Findings

The Congress makes the following findings: (1)The greatest economic assets of the United States are its innovators, entrepreneurs, and workers. (2)Counterfeiting and piracy cost United States businesses, authors, and artists hundreds of billions of dollars annually. (3)Counterfeiting and piracy have resulted in the loss of hundreds of thousands of jobs in the United States. (4)Counterfeit medicines and automobile and aviation parts may result in serious health problems and death. (5)The World Customs Organization estimates that up to 7 percent of global trade is in counterfeit goods. (6)The World Customs Organization estimates that global trade in counterfeit and pirated goods has increased from $5,500,000,000 to more than $600,000,000,000 annually. (7)Small- and medium-sized businesses are particularly vulnerable to intellectual property theft because they often lack the resources to pursue recourse overseas or absorb the financial losses stemming from counterfeiting and piracy. (8)Terrorist groups have used the sale of counterfeit goods to finance their activities. (9)Funds generated from intellectual property theft have financed acts of terrorism. (10)The domestic and international efforts of the United States to curb intellectual property rights violations would be enhanced through hands-on leadership by the President, increased coordination among agencies, and a strategic partnership with like-minded countries. (11)Congress finds that no less than 9 United States Government agencies bear responsibility for supporting intellectual property rights, including the Department of the Treasury. (12)The efforts to enforce intellectual property rights should be elevated across agencies due to the increasing cost to the economy and the threat to the health and safety of United States citizens. (13)The success of intellectual property enforcement requires that a network of Government agencies work closely with Federal, State, and local law enforcement agencies. (14)The domestic and international efforts of the United States to combat money laundering serves as a useful model for strengthening domestic and international intellectual property rights enforcement. (15)The Financial Crimes Enforcement Network (FinCEN) represents a key effort by the United States to combat money laundering and other financial crimes. (16)FinCEN has effectively enhanced the exchange of information relating to money laundering and terrorist financing, both domestically and internationally. (17)FinCEN combats money laundering internationally by partnering with other enforcement-minded countries through the Financial Action Task Force (FATF). (18)FATF members have established effective standards that they collectively agree to implement and against which they agree to be assessed through peer review. (19)The success of intellectual property rights enforcement requires that United States Government agencies form an effective network to take advantage of their diverse capabilities and to share information for the purpose of enhancing the enforcement capabilities of each agency and the United States Government-wide intellectual property rights enforcement effort. (20)The Department of the Treasury’s Office of Terrorism and Financial Intelligence would be an effective tool in combating intellectual property theft. (21)The success of international intellectual property rights enforcement requires that the United States partner with other countries that also suffer from extensive intellectual property theft. (22)The success of international intellectual property rights enforcement requires that the United States share information within an effective international task force of countries that are dedicated to achieving results in the fight against intellectual property theft. (23)The success of international intellectual property rights enforcement will be enhanced if the United States and other reliable international partners engage in joint enforcement operations and work to strengthen the intellectual property rights enforcement capacity of countries with a poor record of intellectual property rights enforcement. (24)An effective exchange of information domestically and internationally will enhance the ability of the United States Trade Representative to enforce violations of trade agreements. (25)The success of domestic and international intellectual property rights enforcement requires an effective partnership between the public and private sector and other interested groups.

The intellectual property enforcement network

(a)

Establishment

(1)

In general

There is established the Intellectual Property Enforcement Network (in this section referred to as the IPEN). (2)

Membership

The IPEN shall consist of the following officials or their designees: (A)The Deputy Director for Management of the Office of Management and Budget, who shall serve as the chairperson of the IPEN. (B)The Coordinator for Intellectual Property Enforcement, described in subsection (b)(2)(A), who shall serve as vice chairperson of the IPEN. (C)The Deputy Attorney General. (D)The Deputy Secretary for Homeland Security. (E)The Deputy Secretary of the Treasury. (F)The Deputy Secretary of Commerce. (G)The Deputy Secretary of State. (H)A Deputy United States Trade Representative, as determined by the United States Trade Representative. (I)Such other officials as the members of the IPEN shall consider necessary and appropriate. (3)

Relevant agencies

In this section, the term relevant agency means an agency of which an official listed in paragraph (2) is a member, including an agency of which an official identified by the IPEN under paragraph (2)(I) is a member. (b)

Organization

(1)

Meetings

The IPEN shall meet at least once every 6 months to approve the ongoing operations of the IPEN, to provide overall direction for the IPEN, to approve the strategic plan referred to in subsection (h) and the report referred to in subsection (i), and to approve the budget referred to in paragraph (2)(B)(i). (2)

Coordinator

(A)

In general

The day-to-day functions of the IPEN shall be carried out by a Coordinator for Intellectual Property Enforcement (in this Act referred to as the Coordinator) who shall be appointed by the President. (B)

Other responsibilities

In addition to the responsibilities described in subparagraph (A), the Coordinator shall be responsible for the following: (i)Developing for each fiscal year, with the advice of the officials of the IPEN and the relevant agencies, a budget proposal to implement the policies, objectives, and priorities described in subsection (c). (ii)Drafting and transmitting to the President and the Congress the strategic plan referred to in subsection (h) and the report referred to in subsection (i). (c)

Duties

The IPEN, established under subsection (a), shall be responsible for the following: (1)Coordinating and facilitating implementation by the relevant agencies of the policies, objectives, and priorities described in paragraph (2), and fulfilling the responsibilities assigned to such agencies to complete the actions described in paragraph (3). (2)Establishing policies, objectives, and priorities concerning international intellectual property protection and intellectual property law enforcement. The policies, objectives, and priorities shall include— (A)eliminating counterfeit and pirated goods from the international supply chain; (B)identifying individuals, companies, banks, and other entities involved in the financing, production, trafficking, and sale of counterfeit and pirated goods; (C)identifying and sharing information among the relevant agencies for the purpose of arresting and prosecuting persons who are knowingly involved in the financing, production, trafficking, and sale of counterfeit and pirated goods; (D)disrupting and shutting down counterfeit and piracy networks; (E)strengthening the capacity of other countries to protect and enforce intellectual property rights and reducing the number of countries that fail to enforce laws that prevent the financing, production, trafficking, and sale of counterfeit and pirated goods; and (F)working with like-minded countries to establish international standards and policies for the effective protection and enforcement of intellectual property rights. (3)Protecting United States intellectual property rights overseas, including— (A)working with similar networks in foreign countries to create an effective international intellectual property enforcement task force (in this Act referred to as the international task force); (B)ensuring the international task force described in subparagraph (A) consists of networks in countries that— (i)suffer substantial intellectual property theft problems similar to those of the United States; (ii)have adequate and effective laws protecting copyrights, trademarks, and patents; (iii)have legal regimes that enforce their own domestic intellectual property laws, and have a proven track record of permanently shutting down piracy operations, and arresting and prosecuting those who commit intellectual property crimes and offenses; (iv)have officials who have ex officio authority to seize, inspect, and destroy pirated and counterfeit goods at ports of entry (or are working toward providing officials with such authority); (v)have officials who can order the seizure of pirated and counterfeit goods (or are working toward providing officials with such authority); (vi)have laws in place that permit officials to seize property used to produce pirated and counterfeit goods (or are working toward providing officials with such authority); (vii)are not on the Priority Watch List issued by the United States Trade Representative under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.); and (viii)have met additional standards to be established by the international task force; (C)exchanging information with networks in the international task force relating to individuals and entities involved in financing, production, trafficking, and sale of pirated and counterfeit goods; (D)utilizing the information to conduct enforcement activities in cooperation with the networks of other countries in the international task force; and (E)building a formal process for consulting with companies, industry associations, labor unions, and other interested groups in the countries that have networks in the international task force. (d)

Staff

(1)

In general

The Coordinator shall, in consultation with the relevant agencies, appoint, and fix the compensation of, such officers and employees of the IPEN as may be necessary to carry out the functions of the IPEN and may request the temporary assignment of personnel from the relevant agencies. (2)

Assignment and cooperation of other federal employees

Each member of the IPEN listed in subsection (a) shall designate personnel from the member's relevant agency to work with the IPEN and shall ensure that all units in the member's relevant agency that have responsibility for the protection and enforcement of intellectual property rights provide information and personnel to the IPEN in order for the IPEN to achieve the priorities, objectives, and policies described in subsection (c)(2). (e)

Responsibility of relevant agencies

The relevant agencies shall take the following actions: (1)Share information collected to increase the intelligence and effectiveness of the protection and enforcement of intellectual property rights. (2)Coordinate civil and criminal actions with respect to persons who violate intellectual property rights. (3)Utilize information collected domestically, and from other countries in the international task force, to— (A)investigate, arrest, and prosecute entities and individuals involved in financing, producing, trafficking, and selling counterfeit and pirated goods; (B)provide assistance to the Department of Homeland Security, the Department of Justice, and other relevant agencies in identifying, seizing, and destroying counterfeit and pirated goods; (C)provide assistance to the United States Trade Representative in taking appropriate action against countries that have violated World Trade Organization rules regarding the protection of intellectual property rights; and (D)provide assistance to the United States Trade Representative in taking appropriate action under any trade agreement or treaty to which the United States is a signatory. (4)Establish a formal process for consulting and working with State and local government agencies to investigate, arrest, and prosecute entities and individuals involved in the financing, production, trafficking, and sale of counterfeit and pirated goods. (5)Establish a formal process for consulting with companies, including small and medium-sized businesses, their designated representatives, and industry associations to strengthen enforcement. Such processes shall include the development of resources designed to assist businesses, industry associations, and their representatives in addressing intellectual property issues both domestically and internationally. (6)Establish a formal process for consulting with writers and artists (and their organizations and unions), labor unions, and other interested persons and groups that suffer from counterfeiting and piracy. (f)

Consultation required

The members of the IPEN shall consult with the Register of Copyrights on law enforcement matters relating to copyright and related rights and matters. (g)

Priority in international talks

Considering the threat that counterfeit and pirated goods pose to the economic health of the United States, and the health and safety of United States citizens, the President and officers of the relevant agencies, when meeting with foreign countries described in subsection (c)(3)(B), should— (1)stress the importance of establishing the international task force described in subsection (c)(3)(A); (2)strongly encourage countries to participate in the international task force; and (3)strongly encourage countries participating in the international task force to cooperate with the United States in ensuring the success of the international task force. (h)

Strategic plan

(1)

In general

Within 6 months of the date of the enactment of this Act, and once every 2 years thereafter, the Director of the Office of Management and Budget and the Coordinator shall submit a strategic plan to the President, and to the Committees on the Judiciary, Homeland Security and Governmental Affairs, and Appropriations of the Senate, and the Committees on the Judiciary, Oversight and Government Reform, and Appropriations of the House of Representatives. (2)

Contents

The strategic plan required by this subsection shall include the following: (A)A detailed description of the goals, objectives, and priorities of the IPEN, including those described in subsection (c)(2). (B)An analysis of the threat posed by violations of intellectual property rights, including targets, risks, and threats of intellectual property theft, and the costs to the economy of the United States resulting from violations of intellectual property laws. (C)Proposed methods for achieving success, including through the growth of the international intellectual property enforcement task force described in subsection (c)(3). (D)The performance measures that will be used to monitor results. (E)An estimate of the resources necessary to achieve the goals, objectives, and priorities described in subparagraph (A), and an estimate of the cost of such resources. (F)An identification of the relevant agencies that will be involved in coordinating the IPEN and implementing each priority. (G)A strategy for ensuring coordination between the chairperson and vice chairperson of the IPEN, and the relevant agencies, including a process for oversight of, and accountability among, the relevant agencies carrying out the strategy. (H)A description of how the IPEN will carry out its oversight and accountability responsibilities to monitor and implement the strategy. (i)

Report

(1)

In general

The Director of the Office of Management and Budget and the Coordinator shall report annually on the IPEN’s enforcement and coordination activities for the fiscal year to the President, and to the Committees on the Judiciary, Homeland Security and Governmental Affairs, and Appropriations of the Senate, and the Committees on the Judiciary, Government Reform, and Appropriations of the House of Representatives. (2)

Contents

The report required by this subsection shall include the following information: (A)The progress made toward establishing an international task force described in subsection (c)(3). (B)The progress made in working with foreign networks in the international task force to investigate, arrest, and prosecute entities and individuals involved in the financing, production, trafficking, and sale of counterfeit and pirated goods. (C)The manner in which the relevant agencies are working together and sharing information to strengthen the protection and enforcement of intellectual property rights. (D)For each foreign network admitted or denied entry into the international task force, an explanation of the reasons for admitting or denying entry to the international task force, including reasons for admitting networks from those countries that are currently on the Priority Watch List issued by the United States Trade Representative under title III of the Trade Act of 1974 (19 U.S.C. 2411 et seq.). (E)The progress made in strengthening the capacity of countries denied entry into the international task force to protect and enforce intellectual property rights. (F)The successes and challenges in sharing information with countries in the international task force. (G)The progress of the United States Trade Representative in taking appropriate action under any trade agreement or treaty to which the United States is a signatory. (H)The progress made in establishing and improving the formal process described in subsection (e)(4). (I)The progress made in establishing and improving the formal process described in subsection (e)(5). (J)The progress made in establishing and improving the formal process described in subsection (e)(6). (K)The progress made in implementing the strategy in subsection (h)(2). (j)

Government accountability office report

Not later than 1 year after the date of the enactment of this Act, the Comptroller General of the United States shall complete a report and submit the report to the Congress on the progress made on the items described in subsections (h) and (i). (k)

Other intellectual property activities

If other government intellectual property initiatives include enforcement activities similar or identical to the activities described in this Act, those activities should be consolidated into the work of the IPEN in order to prevent duplication. Other activities that may improve enforcement may continue outside of the IPEN, including— (1)capacity building; (2)outreach to countries that would not qualify for membership in the international task force; and (3)other bilateral and multilateral cooperative efforts. (l)

Prohibited actions

This section shall not be construed to require any act, measure, or other conduct by any department, agency, or other instrumentality of the United States that is prohibited by any law, regulation, or rule of procedure.