[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4279 Reported in House (RH)]






                                                 Union Calendar No. 384
110th CONGRESS
  2d Session
                                H. R. 4279

                          [Report No. 110-617]

 To enhance remedies for violations of intellectual property laws, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2007

 Mr. Conyers (for himself, Mr. Berman, Mr. Smith of Texas, Mr. Schiff, 
Mr. Feeney, Mr. Issa, Mr. Chabot, Mr. Cohen, Mr. Keller of Florida, Ms. 
Jackson-Lee of Texas, and Mr. Goodlatte) introduced the following bill; 
          which was referred to the Committee on the Judiciary

                              May 5, 2008

 Additional sponsors: Mr. Wexler, Mr. Watt, Mr. Coble, Mrs. Bono Mack, 
  Mr. Pence, Ms. Watson, Ms. Wasserman Schultz, Mr. Gallegly, and Mr. 
                                Sherman

                              May 5, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           December 5, 2007]

_______________________________________________________________________

                                 A BILL


 
 To enhance remedies for violations of intellectual property laws, 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; 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 respect 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.
                                                 Union Calendar No. 384

110th CONGRESS

  2d Session

                               H. R. 4279

                          [Report No. 110-617]

_______________________________________________________________________

                                 A BILL

 To enhance remedies for violations of intellectual property laws, and 
                          for other purposes.

_______________________________________________________________________

                              May 5, 2008

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed