[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1984 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1984

 To safeguard the national security and economic health of the United 
States by improving the management, coordination, and effectiveness of 
 domestic and international intellectual property rights enforcement, 
                        and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 9, 2005

Mr. Bayh (for himself and Mr. Voinovich) introduced the following bill; 
  which was read twice and referred to the Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
 To safeguard the national security and economic health of the United 
States by improving the management, coordination, and effectiveness of 
 domestic and international intellectual property rights enforcement, 
                        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 ``The Intellectual Property Rights 
Enforcement Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) Funds generated from intellectual property theft have 
        financed acts of terrorism.
            (2) Terrorist groups have advocated the sale of counterfeit 
        goods to finance their activities.
            (3) Counterfeit medicines and automobile and aviation parts 
        have resulted in serious health problems and death.
            (4) The greatest economic assets of the United States are 
        its innovators, entrepreneurs, and workers.
            (5) Counterfeiting and piracy costs United States 
        businesses, authors, and artists hundreds of billions of 
        dollars annually.
            (6) Counterfeiting and piracy has resulted in the loss of 
        hundreds of thousands of American jobs.
            (7) The World Customs Organization estimates that up to 7 
        percent of global trade is in counterfeit goods.
            (8) The World Customs Organization estimates that global 
        trade in counterfeit and pirated goods has increased from 
        $5,500,000,000 to more than $600,000,000,000 annually.
            (9) The domestic and international efforts of the United 
        States to curb intellectual property theft have largely been 
        ineffective.
            (10) The efforts to enforce intellectual property rights 
        should be elevated to the same level as the efforts of the 
        United States to combat other crimes, including money 
        laundering.
            (11) The domestic and international efforts of the United 
        States to combat money laundering serves as a useful model for 
        strengthening domestic and international intellectual property 
        rights enforcement.
            (12) The Financial Crimes Enforcement Network (FinCEN) 
        represents a key effort by the United States to combat money 
        laundering and other financial crimes.
            (13) FinCEN has effectively enhanced the exchange of 
        information relating to money laundering and terrorist 
        financing, both domestically and internationally.
            (14) FinCEN combats money laundering internationally by 
        partnering with other enforcement-minded countries through the 
        Financial Action Task Force (FATF) and Egmont.
            (15) FATF members have established effective standards that 
        they collectively agree to implement and against which they 
        agree to be assessed through peer review.
            (16) The success of intellectual property rights 
        enforcement requires that United States Government agencies 
        form an effective network to share information for the purpose 
        of enhancing the enforcement capabilities of each agency.
            (17) The success of intellectual property enforcement 
        requires that a network of government agencies work closely 
        with Federal, State, and local law enforcement.
            (18) The success of international intellectual property 
        rights enforcement requires that the United States partner with 
        other countries that also suffer from extensive intellectual 
        property theft.
            (19) The success of international intellectual property 
        rights enforcement requires that the United States share 
        intelligence within an effective international task force of 
        countries that are dedicated to achieving results in the fight 
        against intellectual property theft.
            (20) The success of international intellectual property 
        rights enforcement will be enhanced if the United States and 
        other reliable international partners engage in joint 
        enforcement operations.
            (21) An effective exchange of intelligence domestically and 
        internationally will enhance the ability of the United States 
        Trade Representative to enforce violations of trade agreements.
            (22) The success of domestic and international intellectual 
        property rights enforcement requires an effective partnership 
        between the public and private sector, and other interested 
        groups.

SEC. 3. THE INTELLECTUAL PROPERTY ENFORCEMENT NETWORK.

    (a) Establishment.--
            (1) In general.--There is established the Intellectual 
        Property Enforcement Network (in this section referred to as 
        the ``Network'').
            (2) Membership.--The Network shall consist of the following 
        officials:
                    (A) The Deputy Director for Management of the 
                Office of Management and Budget (OMB), who shall serve 
                as the chairperson of the Network.
                    (B) The Deputy Attorney General.
                    (C) The Deputy Secretary for Homeland Security.
                    (D) The Under Secretary of Treasury for Terrorism 
                and Financial Intelligence.
                    (E) The Under Secretary of Commerce for 
                Intellectual Property and Director of the United States 
                Patent and Trademark Office.
                    (F) The Deputy Secretary of State.
                    (G) The Deputy United States Trade Representative.
                    (H) The Under Secretary of Commerce for 
                International Trade.
                    (I) The Deputy Director of the Central Intelligence 
                Agency.
                    (J) The Coordinator for Intellectual Property 
                Enforcement.
                    (K) Such other officials as the members of the 
                Network shall consider necessary and appropriate.
    (b) Organization.--
            (1) Meetings.--The Network shall meet at least once every 6 
        months to approve the ongoing operations of the Network, to 
        provide overall direction, to approve the report referred to in 
        subsection (h), and to approve the budget referred to in 
        paragraph (2)(B)(ii).
            (2) Coordinator.--
                    (A) In general.--The day-to-day functions of the 
                Network shall be carried out by a Coordinator for 
                Intellectual Property Enforcement (in this Act referred 
                to as the ``Coordinator'') who shall be appointed by 
                the President.
                    (B) Other responsibilities.--In addition to the 
                responsibilities described in subparagraph (A), the 
                Coordinator shall be responsible for the following:
                            (i) Developing for each fiscal year, with 
                        the advice of the officials of the Network and 
                        any other departments and agencies with 
                        responsibilities for intellectual property 
                        rights protection and intellectual property law 
                        enforcement, a budget proposal to implement the 
                        policies, objectives, and priorities described 
                        in subsection (c).
                            (ii) Drafting and transmitting to the 
                        President and the Congress the report 
                        referenced in subsection (h).
    (c) Duties.--The Network established under subsection (a) shall be 
responsible for the following:
            (1) Establishing policies, objectives, and priorities 
        concerning international intellectual property protection and 
        intellectual property law enforcement. The policies, 
        objectives, and priorities shall include--
                    (A) eliminating counterfeit and pirated goods from 
                the international supply chain;
                    (B) identifying individuals, companies, banks, and 
                other entities involved in the financing, production, 
                trafficking, and sale of counterfeit and pirated goods;
                    (C) arresting and prosecuting persons who are 
                knowingly involved in the financing, production, 
                trafficking, and sale of counterfeit and pirated goods;
                    (D) disrupting and shutting down counterfeit and 
                piracy networks;
                    (E) reducing the number of countries that fail to 
                enforce laws that prevent the financing, production, 
                trafficking, and sale of counterfeit and pirated goods; 
                and
                    (F) establishing international standards for 
                effective intellectual property protection and 
                enforcement.
            (2) Protecting United States intellectual property rights 
        overseas, including--
                    (A) working with similar networks in foreign 
                countries to create a small and effective international 
                intellectual property enforcement task force (in this 
                Act referred to as the ``international task force'');
                    (B) ensuring the international task force described 
                in subparagraph (A) consists of networks in countries 
                that--
                            (i) have intellectual property theft 
                        problems that are similar to those of the 
                        United States;
                            (ii) have adequate and effective laws 
                        protecting copyrights, trademarks, and patents;
                            (iii) have legal regimes that permit 
                        enforcement, and are taking a serious approach 
                        to enforcement, including a track record of 
                        arresting and prosecuting intellectual property 
                        criminals;
                            (iv) have officials who have ex-officio 
                        authority to seize, inspect, and destroy 
                        pirated and counterfeit goods at ports of entry 
                        (or are working toward providing their 
                        officials with the authority);
                            (v) have officials who can order the 
                        seizure of pirated and counterfeit goods (or 
                        are working toward providing their officials 
                        with the authority);
                            (vi) have laws in place that permit 
                        officials to seize property used to produce 
                        pirated and counterfeit goods (or are working 
                        toward providing their officials with the 
                        authority);
                            (vii) are not on the Priority Watch List 
                        issued by the United States Trade 
                        Representative under the Trade Act of 1974; and
                            (viii) have met additional standards to be 
                        established by the international task force.
                    (C) exchanging intelligence with networks in the 
                international task force relating to individuals and 
                entities involved in financing, production, 
                trafficking, and sale of pirated and counterfeit goods;
                    (D) utilizing the intelligence to conduct 
                enforcement activities in cooperation with the networks 
                of other countries in the international task force; and
                    (E) building a formal process for consulting with 
                companies, industry associations, labor unions, and 
                other interested groups in the countries that have 
                networks in the international task force.
            (3) Coordinating and overseeing implementation by agencies 
        with responsibility for intellectual property protection and 
        intellectual property law enforcement of the policies, 
        objectives, and priorities described in paragraph (1) and the 
        fulfillment of the responsibilities assigned to such agencies 
        to complete the actions described in paragraph (2).
    (d) Staff.--
            (1) In general.--The Coordinator shall, in consultation 
        with affected agencies, appoint, and fix the compensation of, 
        such officers and employees of the Network as may be necessary 
        to carry out the functions of the Network and may request the 
        temporary assignment of personnel from any department or 
        agency.
            (2) Assignment and cooperation of other federal 
        employees.--Each member of the Network listed in subsection (a) 
        shall designate personnel from their department or agency to 
        work with the Network and shall ensure that all units in their 
        agencies that have responsibility for intellectual property 
        enforcement provide information and personnel to the Network in 
        order for the Network to achieve the priorities, objectives, 
        and policies described in subsection (c)(1).
            (3) Central intelligence agency information and 
        personnel.--The Deputy Director of the Central Intelligence 
        Agency shall--
                    (A) provide information to members and employees of 
                the Network with appropriate security clearance; and
                    (B) assign employees of the Central Intelligence 
                Agency to work on achieving the priorities, objectives, 
                and policies described in subsection (c).
    (e) Responsibility of Agencies Represented in the Network.--The 
agencies in the Network shall take the following actions:
            (1) Share amongst themselves the information they collect 
        to increase the intelligence and effectiveness of law 
        enforcement with respect to intellectual property rights.
            (2) Coordinate civil and criminal actions with respect to 
        persons who violate intellectual property rights.
            (3) Utilize information collected domestically, and from 
        other countries in the international task force, to--
                    (A) investigate, arrest, and prosecute entities and 
                individuals involved in financing, producing, 
                trafficking, and selling counterfeit and pirated goods;
                    (B) aid the United States Bureau of Customs and 
                Border Protection and other agencies in identifying, 
                seizing, and destroying counterfeit and pirated goods;
                    (C) aid the United States Trade Representative in 
                bringing cases in the World Trade Organization against 
                countries with a poor record of enforcing World Trade 
                Organization intellectual property rules; and
                    (D) aid the United States Trade Representative in 
                bringing cases under the dispute settlement procedures 
                of free trade agreements.
            (4) Establish a formal process for working with State and 
        local government agencies to investigate, arrest, and prosecute 
        entities and individuals involved in the financing, production, 
        trafficking, and sale of counterfeit and pirated goods.
            (5) Establish a formal process for consulting with 
        companies, their designated representatives, and industry 
        associations to strengthen enforcement.
            (6) Establish a formal process for consulting with labor 
        unions, writers and artists (and their organizations and 
        unions), and other interested persons and groups that suffer 
        from counterfeiting and piracy.
    (f) Consultation Required.--The members of the Network shall 
consult with the Register of Copyrights on law enforcement matters 
relating to copyright and related rights and matters.
    (g) Priority in International Talks.--Considering the threat that 
counterfeit and pirated goods pose to the economic health and national 
security of the United States, the President and relevant agency 
officers, when meeting with foreign countries described in subsection 
(c)(2)(B), should--
            (1) stress the importance of establishing the international 
        task force described in subsection (c)(2)(A);
            (2) strongly encourage countries to participate in the 
        international task force; and
            (3) strongly encourage countries participating in the 
        international task force to cooperate with the United States in 
        ensuring the success of the international task force.
    (h) Report.--
            (1) In general.--The Director of the Office of Management 
        and Budget and the Coordinator shall report annually on the 
        Network's enforcement and coordination activities to the 
        President, and to the Committees on Homeland Security and 
        Governmental Affairs and Appropriations of the Senate, and the 
        Committees on Government Reform and Appropriations of the House 
        of Representatives.
            (2) Contents.--The report required by this subsection shall 
        include the following information:
                    (A) The progress made toward establishing an 
                international task force described in subsection 
                (c)(2).
                    (B) The progress made in working with foreign 
                networks in the international task force to 
                investigate, arrest, and prosecute entities and 
                individuals involved in the financing, production, 
                trafficking, and sale of counterfeit and pirated goods.
                    (C) The manner in which the agencies that are 
                members of the Network are working together and sharing 
                information to strengthen intellectual property 
                enforcement.
                    (D) For each foreign network admitted or denied 
                entry into the international task force, the rationale 
                for admitting or denying entry to that network, 
                including reasons for admitting networks from those 
                countries that are currently on the Watch List issued 
                by the United States Trade Representative.
                    (E) The successes and challenges in sharing 
                intelligence with countries in the international task 
                force.
                    (F) The progress of the United States Trade 
                Representative in bringing cases in the World Trade 
                Organization against countries with a poor record of 
                enforcing World Trade Organization intellectual 
                property rules.
                    (G) The progress made in establishing and improving 
                the formal process described in subsection (e)(4).
                    (H) The progress made in establishing and improving 
                the formal process described in subsection (e)(5).
                    (I) The progress made in establishing and improving 
                the formal process described in subsection (e)(6).
    (i) Government Accountability Office Report.--Not later than 1 year 
after the date of enactment of this Act, the Comptroller General of the 
United States shall complete a report and submit the report to the 
Congress on the progress made on the items described in subsection (h).
    (j) Other Intellectual Property Activities.--If other government 
intellectual property initiatives include enforcement activities 
similar or identical to the activities described in this Act, those 
activities should be consolidated into the work of the Network in order 
to prevent duplication. Other activities that may improve enforcement 
may continue outside of the Network, including capacity building, 
outreach to countries that would not qualify for membership in the 
international task force, and other bilateral and multilateral 
cooperative efforts.

SEC. 4. NATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT COORDINATION 
              COUNCIL REPEAL.

    Section 653 of the Treasury and General Government Appropriations 
Act, 2000 (15 U.S.C. 1128) is repealed.
                                 <all>