[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3578 Introduced in House (IH)]







110th CONGRESS
  1st Session
                                H. R. 3578

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 18, 2007

  Mr. Sherman (for himself, Mr. Chabot, Mr. Donnelly, and Mr. Cohen) 
 introduced the following bill; which was referred to the Committee on 
the Judiciary, and in addition to the Committees on Foreign Affairs and 
   Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To safeguard the economic health of the United States and the health 
   and safety of United States citizens 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 ``Intellectual Property Rights 
Enforcement Act''.

SEC. 2. FINDINGS.

    The Congress makes the following findings:
            (1) The greatest economic assets of the United States are 
        its innovators, entrepreneurs, and workers.
            (2) Counterfeiting and piracy cost United States 
        businesses, authors, and artists hundreds of billions of 
        dollars annually.
            (3) Counterfeiting and piracy have resulted in the loss of 
        hundreds of thousands of jobs in the United States.
            (4) Counterfeit medicines and automobile and aviation parts 
        may result in serious health problems and death.
            (5) The World Customs Organization estimates that up to 7 
        percent of global trade is in counterfeit goods.
            (6) 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.
            (7) Small- and medium-sized businesses are particularly 
        vulnerable to intellectual property theft because they often 
        lack the resources to pursue recourse overseas or absorb the 
        financial losses stemming from counterfeiting and piracy.
            (8) Terrorist groups have used the sale of counterfeit 
        goods to finance their activities.
            (9) Funds generated from intellectual property theft have 
        financed acts of terrorism.
            (10) The domestic and international efforts of the United 
        States to curb intellectual property rights violations would be 
        enhanced through hands-on leadership by the President, 
        increased coordination among agencies, and a strategic 
        partnership with like-minded countries.
            (11) Congress finds that no less than 9 United States 
        Government agencies bear responsibility for supporting 
        intellectual property rights, including the Department of the 
        Treasury.
            (12) The efforts to enforce intellectual property rights 
        should be elevated across agencies due to the increasing cost 
        to the economy and the threat to the health and safety of 
        United States citizens.
            (13) The success of intellectual property enforcement 
        requires that a network of Government agencies work closely 
        with Federal, State, and local law enforcement agencies.
            (14) 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.
            (15) The Financial Crimes Enforcement Network (FinCEN) 
        represents a key effort by the United States to combat money 
        laundering and other financial crimes.
            (16) FinCEN has effectively enhanced the exchange of 
        information relating to money laundering and terrorist 
        financing, both domestically and internationally.
            (17) FinCEN combats money laundering internationally by 
        partnering with other enforcement-minded countries through the 
        Financial Action Task Force (FATF).
            (18) FATF members have established effective standards that 
        they collectively agree to implement and against which they 
        agree to be assessed through peer review.
            (19) The success of intellectual property rights 
        enforcement requires that United States Government agencies 
        form an effective network to take advantage of their diverse 
        capabilities and to share information for the purpose of 
        enhancing the enforcement capabilities of each agency and the 
        United States Government-wide intellectual property rights 
        enforcement effort.
            (20) The Department of the Treasury's Office of Terrorism 
        and Financial Intelligence would be an effective tool in 
        combating intellectual property theft.
            (21) 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.
            (22) The success of international intellectual property 
        rights enforcement requires that the United States share 
        information within an effective international task force of 
        countries that are dedicated to achieving results in the fight 
        against intellectual property theft.
            (23) 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 and work to strengthen the intellectual 
        property rights enforcement capacity of countries with a poor 
        record of intellectual property rights enforcement.
            (24) An effective exchange of information domestically and 
        internationally will enhance the ability of the United States 
        Trade Representative to enforce violations of trade agreements.
            (25) 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. 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.

SEC. 4. 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 ``IPEN'').
            (2) Membership.--The IPEN shall consist of the following 
        officials or their designees:
                    (A) The Deputy Director for Management of the 
                Office of Management and Budget, who shall serve as the 
                chairperson of the IPEN.
                    (B) The Coordinator for Intellectual Property 
                Enforcement, described in subsection (b)(2)(A), who 
                shall serve as vice chairperson of the IPEN.
                    (C) The Deputy Attorney General.
                    (D) The Deputy Secretary for Homeland Security.
                    (E) The Deputy Secretary of the Treasury.
                    (F) The Deputy Secretary of Commerce.
                    (G) The Deputy Secretary of State.
                    (H) A Deputy United States Trade Representative, as 
                determined by the United States Trade Representative.
                    (I) Such other officials as the members of the IPEN 
                shall consider necessary and appropriate.
            (3) Relevant agencies.--In this section, the term 
        ``relevant agency'' means an agency of which an official listed 
        in paragraph (2) is a member, including an agency of which an 
        official identified by the IPEN under paragraph (2)(I) is a 
        member.
    (b) Organization.--
            (1) Meetings.--The IPEN shall meet at least once every 6 
        months to approve the ongoing operations of the IPEN, to 
        provide overall direction for the IPEN, to approve the 
        strategic plan referred to in subsection (h) and the report 
        referred to in subsection (i), and to approve the budget 
        referred to in paragraph (2)(B)(i).
            (2) Coordinator.--
                    (A) In general.--The day-to-day functions of the 
                IPEN 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 IPEN and the 
                        relevant agencies, 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 strategic plan 
                        referred to in subsection (h) and the report 
                        referred to in subsection (i).
    (c) Duties.--The IPEN, established under subsection (a), shall be 
responsible for the following:
            (1) Coordinating and facilitating implementation by the 
        relevant agencies of the policies, objectives, and priorities 
        described in paragraph (2), and fulfilling the responsibilities 
        assigned to such agencies to complete the actions described in 
        paragraph (3).
            (2) 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) identifying and sharing information among the 
                relevant agencies for the purpose of 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) strengthening the capacity of other countries 
                to protect and enforce intellectual property rights and 
                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) working with like-minded countries to establish 
                international standards and policies for the effective 
                protection and enforcement of intellectual property 
                rights.
            (3) Protecting United States intellectual property rights 
        overseas, including--
                    (A) working with similar networks in foreign 
                countries to create an 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) suffer substantial intellectual 
                        property theft problems similar to those of the 
                        United States;
                            (ii) have adequate and effective laws 
                        protecting copyrights, trademarks, and patents;
                            (iii) have legal regimes that enforce their 
                        own domestic intellectual property laws, and 
                        have a proven track record of permanently 
                        shutting down piracy operations, and arresting 
                        and prosecuting those who commit intellectual 
                        property crimes and offenses;
                            (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 officials with 
                        such authority);
                            (v) have officials who can order the 
                        seizure of pirated and counterfeit goods (or 
                        are working toward providing officials with 
                        such authority);
                            (vi) have laws in place that permit 
                        officials to seize property used to produce 
                        pirated and counterfeit goods (or are working 
                        toward providing officials with such 
                        authority);
                            (vii) are not on the Priority Watch List 
                        issued by the United States Trade 
                        Representative under title III of the Trade Act 
                        of 1974 (19 U.S.C. 2411 et seq.); and
                            (viii) have met additional standards to be 
                        established by the international task force;
                    (C) exchanging information 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 information 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.
    (d) Staff.--
            (1) In general.--The Coordinator shall, in consultation 
        with the relevant agencies, appoint, and fix the compensation 
        of, such officers and employees of the IPEN as may be necessary 
        to carry out the functions of the IPEN and may request the 
        temporary assignment of personnel from the relevant agencies.
            (2) Assignment and cooperation of other federal 
        employees.--Each member of the IPEN listed in subsection (a) 
        shall designate personnel from the member's relevant agency to 
        work with the IPEN and shall ensure that all units in the 
        member's relevant agency that have responsibility for the 
        protection and enforcement of intellectual property rights 
        provide information and personnel to the IPEN in order for the 
        IPEN to achieve the priorities, objectives, and policies 
        described in subsection (c)(2).
    (e) Responsibility of Relevant Agencies.--The relevant agencies 
shall take the following actions:
            (1) Share information collected to increase the 
        intelligence and effectiveness of the protection and 
        enforcement of 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) provide assistance to the Department of 
                Homeland Security, the Department of Justice, and other 
                relevant agencies in identifying, seizing, and 
                destroying counterfeit and pirated goods;
                    (C) provide assistance to the United States Trade 
                Representative in taking appropriate action against 
                countries that have violated World Trade Organization 
                rules regarding the protection of intellectual property 
                rights; and
                    (D) provide assistance to the United States Trade 
                Representative in taking appropriate action under any 
                trade agreement or treaty to which the United States is 
                a signatory.
            (4) Establish a formal process for consulting and 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, including small and medium-sized businesses, their 
        designated representatives, and industry associations to 
        strengthen enforcement. Such processes shall include the 
        development of resources designed to assist businesses, 
        industry associations, and their representatives in addressing 
        intellectual property issues both domestically and 
        internationally.
            (6) Establish a formal process for consulting with writers 
        and artists (and their organizations and unions), labor unions, 
        and other interested persons and groups that suffer from 
        counterfeiting and piracy.
    (f) Consultation Required.--The members of the IPEN 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 of the United 
States, and the health and safety of United States citizens, the 
President and officers of the relevant agencies, when meeting with 
foreign countries described in subsection (c)(3)(B), should--
            (1) stress the importance of establishing the international 
        task force described in subsection (c)(3)(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) Strategic Plan.--
            (1) In general.--Within 6 months of the date of the 
        enactment of this Act, and once every 2 years thereafter, the 
        Director of the Office of Management and Budget and the 
        Coordinator shall submit a strategic plan to the President, and 
        to the Committees on the Judiciary, Homeland Security and 
        Governmental Affairs, and Appropriations of the Senate, and the 
        Committees on the Judiciary, Oversight and Government Reform, 
        and Appropriations of the House of Representatives.
            (2) Contents.--The strategic plan required by this 
        subsection shall include the following:
                    (A) A detailed description of the goals, 
                objectives, and priorities of the IPEN, including those 
                described in subsection (c)(2).
                    (B) An analysis of the threat posed by violations 
                of intellectual property rights, including targets, 
                risks, and threats of intellectual property theft, and 
                the costs to the economy of the United States resulting 
                from violations of intellectual property laws.
                    (C) Proposed methods for achieving success, 
                including through the growth of the international 
                intellectual property enforcement task force described 
                in subsection (c)(3).
                    (D) The performance measures that will be used to 
                monitor results.
                    (E) An estimate of the resources necessary to 
                achieve the goals, objectives, and priorities described 
                in subparagraph (A), and an estimate of the cost of 
                such resources.
                    (F) An identification of the relevant agencies that 
                will be involved in coordinating the IPEN and 
                implementing each priority.
                    (G) A strategy for ensuring coordination between 
                the chairperson and vice chairperson of the IPEN, and 
                the relevant agencies, including a process for 
                oversight of, and accountability among, the relevant 
                agencies carrying out the strategy.
                    (H) A description of how the IPEN will carry out 
                its oversight and accountability responsibilities to 
                monitor and implement the strategy.
    (i) Report.--
            (1) In general.--The Director of the Office of Management 
        and Budget and the Coordinator shall report annually on the 
        IPEN's enforcement and coordination activities for the fiscal 
        year to the President, and to the Committees on the Judiciary, 
        Homeland Security and Governmental Affairs, and Appropriations 
        of the Senate, and the Committees on the Judiciary, 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)(3).
                    (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 relevant agencies are 
                working together and sharing information to strengthen 
                the protection and enforcement of intellectual property 
                rights.
                    (D) For each foreign network admitted or denied 
                entry into the international task force, an explanation 
                of the reasons for admitting or denying entry to the 
                international task force, including reasons for 
                admitting networks from those countries that are 
                currently on the Priority Watch List issued by the 
                United States Trade Representative under title III of 
                the Trade Act of 1974 (19 U.S.C. 2411 et seq.).
                    (E) The progress made in strengthening the capacity 
                of countries denied entry into the international task 
                force to protect and enforce intellectual property 
                rights.
                    (F) The successes and challenges in sharing 
                information with countries in the international task 
                force.
                    (G) The progress of the United States Trade 
                Representative in taking appropriate action under any 
                trade agreement or treaty to which the United States is 
                a signatory.
                    (H) The progress made in establishing and improving 
                the formal process described in subsection (e)(4).
                    (I) The progress made in establishing and improving 
                the formal process described in subsection (e)(5).
                    (J) The progress made in establishing and improving 
                the formal process described in subsection (e)(6).
                    (K) The progress made in implementing the strategy 
                in subsection (h)(2).
    (j) Government Accountability Office Report.--Not later than 1 year 
after the date of the 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 subsections (h) 
and (i).
    (k) 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 IPEN in order to 
prevent duplication. Other activities that may improve enforcement may 
continue outside of the IPEN, including--
            (1) capacity building;
            (2) outreach to countries that would not qualify for 
        membership in the international task force; and
            (3) other bilateral and multilateral cooperative efforts.
    (l) Prohibited Actions.--This section shall not be construed to 
require any act, measure, or other conduct by any department, agency, 
or other instrumentality of the United States that is prohibited by any 
law, regulation, or rule of procedure.

SEC. 5. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 6. EFFECTIVE DATE.

    This Act shall take effect on the date of the enactment of this 
Act.
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