[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1136 Enrolled Bill (ENR)]

        S.1136

                       One Hundred Fourth Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six


                                 An Act


 
    To control and prevent commercial counterfeiting, and for other 
                                purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Anticounterfeiting Consumer 
Protection Act of 1996''.

SEC. 2. FINDINGS.

    The counterfeiting of trademarked and copyrighted merchandise--
        (1) has been connected with organized crime;
        (2) deprives legitimate trademark and copyright owners of 
    substantial revenues and consumer goodwill;
        (3) poses health and safety threats to United States consumers;
        (4) eliminates United States jobs; and
        (5) is a multibillion-dollar drain on the United States 
    economy.

SEC. 3. COUNTERFEITING AS RACKETEERING.

    Section 1961(1)(B) of title 18, United States Code, is amended by 
inserting ``, section 2318 (relating to trafficking in counterfeit 
labels for phonorecords, computer programs or computer program 
documentation or packaging and copies of motion pictures or other 
audiovisual works), section 2319 (relating to criminal infringement of 
a copyright), section 2319A (relating to unauthorized fixation of and 
trafficking in sound recordings and music videos of live musical 
performances), section 2320 (relating to trafficking in goods or 
services bearing counterfeit marks)'' after ``sections 2314 and 2315 
(relating to interstate transportation of stolen property)''.
SEC. 4. APPLICATION TO COMPUTER PROGRAMS, COMPUTER PROGRAM 
DOCUMENTATION, OR PACKAGING.
    (a) In General.--Section 2318 of title 18, United States Code, is 
amended--
        (1) in subsection (a), by striking ``a motion picture or other 
    audiovisual work,'' and inserting ``a computer program or 
    documentation or packaging for a computer program, or a copy of a 
    motion picture or other audiovisual work, and whoever, in any of 
    the circumstances described in subsection (c) of this section, 
    knowingly traffics in counterfeit documentation or packaging for a 
    computer program,'';
        (2) in subsection (b)(3) by inserting ```computer program','' 
    after ```motion picture',''; and
        (3) in subsection (c)--
            (A) by striking ``or'' at the end of paragraph (2);
            (B) in paragraph (3)--
                (i) by inserting ``a copy of a copyrighted computer 
            program or copyrighted documentation or packaging for a 
            computer program,'' after ``enclose,''; and
                (ii) by striking the period at the end and inserting 
            ``; or''; and
            (C) by adding after paragraph (3) the following:
        ``(4) the counterfeited documentation or packaging for a 
    computer program is copyrighted.''.
    (b) Conforming Amendments.--(1) The section caption for section 
2318 of title 18, United States Code, is amended to read as follows:

``Sec. 2318. Trafficking in counterfeit labels for phonorecords, copies 
            of computer programs or computer program documentation or 
            packaging, and copies of motion pictures or other audio 
            visual works, and trafficking in counterfeit computer 
            program documentation or packaging''.

    (2) The item relating to section 2318 in the table of sections for 
chapter 113 of such title is amended to read as follows:
``2318. Trafficking in counterfeit labels for phonorecords, copies of 
          computer programs or computer program documentation or 
          packaging, and copies of motion pictures or other audio visual 
          works, and trafficking in counterfeit computer program 
          documentation or packaging.''.

SEC. 5. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.

    Section 2320 of title 18, United States Code, is amended by adding 
at the end the following:
    ``(e) Beginning with the first year after the date of enactment of 
this subsection, the Attorney General shall include in the report of 
the Attorney General to Congress on the business of the Department of 
Justice prepared pursuant to section 522 of title 28, an accounting, on 
a district by district basis, of the following with respect to all 
actions taken by the Department of Justice that involve trafficking in 
counterfeit labels for phonorecords, copies of computer programs or 
computer program documentation or packaging, copies of motion pictures 
or other audiovisual works (as defined in section 2318 of title 18), 
criminal infringement of copyrights (as defined in section 2319 of 
title 18), unauthorized fixation of and trafficking in sound recordings 
and music videos of live musical performances (as defined in section 
2319A of title 18), or trafficking in goods or services bearing 
counterfeit marks (as defined in section 2320 of title 18):
        ``(1) The number of open investigations.
        ``(2) The number of cases referred by the United States Customs 
    Service.
        ``(3) The number of cases referred by other agencies or 
    sources.
        ``(4) The number and outcome, including settlements, sentences, 
    recoveries, and penalties, of all prosecutions brought under 
    sections 2318, 2319, 2319A, and 2320 of title 18.''.

SEC. 6. SEIZURE OF COUNTERFEIT GOODS.

    Section 34(d)(9) of the Act of July 5, 1946 (60 Stat. 427, chapter 
540; 15 U.S.C. 1116(d)(9)), is amended by striking the first sentence 
and inserting the following: ``The court shall order that service of a 
copy of the order under this subsection shall be made by a Federal law 
enforcement officer (such as a United States marshal or an officer or 
agent of the United States Customs Service, Secret Service, Federal 
Bureau of Investigation, or Post Office) or may be made by a State or 
local law enforcement officer, who, upon making service, shall carry 
out the seizure under the order.''.

SEC. 7. RECOVERY FOR VIOLATION OF RIGHTS.

    Section 35 of the Act of July 5, 1946 (60 Stat. 427, chapter 540; 
15 U.S.C. 1117), is amended by adding at the end the following new 
subsection:
    ``(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 or more than $100,000 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 per counterfeit mark per type 
    of goods or services sold, offered for sale, or distributed, as the 
    court considers just.''.

SEC. 8. DISPOSITION OF EXCLUDED ARTICLES.

    Section 603(c) of title 17, United States Code, is amended in the 
second sentence by striking ``as the case may be;'' and all that 
follows through the end and inserting ``as the case may be.''.
SEC. 9. DISPOSITION OF MERCHANDISE BEARING AMERICAN TRADEMARK.
    Section 526(e) of the Tariff Act of 1930 (19 U.S.C. 1526(e)) is 
amended--
        (1) in the second sentence, by inserting ``destroy the 
    merchandise. Alternatively, if the merchandise is not unsafe or a 
    hazard to health, and the Secretary has the consent of the 
    trademark owner, the Secretary may'' after ``shall, after 
    forfeiture,'';
        (2) by inserting ``or'' at the end of paragraph (2);
        (3) by striking ``, or'' at the end of paragraph (3) and 
    inserting a period; and
        (4) by striking paragraph (4).

SEC. 10. CIVIL PENALTIES.

    Section 526 of the Tariff Act of 1930 (19 U.S.C. 1526) is amended 
by adding at the end the following new subsection:
    ``(f) Civil Penalties.--(1) Any person who directs, assists 
financially or otherwise, or aids and abets the importation of 
merchandise for sale or public distribution that is seized under 
subsection (e) shall be subject to a civil fine.
    ``(2) For the first such seizure, the fine shall be not more than 
the value that the merchandise would have had if it were genuine, 
according to the manufacturer's suggested retail price, determined 
under regulations promulgated by the Secretary.
    ``(3) For the second seizure and thereafter, the fine shall be not 
more than twice the value that the merchandise would have had if it 
were genuine, as determined under regulations promulgated by the 
Secretary.
    ``(4) The imposition of a fine under this subsection shall be 
within the discretion of the Customs Service, and shall be in addition 
to any other civil or criminal penalty or other remedy authorized by 
law.''.

SEC. 11. PUBLIC DISCLOSURE OF AIRCRAFT MANIFESTS.

    Section 431(c)(1) of the Tariff Act of 1930 (19 U.S.C. 1431(c)(1)) 
is amended--
        (1) in the matter preceding subparagraph (A), by inserting 
    ``vessel or aircraft'' before ``manifest'';
        (2) by amending subparagraph (D) to read as follows:
        ``(D) The name of the vessel, aircraft, or carrier.'';
        (3) by amending subparagraph (E) to read as follows:
        ``(E) The seaport or airport of loading.'';
        (4) by amending subparagraph (F) to read as follows:
        ``(F) The seaport or airport of discharge.''; and
        (5) by adding after subparagraph (G) the following new 
    subparagraph:
        ``(H) The trademarks appearing on the goods or packages.''.

SEC. 12. CUSTOMS ENTRY DOCUMENTATION.

    Section 484(d) of the Tariff Act of 1930 (19 U.S.C. 1484(d)) is 
amended--
        (1) by striking ``Entries'' and inserting ``(1) Entries''; and
        (2) by adding at the end the following new paragraph:
    ``(2) The Secretary, in prescribing regulations governing the 
content of entry documentation, shall require that entry documentation 
contain such information as may be necessary to determine whether the 
imported merchandise bears an infringing trademark in violation of 
section 42 of the Act of July 5, 1946 (commonly referred to as the 
`Trademark Act of 1946'; 15 U.S.C. 1124), or any other applicable law, 
including a trademark appearing on the goods or packaging.''.
  SEC. 13. UNLAWFUL USE OF VESSELS, VEHICLES, AND AIRCRAFT IN AID OF 
      COMMERCIAL COUNTERFEITING.
    Section 80302(a) of title 49, United States Code, is amended--
        (1) by striking ``or'' at the end of paragraph (4);
        (2) by striking the period at the end of paragraph (5) and 
    inserting ``; or''; and
        (3) by adding at the end the following new paragraph:
        ``(6)(A) a counterfeit label for a phonorecord, copy of a 
    computer program or computer program documentation or packaging, or 
    copy of a motion picture or other audiovisual work (as defined in 
    section 2318 of title 18);
        ``(B) a phonorecord or copy in violation of section 2319 of 
    title 18;
        ``(C) a fixation of a sound recording or music video of a live 
    musical performance in violation of section 2319A of title 18; or
        ``(D) any good bearing a counterfeit mark (as defined in 
    section 2320 of title 18).''.

SEC. 14. REGULATIONS.

    Not later than 6 months after the date of the enactment of this 
Act, the Secretary of the Treasury shall prescribe such regulations or 
amendments to existing regulations that may be necessary to carry out 
the amendments made by sections 9, 10, 11, 12, and 13 of this Act.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.