes of this title, the term ``intellectual property 
enforcement'' means matters relating to the enforcement of laws 
protecting copyrights, patents, trademarks, other forms of intellectual 
property, and trade secrets, both in the United States and abroad, 
including in particular matters relating to combating counterfeit and 
pirated goods.

                    Subtitle B--Joint Strategic Plan

SEC. 321. JOINT STRATEGIC PLAN.

  (a) Purpose.--The objectives of the Joint Strategic Plan against 
counterfeiting and piracy that is referred to in section 301(c)(1)(A) 
(in this section referred to as the ``joint strategic plan'') are the 
following:
          (1) Reducing counterfeit and pirated goods in the domestic 
        and international supply chain.
          (2) Identifying and addressing structural weaknesses, 
        systemic flaws, or other unjustified impediments to effective 
        enforcement action against the financing, production, 
        trafficking, or sale of counterfeit or pirated goods.
          (3) Assuring that information is identified and shared among 
        the relevant departments and agencies, to the extent permitted 
        by law and consistent with law enforcement protocols for 
        handling information, to aid in the objective of arresting and 
        prosecuting individuals and entities that are knowingly 
        involved in the financing, production, trafficking, or sale of 
        counterfeit or pirated goods.
          (4) Disrupting and eliminating domestic and international 
        counterfeiting and piracy networks.
          (5) Strengthening the capacity of other countries to protect 
        and enforce intellectual property rights, and reducing the 
        number of countries that fail to enforce laws preventing the 
        financing, production, trafficking, and sale of counterfeit and 
        pirated goods.
          (6) Working with other countries to establish international 
        standards and policies for the effective protection and 
        enforcement of intellectual property rights.
          (7) Protecting intellectual property rights overseas by--
                  (A) working with other countries to ensure that such 
                countries--
                          (i) have adequate and effective laws 
                        protecting copyrights, trademarks, patents, and 
                        other forms of intellectual property;
                          (ii) have legal regimes that enforce their 
                        own domestic intellectual property laws, 
                        eliminate counterfeit and piracy operations, 
                        and arrest and prosecute those who commit 
                        intellectual property crimes;
                          (iii) provide their law enforcement officials 
                        with the authority to seize, inspect, and 
                        destroy pirated and counterfeit goods, 
                        including at ports of entry; and
                          (iv) provide for the seizure of property used 
                        to produce pirated and counterfeit goods;
                  (B) exchanging information with appropriate law 
                enforcement agencies in other countries relating to 
                individuals and entities involved in the financing, 
                production, trafficking, or sale of pirated or 
                counterfeit goods;
                  (C) using the information described in subparagraph 
                (B) to conduct enforcement activities in cooperation 
                with appropriate law enforcement agencies in other 
                countries; and
                  (D) building a formal process for consulting with 
                companies, industry associations, labor unions, and 
                other interested groups in other countries with respect 
                to intellectual property enforcement.
  (b) Timing.--Not later than 12 months after the date of the enactment 
of this Act, and not later than December 31 of every third year 
thereafter, the IP Enforcement Representative shall submit the joint 
strategic plan to the President, to the Committee on the Judiciary and 
the Committee on Appropriations of the House of Representatives, and to 
the Committee on the Judiciary and the Committee on Appropriations of 
the Senate.
  (c) Responsibility of the IP Enforcement Representative.--During the 
development of the joint strategic plan, the IP Enforcement 
Representative--
          (1) shall consult and coordinate with the appropriate 
        officers and employees of departments and agencies represented 
        on the advisory committee appointed under section 301(d)(2) who 
        are involved in intellectual property enforcement; and
          (2) may consult with private sector experts in intellectual 
        property enforcement.
  (d) Responsibilities of Other Departments and Agencies.--To assist in 
the development and implementation of the joint strategic plan, the 
heads of the departments and agencies identified under section 
301(d)(2)(A) (including the heads of any other agencies identified by 
the IP Enforcement Representative under section 301(d)(2)(A)(ix)) 
shall--
          (1) designate personnel with expertise and experience in 
        intellectual property enforcement matters to work with the IP 
        Enforcement Representative; and
          (2) share relevant department or agency information with the 
        IP Enforcement Representative, including statistical 
        information on the enforcement activities of the department or 
        agency against counterfeiting or piracy, and plans for 
        addressing the joint strategic plan.
  (e) Contents of the Joint Strategic Plan.--Each joint strategic plan 
shall include the following:
          (1) A detailed description of the priorities identified for 
        carrying out the objectives in the joint strategic plan, 
        including activities of the Federal Government relating to 
        intellectual property enforcement.
          (2) A detailed description of the means and methods to be 
        employed to achieve the priorities, including the means and 
        methods for improving the efficiency and effectiveness of the 
        Federal Government's enforcement efforts against counterfeiting 
        and piracy.
          (3) Estimates of the resources necessary to fulfill the 
        priorities identified under paragraph (1).
          (4) The performance measures to be used to monitor results 
        under the joint strategic plan during the following year.
          (5) An analysis of the threat posed by violations of 
        intellectual property rights, including targets, risks, and 
        threats of intellectual property infringement, the costs to the 
        economy of the United States resulting from violations of 
        intellectual property laws, and the threats to public health 
        and safety created by counterfeiting and piracy.
          (6) An identification of the departments and agencies that 
        will be involved in implementing each priority under paragraph 
        (1).
          (7) A strategy for ensuring coordination between the IP 
        Enforcement Representative and the departments and agencies 
        identified under paragraph (6), including a process for 
        oversight by the executive branch of, and accountability among, 
        the departments and agencies responsible for carrying out the 
        strategy.
          (8) Such other information as is necessary to convey the 
        costs imposed on the United States economy by, and the threats 
        to public health and safety created by, counterfeiting and 
        piracy, and those steps that the Federal Government intends to 
        take over the period covered by the succeeding joint strategic 
        plan to reduce those costs and counter those threats.
  (f) Enhancing Enforcement Efforts of Foreign Governments.--The joint 
strategic plan shall include programs to provide training and technical 
assistance to foreign governments for the purpose of enhancing the 
efforts of such governments to enforce laws against counterfeiting and 
piracy. With respect to such programs, the joint strategic plan shall--
          (1) seek to enhance the efficiency and consistency with which 
        Federal resources are expended, and seek to minimize 
        duplication, overlap, or inconsistency of efforts;
          (2) identify and give priority to those countries where 
        programs of training and technical assistance can be carried 
        out most effectively and with the greatest benefit to reducing 
        counterfeit and pirated products in the United States market, 
        to protecting the intellectual property rights of United States 
        persons and their licensees, and to protecting the interests of 
        United States persons otherwise harmed by violations of 
        intellectual property rights in those countries;
          (3) in identifying the priorities under paragraph (2), be 
        guided by the list of countries identified by the United States 
        Trade Representative under section 182(a) of the Trade Act of 
        1974 (19 U.S.C. 2242(a)); and
          (4) develop metrics to measure the effectiveness of the 
        Federal Government's efforts to improve the laws and 
        enforcement practices of foreign governments against 
        counterfeiting and piracy.
  (g) Dissemination of the Joint Strategic Plan.--The joint strategic 
plan shall be posted for public access on the website of the White 
House, and shall be disseminated to the public through such other means 
as the IP Enforcement Representative may identify.

SEC. 322. REPORTING.

  (a) Annual Report.--Not later than December 31 of each calendar year 
beginning in 2009, the IP Enforcement Representative shall submit a 
report on the activities of the Office during the preceding fiscal 
year. The annual report shall be submitted to the President and the 
Congress, and disseminated to the people of the United States, in the 
manner specified in subsections (b) and (g) of section 321.
  (b) Contents.--The report required by this section shall include the 
following:
          (1) The progress made on implementing the strategic plan and 
        on the progress toward fulfillment of the priorities identified 
        under section 321(e), including an analysis of the performance 
        measures used to monitor results described in section 
        321(e)(4).
          (2) The progress made in efforts to encourage Federal, State, 
        and local government departments and agencies to accord higher 
        priority to intellectual property enforcement.
          (3) The progress made in working with foreign countries to 
        investigate, arrest, and prosecute entities and individuals 
        involved in the financing, production, trafficking, and sale of 
        counterfeit and pirated goods.
          (4) The manner in which the relevant departments and agencies 
        are working together and sharing information to strengthen 
        intellectual property enforcement.
          (5) An assessment of the successes and shortcomings of the 
        efforts of the Federal Government, including departments and 
        agencies represented on the committee established under section 
        301(d)(2)(A), in fulfilling the priorities identified in the 
        applicable joint strategic plan during the preceding fiscal 
        year and in implementing the recommendations developed under 
        section 301(d)(1).
          (6) Recommendations for any changes in enforcement statutes, 
        regulations, or funding levels that the IP Representative 
        considers would significantly improve the effectiveness or 
        efficiency of the effort of the Federal Government to combat 
        counterfeiting and piracy and otherwise strengthen intellectual 
        property enforcement, including through the elimination or 
        consolidation of duplicative programs or initiatives.
          (7) The progress made in strengthening the capacity of 
        countries to protect and enforce intellectual property rights.
          (8) The successes and challenges in sharing with other 
        countries information relating to intellectual property 
        enforcement.
          (9) The progress of the United States Trade Representative in 
        taking the appropriate action under any trade agreement or 
        treaty to protect intellectual property rights of United States 
        persons and their licensees.

SEC. 323. SAVINGS AND REPEALS.

  (a) Repeal of Coordination Council.--Section 653 of the Treasury and 
General Government Appropriations Act, 2000 (15 U.S.C. 1128) is 
repealed.
  (b) Current Authorities Not Affected.--Except as provided in 
subsection (a), nothing in this title shall alter the authority of any 
department or agency of the United States (including any independent 
agency) relating to--
          (1) investigating and prosecuting violations of laws 
        protecting intellectual property rights;
          (2) administratively enforcing, at the borders of the United 
        States, laws protecting intellectual property rights; or
          (3) international trade or the United States trade agreements 
        program.
  (c) Register of Copyrights.--Nothing in this title shall derogate 
from the duties and functions of the Register of Copyrights.

SEC. 324. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated for each 
fiscal year such sums as may be necessary to carry out this title.
  (b) Submission of Projected Budget.--By not later than the date on 
which the President submits to the Congress the budget of the United 
States Government for a fiscal year, the IP Representative shall submit 
to the Committees on the Judiciary of the House of Representatives and 
the Senate the projected amount of funds for the succeeding fiscal year 
that will be necessary for the Office to carry out its functions.

          TITLE IV--INTERNATIONAL ENFORCEMENT AND COORDINATION

SEC. 401. INTELLECTUAL PROPERTY ATTACHES.

  The Under Secretary of Commerce for Intellectual Property and 
Director of the United States Patent and Trademark Office (in this 
title referred to as the ``Director''), in consultation with the 
Director General of the United States and Foreign Commercial Service, 
shall, within 2 years after the date of the enactment of this Act, 
appoint at least 10 intellectual property attaches to serve in United 
States embassies or other diplomatic missions. The appointments under 
this section shall be in addition to those individuals serving in the 
capacity of intellectual property attaches at United States embassies 
or other diplomatic missions on the date of the enactment of this Act. 
The Director shall provide such managerial, administrative, research, 
and other services as the Secretary of Commerce considers necessary to 
assist the intellectual property attaches in carrying out their 
responsibilities.

SEC. 402. DUTIES AND RESPONSIBILITIES OF INTELLECTUAL PROPERTY 
                    ATTACHES.

  The intellectual property attaches appointed under section 401, as 
well as others serving as intellectual property attaches of the 
Department of Commerce, shall have the following responsibilities:
          (1) To promote cooperation with foreign governments in the 
        enforcement of intellectual property laws generally, and in the 
        enforcement of laws against counterfeiting and piracy in 
        particular.
          (2) To assist United States persons holding intellectual 
        property rights, and the licensees of such United States 
        persons, in their efforts to combat counterfeiting and piracy 
        of their products or works within the host country, including 
        counterfeit or pirated goods exported from or transshipped 
        through that country.
          (3) To chair an intellectual property protection task force 
        consisting of representatives from all other relevant sections 
        or bureaus of the embassy or other mission.
          (4) To coordinate with representatives of the embassies or 
        missions of other countries in information sharing, private or 
        public communications with the government of the host country, 
        and other forms of cooperation for the purpose of improving 
        enforcement against counterfeiting and piracy.
          (5) As appropriate and in accordance with applicable laws and 
        the diplomatic status of the attaches, to engage in public 
        education efforts against counterfeiting and piracy in the host 
        country.
          (6) To coordinate training and technical assistance programs 
        of the United States Government within the host country that 
        are aimed at improving the enforcement of laws against 
        counterfeiting and piracy.
          (7) To assist in the coordination of the efforts of the 
        United States Intellectual Property Enforcement Representative, 
        Federal agencies, and private organizations engaged in the 
        promotion of United States intellectual property interests 
        abroad so as to maximize their effectiveness and minimize 
        duplicative efforts.
          (8) To identify and promote other means to more effectively 
        combat counterfeiting and piracy activities under the 
        jurisdiction of the host country.

SEC. 403. TRAINING AND DESIGNATION OF ASSIGNMENT.

  (a) Training of Attaches.--The Director shall ensure that each 
attache appointed under section 401 is fully trained for the 
responsibilities of the position before assuming duties at the United 
States embassy or other mission in question.
  (b) Priority Assignments.--In designating the embassies or other 
missions to which attaches are assigned, the Director shall give 
priority to those countries where the activities of an attache can be 
carried out most effectively and with the greatest benefit to reducing 
counterfeit and pirated products in the United States market, to 
protecting the intellectual property rights of United States persons 
and their licensees, or to protecting the interests of United States 
persons otherwise harmed by violations of intellectual property rights 
in those countries.

SEC. 404. COORDINATION.

  (a) In General.--The activities authorized by this title shall be 
carried out in coordination with the United States Intellectual 
Property Enforcement Representative appointed under section 301.
  (b) Report on Attaches.--The Inspector General of the Department of 
Commerce shall perform yearly audits of the intellectual property 
attaches of the Department, and shall report to the Committees on the 
Judiciary of the House of Representatives and the Senate the results of 
each such audit. In addition to an overview of the activities and 
effectiveness of the intellectual property attache operations, the 
audit shall include--
          (1) an evaluation of the current placement of foreign-based 
        personnel and recommendations for transferring such personnel 
        in response to newly emerging intellectual property issues 
        abroad; and
          (2) an evaluation of the personnel system and its management, 
        including the recruitment, assignment, promotion, and 
        performance appraisal of personnel, and the use of limited 
        appointees.

SEC. 405. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for each fiscal year such 
sums as may be necessary for the training and support of the 
intellectual property attaches appointed under section 401 and of other 
individuals serving as intellectual property attaches of the Department 
of Commerce.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

                        Subtitle A--Coordination

SEC. 501. INTELLECTUAL PROPERTY ENFORCEMENT OFFICER.

  (a) Establishment.--There is established within the Office of the 
Deputy Attorney General in the Department of Justice the ``Intellectual 
Property Enforcement Division''. The head of the Intellectual Property 
Enforcement Division shall be the Intellectual Property Enforcement 
Officer (in this title referred to as the ``IP Officer''). The IP 
Officer shall be appointed by the Attorney General and shall report 
directly to the Deputy Attorney General.
  (b) Duties.--The IP Officer shall--
          (1) coordinate all efforts of the Department of Justice 
        relating to the enforcement of intellectual property rights and 
        to combating counterfeiting and piracy;
          (2) serve as the lead representative of the Department of 
        Justice on the advisory committee provided for in section 
        301(d)(2) and as the liaison of the Department of Justice with 
        foreign governments with respect to training conducted under 
        section 522; and
          (3) carry out such other related duties that may be assigned 
        by the Deputy Attorney General.
  (c) Transfer of Functions.--
          (1) Criminal intellectual property enforcement.--There are 
        transferred to the Intellectual Property Enforcement Division 
        those functions of the Computer Crime and Intellectual Property 
        Section of the Criminal Division of the Department of Justice 
        that relate to the enforcement of criminal laws relating to the 
        protection of intellectual property rights and trade secrets, 
        including the following:
                  (A) Sections 506 and 1204 of title 17, United States 
                Code.
                  (B) Sections 2318 through 2320 of title 18, United 
                States Code.
                  (C) Sections 1831 and 1832 of title 18, United States 
                Code.
                  (D) Any other provision of law, including the 
                following, to the extent such provision involves the 
                enforcement of any provision of law referred to in 
                subparagraphs (A) through (C) or comparable provision 
                of law:
                          (i) Section 1341 of title 18, United States 
                        Code, relating to frauds and swindles.
                          (ii) Section 1343 of title 18, United States 
                        Code, relating to fraud by wire, radio, or 
                        television.
                          (iii) Section 2512 of title 18, United States 
                        Code, relating to trafficking in interception 
                        devices.
                          (iv) Section 633 of the Communications Act of 
                        1934 (47 U.S.C. 553), relating to the 
                        unauthorized reception of cable service.
                          (v) Section 705 of the Communications Act of 
                        1934 (47 U.S.C. 605), relating to the 
                        unauthorized publication or use of 
                        communications.
          (2) Intellectual property enforcement coordinators.--The 
        Intellectual Property Law Enforcement Coordinators of the 
        Department of Justice to whom section 521 applies shall also be 
        in the Intellectual Property Enforcement Division.

                 Subtitle B--Law Enforcement Resources

SEC. 511. LOCAL LAW ENFORCEMENT GRANTS.

  (a) Authorization.--Section 2 of the Computer Crime Enforcement Act 
(42 U.S.C. 3713) is amended--
          (1) in subsection (b), by inserting after ``computer crime'' 
        each place it appears the following: ``, including infringement 
        of copyrighted works over the Internet''; and
          (2) in subsection (e)(1), relating to authorization of 
        appropriations, by striking ``fiscal years 2001 through 2004'' 
        and inserting ``fiscal years 2009 through 2013''.
  (b) Grants.--The Office of Justice Programs of the Department of 
Justice shall make grants to eligible State or local law enforcement 
entities, including law enforcement agencies of municipal governments 
and public educational institutions, for training, prevention, 
enforcement, and prosecution of intellectual property theft and 
infringement crimes (in this subsection referred to as ``IP-TIC 
grants''), in accordance with the following:
          (1) Use of ip-tic grant amounts.--IP-TIC grants may be used 
        to establish and develop programs to do the following with 
        respect to the enforcement of State and local true name and 
        address laws and State and local criminal laws on anti-piracy, 
        anti-counterfeiting, and unlawful acts with respect to goods by 
        reason of their protection by a patent, trademark, service 
        mark, trade secret, or other intellectual property right under 
        State or Federal law:
                  (A) Assist State and local law enforcement agencies 
                in enforcing those laws, including by reimbursing State 
                and local entities for expenses incurred in performing 
                enforcement operations, such as overtime payments and 
                storage fees for seized evidence.
                  (B) Assist State and local law enforcement agencies 
                in educating the public to prevent, deter, and identify 
                violations of those laws.
                  (C) Educate and train State and local law enforcement 
                officers and prosecutors to conduct investigations and 
                forensic analyses of evidence and prosecutions in 
                matters involving those laws.
                  (D) Establish task forces that include personnel from 
                State or local law enforcement entities, or both, 
                exclusively to conduct investigations and forensic 
                analyses of evidence and prosecutions in matters 
                involving those laws.
                  (E) Assist State and local law enforcement officers 
                and prosecutors in acquiring computer and other 
                equipment to conduct investigations and forensic 
                analyses of evidence in matters involving those laws.
                  (F) Facilitate and promote the sharing, with State 
                and local law enforcement officers and prosecutors, of 
                the expertise and information of Federal law 
                enforcement agencies about the investigation, analysis, 
                and prosecution of matters involving those laws and 
                criminal infringement of copyrighted works, including 
                the use of multi-jurisdictional task forces.
          (2) Eligibility.--To be eligible to receive an IP-TIC grant, 
        a State or local government entity must provide to the Attorney 
        General--
                  (A) assurances that the State in which the government 
                entity is located has in effect laws described in 
                paragraph (1);
                  (B) an assessment of the resource needs of the State 
                or local government entity applying for the grant, 
                including information on the need for reimbursements of 
                base salaries and overtime costs, storage fees, and 
                other expenditures to improve the investigation, 
                prevention, or enforcement of laws described in 
                paragraph (1); and
                  (C) a plan for coordinating the programs funded under 
                this section with other federally funded technical 
                assistance and training programs, including directly 
                funded local programs such as the Edward Byrne Memorial 
                Justice Assistance Grant Program authorized by subpart 
                1 of part E of title I of the Omnibus Crime Control and 
                Safe Streets Act of 1968 (42 U.S.C. 3750 et seq.).
          (3) Matching funds.--The Federal share of an IP-TIC grant may 
        not exceed 90 percent of the costs of the program or proposal 
        funded by the IP-TIC grant, unless the Attorney General waives, 
        in whole or in part, the 90 percent requirement.
          (4) Authorization of appropriations.--
                  (A) Authorization.--There is authorized to be 
                appropriated to carry out this subsection the sum of 
                $25,000,000 for each of fiscal years 2008 through 2012.
                  (B) Limitation.--Of the amount made available to 
                carry out this subsection in any fiscal year, not more 
                than 3 percent may be used by the Attorney General for 
                salaries and administrative expenses.

SEC. 512. CHIP UNITS, TRAINING, AND ADDITIONAL RESOURCES.

  (a) Evaluation of CHIP Units.--The Attorney General shall review the 
allocation and activities of the Computer Hacking and Intellectual 
Property (in this section referred to as ``CHIP'') units that have been 
established in various Federal judicial districts, with the goals of--
          (1) improving the effectiveness of CHIP units in 
        investigating and prosecuting criminal offenses arising from 
        counterfeiting or piracy activities;
          (2) ensuring that CHIP units are established and funded in 
        every judicial district in which they can be effectively 
        deployed;
          (3) upgrading the training and expertise of Department of 
        Justice personnel participating in CHIP units; and
          (4) improving the coordination of the activities of CHIP 
        units with corresponding efforts of State and local law 
        enforcement agencies operating within the Federal judicial 
        district in question.
  (b) Requirements.--In addition to any initiatives undertaken as a 
result of the review conducted under subsection (a), the Attorney 
General, in consultation with the Director of the Federal Bureau of 
Investigation, shall ensure that--
          (1) each CHIP unit is supported by at least 2 additional 
        agents of the Federal Bureau of Investigation for the purpose 
        of investigating intellectual property crimes;
          (2) each CHIP unit is assigned at least 1 additional 
        assistant United States attorney to support such unit for the 
        purpose of prosecuting intellectual property crimes or other 
        crimes involved in counterfeiting or piracy activities;
          (3) CHIP units are established and staffed in at least 10 
        Federal judicial districts in addition to those districts in 
        which CHIP units exist on the date of the enactment of this 
        Act; and
          (4) an operational unit is created consisting of not less 
        than 5 agents of the Federal Bureau of Investigation, attached 
        to the headquarters of the Federal Bureau of Investigation in 
        Washington, D.C., and dedicated to working with the 
        Intellectual Property Enforcement Division established by 
        section 501 on the development, investigation, and coordination 
        of complex, multi-district, and international criminal 
        intellectual property cases.
  (c) Coordination With State and Local Authorities.--The United States 
attorney for each Federal judicial district in which a CHIP unit is in 
operation shall ensure that the activities of that unit are coordinated 
with the corresponding activities of State and local law enforcement 
agencies operating within that Federal judicial district in the 
investigation of intellectual property crimes and other crimes involved 
in counterfeiting or piracy, including by coordinating Federal, State, 
and local operations and intelligence sharing to the extent 
appropriate.
  (d) Additional Responsibilities of the Attorney General.--The 
Attorney General, in consultation with the Director of the Federal 
Bureau of Investigation as appropriate, shall ensure the following:
          (1) All assistant United States attorneys who are assigned to 
        CHIP units, and all agents of the Federal Bureau of 
        Investigation who support those units, have received advanced 
        training, on an annual basis, in the investigation and 
        prosecution of intellectual property crimes and other crimes 
        involved in counterfeiting and piracy.
          (2) All relevant units of the Department of Justice are 
        allocated sufficient funding and other resources as may be 
        necessary to provide expert computer forensic assistance, 
        including from nongovernmental entities, in investigating and 
        prosecuting intellectual property crimes in a timely manner. 
        For purposes of this paragraph, the term ``all relevant units'' 
        includes those officers and employees assigned to carry out the 
        functions transferred by section 501(c)(1), CHIP units, offices 
        of the United States attorneys, and units of the Federal Bureau 
        of Investigation that are engaged in the investigation of 
        intellectual property crimes.

SEC. 513. TRANSPARENCY OF PROSECUTORIAL DECISIONMAKING.

  (a) In General.--The Attorney General shall direct each United States 
attorney--
          (1) to review the formal or informal standards currently in 
        effect in that Federal judicial district for accepting or 
        declining prosecution of cases involving criminal violations of 
        intellectual property laws;
          (2) to consider whether the standards should be modified or 
        applied more flexibly--
                  (A) to ensure that significant violations are not 
                being declined for prosecution inappropriately; or
                  (B) in light of the broader impact of individual 
                cases on the overall strategy to combat counterfeiting 
                and piracy; and
          (3) to review the practices and procedures currently in place 
        for providing information to complainants and victims in cases 
        and investigations involving criminal violations of 
        intellectual property laws regarding the status of such cases 
        and investigations, including the practices and procedures for 
        apprising interested parties of the decision to decline 
        prosecution of such cases.
  (b) Construction.--
          (1) Prosecutorial matters.--Nothing in this section shall be 
        construed to impinge on the appropriate exercise of 
        prosecutorial discretion with regard to cases involving 
        criminal violations of intellectual property laws or to require 
        the promulgation of formal standards or thresholds regarding 
        prosecution of any cases.
          (2) No claims, etc., may be asserted.--Nothing in the section 
        shall give rise to any claim, cause of action, defense, 
        privilege, or immunity that may be asserted by any party to 
        Federal litigation.

SEC. 514. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated for each fiscal year such 
sums as may be necessary to carry out this subtitle.

                  Subtitle C--International Activities

SEC. 521. INTERNATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT 
                    COORDINATORS.

  (a) Deployment of Additional Coordinators.--The Attorney General 
shall, within 180 days after the date of the enactment of this Act, 
deploy 5 Intellectual Property Law Enforcement Coordinators, in 
addition to those serving in such capacity on such date of enactment. 
Such deployments shall be made to those countries and regions where the 
activities of such a coordinator can be carried out most effectively 
and with the greatest benefit to reducing counterfeit and pirated 
products in the United States market, to protecting the intellectual 
property rights of United States persons and their licensees, and to 
protecting the interests of United States persons otherwise harmed by 
violations of intellectual property rights in those countries. The 
mission of all International Intellectual Property Law Enforcement 
Coordinators shall include the following:
          (1) Acting as liaison with foreign law enforcement agencies 
        and other foreign officials in criminal matters involving 
        intellectual property rights.
          (2) Performing outreach and training to build the enforcement 
        capacity of foreign governments against intellectual property-
        related crime in the regions in which the coordinators serve.
          (3) Coordinating United States law enforcement activities 
        against intellectual property-related crimes in the regions in 
        which the coordinators serve.
          (4) Coordinating with the activities of the intellectual 
        property attaches appointed under title IV in the countries or 
        regions to which the coordinators are deployed.
          (5) Coordinating the activities of the coordinators with the 
        IP Officer.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year such sums as may be necessary for the 
deployment and support of all International Intellectual Property 
Enforcement Coordinators of the Department of Justice, including those 
deployed under subsection (a).

SEC. 522. INTERNATIONAL TRAINING ACTIVITIES OF THE COMPUTER CRIME AND 
                    INTELLECTUAL PROPERTY SECTION.

  (a) Increased Training and Technical Assistance to Foreign 
Governments.--The Attorney General shall increase the efforts of the 
Department of Justice to provide training and technical assistance to 
foreign governments, including foreign law enforcement agencies and 
foreign courts, to more effectively combat counterfeiting and piracy 
activities falling within the jurisdiction of such governments.
  (b) Conduct of Programs.--The increased training and technical 
assistance programs under subsection (a) shall be carried out by the 
Intellectual Property Enforcement Division established by section 501, 
as well as through such other divisions, sections, or agencies of the 
Department of Justice as the Attorney General may direct.
  (c) Priority Countries.--The Attorney General, in providing increased 
training and technical assistance programs under this section, shall 
give priority to those countries where such programs can be carried out 
most effectively and with the greatest likelihood of reducing 
counterfeit and pirated products in the United States market, of 
protecting the intellectual property rights of United States persons, 
or of protecting the interests of United States persons otherwise 
harmed by violations of intellectual property rights in those 
countries.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year such sums as may be necessary to 
carry out this section.

               Subtitle D--Coordination, Implementation, 
                             and Reporting

SEC. 531. COORDINATION.

  The IP officer shall ensure that activities undertaken under this 
title are carried out in a manner consistent with the joint strategic 
plan developed under section 321.

SEC. 532. ANNUAL REPORTS.

  Not later than 1 year after the date of the enactment of this Act, 
and annually thereafter, the Attorney General shall submit to the 
Committees on the Judiciary of the Senate and the House of 
Representatives a report on actions taken to carry out this title, 
including a report on the activities of the IP Officer.

                          Purpose and Summary

    The purpose of H.R. 4279, the ``Prioritizing Resources and 
Organization for Intellectual Property Act of 2008'' (PRO IP 
Act), is to improve intellectual property enforcement in the 
United States and abroad. Titles 1 and 2 of the PRO IP Act 
strengthen civil and criminal intellectual property laws. This 
includes providing stiffer penalties for piracy and 
counterfeiting activities, harmonizing forfeiture procedures 
for intellectual property offenses, making it illegal to export 
counterfeit goods, and eliminating loopholes that might prevent 
enforcement of otherwise validly registered copyrights. Title 3 
establishes an Intellectual Property Enforcement Representative 
(IPER) responsible for coordinating all Federal Government IP 
enforcement efforts. The IPER will be established in the 
Executive Office of the President and, with the cooperation of 
all the relevant government agencies, will be responsible for 
producing a Joint Strategic Plan for national intellectual 
property enforcement. Titles 4 and 5 of the Act strengthen the 
Administration's ability to address intellectual property 
rights violations. It reorganizes intellectual property 
enforcement within the Department of Justice and provides 
additional resources to investigate and prosecute intellectual 
property crimes. It provides for intellectual property 
enforcement coordinators and additional intellectual property 
attaches to strengthen respect for intellectual property rights 
in foreign countries. And, it authorizes $25 million in grant 
money to help state and local law enforcement combat 
intellectual property crimes.

                Background and Need for the Legislation

    The knowledge, creativity, and industry of American 
citizens are essential to the economic strength of our nation. 
Intellectual property law provides the principal incentives 
that stimulate the creation and production of new innovations, 
inventions, and works. Countless studies have shown that many 
United States businesses and entrepreneurs rely on intellectual 
property rights to protect the significant investments of time, 
resources, and creativity that result in copyrights, 
trademarks, and patents. According to a recent report on 
intellectual property-intensive manufacturing, ``two-thirds of 
the value of America's large businesses can be traced back to 
intangible assets that embody ideas, especially . . . patents 
and trademarks.'' \1\
---------------------------------------------------------------------------
    \1\ Robert Shapiro and Nam Pham, Economic Effects of Intellectual 
Property-Intensive Manufacturing in the United States, prepared for 
World Growth (July 2007).
---------------------------------------------------------------------------
    Another report, which focused solely on the copyright 
industries, found that their direct and indirect contributions 
to the United States economy amounted to $1.3 trillion in 2004 
and $1.38 trillion in 2005.\2\ In total, intellectual property-
related businesses accounted for, on average, about 18 percent 
of the United States Gross Domestic Product (GDP) from 1998 
through 2003. Intellectual property-based industries employed 
18 million workers, or about 13 percent of the United States 
labor force. Intellectual property-based industries are also 
estimated to have accounted for 26 percent of the annual real 
GDP growth rate from 1998 to 2003, and about 40 percent of 
United States exports of goods and services in 2003 through 
2004.\3\ The reliance by United States businesses on 
intellectual property has grown over time, and is expected to 
continue to grow as the United States further develops into a 
predominantly knowledge-based economy.
---------------------------------------------------------------------------
    \2\ Stephen Siwek, Copyright Industries in the U.S. Economy; The 
2006 Report, prepared for the International Intellectual Property 
Alliance (Nov. 2006).
    \3\ Government Accountability Office, Intellectual Property: 
Federal Enforcement has Generally Increased, but Assessing Performance 
Could Strengthen Law Enforcement Efforts (GAO-08-157), Report to 
Ranking Member, Subcommittee on Oversight of Government Management, the 
Federal Workforce, and the District of Columbia, Committee on Homeland 
Security and Government Affairs, U.S. Senate (Mar. 2008) [hereinafter 
``GAO March 2008 Report''].
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    While intellectual property is the bedrock upon which 
United States businesses have grown and thrived, increasing 
intellectual property theft in the United States and globally 
threatens the future economic prosperity of our nation. 
Conservative estimates indicate that the United States economy 
loses between $200 and $250 billion per year, and has lost 
750,000 jobs, due to intellectual property theft.\4\ Some 
estimates indicate that counterfeit and pirated goods comprise 
six to nine percent of all world trade, the bulk of which 
violates the intellectual property rights of United States 
businesses and entrepreneurs.\5\
---------------------------------------------------------------------------
    \4\ International Anti-Counterfeiting Coalition, Get Real - The 
Truth About Counterfeiting (visited September 21, 2007), <http://
www.iacc.org/counterfeiting/counterfeiting.php>.
    \5\ Counterfeiting and Theft of Intellectual Property: Challenges 
and Solutions: Hearing Before the S. Comm. on the Judiciary, 108th 
Cong. (2004) (statement of Thomas Donohue, President and CEO of the 
U.S. Chamber of Commerce).
---------------------------------------------------------------------------
    Intellectual property theft also poses major risks to 
public health and safety, as goods like prescription drugs, 
food products, electrical equipment and products, and 
automobile and airline parts increasingly become the targets of 
intellectual property thieves. Often, counterfeit and pirated 
products do not meet minimum regulatory or industry standards, 
are made with substandard parts, or contain harmful and in some 
cases potentially fatal ingredients. In June 2007, counterfeit 
toothpaste that contained diethylene glycol, a chemical used in 
antifreeze, was distributed and sold to American consumers.\6\ 
In another incident, the United States Food and Drug 
Administration recalled 200,000 bottles of fake Lipitor, a drug 
used by millions to control high cholesterol.\7\ In yet another 
high profile incident, investigators in New York City 
apprehended six auto parts dealers who were selling more than 
$700,000 worth of counterfeit ignition coils, sway bars, and 
brake pads.\8\ Countless more news articles have documented the 
variety of counterfeit products that impact public health and 
safety.\9\
---------------------------------------------------------------------------
    \6\ Mac Daniel, Officials find contaminated toothpaste in Hub 
stores, Boston Globe, July 12, 2007, at B7.
    \7\ David Schwab, Phony Lipitor Scheme Detailed, The Star-Ledge, 
Oct. 16, 2003, at 25.
    \8\ Briefing, Auto Bust, Newsday, Dec. 2, 2004, at A18.
    \9\ Warning: Substandard Batteries Linked to Explosions, U.S. 
Newswire, Apr. 3, 2008; Fake Parts are Seeping Into Military Aircraft 
Maintenance Depots, Inside the Air Force, Mar. 28, 2008, Vol. 19, No. 
13; Sarah Netter, More Counterfeit Extension Cords Found, The Journal 
News (New York), Dec. 30, 2007, at 6A; Peter Pitts, Copycat Drugs 
Present Long-Term Threat to U.S., Tampa Trib., Nov. 29, 2007, at 13; 
David Kolman, Suppliers Warn Fleets About Parts Deals That Seem Too 
Good to be True, Bulk Transporter, Nov. 1, 2007, at 26; Fake Crane 
Parts Pose Danger to Contractors, Contract J., July 18, 2007, at 1; 
Kerry Burke & Dave Goldliner, Bogus Condoms a Trojan Horse, Daily News 
(New York), May 30, 2007, at 6.
---------------------------------------------------------------------------
    In recent years, the United States government has responded 
to the threats posed by the rise in intellectual property theft 
by increasing the resources available for intellectual property 
enforcement, and by developing new mechanisms to meet this 
challenge. The Department of Justice has increased the number 
of attorneys available for intellectual property prosecutions. 
The United States Patent and Trademark Office has established 
an intellectual property attache program that places experts 
internationally where United States rights holders are 
encountering obstacles to effective intellectual property 
protection and enforcement.
    While IP enforcement resources have increased, these 
increases unfortunately have not kept pace with the dramatic 
growth in the volume and proliferation of counterfeit and 
pirated goods produced and distributed globally. Further, 
growing evidence indicates that intellectual property thieves 
have become more sophisticated, employing loosely organized, 
decentralized multinational networks to facilitate the movement 
of illegal goods. These networks are designed to quickly adopt 
new technologies, strategies, suppliers, or distributors in 
order to adeptly evade detection, capture, and prosecution.\10\ 
According to INTERPOL, intellectual property theft is so 
lucrative that international organized criminal syndicates have 
entered into and are profiting from trade in these illegal 
markets.
---------------------------------------------------------------------------
    \10\ See generally, Moises Naim, Illicit: How Smugglers, 
Traffickers, and Copycats are Hijacking the Global Economy (2005).
---------------------------------------------------------------------------
    Given the substantial and rising importance of intellectual 
property to the United States economy, the threat that IP theft 
poses to United States businesses and to public health and 
safety, and the growing capabilities of intellectual property 
thieves, it is critical that IP enforcement be improved both 
domestically and internationally. To this end, a number of 
entities have recently released documents that provide detailed 
recommendations on the methods and mechanisms that the United 
States government can employ to strengthen intellectual 
property enforcement. These recommendations have been reviewed 
and were considered in the drafting of this Act. Among the most 
important of these documents are the Campaign to Protect 
America proposal from the Coalition Against Counterfeiting and 
Piracy,\11\ the Department of Justice's Intellectual Property 
Protection Act legislative proposal, and a series of Government 
Accountability Office (GAO) reports and testimony before 
Congress.\12\
---------------------------------------------------------------------------
    \11\ The Coalition Against Counterfeiting and Piracy (CACP), 
Intellectual Property Enforcement Initiative: Campaign to Protect 
America (2007). The CACP is an initiative organized by the United 
States Chamber of Commerce. The CACP's members include over 500 
companies and trade associations including 3M, Cargill, Gillette, 
Honeywell, Nike, Verizon, the National Association of Manufacturers, 
the Pharmaceutical Research and Manufacturers Association. The CACP's 
recommendations are also supported by major labor groups like the 
International Brotherhood of Teamsters, the Service Employee 
International Union, the American Federation of Music, and others.
    \12\ While a number of Government Accountability Office reports and 
testimony informed this Act, the most helpful include: Finding and 
Fighting Fakes: Reviewing the Strategy Targeting Organized Piracy, 
before the S. Comm. on Homeland Security and Government Affairs, 
Subcomm. 109th Cong. (June 2005) (statement of Loren Yager, Director of 
International Affairs and Trade, Government Accountability Office) 
[hereinafter ``GAO June 2005 Testimony'']; Government Accountability 
Office, Strategy for Targeting Organized Piracy (STOP) Requires Changes 
for Long-term Success, Report to the Chairman, Committee on Government 
Reform, House of Representatives (Nov. 2006) [hereinafter ``GAO 
November 2006 Report'']; Pirating the American Dream: Intellectual 
Property Theft's Impact on America's Place in the Global Economy and 
Strategies for Improving Enforcement, before the S. Comm. on Banking, 
Housing and Urban Affairs, Subcomm. on Security and International Trade 
and Finance, 110th Cong. (Apr. 2007) (Statement of Loren Yager, 
Director of International Affairs and Trade, Government Accountability 
Office) [hereinafter ``GAO April 2007 Testimony'']; International 
Piracy: The Challenges of Protecting Intellectual Property in the 21st 
Century, before the H. Comm. on the Judiciary, Subcomm. on Courts, the 
Internet, and Intellectual Property, 110th Cong. (Mar. 2007) (statement 
of Loren Yager, Director of International Affairs and Trade, Government 
Accountability Office)[hereinafter ``GAO October 2007 Testimony'']; GAO 
March 2008 Report, supra note 3.
---------------------------------------------------------------------------
    In summary, this Act will: 1) enhance civil and criminal 
penalties for intellectual property violations, to make 
commercial scale IP theft less profitable and easier to 
prosecute; 2) institutionalize key IP enforcement leadership 
within the Executive Office of the President and provide a 
mechanism by which the President can more effectively lead 
coordination of Federal IP enforcement efforts; and 3) provide 
greater resources for IP enforcement efforts, including 
increased resources and enhanced focus for the effort to 
investigate and prosecute domestic and international 
intellectual property crimes. The bill has received letters of 
support from key industries and associations, including the 
Consumer Electronics Association, Digital Media Association, 
Net Coalition, the Internet Commerce Coalition, Coalition for 
Consumers' Pictures Rights, and the Printing Industries of 
America. This is in addition to the support the bill has 
already received from the Teamsters, Directors Guild of 
America, SEIU, AFTRA, Unite Here, AFM, Laborers, OPEIU, the 
Coalition Against Counterfeiting and Piracy, the Motor 
Equipment Manufacturing Association, PhRMA, and NBC Universal.

            ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAW

    Title I makes a number of changes to copyright and 
trademark law that will enhance the ability of intellectual 
property rights holders to enforce their rights. Title I also 
makes it easier for rights holders to secure judgments that 
deter infringing activities and reduce the incentives available 
to intellectual property thieves.
    Under current law, registration of a copyright with the 
Copyright Office is a prerequisite for a United States right 
holder to seek statutory damages in a civil infringement 
action. According to the Department of Justice (DOJ), effective 
prosecution of criminal infringement of valuable works, 
especially those that have just been released or that have not 
yet been made available to the public, is sometimes hampered by 
uncertainties regarding the provision of current law that 
requires registration of U.S. works as a prerequisite of any 
``action for infringement of the copyright.'' \13\ DOJ points 
out that it isn't clear whether the registration requirement 
for U.S. copyright holders has any effect on criminal 
prosecutions undertaken by DOJ.\14\ This Act clarifies that 
copyright registration is not a prerequisite for DOJ to 
criminally prosecute copyright pirates.
---------------------------------------------------------------------------
    \13\ 17 U.S.C. Sec. 411(a).
    \14\ Letter from the Office of the Assistant Attorney General, U.S. 
Department of Justice, to Hon. Nancy Pelosi, Speaker, House of 
Representatives, concerning a legislative proposal titled 
``Intellectual Property Act of 2007,'' May 14, 2007, at 1.
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    While copyright registration benefits the public, it was 
never intended as a way for copyright pirates to evade 
prosecution. Prosecution of copyright crimes serves the public 
interest by punishing and deterring criminal activity. A 
prosecutor's ability to serve this public interest should not 
be hamstrung by the fact that a work has not yet been 
registered. The lack of a registration does not make the 
criminal activity any less egregious, especially in a case in 
which the target of the infringement is an unreleased or just-
released work at the peak of its commercial value, or in which 
numerous works, some of them unregistered, are being infringed 
on the Internet. DOJ recommends, and the Committee agrees, that 
current law should be amended to make clear that the 
registration prerequisite affects civil actions only. The 
Committee does not intend for this language, found in section 
102 of the bill, to have any effect on the enforcement 
authority of United States Customs and Border Protection under 
sections 602 or 603 of Title 17 of the United States Code.
    It has also been argued in litigation that a mistake in the 
registration documents, such as checking the wrong box on the 
registration form, renders a registration invalid and thus 
forecloses the availability of statutory damages.\15\ To 
prevent intellectual property thieves from exploiting this 
potential loophole, the Act makes clear that a registration 
containing inaccuracies will satisfy the registration 
requirements of the Copyright Act unless the mistake was 
knowingly made and the inaccuracy, if known, would have caused 
the Register of Copyrights to refuse the registration. And in 
cases where mistakes in a copyright registration are alleged, 
courts will be required to seek the advice of the Register of 
Copyrights as to whether the asserted mistake, if known at the 
time of application, would have caused the Copyright Office to 
refuse registration.
---------------------------------------------------------------------------
    \15\ See In re Napster, Inc., Copyright Litigation, 191 F. Supp. 2d 
1087, 1099 (N.D. Cal. 2002).
---------------------------------------------------------------------------
    The Act contains a savings clause to protect and preserve 
the rights and interests of any person with respect to claims, 
including adverse claims, of authorship and ownership apart 
from the jurisdictional and remedial provisions of sections 411 
and 412, at any time, in any judicial or administrative forum, 
and without any procedural or substantive limitation except as 
set forth in other provisions of the Copyright Act.
    Under current copyright law, the ability of the court to 
order impoundment of evidence of infringement is restricted to 
the infringing copies themselves and the means by which they 
may be made, but does not extend to the records that document 
the violation. This gap may provide copyright pirates who have 
been sued a window of opportunity to destroy evidence. To 
address this problem, the Act gives courts authority to also 
impound records that document the manufacture, sale, or receipt 
of things involved in a copyright violation, providing a tool 
similar to that available for many years to trademark owners in 
counterfeiting cases.
    Experts point out that counterfeiters have developed a 
``long value chain'' in their operations, thus limiting the 
risk of each party being caught and the possible penalties if 
they are apprehended. Although under current law contributory 
trademark liability can be found against parties who 
intentionally induce others to commit acts of counterfeiting, 
or who intentionally provide goods or services to facilitate 
the commission of acts of counterfeiting, with the intent that 
the recipient of the goods or services would put them to use in 
committing the violation, the damages to which those parties 
are exposed may fall far short of deterrent levels. To remedy 
this, and to take into account the realities of today's 
counterfeiting environment, the Act directs courts to award 
treble damages and attorney's fees against such knowing 
participants in the value chain, just as is the case under 
current law with direct infringers engaged in counterfeit 
operations.
    The level of statutory damages that can be assessed against 
counterfeiters has not been adjusted since 1996. In the ensuing 
12 years, the profits of counterfeiters and the volume of their 
traffic has skyrocketed. The existing statutory damage levels 
no longer serve as an adequate deterrent in this more lucrative 
environment. Therefore, the Act doubles current statutory 
damages for use of a counterfeit mark, raising the minimum to 
from $500 to $1,000 and the maximum from to $100,000 to 
$200,000 per mark, with willful counterfeiting activity subject 
to a maximum statutory damage award of $2,000,000.
    Lastly, to address reciprocity concerns, the Act explicitly 
makes it a violation of the Lanham Act and Copyright Act to 
export counterfeit or pirated goods from the United States, and 
also clarifies that the willful importation of pirated goods 
can constitute a criminal copyright offense.

           ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAW

    Title II effectuates a number of enhancements to copyright 
and trademark law that will facilitate criminal prosecution of 
repeat copyright infringers, harmonize forfeiture laws related 
to intellectual property offenses, and increase penalties for 
counterfeiting violations that endanger public health and 
safety.
    Under current law, penalties for the repeat offense of 
three major criminal copyright acts--infringement for 
commercial advantage or private financial gain, infringement 
for non-commercial purposes above a certain threshold, and 
infringement of pre-release works over a publicly accessible 
computer network--automatically subject the infringer to 
enhanced penalties. For enhanced penalties to apply under 
current law, however, the repeat offender must commit the same 
offense twice. DOJ recommends, and the Committee agrees, that 
if a person has been convicted for any one of these acts, a 
second conviction for any of these acts should be considered a 
repeat offense for purposes of enhanced damages.
    Under current law, there are substantial variations among 
the civil and criminal forfeiture laws for violations of 
various criminal statutes prohibiting piracy and 
counterfeiting, as well as with regard to restitution orders. 
DOJ has recommended that this patchwork of provisions, enacted 
at various times over the past three decades, all be harmonized 
at the current standard adopted by Congress in 2006 with regard 
to trafficking in counterfeit goods. This would increase the 
consistency and predictability of the law, and would facilitate 
seizure of the proceeds of counterfeiting and piracy, and the 
tools used to carry out these crimes, in appropriate cases. 
Thus, the Act amends the forfeiture provisions of 18 U.S.C. 
Sec. Sec. 2318, 2319, 2319A, and 2319B, to bring them closer in 
line with 18 U.S.C. Sec. 2320. The Act adds safeguards, 
however, including in Chapter 46 of Title 18, to ensure that 
civil forfeiture of property involved in the commission of the 
offense is restricted to property owned or predominantly 
controlled by the violator, a co-conspirator, or an aider and 
abettor of the crime, and that the property has a substantial 
connection to the offense.
    The Act also directs the U.S. Sentencing Commission to 
review the Sentencing Guidelines to consider whether the two-
level enhancement that currently applies to criminal 
infringement involving manufacturing, importing, and uploading 
of infringing items should be expanded to include exportation 
of such items.
    Lastly, to address the increasing dangers that counterfeit 
goods pose to public health and safety, the Act increases 
maximum penalties for trafficking in counterfeit goods where 
the defendant knowingly or recklessly causes or attempts to 
cause serious bodily injury or death.

    ESTABLISH AND INSTITUTIONALIZE EFFECTIVE INTELLECTUAL PROPERTY 
           ENFORCEMENT LEADERSHIP AND COORDINATION MECHANISMS

    The Administration has made a number of efforts to address 
the threat of counterfeiting and piracy, which have led to 
increases in intellectual property enforcement activity. These 
increases, however, have not kept pace with the volume of 
counterfeit and pirated goods appearing in the United States 
and in other countries around the world. Thus, while 
enforcement has been aggressively pursued, the effect on IP 
crime has been insufficient to meet the challenges posed by IP 
thieves.
    In recent reports and testimony to Congress, GAO identified 
a number of flaws in current Federal intellectual property 
enforcement efforts. One of the most significant deficiencies 
identified is the lack of permanent and effective leadership in 
coordinating these efforts. Federal enforcement actions have 
increased over the course of fiscal years 2001 through 2006, 
but the key agencies have not taken important steps necessary 
to assess their achievements. For example, most do not 
systematically analyze their IP enforcement statistics to 
inform management and resource allocation decisions, collect 
data on their efforts to address IP crimes that affect public 
health and safety, or establish IP-related performance measures 
or targets to assess their achievements. Also, GAO has pointed 
out, based on available information, that Customs and Border 
Protection's enforcement of exclusion orders, which stop 
certain IP-infringing goods from entering the country, has been 
limited in part due to certain procedural weaknesses. Finally, 
enforcement of intellectual property has not been a top 
priority within the agencies and thus has not received adequate 
resources.
    Currently, there are programs to provide for interagency 
strategic planning and implementation of a national strategy. 
Many objective observers and participants, however, believe 
these processes have not resulted in a cohesive plan or in 
adequate assurances of accountability for implementation.
    The challenges in coordinating Federal enforcement efforts 
in support of intellectual property rights are considerable. 
GAO has pointed out that eight different Federal agencies, and 
several entities within these agencies, play some role in 
supporting intellectual property rights. Among those agencies, 
five play a key role in IP enforcement efforts. Each of these 
bodies has its own mission and its own set of priorities; and 
thus, the protection and enforcement of IP rights does not have 
the same priority in each agency. GAO has classified government 
efforts into either policy initiatives, training and technical 
assistance programs, or law enforcement. Most agencies and 
offices involved in IP-related issues participate in at least 
two of these types of activities. Under current conditions, it 
is not surprising that most of these agencies undertake 
similar--and in some cases duplicative--activities and 
programs. With so many entities dedicated to different 
purposes, setting different priorities, and under different 
direct leadership, coordinated cross-agency planning and 
implementation is needed to optimize effectiveness and 
efficiency. GAO has identified two main mechanisms for the 
coordination of Federal intellectual property enforcement 
efforts--the National Intellectual Property Law Enforcement 
Coordination Council (NIPLECC) and the Strategy Targeting 
Organized Piracy (``STOP'') initiative.\16\
---------------------------------------------------------------------------
    \16\ Another interagency IP enforcement coordination mechanism 
mentioned by GAO is the National Intellectual Property Rights 
Coordination Center. The Center was created by the Executive Branch in 
2000 to serve as an interagency mechanism to coordinate Federal 
investigative efforts. The Center, however, has not achieved its 
mission, and staff levels have decreased. Currently, only one agency 
participates in the Center's activities, and the Center's focus is on 
private sector outreach. Agencies have lacked a common understanding of 
the Center's purpose and their role in its mission. GAO March 2008 
Report, supra note 3, at 36-39.
---------------------------------------------------------------------------
    NIPLECC was statutorily created in 1999 to coordinate 
domestic and international intellectual property enforcement 
activities. The Council's membership is dictated by statute, 
and includes the Director of the United States Patent and 
Trademark Office (USPTO), the Assistant Attorney General of the 
Department of Justice's Criminal Division, the Undersecretary 
of State for Economic and Agricultural Affairs, the Deputy 
United States Trade Representative, the Commissioner of 
Customs, and the Undersecretary of Commerce for International 
Trade. The USPTO Director and the Assistant Attorney General 
are designated co-chairs of the Council.
    According to GAO, many in the intellectual property 
community believe that NIPLECC has been unsuccessful in its 
mission to serve as a facilitator of interagency coordination 
for domestic and international IP enforcement. NIPLECC has 
lacked consistent leadership for most of its existence and has 
struggled to define its mission.\17\ In 2004, Congress passed 
amendments to clarify its role and provide additional funding. 
These amendments also created a Coordinator for International 
Intellectual Property Enforcement to head the Council. Further 
GAO analysis, however, concludes that NIPLECC continues to 
suffer from inactivity and ineffectiveness.\18\
---------------------------------------------------------------------------
    \17\ Id. at 35-37.
    \18\ GAO June 2005 Testimony, supra note 12, at 11; GAO November 
2006 Report, supra note 12, at 26; GAO April 2007 Report, supra note 
12, at 10.
---------------------------------------------------------------------------
    In contrast to NIPLECC, GAO has found that the STOP 
initiative is perceived to have achieved a higher degree of 
success in its multi-agency IP protection and enforcement 
coordination mission.\19\ STOP was created in 2004 as a 
presidential initiative led by the White House under the 
auspices of the National Security Council. The STOP initiative 
includes representatives of the Departments of Homeland 
Security, Commerce, Justice, and State, the Office of the 
United States Trade Representative (USTR), and the Food and 
Drug Administration (FDA). The STOP initiative is widely viewed 
as successful in increasing attention to intellectual property 
issues. Government officials have found that STOP has been an 
effective means of sharing ideas and supporting common goals. 
The private sector has praised the STOP initiative for 
improving communication between the business community and 
government agencies on intellectual property issues. GAO, 
however, has pointed out that the STOP initiative lacks several 
elements of an effective national strategic plan. Most 
importantly, GAO reports that the STOP initiative: 1) does not 
have defined performance measures such as a clear articulation 
of priorities or a process to monitor and report on the 
progress of its efforts; 2) does not provide a clear 
articulation of the resources needed to achieve its goals and 
from where these resources will come; and 3) lacks permanence 
and could cease existence with the end of the current 
Administration in January 2009.\20\
---------------------------------------------------------------------------
    \19\ GAO April 2007 Testimony, supra note 12, at 9.
    \20\ Id. at 14-15. GAO did note that in recent years NIPLECC has 
provided information concerning intellectual property enforcement 
efforts taken under the STOP initiative in its annual reports, but this 
exercise is merely a catalogue of activities and lacks any real 
evaluation of their effectiveness.
---------------------------------------------------------------------------
    To address the need for permanent and effective leadership 
to prioritize and coordinate United States intellectual 
property enforcement efforts across agencies, Title III 
establishes an Intellectual Property Enforcement Representative 
(IPER) within the Executive Office of the President. The IPER's 
directive is to coordinate with all eight Federal agencies, and 
in some instances multiple entities within an agency. By 
placing the IPER in the Executive Office of the President, it 
is envisioned that the IPER will have the influence and 
credibility to serve as an effective coordinator of 
intellectual property enforcement efforts. The IPER will be a 
principal advisor to and a spokesperson for the President 
concerning IP enforcement issues. The IPER will also be 
responsible for advising Congress on the IP enforcement 
challenges the country faces, as well as reporting to Congress 
on the progress made towards implementing the Joint Strategic 
Plan (JSP).
    It is envisioned that the JSP will serve as the framework 
for coordinating and assessing Federal efforts to combat piracy 
and counterfeiting. The JSP will include detailed information 
on the threats of piracy and counterfeiting to the United 
States economy and to public health and safety; outline the 
various roles and responsibilities that government agencies 
will have in tackling intellectual property enforcement 
efforts; provide priorities and goals that will guide IP 
enforcement efforts; provide an accounting of the resources 
that will be needed to carry out the plan; and provide 
performance measures to gauge the success of the JSP in curbing 
counterfeiting and piracy.
    Title III also establishes an Intellectual Property 
Enforcement Advisory Committee (Advisory Committee) composed 
of, at least, representatives of the Departments of Homeland 
Security, Justice and State, the USPTO, the USTR, the Food and 
Drug Administration, the United States International Trade 
Commission, and the United States Copyright Office. It is 
envisioned that each member of the Advisory Committee will 
participate in the development of the JSP, which shall serve as 
the chief mechanism by which coordination of government efforts 
to combat piracy and counterfeiting will occur. The JSP is 
intended to be more than individual agency and department 
documents that are compiled by the IPER.
    The primary function of the IPER is to produce a strategic 
plan for the United States in combating counterfeiting and 
piracy. In the rare event that there is a substantial dispute 
that can not be resolved among members of the Advisory 
Committee, it is envisioned that the IPER, as chair of the 
Advisory Committee, will seek resolution of the dispute by the 
President. The Committee believes that the need for 
Presidential resolution will be a rare occurrence, and will be 
triggered only when there is substantial disagreement among the 
Advisory Committee members.
    Finally, although the IPER is expected to make 
recommendations to agencies for implementation of the JSP, it 
is not intended that the IPER have operational or other direct 
control over the everyday activities of United States 
intellectual property protection, enforcement actions, or other 
efforts. Activities the IPER is specifically prohibited from 
conducting include those directly affecting prosecutorial 
decisions. Additionally, the IPER's critical coordination and 
planning role should concentrate on the enforcement of IP laws 
and not on the development of underlying substantive laws. 
While the IPER is empowered to issue housekeeping regulations 
relevant to the IPER's activities, this legislation does not 
authorize the IPER to, for instance, undertake rule-making 
proceedings on matters of substantive intellectual property.

             IMPROVING INTERNATIONAL INTELLECTUAL PROPERTY 
                          ENFORCEMENT EFFORTS

    Federal efforts to protect and enforce intellectual 
property rights domestically and internationally are crucial to 
preventing billions of dollars in losses to the United States 
economy. Although improving, IP protection in many parts of the 
world is inadequate. According to the Organization for Economic 
Cooperation and Development, governments and private companies 
report a recent expansion in IP crimes, noting that organized 
criminal networks are increasingly moving into this domain due 
to high profit potential, ease of market entry, and relatively 
low risk.\21\
---------------------------------------------------------------------------
    \21\ Organization for Economic Cooperation and Development, The 
Economic Impact of Counterfeiting and Piracy, Executive Summary (2007).
---------------------------------------------------------------------------
    To counter this growing threat, Federal agencies and 
members of NIPLECC report they have taken steps to strengthen 
IP laws and enforcement globally. They assert that they have 
put IP protection and enforcement at the forefront of 
multilateral and bilateral relationships, have built effective 
global IP training and capacity-building programs, and have 
placed IP experts in American embassies overseas.
    In October 2007, the Subcommittee on Courts, the Internet, 
and Intellectual Property held a hearing on international 
piracy at which GAO and others testified on IP risks and 
enforcement challenges. In December 2007, the Subcommittee held 
a hearing on H.R. 4279. These hearings demonstrated that while 
there has been an increased Federal effort to enforce IP 
rights, our domestic efforts alone will not effectively protect 
American businesses, our markets, or the U.S. economy, unless 
there is a corresponding effort overseas.
    Title IV provides additional intellectual property attaches 
to promote stronger and more effective enforcement of 
intellectual property laws in key overseas markets. Currently, 
the Department of Commerce has placed eight attaches in six 
United States embassies or diplomatic missions around the 
world. This Act would expand that program by authorizing ten 
additional intellectual property attaches. The intellectual 
property attache program will provide U.S. businesses 
intellectual property-related assistance in securing and 
protecting their rights in an expanded number of countries than 
the current Department of Commerce program provides.

 INCREASED RESOURCES FOR INTELLECTUAL PROPERTY-RELATED INVESTIGATIONS 
                            AND PROSECUTIONS

    Increased investigation and prosecution activities at the 
Department of Justice in the last few years have yielded some 
successes. Specifically, the Department filed 217 intellectual 
property cases in FY 2007, representing a 7% increase over 
cases reported in FY 2006 (204), and a 33% increase over cases 
reported in FY 2005 (169). Also in FY 2007, 287 defendants were 
sentenced for intellectual property crimes, representing a 35% 
increase over FY 2006 (213) and a 92% increase over FY 2005 
(149).\22\
---------------------------------------------------------------------------
    \22\ H.R. 4279, The Prioritizing Resources and Organization for 
Intellectual Property Act of 2007, before the H. Comm. on the 
Judiciary, Subcomm. on Courts, the Internet, and Intellectual Property, 
110th Cong. 3 (Dec. 2007) (statement of Sigal P. Mandelker, Deputy 
Assistant Attorney General, Criminal Division, Department of Justice).
---------------------------------------------------------------------------
    Notwithstanding the increase in efforts by the Department 
of Justice to combat intellectual property crimes, there is a 
widespread perception among the stakeholders that additional 
resources and personnel are required to investigate, enforce, 
and prosecute infringers to the level that is needed to serve 
as a strong deterrent to future acts of piracy and 
counterfeiting. The data bears out that perception. Fewer than 
one in 300 Federal prosecutions, or less than one half of 1 
percent of DOJ cases in FY 2006, were related to IP 
enforcement. This low number is not due to a lack of criminal 
activity to pursue. A recent study, conducted by the Gallup 
Organization at the request of the U.S. Chamber of Commerce, 
demonstrated the widespread availability of pirated material to 
the extent that 25% of the population of Los Angeles County 
admitted to knowingly purchasing, copying, or downloading 
illegal goods. The number of IP crime prosecutions is 
inadequate given the effect that such crimes have on this 
country's businesses, jobs, and overall economic well-
being.\23\
---------------------------------------------------------------------------
    \23\ The International Intellectual Property Law Enforcement 
Coordinators act as liaisons with foreign law enforcement agencies and 
officials to assist U.S. right holders with enforcement of their 
intellectual property rights abroad.
---------------------------------------------------------------------------
    To ensure DOJ's IP enforcement efforts keep better pace 
with the level of intellectual property theft domestically and 
abroad, this legislation provides DOJ with more resources to 
combat IP crimes. Currently, much of DOJ's intellectual 
property enforcement activities are carried out by Computer 
Hacking and Intellectual Property (CHIP) units assigned to 
various United States Attorney Offices. Title V will provide at 
least two additional FBI agents and one additional Assistant 
United States Attorney to each CHIP unit. Title V also 
authorizes the Attorney General to deploy an additional five 
International Intellectual Property Law Enforcement 
Coordinators to facilitate international IP criminal 
investigations and provide increased training and technical 
assistance to foreign law enforcement personnel.
    Title V also provides grants to local and State law 
enforcement for activities directed at combating intellectual 
property violations. Encouraging increased cooperation and 
communication across jurisdictions and agencies is a primary 
goal of this legislation and the Committee believes that active 
participation of State and local authorities is critical to 
meaningfully address piracy and counterfeiting. Day-to-day 
piracy and counterfeiting enforcement operations often fall to 
State and local entities, thus the Federal Government should 
provide monetary assistance, especially in light of the fact 
that a local department's hierarchy of public safety priorities 
typically dictates that piracy and counterfeiting crimes do not 
receive the attention or resources they deserve. Moreover, 
counterfeiting investigations and operations are typically 
lengthy, trigger overtime for the participating officers, and 
require uncommon expenditures (such as evidence storage for 
vast quantities of confiscated contraband), cutting into a 
State or local agency's already lean budget. For these reasons, 
this legislation establishes a new grant program in the 
Department of Justice's Office of Justice Programs to assist 
State and local law enforcement entities engaged in anti-piracy 
and counterfeiting crime prevention, investigation, 
enforcement, or prosecution.
    Lastly, to ensure that DOJ places a greater priority on 
investigating and prosecuting intellectual property crimes, 
this legislation reorganizes IP enforcement responsibilities 
within the Department. In addition to CHIPS units, DOJ's 
intellectual property enforcement efforts are also carried out 
by the Computer Crime and Intellectual Property Section at DOJ 
headquarters in Washington, D.C. Instead of combining 
intellectual property with computer crime, Title V establishes 
a separate division for intellectual property enforcement 
within DOJ headquarters. This division will be headed by an 
Intellectual Property Enforcement Officer who reports directly 
to the Deputy Attorney General, and who will be responsible for 
coordinating all DOJ efforts related to IP enforcement.
    Many of these changes, particularly the reorganization of 
resources within DOJ, will increase the importance that DOJ 
places on intellectual property enforcement. In addition, these 
changes address GAO's concerns about a lack of sufficient 
institutionalized leadership and are consistent with GAO's 
recommendations as well as those provided by the CACP.
    In developing the above changes, particularly to the 
organizational structure of intellectual property enforcement 
personnel, input from DOJ was actively sought. DOJ's responses 
have not been particularly substantive or responsive to the 
Committee's goal of increasing the effectiveness of DOJ's 
current IP enforcement mechanisms. The Committee believes that 
substantial changes are necessary to permanently elevate the 
priority of IP enforcement within DOJ.

    ECONOMIC BENEFITS OF INCREASED INTELLECTUAL PROPERTY ENFORCEMENT

    While the economic cost and the threat to American health 
and safety caused by counterfeiting and piracy are well 
documented, from a fiscal standpoint it is also important to 
quantify the benefits that can be expected from increased 
efforts to enforce intellectual property rights. A recent study 
conducted by Dr. Laura Tyson, with the respected economic firm 
of LECG, LLC, provides a cost-benefit analysis of the CACP 
initiative, from which many provisions of this Act were 
derived. The report conservatively estimates the expected 
budgetary costs of increasing enforcement on the high side of 
the likely range, and estimates benefits of the initiative's 
implementation on the low side of the likely range.\24\
---------------------------------------------------------------------------
    \24\ Laura Tyson, Economic Analysis of the Proposed CACP Anti-
Counterfeiting and Piracy Initiative, prepared for the Coalition 
Against Counterfeiting and Piracy (2007).
---------------------------------------------------------------------------
    The report reaches the following conclusions about the 
costs and benefits of implementing the CACP initiative:

        [T]he CACP initiative is a sound investment for the 
        Federal Government. Even under very conservative 
        assumptions, it would produce sizeable reductions in 
        business losses caused by piracy and counterfeiting, it 
        would generate meaningful increases in output and 
        employment levels in the US economy, and it would 
        increase Federal Government revenues by substantially 
        more than its costs.

        For every dollar spent prudently on the CACP 
        initiative, Federal tax revenues would increase by at 
        least $2.9 and by as much as $9.7 with an intermediate 
        range of $4.9 to $5.7. These Federal tax revenue 
        increases are due to the increase in U.S. output and 
        employment that would occur as a result of implementing 
        the CACP initiative. For every dollar spent on the CACP 
        initiative, U.S. output would increase by at least $38 
        and would increase by as much as $127 with an 
        intermediate range of $64 to $75.3. The increase in 
        output due to implementing the CACP program will result 
        in the creation of between 174,000 and 348,000 new jobs 
        during the third year. Therefore, the return to the 
        Federal Government and the economy of investing in the 
        CACP initiative is very high. In addition, State and 
        local governments can expect to receive incremental 
        revenues between $1.25 billion and $1.50 billion, in 
        present value terms, over 3 years, if the CACP 
        initiative is implemented.

        Over time, by enabling the IP-intensive industries to 
        earn a higher return, the CACP measures would encourage 
        more investment and foster faster U.S. economic growth. 
        In addition to these quantifiable benefits, enactment 
        of the CACP initiative would increase the protection of 
        American consumers against the health and safety risks 
        of counterfeited and pirated goods. Finally, more 
        effective policies to combat piracy and counterfeiting 
        are an important complement to policies to combat 
        organized crime and terrorism and to enhance national 
        security.\25\
---------------------------------------------------------------------------
    \25\ Id. at v-vi.

The Committee believes that enactment of H.R. 4279 will produce 
similar benefits to the United States economy.

                                Hearings

    The Committee's Subcommittee on Courts, the Internet, and 
Intellectual Property held 1 day of hearings on H.R. 4279 on 
December 13, 2007. Testimony was received from Sigal P. 
Mandelker, Deputy Assistant Attorney General, Criminal 
Division, United States Department of Justice; James P. Hoffa, 
General President, International Brotherhood of Teamsters; Gigi 
B. Sohn, President and Co-Founder, Public Knowledge; and Rick 
Cotton, Executive Vice President and General Counsel, NBC 
Universal, New York, N.Y.
    In addition to this hearing, the Subcommittee on Courts, 
the Internet, and Intellectual Property held 1 day of hearings 
on the subject of International Piracy: The Challenges of 
Protecting Intellectual Property in the 21st Century, on 
October 18, 2007. Testimony was received from Victoria A. 
Espinel, Assistant United States Trade Representative for 
Intellectual Property & Innovation, Office of the United States 
Trade Representative; Eric H. Smith, President, International 
Intellectual Property Alliance; Loren Yager, Director of 
International Affairs and Trade, United States General 
Accounting Office; Mark MacCarthy, Senior Vice President for 
Global Public Policy, Visa Incorporated.

                        Committee Consideration

    On March 6, 2008, the Subcommittee on Courts, the Internet, 
and Intellectual Property met in open session and ordered the 
bill H.R. 4279 favorably reported, as amended, by voice vote, a 
quorum being present. On April 30, 2007, the Committee met in 
open session and ordered the bill H.R. 4279 favorably reported, 
as amended, by voice vote, a quorum being present.

                            Committee Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that there 
were no recorded votes during the Committee's consideration of 
H.R. 4279.

                      Committee Oversight Findings

    In compliance with clause 3(c)(1) of rule XIII of the Rules 
of the House of Representatives, the Committee advises that the 
findings and recommendations of the Committee, based on 
oversight activities under clause 2(b)(1) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 3(c)(2) of rule XIII of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority or increased tax 
expenditures.

               Congressional Budget Office Cost Estimate

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, the Committee sets forth, with 
respect to the bill, H.R. 4279, the following estimate and 
comparison prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act of 
1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 5, 2008.
Hon. John Conyers, Jr., Chairman,
Committee on the Judiciary,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 4279, the 
Prioritizing Resources and Organization for Intellectual 
Property Act of 2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Leigh Angres.
            Sincerely,
                                           Peter R. Orszag,
                                                  Director.

Enclosure

cc:
        Honorable Lamar S. Smith.
        Ranking Member
H.R. 4279--Prioritizing Resources and Organization for Intellectual 
        Property Act of 2008.

                                SUMMARY

    H.R. 4279 would authorize additional resources for the 
Executive Office of the President, the Patent and Trademark 
Office (PTO), and the Department of Justice (DOJ) to enforce 
intellectual property laws and to reduce counterfeiting and 
piracy of protected intellectual property. CBO estimates that 
implementing the bill would cost $435 million over the 2009-
2013 period, subject to the appropriation of the necessary 
amounts. The legislation could affect direct spending and 
revenues, but we estimate that any such effects would be less 
than $500,000 annually.
    H.R. 4279 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act and 
would impose no costs on state, local, or tribal governments.

                ESTIMATED COST TO THE FEDERAL GOVERNMENT

    The estimated budgetary impact of H.R. 4279 is shown in the 
following table. The costs of this legislation fall within 
budget functions 750 (administration of justice), 370 (commerce 
and housing credit), and 800 (general government).

                 By Fiscal Year, in Millions of Dollars
------------------------------------------------------------------------
                                        2009   2010   2011   2012   2013
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Title III: Executive Office of the
 President Enforcement Activities
  Estimated Authorization Level           10     15     20     25     30
  Estimated Outlays                        9     14     19     24     29

Title IV: PTO Enforcement Activities
  Estimated Authorization Level           12     18     18     20     20
  Estimated Outlays                       10     17     18     19     20

Title V: DOJ Enforcement Activities
  Estimated Authorization Level           62     67     72     72     47
  Estimated Outlays                       22     43     58     66     67

  Total Changes
  Estimated Authorization Level           84    100    110    117     97
  Estimated Outlays                       41     74     95    109    116
------------------------------------------------------------------------
1Note: PTO = Patent and Trademark Office; DOJ = Department of Justice.

                           BASIS OF ESTIMATE

    For this estimate CBO assumes that the bill would be 
enacted by the beginning of fiscal year 2009.
Spending Subject to Appropriation
    CBO estimates that implementing the bill would cost $435 
million over the 2009-2013 period, subject to the appropriation 
of the necessary amounts. Those amounts would be used to 
enhance activities to enforce intellectual property rights by 
the Executive Office of the President, PTO, and DOJ.
    Title III: Executive Office of the President Enforcement 
Activities. Title III would establish an Office of the United 
States Intellectual Property Enforcement Representative within 
the Executive Office of the President. The representative would 
be appointed by the President and confirmed by the Senate to 
advise the President and report to the Congress. The 
representative would develop, coordinate, and provide 
recommendations on governmentwide policies for enforcing 
intellectual property rights, including the protection of 
copyrights, patents, and trademarks, both within the United 
States and abroad. In addition, the representative would chair 
an interagency committee and be primarily responsible for 
developing and implementing a plan for eliminating 
counterfeiting and piracy of intellectual property.
    Based on the costs of similar offices and programs, CBO 
estimates that the new office would need about $30 million a 
year to carry out its responsibilities under title III. CBO 
expects that the office would steadily expand its staff over 
the next five years to reach that level of effort. We estimate 
that implementing title III would cost $95 million over the 
2009-2013 period, assuming appropriation of the necessary 
amounts.
    Title IV: PTO Enforcement Activities. Title IV would 
authorize the Department of Commerce to appoint at least 10 
intellectual property attaches to serve in United States 
embassies or other diplomatic missions. The attaches would work 
with foreign governments to enforce intellectual property laws 
generally and to reduce counterfeiting and piracy of protected 
intellectual property. The Patent and Trademark Office (PTO) 
would be responsible for training the attaches and providing 
managerial and administrative support.
    The bill would authorize the appropriation of such sums as 
necessary for both the intellectual property attaches 
authorized by title IV as well as other Department of Commerce 
personnel already serving as intellectual property attaches. 
Currently, eight attaches are working in Brazil, China, Egypt, 
India, Russia, and Thailand at a cost of about $8 million a 
year. Based on that cost, CBO estimates that implementing title 
IV of the bill would cost $84 million over the 2009-2013 
period, assuming appropriation of the necessary amounts.
    Title V: DOJ Enforcement Activities. Title V would 
reorganize DOJ's activities involving enforcement of 
intellectual property rights, authorize additional resources 
for attorneys and the Federal Bureau of Investigation (FBI), 
and authorize state grants to combat cyber-crime (crime related 
to computer and Internet activities). CBO estimates that 
implementing title V would cost $256 million over the 2009-2013 
period, subject to the appropriation of the necessary amounts.
    DOJ Intellectual Property Enforcement Division and FBI 
Unit. Title V would create an Intellectual Property Enforcement 
Division within DOJ. Existing DOJ activities relating to the 
criminal enforcement of intellectual property rights and trade 
secrets would be transferred to the new division. Under the 
bill, the head of the division would be the Intellectual 
Property Enforcement Officer, who would be responsible for 
coordinating efforts at DOJ for combating counterfeiting and 
piracy of intellectual property and serving as the DOJ liaison 
to the Office of the United States Intellectual Property 
Representative. Because most of the activities of the new 
division are being performed under current law, CBO estimates 
that the cost for creating this new division would be less than 
$500,000 a year over the 2009-2013 period, subject to the 
availability of appropriated funds. Most of that amount would 
be for hiring the Enforcement Officer and for other 
administrative costs.
    Title V also would create an operational unit of not less 
than five agents at the FBI headquarters to work with the new 
DOJ division to coordinate complex, multidistrict, and 
international intellectual property cases. CBO estimates that 
hiring five new agents would cost about $5 million over the 
2009-2013 period.
    Expansion of Computer Hacking and Intellectual Property 
(CHIP) Units. The bill would create 10 new CHIP units in 
different Federal judicial districts in addition to the 25 
existing units. CHIP units, currently staffed by approximately 
80 Assistant United States Attorneys (AUSAs) nationwide, are 
located in regions that experience a high incidence of 
intellectual property and cyber-crime. Enforcement activities 
are supported by FBI agents. CBO estimates that creating the 
new CHIP units would involve hiring 40 new AUSAs, 20 new FBI 
agents, and 10 additional support staff.
    The bill also would expand the size of the existing CHIP 
units by adding at least 25 AUSAs and 50 supporting FBI agents. 
Based on personnel cost information provided by DOJ, CBO 
estimates that the cost to create and expand CHIP operations 
would total $77 million over the 2009-2013 period.
    State Grants for Cyber-Crime. Title V would authorize the 
appropriation of $25 million annually over the 2009-2013 period 
for DOJ to make grants to states for programs to combat 
computer crime. Title V also would authorize the appropriation 
of $25 million annually over the 2009-2012 period for grants to 
state and local governments for programs to combat intellectual 
property crimes. Assuming appropriation of the authorized 
amounts, CBO estimates that implementing those provisions would 
cost $162 million over the 2009-2013 period.
    International Intellectual Property Law Enforcement 
Coordinators. The bill would require the deployment of five 
additional coordinators in addition to those serving under 
current law. The coordinators manage U.S. law enforcement 
activities to combat intellectual property crimes in foreign 
countries. Based on information provided by DOJ, increasing the 
number of coordinators would cost $12 million over the 2009-
2013 period.
Direct Spending and Revenues
    H.R. 4279 would increase civil damages and penalties for 
certain intellectual property offenses. Criminal fines are 
recorded as revenues, deposited into the Crime Victims Fund, 
and later spent. In addition, proceeds from forfeited cash and 
the sale of assets are recorded as revenues, deposited into the 
Assets Forfeiture Fund, and spent mostly in the same year. 
Thus, enacting H.R. 4279 could increase revenues and direct 
spending; however, CBO expects that any such impact would not 
be significant.
    Title III would allow the Office of the United States 
Intellectual Property Enforcement Representative to accept and 
use gifts, and therefore, the legislation could increase 
revenues and direct spending. However, CBO estimates that any 
revenues from contributions and subsequent direct spending 
would be less than $500,000 annually.

              INTERGOVERNMENTAL AND PRIVATE-SECTOR IMPACT

    H.R. 4279 contains no intergovernmental or private-sector 
mandates as defined in UMRA. The bill would benefit state and 
local law enforcement agencies by authorizing grants for 
enforcement and prosecutorial activities.

                         ESTIMATE PREPARED BY:

Federal Costs: Leigh Angres, Mark Grabowicz, Susan Willie, and 
    Matthew Pickford
Impact on State, Local, and Tribal Governments: Melissa Merrell
Impact on the Private Sector: Paige Piper/Bach

                         ESTIMATE APPROVED BY:

Theresa Gullo
Deputy Assistant Director for Budget Analysis

                    Performance Goals and Objectives

    The Committee states, pursuant to clause 3(c)(4) of rule 
XIII of the Rules of the House of Representatives, H.R. 4279 
will strengthen civil and criminal intellectual property laws 
to better address commercial-scale intellectual property theft, 
strengthen the organization of Federal intellectual property 
enforcement efforts, and provide greater resources to law 
enforcement agencies so that they can investigate and prosecute 
more intellectual property crimes.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds the authority for 
this legislation in article I, section 8, clauses 3 and 8 of 
the Constitution.

                          Advisory on Earmarks

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 4279 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as defined in clause 9(d), 9(e), or 9(f) of Rule XXI.

                      Section-by-Section Analysis

    Sec. 1. Short Title; Table of Contents. Section 1 sets 
forth the short title of the bill as the ``Prioritizing 
Resources and Organization for Intellectual Property Act of 
2008.'' It also includes a table of contents for the bill.
    Sec. 2. Reference. Section 2 clarifies that any reference 
in the bill to the ``Trademark Act of 1946'' is intended to 
refer to ``An Act to provide for the registration of trademarks 
used in commerce, to carry out the provisions of certain 
international conventions, and for other purposes,'' approved 
July 5, 1946.\26\
---------------------------------------------------------------------------
    \26\ 15 U.S.C. Sec. Sec. 1051 et seq. (2007).
---------------------------------------------------------------------------
    Sec. 3. Definition. Section 3 sets out for United States 
person as used in this Act.

       TITLE I. ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

    Sec. 101. Registration of Claim. Section 101 amends 17 
U.S.C. Sec. 410, which sets forth the duties of the Register of 
Copyrights in registering and issuing to an applicant a 
certificate of registration. Under current law, section 410(b) 
requires the Register to refuse registration if the material 
deposited does not constitute copyrighted material or if the 
claim is invalid for any other reason. Section 101 of the bill 
amends this provision by adding a new subsection (c), to 
provide that a certificate of registration shall satisfy the 
registration requirements regardless of any inaccurate 
information on the registration application, unless the 
incorrect information was included on the application with the 
knowledge that it was incorrect, and unless the inaccurate 
information, if known, would have caused the Register of 
Copyrights to refuse registration. In any case in which 
inaccuracies in the application are alleged, the legislation 
requires the court to request the Register of Copyrights to 
advise the court as to whether the inaccuracy would have 
resulted in a refusal of the registration application.
    The savings clause stating that ``Nothing in this section 
shall affect any rights, obligations, or requirements of a 
person related to information contained in a registration 
certificate except for the institution of and remedies for 
infringement actions under Sec. Sec. 411 and 412 of Title 17 of 
the United States Code'' is intended, in part, to protect and 
preserve the rights and interests of any person with respect to 
claims, including adverse claims, of authorship and ownership 
apart from the jurisdictional and remedial provisions of 
sections 411 and 412, at any time, in any judicial or 
administrative forum, and without any procedural or substantive 
limitation except as set forth in other provisions of the 
Copyright Act.
    Sec. 102. Registration and Infringement Actions. Section 
102 of the bill amends 17 U.S.C. Sec. 411, which provides that 
``[n]o action for infringement of the copyright in any United 
States work shall be instituted until registration of the 
copyright claim has been made.'' Section 102 amends this 
provision to clarify that this rule only applies to civil 
infringement actions and not to criminal prosecutions. This 
provision is consistent with established DOJ policy.\27\ It 
makes no change in existing practices of how and when 
prosecutors prove the existence of a copyright in an 
infringement case, and it does not affect any pending cases. 
The Committee does not believe that this clarification will 
exacerbate the problem of orphan works, nor will it reduce the 
incentives for creators and authors to register their works. A 
copyright holder would not give up his or her ability to file a 
civil suit, collect statutory damages, and get attorney's fees 
on the hope that a prosecutor will prosecute an infringer of 
the copyrighted work. On the other hand, some small, individual 
copyright holders, such as photographers or journalists who 
often do not have sufficient resources to register their works 
or to pursue expensive litigation, would benefit from this 
change because it clarifies that DOJ is still able to prosecute 
the violation in these circumstances. Section 102 does not have 
any effect on the enforcement authority of United States 
Customs and Border Protection under sections 602 or 603 of 
title 17 of the United States Code.
---------------------------------------------------------------------------
    \27\ See Computer Crime and Intellectual Property Section, U.S. 
Dept. Of Justice, Prosecuting Intellectual Property Crime Sec. II.B.1.d 
(3d ed. 2006).
---------------------------------------------------------------------------
    Sec. 103. Civil Remedies for Infringement. Section 103 of 
the bill amends 17 U.S.C. Sec. 503(a) to authorize a court to 
order the impounding of records documenting manufacture, sale, 
or receipt of things involved in infringing activity. This 
section also directs the court to enter a protective order to 
provide appropriate procedures to assure that confidential 
information contained in the records is not improperly 
disclosed. A similar provision exists in the Lanham Act, which 
authorizes a court to issue an ex parte order for the seizure 
not only of counterfeit goods and marks and the means of making 
them, but also of ``records documenting the manufacture, sale 
or receipt of things involved in such violation.'' \28\ Since 
copyright pirates are just as likely to destroy evidence as 
trademark counterfeiters (indeed, it is not uncommon for the 
same violator to be engaged in both activities), it is 
appropriate to update the list of items subject to impoundment 
under the Copyright Act.
---------------------------------------------------------------------------
    \28\ 15 U.S.C. Sec. 1116(d)(1)(A) (2007).
---------------------------------------------------------------------------
    Sec. 104. Treble Damages in Counterfeiting Cases. Section 
104 amends 15 U.S.C. Sec. 1117 to direct courts to award treble 
damages and attorney's fees, absent extenuating circumstances, 
when someone is found to have intentionally induced another to 
engage in an act that violates the anti-counterfeiting 
prohibitions of the Lanham Act or to have supplied goods or 
services necessary to the commission of such a violation of the 
Lanham Act, with the intent that the recipient of the goods or 
services would put the goods or services to use in committing 
the violation. Under section 1117 as amended, proof of intent 
is required only for the mandatory imposition of treble damages 
(and attorney's fees) on a party contributing to 
counterfeiting. Section 104 does not change the standards the 
courts have applied to determine liability for contributory 
trademark infringement. Nor would it restrict in any way the 
courts' existing discretion, under section 35(a) of the Lanham 
Act, to impose treble damages in any case involving 
infringement of a registered mark, or a false designation of 
origin in violation of section 43(a).
    Sec. 105. Statutory Damages in Counterfeiting Cases. 
Section 105 increases statutory damages in counterfeiting 
cases, by raising the minimum award from $500 to $1000, and the 
maximum award from $100,000 to $200,000 for use of a 
counterfeit mark, and raises the maximum from $1,000,000 to 
$2,000,000 for willful use of a counterfeit mark.
    Sec. 106. Exportation of Goods Bearing Infringing Marks. 
Section 106 amends the Lanham Act to provide that exportation 
of counterfeit merchandise is in violation of the law, similar 
to importation under current law.
    Sec. 107. Importation and Exportation. Section 107 amends 
17 U.S.C. Sec. 602, which currently only addresses infringing 
importations, to specify that exportation of infringing copies 
is also prohibited and considered an infringement of the 
exclusive right to distribute copies or phonorecords to the 
public. This section also makes importation and exportation of 
infringing copies a criminal copyright violation, prosecutable 
under 17 U.S.C. Sec. 506, and makes conforming changes to 
section 602(b). The language used in section 107 to describe 
the goods whose importation or exportation may attract criminal 
liability--``where the making of copies or phonorecords would 
have constituted an infringement of copyright if this title had 
been applicable''--was chosen to conform to current language 
already in section 602(b). Section 107 is not intended to 
alter, amend, or otherwise change current law, regulation, or 
practice relating to the manufacture, importation, exportation, 
or distribution of genuine products, made under authority of 
the United States intellectual property rights holder or its 
designee.

            TITLE II. ENHANCEMENTS TO CRIMINAL INTELLECTUAL 
                             PROPERTY LAWS

    Sec. 201. Criminal Infringement of a Copyright. Section 201 
addresses repeat offender penalties for the three major 
criminal acts contained in the criminal copyright statute: 
infringement for commercial advantage or private financial 
gain; infringement for non-commercial purposes above a certain 
threshold; and infringement of pre-release works over a 
publicly-accessible computer network. Currently, to be a repeat 
offender, an individual must be convicted of committing the 
same criminal act twice. If an individual commits an act of 
infringement for commercial advantage or private financial gain 
first, and then releases a pre-release work over a computer 
network, and was convicted of felony criminal copyright 
infringement on both occasions, the individual currently would 
not be considered for repeat offender penalties. This section 
amends 18 U.S.C. Sec. 2319 to allow the felony violations to be 
interchangeable for repeat offender enhanced penalties.
    Sec. 202. Harmonization of Forfeiture Procedures for 
Intellectual Property Offenses. Section 202 harmonizes all 
forfeiture and restitution laws for intellectual property 
offenses by amending 18 U.S.C. Sec. Sec. 2318, 2319, 2319A, 
2319B to bring these provisions substantially in line with 18 
U.S.C. Sec. 2320, which was enacted into law last year. The new 
provisions contain additional safeguards, such as the 
requirement that property involved in the commission of an 
offense be owned or predominantly controlled by the violator, a 
co- conspirator, or an aider and abettor of the violation in 
order to be seized under the civil forfeiture provisions. The 
definition of aiding and abetting is taken from Central Bank of 
Denver, NA. v. First Interstate Bank of Denver, N.A.\29\ 
Furthermore, such property is not subject to seizure unless a 
substantial connection between the property and the offense is 
proven. Use by a violator (or co-conspirator or aider or 
abetter) of commercially valuable digital communications or e-
commerce services for, e.g., electronic mail or data storage, 
absent extraordinary circumstances, would not constitute 
predominant control of the servers and similar facilities used 
to provide the services. If, however, a computer were used by a 
violator (or co-conspirator or aider or abetter) primarily to 
store data used to further the infringement, the violator could 
be held to have substantially controlled the property and the 
computer would be subject to forfeiture. Another safeguard 
contained in this Act is the requirement that, for seizure 
under a criminal facilitation theory, the property be used to 
substantially facilitate the crime.
---------------------------------------------------------------------------
    \29\ 511 U.S. 164 (1994).
---------------------------------------------------------------------------
    Sec. 203. Directive to United States Sentencing Commission. 
Section 203 directs the U.S. Sentencing Commission to review 
the Sentencing Guidelines to consider whether the two-level 
enhancement that already applies under 2B5.3 of the Guidelines 
to criminal infringement that involves manufacturing, 
importing, and uploading of infringing items should be expanded 
to also include exporting such items.
    Sec. 204. Trafficking in Counterfeit Goods or Services. 
Section 204 provides enhanced maximum statutory penalties for 
counterfeiting offenses that endanger public health and safety. 
It increases maximum penalties for 18 U.S.C. Sec. 2320 offenses 
from 10 years imprisonment to 20 years where the defendant 
knowingly or recklessly causes or attempts to cause serious 
bodily injury. It increases the maximum penalty to life 
imprisonment where the defendant knowingly or recklessly causes 
or attempts to cause death.

           TITLE III. COORDINATION AND STRATEGIC PLANNING OF 
            FEDERAL EFFORT AGAINST COUNTERFEITING AND PIRACY

    Sec. 301. Office of the United States Intellectual Property 
Enforcement Representative. Section 301 establishes within the 
Executive Office of the President, the Office of the United 
States Intellectual Property Enforcement Representative and the 
position of the United States Intellectual Property Enforcement 
Representative (IPER). The IPER is appointed by the President 
of the United States with the advice and consent of the Senate. 
The IPER will serve as a principal advisor to the President on 
domestic and international intellectual property enforcement 
policy and will report and provide advice to the President and 
to Congress. In order to carry out these efforts, the IPER will 
chair an interagency Intellectual Property Enforcement Advisory 
Committee (``Advisory Committee''), formed pursuant to this 
section, which includes senior representatives from every 
Federal department and agency involved in the protection and 
enforcement of intellectual property rights. The Advisory 
Committee, under the guidance of the IPER, develops the Joint 
Strategic Plan (JSP). The Advisory Committee is specifically 
exempted from the Federal Advisory Committee Act.
    Sec. 302. Definition. Section 302 defines intellectual 
property enforcement as relating to the enforcement of laws 
protecting copyrights, patents, trademarks, and other forms of 
intellectual property and trade secrets, both within the United 
States and abroad.
    Sec. 321. Joint Strategic Plan. Section 321 specifies the 
objectives and content of the JSP against counterfeiting and 
piracy that shall be developed by the interagency Advisory 
Committee, under the guidance of the IPER.
    Sec. 322. Reporting. Section 322 requires the Office of the 
United States Intellectual Property Enforcement Representative 
to submit an annual report to the President and to the House 
and Senate Committees on the Judiciary regarding the activities 
of the Office during the preceding fiscal year, and to also 
disseminate that report to the public. The report will provide 
progress updates on the implementation of the JSP, including 
the manner in which the relevant departments and agencies of 
the U.S. government are working together and sharing 
information toward advancing the recommendations, goals, and 
priorities contained within the JSP. This section also provides 
for the IPER to provide recommendations for the consolidation 
of Federal intellectual property activities to prevent 
duplicative efforts and to ensure maximum efficiency and 
effectiveness of governments efforts.
    Sec. 323. Savings and Repeals. Section 323 abolishes 
NIPLECC, which is superseded by the structure created by this 
Act, and preserves the existing authority of the agencies in 
areas such as criminal investigation and prosecution, 
administrative enforcement at U.S. borders, and international 
trade. The purpose of this section is to ensure cross-agency 
cooperation, consolidation, and implementation with regard to 
enforcement of the laws concerning intellectual property laws.
    Sec. 324. Authorization of Appropriations. Section 324 
authorizes the appropriation of such funds as may be necessary 
to carry out title III of the bill. It also contains a 
requirement that the United States Intellectual Property 
Enforcement Representative submit a proposed budget annually 
for the projected amount of funds for the succeeding fiscal 
year.

          TITLE IV. INTERNATIONAL ENFORCEMENT AND COORDINATION

    Sec. 401. Intellectual Property Attaches. Section 401 
directs the Undersecretary of Commerce for Intellectual 
Property and the Director of the United Stated Patent and 
Trademark Office, in consultation with the Director General of 
the U.S. Foreign Commercial Service, to appoint, within the 
next 2 years, ten intellectual property attaches to serve in 
U.S. embassies. These personnel are intended to be in addition 
to persons already serving in a similar capacity as the 
intellectual property attaches as of the date of enactment.
    Sec. 402. Duties and Responsibilities of Intellectual 
Property Attaches. Section 402 specifies the duties and 
responsibilities of the intellectual property attaches. 
Specifically, the attaches are responsible for promoting 
cooperation with foreign governments in enforcement of IP laws; 
assisting U.S. persons in efforts to combat counterfeiting and 
piracy in the host countries; chairing IP task forces; 
coordinating with embassies or missions of other countries in 
information sharing and other forms of cooperation; engaging in 
public education efforts; coordinating training and technical 
assistance of U.S. government expertise with host countries; 
assisting in the coordination of the efforts of the IPER, 
Federal agencies, and private organizations; and identifying 
and promoting other means of combating counterfeiting and 
piracy. This section also provides the Undersecretary of 
Commerce for Intellectual Property and Director of the United 
States Patent and Trademark Office with the authority to 
provide such managerial, administrative, research, and other 
services as the Secretary of Commerce considers necessary to 
assist the intellectual property attaches in carrying out their 
responsibilities.
    Sec. 403. Training and Designation of Assignment. Section 
403 requires the Director of the USPTO to ensure that attaches 
are fully trained and, when considering in which countries to 
deploy attaches, to give priority to countries where the 
attache can be most effective and offer the greatest benefit in 
reducing counterfeit and pirated products in the United States.
    Sec. 404. Coordination. Section 404 specifies that the 
activities of title IV of the bill must be carried out in 
coordination with the IPER appointed under section 301. This 
section also requires the submission of an annual report to 
Congress on the activities of all Department of Commerce 
attaches serving at United States embassies or other diplomatic 
missions.
    Sec. 405. Authorization of Appropriations. Section 405 
authorizes to be appropriated each fiscal year such sums as may 
be necessary for the training and support of the intellectual 
property attaches.

                TITLE V. DEPARTMENT OF JUSTICE PROGRAMS

    Sec. 501. Intellectual Property Enforcement Officer. 
Section 501 establishes within the Office of the Deputy 
Attorney General in the Department of Justice the Intellectual 
Property Enforcement Division. The head of the Intellectual 
Property Enforcement Division will be the Intellectual Property 
Enforcement Officer, who will be appointed by the Attorney 
General and will report directly to the Deputy Attorney 
General. The functions of the existing Computer Crime and 
Intellectual Property Section (CCIPS), currently part of the 
Criminal Division of the Department of Justice, are divided, 
with the intellectual property law enforcement functions moving 
to the new Intellectual Property Enforcement Division. In 
addition, the current and newly added International 
Intellectual Property Law Enforcement Coordinators (IIPLEC), 
specified in section 521, will also become part of the 
Intellectual Property Enforcement Division. The Intellectual 
Property Enforcement Officer will head the new division, and 
will be responsible for: 1) coordinating all efforts at the 
Department of Justice relating to combating counterfeiting and 
piracy; 2) serving on the Advisory Committee as the Department 
of Justice liaison with the Office of the United States 
Intellectual Property Enforcement Representative established 
under Title III of this Act; and 3) undertaking any other 
related duties that may be assigned by the Deputy Attorney 
General.
    Sec. 511. Local Law Enforcement Grants. Section 511 
authorizes grants to State and local law enforcement entities 
for training, prevention, enforcement, and prosecution of 
intellectual property theft and infringement cases. Grants may 
be used to assist State and local law enforcement agencies in 
enforcing IP-related crimes, including to reimburse State and 
local entities for expenses incurred from enforcement 
operations; to assist State and local agencies in educating the 
public to prevent, deter, and identify IP-related crimes; to 
educate and train State and local entities to conduct 
investigations and forensic analyses of evidence; to establish 
dedicated task forces to conduct investigations; to assist 
police and prosecutors in acquiring computer and other 
equipment to conduct investigations; and to facilitate and 
promote sharing of Federal law enforcement expertise with State 
and local agencies. The eligibility requirements that must be 
met for receipt of such a grant are specified in this section.
    Sec. 512. CHIP Units, Training, and Additional Resources. 
Section 512 requires DOJ to review established Computer Hacking 
and Intellectual Property (CHIP) units to improve 
effectiveness; ensure they are established and funded in every 
judicial district in which they can be effectively deployed; 
upgrade training and expertise of DOJ personnel participating 
in CHIP units; and improve coordination of CHIP unit activities 
with corresponding State and local entities. This Act provides 
for CHIP units to be establish and staffed in at least ten 
Federal judicial districts in addition to those districts in 
which CHIP units exist on the date of the enactment of this 
Act. In addition, section 512 requires the Attorney General to 
establish and staff at least ten additional CHIP units, and 
ensure that each is supported by at least two additional FBI 
agents and at least one additional assistant United States 
Attorney (AUSA) for the specific purpose of investigating or 
prosecuting intellectual property crimes. An operational unit 
at FBI headquarters is created consisting of five FBI agents 
dedicated to working with CCIPS on the development, 
investigation and coordination of complex, multi-district and 
international criminal IP cases. The AUSAs will ensure 
coordination with State or local law enforcement. Section 512 
also sets additional standards for training and funding of DOJ 
personnel involved in investigating and prosecuting 
intellectual property crimes.
    Sec. 513. Transparency of Prosecutorial Decision-Making. 
Section 513 specifies that all U.S. Attorneys must review their 
current standards for accepting or declining prosecution of 
criminal IP cases, consider whether the current standards 
should be modified, and review their procedures for advising 
complainants and victims of intellectual property violations 
that are declined for prosecution.
    Sec. 514. Authorization of Appropriations. Section 514 
authorizes such sums as may be necessary to carry out the 
subtitle.
    Sec. 521. International Intellectual Property Law 
Enforcement Coordinators. Section 521 requires the Attorney 
General to deploy five IIPLECs, in addition to those serving in 
that capacity on the date of enactment of this Act, to 
countries and regions where the IIPLECs can be best utilized. 
The IIPLECs will act as liaisons with foreign law enforcement 
agencies and officials, perform outreach and training to build 
enforcement capacity of foreign governments, coordinate U.S. 
law enforcement activities against intellectual property crimes 
in the regions, coordinate with the intellectual property 
attaches specified in Title IV, and report to the Department of 
Justice Intellectual Property Enforcement Officer.
    Sec. 522. International Training Activities of the Computer 
Crime and Intellectual Property Section. Section 522 directs 
the Attorney General to increase the Department of Justice's 
efforts to provide training and technical assistance to foreign 
governments to more effectively combat counterfeiting and 
piracy activities. This section specifies that priority shall 
be given to countries where programs can be carried out 
effectively and with the greatest likelihood of reducing 
counterfeit and pirated products.
    Sec. 531. Coordination. Section 531 states that all 
activities of title V of the bill must be carried out in a 
manner consistent with the JSP developed under section 321.
    Sec. 532. Annual Reports. Section 532 specifies that the 
Attorney General shall ensure that the requirements set forth 
in title V are met no later than 1 year after enactment. 
Annually thereafter, the Attorney General must submit a report 
to the House and Senate Judiciary Committees on actions taken 
to carry out those requirements.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic existing law in which no change is 
proposed is shown in roman):

                      TITLE 17, UNITED STATES CODE

Chapter                                                             Sec.
      Subject Matter and Scope of Copyright..........................101
     * * * * * * *
      Manufacturing Requirements and Importation....................601]
601 Manufacturing Requirements, Importation, and Exportation..........

           *       *       *       *       *       *       *


CHAPTER 4--COPYRIGHT NOTICE, DEPOSIT, AND REGISTRATION

           *       *       *       *       *       *       *


Sec. 410. Registration of claim and issuance of certificate

  (a) * * *

           *       *       *       *       *       *       *

  (c)(1) A certificate of registration satisfies the 
requirements of section 411 and section 412 regardless of any 
inaccurate information contained in the certificate, unless--
          (A) the inaccurate information was included on the 
        application for copyright registration with knowledge 
        that it was inaccurate; and
          (B) the inaccuracy of the information, if known, 
        would have caused the Register of Copyrights to refuse 
        registration.
  (2) In any case in which inaccuracies described under 
paragraph (1) are alleged, the court shall request the Register 
of Copyrights to advise the court whether the inaccuracy of the 
information, if known, would have caused the Register of 
Copyrights to refuse registration. The Register shall respond 
to the court's request within 45 days after the request is 
made.
  (3) Nothing in this subsection shall affect any rights, 
obligations, or requirements of a person related to information 
contained in a registration certificate except for the 
institution of and remedies in infringement actions under 
sections 411 and 412.
  [(c)] (d) In any judicial proceedings the certificate of a 
registration made before or within five years after first 
publication of the work shall constitute prima facie evidence 
of the validity of the copyright and of the facts stated in the 
certificate. The evidentiary weight to be accorded the 
certificate of a registration made thereafter shall be within 
the discretion of the court.
  [(d)] (e) The effective date of a copyright registration is 
the day on which an application, deposit, and fee, which are 
later determined by the Register of Copyrights or by a court of 
competent jurisdiction to be acceptable for registration, have 
all been received in the Copyright Office.

Sec. 411. Registration and civil infringement actions

  (a) Except for an action brought for a violation of the 
rights of the author under section 106A(a), and subject to the 
provisions of subsection (b), no civil action for infringement 
of the copyright in any United States work shall be instituted 
until preregistration or registration of the copyright claim 
has been made in accordance with this title. In any case, 
however, where the deposit, application, and fee required for 
registration have been delivered to the Copyright Office in 
proper form and registration has been refused, the applicant is 
entitled to institute an action for infringement if notice 
thereof, with a copy of the complaint, is served on the 
Register of Copyrights. The Register may, at his or her option, 
become a party to the action with respect to the issue of 
registrability of the copyright claim by entering an appearance 
within sixty days after such service, but the Register's 
failure to become a party shall not deprive the court of 
jurisdiction to determine that issue.
  (b) In the case of a work consisting of sounds, images, or 
both, the first fixation of which is made simultaneously with 
its transmission, the copyright owner may, either before or 
after such fixation takes place, institute an action for 
infringement under section 501, fully subject to the remedies 
provided by sections 502 through [506 and sections 509 and] 505 
and section 510, if, in accordance with requirements that the 
Register of Copyrights shall prescribe by regulation, the 
copyright owner--
          (1) * * *

           *       *       *       *       *       *       *


             CHAPTER 5--COPYRIGHT INFRINGEMENT AND REMEDIES

Sec.
501.  Infringement of copyright.
     * * * * * * *
[509.  Seizure and forfeiture.]
     * * * * * * *

           *       *       *       *       *       *       *


Sec. 503. Remedies for infringement: Impounding and disposition of 
                    infringing articles

  (a) At any time while an action under this title is pending, 
the court may order the impounding, on such terms as it may 
deem reasonable, of all copies or phonorecords claimed to have 
been made or used in violation of the copyright owner's 
exclusive rights, [and of all plates] of all plates, molds, 
matrices, masters, tapes, film negatives, or other articles by 
means of which such copies or phonorecords may be 
reproduced[.], and records documenting the manufacture, sale, 
or receipt of things involved in such violation. The court 
shall enter an appropriate protective order with respect to 
discovery by the applicant of any records that have been 
seized. The protective order shall provide for appropriate 
procedures to assure that confidential information contained in 
such records is not improperly disclosed to the applicant.

           *       *       *       *       *       *       *


Sec. 506. Criminal offenses

  (a) * * *
  (b) Forfeiture and Destruction.--When any person is convicted 
of any violation of subsection (a), the court in its judgment 
of conviction shall, in addition to the penalty therein 
prescribed, order the forfeiture and destruction [or other 
disposition of all infringing copies or phonorecords and all 
implements, devices, or equipment used in the manufacture of 
such infringing copies or phonorecords.] of property as 
prescribed by section 2319(g) of title 18.

           *       *       *       *       *       *       *


[Sec. 509. Seizure and forfeiture

  [(a) All copies or phonorecords manufactured, reproduced, 
distributed, sold, or otherwise used, intended for use, or 
possessed with intent to use in violation of section 506(a), 
and all plates, molds, matrices, masters, tapes, film 
negatives, or other articles by means of which such copies or 
phonorecords may be reproduced, and all electronic, mechanical, 
or other devices for manufacturing, reproducing, or assembling 
such copies or phonorecords may be seized and forfeited to the 
United States.
  [(b) The applicable procedures relating to (i) the seizure, 
summary and judicial forfeiture, and condemnation of vessels, 
vehicles, merchandise, and baggage for violations of the 
customs laws contained in title 19, (ii) the disposition of 
such vessels, vehicles, merchandise, and baggage or the 
proceeds from the sale thereof, (iii) the remission or 
mitigation of such forfeiture, (iv) the compromise of claims, 
and (v) the award of compensation to informers in respect of 
such forfeitures, shall apply to seizures and forfeitures 
incurred, or alleged to have been incurred, under the 
provisions of this section, insofar as applicable and not 
inconsistent with the provisions of this section; except that 
such duties as are imposed upon any officer or employee of the 
Treasury Department or any other person with respect to the 
seizure and forfeiture of vessels, vehicles, merchandise, and 
baggage under the provisions of the customs laws contained in 
title 19 shall be performed with respect to seizure and 
forfeiture of all articles described in subsection (a) by such 
officers, agents, or other persons as may be authorized or 
designated for that purpose by the Attorney General.]

           *       *       *       *       *       *       *


        [CHAPTER 6--MANUFACTURING REQUIREMENTS AND IMPORTATION]

CHAPTER 6--MANUFACTURING REQUIREMENTS, IMPORTATION, AND EXPORTATION

           *       *       *       *       *       *       *


Sec. 601. Manufacture, importation, and public distribution of certain 
                    copies

  (a) * * *
  (b) The provisions of subsection (a) do not apply--
          (1) * * *
          (2) where [the United States Customs Service] U.S. 
        Customs and Border Protection is presented with an 
        import statement issued under the seal of the Copyright 
        Office, in which case a total of no more than two 
        thousand copies of any one such work shall be allowed 
        entry; the import statement shall be issued upon 
        request to the copyright owner or to a person 
        designated by such owner at the time of registration 
        for the work under section 408 or at any time 
        thereafter;

           *       *       *       *       *       *       *


Sec. 602. Infringing importation or exportation of copies or 
                    phonorecords

  [(a)] (a) Infringing Importation and Exportation.--
          (1) Importation.--Importation into the United States, 
        without the authority of the owner of copyright under 
        this title, of copies or phonorecords of a work that 
        have been acquired outside the United States is an 
        infringement of the exclusive right to distribute 
        copies or phonorecords under section 106, actionable 
        under section 501. [This subsection does not apply to--
        ]
          (2) Importation or exportation of infringing items.--
        Importation into the United States or exportation from 
        the United States, without the authority of the owner 
        of copyright under this title, of copies or 
        phonorecords, the making of which either constituted an 
        infringement of copyright or would have constituted an 
        infringement of copyright if this title had been 
        applicable, is an infringement of the exclusive right 
        to distribute copies or phonorecords under section 106, 
        actionable under sections 501 and 506.
          (3) Exceptions.--This subsection does not apply to--
                  [(1)] (A) importation or exportation of 
                copies or phonorecords under the authority or 
                for the use of the Government of the United 
                States or of any State or political subdivision 
                of a State, but not including copies or 
                phonorecords for use in schools, or copies of 
                any audiovisual work imported for purposes 
                other than archival use;
                  [(2) importation, for the private use of the 
                importer] (B) importation or exportation, for 
                the private use of the importer or exporter and 
                not for distribution, by any person with 
                respect to no more than one copy or phonorecord 
                of any one work at any one time, or by any 
                person arriving from outside the United States 
                or departing from the United States with 
                respect to copies or phonorecords forming part 
                of such person's personal baggage; or
                  [(3)] (C) importation by or for an 
                organization operated for scholarly, 
                educational, or religious purposes and not for 
                private gain, with respect to no more than one 
                copy of an audiovisual work solely for its 
                archival purposes, and no more than five copies 
                or phonorecords of any other work for its 
                library lending or archival purposes, unless 
                the importation of such copies or phonorecords 
                is part of an activity consisting of systematic 
                reproduction or distribution, engaged in by 
                such organization in violation of the 
                provisions of section 108(g)(2).
  [(b) In a case] (b) Import Prohibition.--In a case where the 
making of the copies or phonorecords would have constituted an 
infringement of copyright if this title had been applicable, 
their importation is prohibited. In a case where the copies or 
phonorecords were lawfully made, [the United States Customs 
Service] U.S. Customs and Border Protection has no authority to 
prevent their importation unless the provisions of section 601 
are applicable. In either case, the Secretary of the Treasury 
is authorized to prescribe, by regulation, a procedure under 
which any person claiming an interest in the copyright in a 
particular work may, upon payment of a specified fee, be 
entitled to notification by [the Customs Service] U.S. Customs 
and Border Protection of the importation of articles that 
appear to be copies or phonorecords of the work.

           *       *       *       *       *       *       *

                              ----------                              


                         TRADEMARK ACT OF 1946



           *       *       *       *       *       *       *
TITLE VI--REMEDIES

           *       *       *       *       *       *       *


  Sec. 35.(a) * * *
  [(b) In assessing damages under subsection (a), the court 
shall, unless the court finds extenuating circumstances, enter 
judgment for three times such profits or damages, whichever is 
greater, together with a reasonable attorney's fee in the case 
of any violation of section 32(1)(a) of this Act (15 U.S.C. 
1114(1)(a)) or section 220506 of title 36, United States Code, 
that consists of intentionally using a mark or designation, 
knowing such mark or designation is a counterfeit mark (as 
defined in section 34(d) of this Act (15 U.S.C. 1116(d)), in 
connection with the sale, offering for sale, or distribution of 
goods or services. In such cases, the court may in its 
discretion award prejudgment interest on such amount at an 
annual interest rate established under such 6621(a)(2) of the 
Internal Revenue Code of 1986, commencing on the date of the 
service of the claimant's pleadings setting forth the claim for 
such entry and ending on the date such entry is made, or for 
such shorter time as the court deems appropriate.]
  (b) In assessing damages under subsection (a) for any 
violation of section 32(1)(a) of this Act or section 220506 of 
title 36, United States Code, in a case involving use of a 
counterfeit mark or designation (as defined in section 34(d) of 
this Act), the court shall, unless the court finds extenuating 
circumstances, enter judgment for three times such profits or 
damages, whichever amount is greater, together with a 
reasonable attorney's fee, if the violation consists of--
          (1) intentionally using a mark or designation, 
        knowing such mark or designation is a counterfeit mark 
        (as defined in section 34(d) of this Act), in 
        connection with the sale, offering for sale, or 
        distribution of goods or services;
          (2) intentionally inducing another to engage in a 
        violation specified in paragraph (1); or
          (3) providing goods or services necessary to the 
        commission of a violation specified in paragraph (1), 
        with the intent that the recipient of the goods or 
        services would put the goods or services to use in 
        committing the violation.
In such a case, the court may award prejudgment interest on 
such amount at an annual interest rate established under 
section 6621(a)(2) of the Internal Revenue Code of 1986, 
beginning on the date of the service of the claimant's 
pleadings setting forth the claim for such entry of judgment 
and ending on the date such entry is made, or for such shorter 
time as the court considers appropriate.
  (c) In a case involving the use of a counterfeit mark (as 
defined in section 34(d) (15 U.S.C. 1116(d)) in connection with 
the sale, offering for sale, or distribution of goods or 
services, the plaintiff may elect, at any time before final 
judgment is rendered by the trial court, to recover, instead of 
actual damages and profits under subsection (a), an award of 
statutory damages for any such use in connection with the sale, 
offering for sale, or distribution of goods or services in the 
amount of--
          (1) not less than [$500] $1,000 or more than 
        [$100,000] $200,000 per counterfeit mark per type of 
        goods or services sold, offered for sale, or 
        distributed, as the court considers just; or
          (2) if the court finds that the use of the 
        counterfeit mark was willful, not more than 
        [$1,000,000] $2,000,000 per counterfeit mark per type 
        of goods or services sold, offered for sale, or 
        distributed, as the court considers just.

           *       *       *       *       *       *       *


   TITLE VII--IMPORTATION OR EXPORTATION FORBIDDEN OF GOODS BEARING 
                       INFRINGING MARKS OR NAMES

  Sec. 42. Except as provided in subsection (d) of section 526 
of the Tariff Act of 1930, no article of [imported] merchandise 
which shall copy or simulate the name of any domestic 
manufacture, or manufacturer, or trader, or of any manufacturer 
or trader located in any foreign country which, by treaty, 
convention, or law affords similar privileges to citizens of 
the United States, or which shall copy or simulate a trademark 
registered in accordance with the provisions of this Act or 
shall bear a name or mark calculated to induce the public to 
believe that the article is manufactured in the United States, 
or that it is manufactured in any foreign country or locality 
other than the country or locality in which it is in fact 
manufactured, shall be admitted to entry at any customhouse of 
the United States, nor shall any such article be exported from 
the United States; and, in order to aid the officers of the 
customs in enforcing this prohibition, any domestic 
manufacturer or trader, and any foreign manufacturer or trader, 
who is entitled under the provisions of a treaty, convention, 
declaration, or agreement between the United States and any 
foreign country to the advantages afforded by law to citizens 
of the United States in respect to trademarks and commercial 
names, may require his name and residence, and the name of the 
locality in which his goods are manufactured, and a copy of the 
certificate of registration of his trademark, issued in 
accordance with the provisions of this Act, to be recorded in 
books which shall be kept for this purpose in the Department of 
the Treasury, under such regulations as the Secretary of the 
Treasury shall prescribe, and may furnish to the Department 
facsimiles of his name, the name of the locality in which his 
goods are manufactured, or of his registered trademark, and 
thereupon the Secretary of the Treasury shall cause one or more 
copies of the same to be transmitted to each collector or other 
proper officer of customs.

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 18, UNITED STATES CODE



           *       *       *       *       *       *       *
PART I--CRIMES

           *       *       *       *       *       *       *


CHAPTER 113--STOLEN PROPERTY

           *       *       *       *       *       *       *


Sec. 2318. Trafficking in counterfeit labels, illicit labels, or 
                    counterfeit documentation or packaging

  (a) * * *

           *       *       *       *       *       *       *

  [(d) When any person is convicted of any violation of 
subsection (a), the court in its judgment of conviction shall 
in addition to the penalty therein prescribed, order the 
forfeiture and destruction or other disposition of all 
counterfeit labels or illicit labels and all articles to which 
counterfeit labels or illicit labels have been affixed or which 
were intended to have had such labels affixed, and of any 
equipment, device, or material used to manufacture, reproduce, 
or assemble the counterfeit labels or illicit labels.
  [(e) Except to the extent they are inconsistent with the 
provisions of this title, all provisions of section 509, title 
17, United States Code, are applicable to violations of 
subsection (a).]
  (d) Forfeiture and Destruction; Restitution.--
          (1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  (i) Any counterfeit documentation or 
                packaging, and any counterfeit label or illicit 
                label and any article to which a counterfeit 
                label or illicit label has been affixed, which 
                a counterfeit label or illicit label encloses 
                or accompanies, or which was intended to have 
                had such label affixed, enclosing, or 
                accompanying.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of a violation of 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or facilitate the commission of 
                a violation of subsection (a) that is owned or 
                predominantly controlled by the violator or by 
                a person conspiring with or aiding and abetting 
                the violator in committing the violation, 
                except that property is subject to forfeiture 
                under this clause only if the Government 
                establishes that there was a substantial 
                connection between the property and the 
                violation of subsection (a).
          (B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil 
        forfeiture under subparagraph (A). At the conclusion of 
        the forfeiture proceedings, the court shall order that 
        any forfeited counterfeit labels or illicit labels and 
        any article to which a counterfeit label or illicit 
        label has been affixed, which a counterfeit label or 
        illicit label encloses or accompanies, or which was 
        intended to have had such label affixed, enclosing, or 
        accompanying, be destroyed or otherwise disposed of 
        according to law.
          (C) In this paragraph, the term ``aiding and 
        abetting'' means knowingly providing aid to the 
        violator with the intent to facilitate the violation.
          (2) Criminal forfeiture proceedings.--(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 the following property:
                  (i) Any counterfeit documentation or 
                packaging, and any counterfeit label or illicit 
                label, that was used, intended for use, or 
                possessed with intent to use in the commission 
                of an offense under subsection (a), and any 
                article to which such a counterfeit label or 
                illicit label has been affixed, which such a 
                counterfeit label or illicit label encloses or 
                accompanies, or which was intended to have had 
                such label affixed, enclosing, or accompanying.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of an offense under 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or substantially facilitate the 
                commission of an offense under subsection (a).
          (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. At the 
        conclusion of the forfeiture proceedings, the court 
        shall order that any counterfeit label or illicit label 
        and any article to which a counterfeit label or illicit 
        label has been affixed, which a counterfeit label or 
        illicit label encloses or accompanies, or which was 
        intended to have had such label affixed, enclosing, or 
        accompanying, be destroyed or otherwise disposed of 
        according to law.
          (3) Restitution.--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 marks or 
        copyrighted works involved in the offense and any other 
        victim of the offense as an offense against property 
        referred to in section 3663A(c)(1)(A)(ii).
  [(f)] (e) Civil Remedies.--
          (1) * * *

           *       *       *       *       *       *       *


Sec. 2319. Criminal infringement of a copyright

  (a) * * *
  (b) Any person who commits an offense under section 
506(a)(1)(A) of title 17--
          (1) * * *
          (2) shall be imprisoned not more than 10 years, or 
        fined in the amount set forth in this title, or both, 
        if the offense is a felony and is a second or 
        subsequent offense under [paragraph (1)] subsection 
        (a); and

           *       *       *       *       *       *       *

  (c) Any person who commits an offense under section 
506(a)(1)(B) of title 17--
          (1) * * *
          (2) shall be imprisoned not more than 6 years, or 
        fined in the amount set forth in this title, or both, 
        if the offense is a felony and is a second or 
        subsequent offense under [paragraph (1)] subsection 
        (a); and

           *       *       *       *       *       *       *

  (d) Any person who commits an offense under section 
506(a)(1)(C) of title 17--
          (1) * * *

           *       *       *       *       *       *       *

          (3) shall be imprisoned not more than 6 years, fined 
        under this title, or both, if the offense is a felony 
        and is a second or subsequent offense under subsection 
        (a); and
          (4) shall be imprisoned not more than 10 years, fined 
        under this title, or both, if the offense is a felony 
        and is a second or subsequent offense under paragraph 
        (2).

           *       *       *       *       *       *       *

  (g) Forfeiture and Destruction; Restitution.--
          (1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  (i) Any copies or phonorecords manufactured, 
                reproduced, distributed, sold, or otherwise 
                used, intended for use, or possessed with 
                intent to use in violation of section 506(a) of 
                title 17, any plates, molds, matrices, masters, 
                tapes, film negatives, or other articles by 
                means of which such copies or phonorecords may 
                be made, and any devices for manufacturing, 
                reproducing, or assembling such copies or 
                phonorecords.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of a violation of 
                section 506(a) of title 17.
                  (iii) Any property used, or intended to be 
                used, to commit or facilitate the commission of 
                a violation of section 506(a) of title 17 that 
                is owned or predominantly controlled by the 
                violator or by a person conspiring with or 
                aiding and abetting the violator in committing 
                the violation, except that property is subject 
                to forfeiture under this clause only if the 
                Government establishes that there was a 
                substantial connection between the property and 
                the violation of section 506(a) of title 17.
          (B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil 
        forfeiture under this section. At the conclusion of the 
        forfeiture proceedings, the court shall order that any 
        forfeited infringing copies or phonorecords, and any 
        plates, molds, matrices, masters, tapes, and film 
        negatives by means of which such unauthorized copies or 
        phonorecords may be made, be destroyed or otherwise 
        disposed of according to law.
          (C) In this paragraph, the term ``aiding and 
        abetting'' means knowingly providing aid to the 
        violator with the intent to facilitate the violation.
          (2) Criminal forfeiture proceedings.--(A) The court, 
        in imposing sentence on a person convicted of an 
        offense under subsection (a), shall order, in addition 
        to any other sentence imposed, that the person forfeit 
        to the United States the following property:
                  (i) Any copies or phonorecords manufactured, 
                reproduced, distributed, sold, or otherwise 
                used, intended for use, or possessed with 
                intent to use in the commission of an offense 
                under subsection (a), any plates, molds, 
                matrices, masters, tapes, film negatives, or 
                other articles by means of which the copies or 
                phonorecords may be reproduced, and any 
                electronic, mechanical, or other devices for 
                manufacturing, reproducing, or assembling such 
                copies or phonorecords.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of an offense under 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or substantially facilitate the 
                commission of an offense under subsection (a).
          (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. At the 
        conclusion of the forfeiture proceedings, the court 
        shall order that any forfeited infringing copies or 
        phonorecords, and any plates, molds, matrices, masters, 
        tapes, and film negatives by means of which such 
        infringing copies or phonorecords may be made, be 
        destroyed or otherwise disposed of according to law.
          (3) Restitution.--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 copyright owner and any other 
        victim of the offense as an offense against property 
        referred to in section 3663A(c)(1)(A)(ii).

Sec. 2319A. Unauthorized fixation of and trafficking in sound 
                    recordings and music videos of live musical 
                    performances

  (a) * * *
  [(b) Forfeiture and Destruction.--When a person is convicted 
of a violation of subsection (a), the court shall order the 
forfeiture and destruction of any copies or phonorecords 
created in violation thereof, as well as any plates, molds, 
matrices, masters, tapes, and film negatives by means of which 
such copies or phonorecords may be made. The court may also, in 
its discretion, order the forfeiture and destruction of any 
other equipment by means of which such copies or phonorecords 
may be reproduced, taking into account the nature, scope, and 
proportionality of the use of the equipment in the offense.
  [(c) Seizure and Forfeiture.--If copies or phonorecords of 
sounds or sounds and images of a live musical performance are 
fixed outside of the United States without the consent of the 
performer or performers involved, such copies or phonorecords 
are subject to seizure and forfeiture in the United States in 
the same manner as property imported in violation of the 
customs laws. The Secretary of the Treasury shall, not later 
than 60 days after the date of the enactment of the Uruguay 
Round Agreements Act, issue regulations to carry out this 
subsection, including regulations by which any performer may, 
upon payment of a specified fee, be entitled to notification by 
the United States Customs Service of the importation of copies 
or phonorecords that appear to consist of unauthorized 
fixations of the sounds or sounds and images of a live musical 
performance.]
  (b) Forfeiture and Destruction; Restitution.--
          (1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  (i) Any copies or phonorecords of a live 
                musical performance described in subsection 
                (a)(1) that are made without the consent of the 
                performer or performers involved, and any 
                plates, molds, matrices, masters, tapes, and 
                film negatives by means of which such copies or 
                phonorecords may be made.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of a violation of 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or facilitate the commission of 
                a violation of subsection (a) that is owned or 
                predominantly controlled by the violator or by 
                a person conspiring with or aiding and abetting 
                the violator in committing the violation, 
                except that property is subject to forfeiture 
                under this clause only if the Government 
                establishes that there was a substantial 
                connection between the property and the 
                violation of subsection (a).
          (B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil 
        forfeiture under paragraph (1). At the conclusion of 
        the forfeiture proceedings, the court shall order that 
        any forfeited unauthorized copies or phonorecords of 
        live musical performances, and any plates, molds, 
        matrices, maters, tapes, and film negatives by means of 
        which such unauthorized copies or phonorecords may be 
        made, be destroyed or otherwise disposed of according 
        to law.
          (C) In this paragraph, the term ``aiding and 
        abetting'' means knowingly providing aid to the 
        violator with the intent to facilitate the violation.
          (2) Criminal forfeiture proceedings.--(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 the following property:
                  (i) Any unauthorized copies or phonorecords 
                of a live musical performance that were used, 
                intended for use, or possessed with intent to 
                use in the commission of an offense under 
                subsection (a), and any plates, molds, 
                matrices, masters, tapes, and film negatives by 
                means of which such copies or phonorecords may 
                be made.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of an offense under 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or substantially facilitate the 
                commission of an offense under subsection (a).
          (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. At the 
        conclusion of the forfeiture proceedings, the court 
        shall order that any forfeited unauthorized copies or 
        phonorecords of live musical performances, and any 
        plates, molds, matrices, masters, tapes, and film 
        negatives by means of which such unauthorized copies of 
        phonorecords may be made, be destroyed or otherwise 
        disposed of according to law.
          (3) Notification of importation.--The Secretary of 
        Homeland Security shall issue regulations by which any 
        performer may, upon payment of a specified fee, be 
        entitled to notification by U.S. Customs and Border 
        Protection of the importation of copies or phonorecords 
        that appear to consist of unauthorized fixations of the 
        sounds or sounds and images of a live musical 
        performance prohibited by this section.
          (4) Restitution.--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 performer or performers 
        involved, and any other victim of the offense as an 
        offense against property referred to in section 
        3663A(c)(1)(A)(ii).
  [(d)] (c) Victim Impact Statement.--(1) * * *

           *       *       *       *       *       *       *

  [(e)] (d) Definitions.--As used in this section--
          (1) * * *

           *       *       *       *       *       *       *

  [(f)] (e) Applicability.--This section shall apply to any Act 
or Acts that occur on or after the date of the enactment of the 
Uruguay Round Agreements Act, except that the forfeiture 
provisions under subsection (b)(2), as added by the 
Prioritizing Resources and Organization for Intellectual 
Property Act, shall apply only in a case in which the 
underlying act or acts occur on or after the date of the 
enactment of that Act.

Sec. 2319B. Unauthorized recording of Motion pictures in a Motion 
                    picture exhibition facility

  (a) * * *
  [(b) Forfeiture and Destruction.--When a person is convicted 
of a violation of subsection (a), the court in its judgment of 
conviction shall, in addition to any penalty provided, order 
the forfeiture and destruction or other disposition of all 
unauthorized copies of motion pictures or other audiovisual 
works protected under title 17, or parts thereof, and any 
audiovisual recording devices or other equipment used in 
connection with the offense.]
  (b) Forfeiture and Destruction; Restitution.--
          (1) Civil forfeiture proceedings.--(A) The following 
        property is subject to forfeiture to the United States:
                  (i) Any copies of a motion picture or other 
                audiovisual work protected under title 17 that 
                are made without the authorization of the 
                copyright owner.
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of a violation of 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or facilitate the commission of 
                a violation of subsection (a) that is owned or 
                predominantly controlled by the violator or by 
                a person conspiring with or aiding and abetting 
                the violator in committing the violation, 
                except that property is subject to forfeiture 
                under this clause only if the Government 
                establishes that there was a substantial 
                connection between the property and the 
                violation of subsection (a).
          (B) The provisions of chapter 46 relating to civil 
        forfeitures shall extend to any seizure or civil 
        forfeiture under this section. At the conclusion of the 
        forfeiture proceedings, the court shall order that any 
        forfeited unauthorized copies or phonorecords of a 
        motion picture or other audiovisual work, or part 
        thereof, and any plates, molds, matrices, masters, 
        tapes, and film negatives by means of which such 
        unauthorized copies or phonorecords may be made, be 
        destroyed or otherwise disposed of according to law.
          (C) In this paragraph, the term ``aiding and 
        abetting'' means knowingly providing aid to the 
        violator with the intent to facilitate the violation.
          (2) Criminal forfeiture proceedings.--(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 the following property:
                  (i) Any unauthorized copies of a motion 
                picture or other audiovisual work protected 
                under title 17, or part thereof, that were 
                used, intended for use, or possessed with 
                intent to use in the commission of an offense 
                under subsection (a).
                  (ii) Any property constituting or derived 
                from any proceeds obtained directly or 
                indirectly as a result of an offense under 
                subsection (a).
                  (iii) Any property used, or intended to be 
                used, to commit or substantially facilitate the 
                commission of an offense under subsection (a).
          (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. At the 
        conclusion of the forfeiture proceedings, the court 
        shall order that any forfeited unauthorized copies or 
        phonorecords of a motion picture or other audiovisual 
        work, or part thereof, and any plates, molds, matrices, 
        masters, tapes, and film negatives by means of which 
        such unauthorized copies or phonorecords may be made, 
        be destroyed or otherwise disposed of according to law.
          (3) Restitution.--When a person is convicted of an 
        offense under this chapter, the court, pursuant to 
        sections 3556, 3663A, and 3664, shall order the person 
        to pay restitution to the owner of the copyright in the 
        motion picture or other audiovisual work and any other 
        victim of the offense as an offense against property 
        referred to in section 3663A(c)(1)(A)(ii).

           *       *       *       *       *       *       *


Sec. 2320. Trafficking in counterfeit goods or services

  (a) [Whoever] Offense.--
          (1) In general.--Whoever intentionally traffics or 
        attempts to traffic in goods or services and knowingly 
        uses a counterfeit mark on or in connection with such 
        goods or services, 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, shall, if an individual, be fined not 
        more than $2,000,000 or imprisoned not more than 10 
        years, or both, and, if a person other than an 
        individual, be fined not more than $5,000,000. In the 
        case of an offense by a person under this section that 
        occurs after that person is convicted of another 
        offense under this section, the person convicted, if an 
        individual, shall be fined not more than $5,000,000 or 
        imprisoned not more than 20 years, or both, and if 
        other than an individual, shall be fined not more than 
        $15,000,000.
          (2) Serious bodily harm or death.--
                  (A) Serious bodily harm.--If the offender 
                knowingly or recklessly causes or attempts to 
                cause serious bodily injury from conduct in 
                violation of paragraph (1), the penalty shall 
                be a fine under this title or imprisonment for 
                not more than 20 years, or both.
                  (B) Death.--If the offender knowingly or 
                recklessly causes or attempts to cause death 
                from conduct in violation of paragraph (1), the 
                penalty shall be a fine under this title or 
                imprisonment for any term of years or for life, 
                or both.
  (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 constituting or derived from any 
        proceeds obtained directly or indirectly as a result of 
        a violation of subsection (a).
          [(B)] (C) Any property used, in any manner or part, 
        to commit or to facilitate the commission of a 
        violation of subsection (a).

           *       *       *       *       *       *       *

                              ----------                              


                  SECTION 182 OF THE TRADE ACT OF 1974



           *       *       *       *       *       *       *
SEC. 182. IDENTIFICATION OF COUNTRIES THAT DENY ADEQUATE PROTECTION, OR 
                    MARKET ACCESS, FOR INTELLECTUAL PROPERTY RIGHTS.

  (a) * * *
  (b) Special Rules for Identifications.--
          (1) * * *
          (2) In identifying priority foreign countries under 
        subsection (a)(2), the Trade Representative shall--
                  (A) consult with the United States 
                Intellectual Property Enforcement 
                Representative, the Register of Copyrights, the 
                Under Secretary of Commerce for Intellectual 
                Property and Director of the United States 
                Patent and Trademark Office, other appropriate 
                officers of the Federal Government, and

           *       *       *       *       *       *       *

                              ----------                              


                      TITLE 5, UNITED STATES CODE



           *       *       *       *       *       *       *
PART III--EMPLOYEES

           *       *       *       *       *       *       *


SUBPART D--PAY AND ALLOWANCES

           *       *       *       *       *       *       *


CHAPTER 53--PAY RATES AND SYSTEMS

           *       *       *       *       *       *       *


              SUBCHAPTER II--EXECUTIVE SCHEDULE PAY RATES

Sec. 5312. Positions at level I

  Level I of the Executive Schedule applies to the following 
positions for which the annual rate of basic pay shall be the 
rate determined with respect to such level under chapter 11 of 
title 2, as adjusted by section 5318 of this title:
          Secretary of State.

           *       *       *       *       *       *       *

          United States Intellectual Property Enforcement 
        Representative.

           *       *       *       *       *       *       *

                              ----------                              


        TREASURY AND GENERAL GOVERNMENT APPROPRIATIONS ACT, 2000



           *       *       *       *       *       *       *
                      TITLE VI--GENERAL PROVISIONS

DEPARTMENTS, AGENCIES, AND CORPORATIONS

           *       *       *       *       *       *       *


  [Sec. 653. (a) Establishment.--There is established the 
National Intellectual Property Law Enforcement Coordination 
Council (in this section referred to as the ``Council''). The 
Council shall consist of the following members--
  [(1) The Assistant Secretary of Commerce and Commissioner of 
Patents and Trademarks, who shall serve as co-chair of the 
Council.
  [(2) The Assistant Attorney General, Criminal Division, who 
shall serve as co-chair of the Council.
  [(3) The Under Secretary of State for Economic and 
Agricultural Affairs.
  [(4) The Ambassador, Deputy United States Trade 
Representative.
  [(5) The Commissioner of Customs.
  [(6) The Under Secretary of Commerce for International Trade.
  [(7) The Coordinator for International Intellectual Property 
Enforcement.'' after ``Under Secretary of Commerce for 
International Trade.
  [(b) Duties.--The Council established in subsection (a) shall 
coordinate domestic and international intellectual property law 
enforcement among federal and foreign entities.
  [(c) Consultation Required.--The Council shall consult with 
the Register of Copyrights on law enforcement matters relating 
to copyright and related rights and matters.
  [(d) Non-derogation.--Nothing in this section shall derogate 
from the duties of the Secretary of State or from the duties of 
the United States Trade Representative as set forth in section 
141 of the Trade Act of 1974 (19 U.S.C. 2171), or from the 
duties and functions of the Register of Copyrights, or 
otherwise alter current authorities relating to copyright 
matters.
  [(e) Report.--The Council shall report annually on its 
coordination activities to the President, and to the Committees 
on Appropriations and on the Judiciary of the Senate and the 
House of Representatives.
  [(f) Funding.--Notwithstanding section 1346 of title 31, 
United States Code, or section 610 of this Act, funds made 
available for fiscal year 2000 and hereafter by this or any 
other Act shall be available for interagency funding of the 
National Intellectual Property Law Enforcement Coordination 
Council.]

           *       *       *       *       *       *       *

                              ----------                              


                     COMPUTER CRIME ENFORCEMENT ACT



           *       *       *       *       *       *       *
SEC. 2. STATE GRANT PROGRAM FOR TRAINING AND PROSECUTION OF COMPUTER 
                    CRIMES.

  (a) * * *
  (b) Use of Grant Amounts.--Grants under this section may be 
used to establish and develop programs to--
          (1) assist State and local law enforcement agencies 
        in enforcing State and local criminal laws relating to 
        computer crime, including infringement of copyrighted 
        works over the Internet;
          (2) assist State and local law enforcement agencies 
        in educating the public to prevent and identify 
        computer crime, including infringement of copyrighted 
        works over the Internet;
          (3) educate and train State and local law enforcement 
        officers and prosecutors to conduct investigations and 
        forensic analyses of evidence and prosecutions of 
        computer crime, including infringement of copyrighted 
        works over the Internet;

           *       *       *       *       *       *       *

  (e) Authorization of Appropriations.--
          (1) In general.--There is authorized to be 
        appropriated to carry out this section $25,000,000 for 
        each of [fiscal years 2001 through 2004] fiscal years 
        2009 through 2013.

           *       *       *       *       *       *       *


                     Committee Jurisdiction Letters
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