II 109th CONGRESS 2d Session S. 3800 IN THE SENATE OF THE UNITED STATES August 3, 2006 Mr. Hagel introduced the following bill; which was read twice and referred to the Committee on Foreign Relations A BILL To amend the Foreign Assistance Act of 1961 to require recipients of United States foreign assistance to certify that the assistance will not be used to intentionally traffic in goods or services that contain counterfeit marks or for other purposes that promote the improper use of intellectual property, and for other purposes.

1.

Short title

This Act may be cited as the Stop Assistance to Counterfeiters Act.

2.

Certification requirement relating to trafficking in goods or services that contain counterfeit marks

(a)

Amendments

Chapter 1 of part III of the Foreign Assistance Act of 1961 (22 U.S.C. 2351 et seq.) is amended— (1)by redesignating the second section 620G (as added by section 149 of Public Law 104–164 (110 Stat. 1436)) as section 620J; and (2)by adding at the end the following new section:

620K.

Certification requirement relating to trafficking in goods or services that contain counterfeit marks

(a)

Requirement for certification

(1)

In general

Subject to paragraph (2), assistance may not be provided to a person seeking United States assistance for a fiscal year until such person submits to the President a certification described in subsection (c) for that fiscal year. (2)

Exception for foreign governments

The certification requirement set out in paragraph (1) shall not be applied to assistance provided under this Act or any other Act directly to the government of a foreign country or an entity of such government or to an international organization that is an association of representatives of national governments, including the United Nations. (b)

Definitions

In this section: (1)

Counterfeit mark

The term counterfeit mark has the meaning given that term in section 2320 of title 18, United States Code. (2)

Person seeking United States assistance

The term person seeking United States assistance means a person, including an international or domestic organization that is not an association of national governments, that— (A)is seeking assistance under this Act or any other Act directly from the United States; or (B)subsequently receives such assistance pursuant to a contract, grant, cooperative agreement, or other agreement. (3)

Traffic

The term traffic has the meaning given that term in section 2320 of title 18, United States Code. (c)

Certification

(1)

In general

A certification described in this subsection is a certification made by a person seeking United States assistance that— (A)such assistance will not be used to intentionally traffic in goods or services that contain counterfeit marks; (B)such assistance will not be used by any person that has had an administrative or judicial determination issued against the person for infringement, counterfeiting, or piracy of intellectual property in the United States or a foreign country; (C)any material or product, including a material or product in electronic form, that was developed, in whole or in part, using such assistance will not be imported into the United States— (i)in violation of section 2320 of title 18, United States Code; or (ii)in violation of section 526(a) of the Tariff Act of 1930 (19 U.S.C. 1526(a)); and (D)if such assistance will be used for a contract, grant, cooperative agreement, or other agreement that includes use of any intellectual property, provides evidence of the right to use the intellectual property, including a written license agreement for the use, the date of the first commercial use of the intellectual property, and any registration for the use with an appropriate government. (2)

Requirements for submission of certification

A certification described in paragraph (1) shall be submitted to the President by a person seeking United States assistance prior to the provision of any assistance under this Act or any other Act and at the beginning of each subsequent fiscal year for which such person will receive the assistance. (d)

Suspension and Termination of Assistance

The President shall suspend or terminate the provision of assistance under this Act or any other Act, in whole or in part, to a person seeking United States assistance if the President determines that such person has used the assistance to carry out an activity in violation of a certification made under subsection (c). (e)

National security waiver

The President may waive a provision of this section if the President— (1)determines that such a waiver is necessary to the national security interests of the United States; and (2)promptly submits to Congress a notification of the waiver and of the reasons for the waiver.

. (b)

Effective date

The certification requirements under section 620K of the Foreign Assistance Act of 1961, as added by subsection (a) of this section, apply with respect to the provision of assistance by the President for a fiscal year after fiscal year 2006.