[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3261 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 3261

To promote prosperity, creativity, entrepreneurship, and innovation by 
     combating the theft of U.S. property, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 26, 2011

  Mr. Smith of Texas (for himself and Mr. Conyers, Mr. Goodlatte, Mr. 
Berman, Mr. Griffin of Arkansas, Mr. Gallegly, Mr. Deutch, Mr. Chabot, 
Mr. Ross of Florida, Mrs. Blackburn, Mrs. Bono Mack, Mr. Terry, and Mr. 
   Schiff) introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To promote prosperity, creativity, entrepreneurship, and innovation by 
     combating the theft of U.S. property, 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 ``Stop Online Piracy 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Savings and severability clauses.
                    TITLE I--COMBATING ONLINE PIRACY

Sec. 101. Definitions.
Sec. 102. Action by Attorney General to protect U.S. customers and 
                            prevent U.S. support of foreign infringing 
                            sites.
Sec. 103. Market-based system to protect U.S. customers and prevent 
                            U.S. funding of sites dedicated to theft of 
                            U.S. property.
Sec. 104. Immunity for taking voluntary action against sites dedicated 
                            to theft of U.S. property.
Sec. 105. Immunity for taking voluntary action against sites that 
                            endanger public health.
Sec. 106. Guidelines and study.
Sec. 107. Denying U.S. capital to notorious foreign infringers.
TITLE II--ADDITIONAL ENHANCEMENTS TO COMBAT INTELLECTUAL PROPERTY THEFT

Sec. 201. Streaming of copyrighted works in violation of criminal law.
Sec. 202. Trafficking in inherently dangerous goods or services.
Sec. 203. Protecting U.S. businesses from foreign and economic 
                            espionage.
Sec. 204. Amendments to sentencing guidelines.
Sec. 205. Defending intellectual property rights abroad.

SEC. 2. SAVINGS AND SEVERABILITY CLAUSES.

    (a) Savings Clauses.--
            (1) First amendment.--Nothing in this Act shall be 
        construed to impose a prior restraint on free speech or the 
        press protected under the 1st Amendment to the Constitution.
            (2) Title 17 liability.--Nothing in title I shall be 
        construed to enlarge or diminish liability, including vicarious 
        or contributory liability, for any cause of action available 
        under title 17, United States Code, including any limitations 
        on liability under such title.
    (b) Severability.--If any provision of this Act, or the application 
of the provision to any person or circumstance, is held to be 
unconstitutional, the other provisions or the application of the 
provision to other persons or circumstances shall not be affected 
thereby.

                    TITLE I--COMBATING ONLINE PIRACY

SEC. 101. DEFINITIONS.

    In this title:
            (1) Domain name.--The term ``domain name'' has the meaning 
        given that term in section 45 of the Lanham Act (15 U.S.C. 
        1127) and includes any subdomain designation using such domain 
        name as part of an electronic address on the Internet to 
        identify a unique online location.
            (2) Domain name system server.--The term ``domain name 
        system server'' means a server or other mechanism used to 
        provide the Internet protocol address associated with a domain 
        name.
            (3) Domestic domain name.--The term ``domestic domain 
        name'' means a domain name that is registered or assigned by a 
        domain name registrar, domain name registry, or other domain 
        name registration authority, that is located within a judicial 
        district of the United States.
            (4) Domestic internet protocol address.--The term 
        ``domestic Internet Protocol address'' means an Internet 
        Protocol address for which the corresponding Internet Protocol 
        allocation entity is located within a judicial district of the 
        United States.
            (5) Domestic internet site.--The term ``domestic Internet 
        site'' means an Internet site for which the corresponding 
        domain name or, if there is no domain name, the corresponding 
        Internet Protocol address, is a domestic domain name or 
        domestic Internet Protocol address.
            (6) Foreign domain name.--The term ``foreign domain name'' 
        means a domain name that is not a domestic domain name.
            (7) Foreign internet protocol address.--The term ``foreign 
        Internet Protocol address'' means an Internet Protocol address 
        that is not a domestic Internet protocol address.
            (8) Foreign internet site.--The term ``foreign Internet 
        site'' means an Internet site that is not a domestic Internet 
        site.
            (9) Including.--The term ``including'' means including, but 
        not limited to.
            (10) Intellectual property enforcement coordinator.--The 
        term ``Intellectual Property Enforcement Coordinator'' means 
        the Intellectual Property Enforcement Coordinator appointed 
        under section 301 of the Prioritizing Resources and 
        Organization for Intellectual Property Act of 2008 (15 U.S.C. 
        8111).
            (11) Internet.--The term ``Internet'' has the meaning given 
        that term in section 5362(5) of title 31, United States Code.
            (12) Internet advertising service.--The term ``Internet 
        advertising service'' means a service that for compensation 
        sells, purchases, brokers, serves, inserts, verifies, clears, 
        or otherwise facilitates the placement of an advertisement, 
        including a paid or sponsored search result, link, or 
        placement, that is rendered in viewable form for any period of 
        time on an Internet site.
            (13) Internet protocol.--The term ``Internet Protocol'' 
        means a protocol used for communicating data across a packet-
        switched internetwork using the Transmission Control Protocol/
        Internet Protocol, and includes any predecessor or successor 
        protocol to such protocol.
            (14) Internet protocol address.--The term ``Internet 
        Protocol address'' means a numerical label that is assigned to 
        each device that participates in a computer network that uses 
        the Internet Protocol for communication.
            (15) Internet protocol allocation entity.--The term 
        ``Internet Protocol allocation entity'' means, with respect to 
        a particular Internet Protocol address, the entity, local 
        internet registry, or regional internet registry to which the 
        smallest applicable block of Internet Protocol addresses 
        containing that address is allocated or assigned by a local 
        internet registry, regional internet registry, or other 
        Internet Protocol address allocation authority, according to 
        the applicable publicly available database of allocations and 
        assignments, if any.
            (16) Internet search engine.--The term ``Internet search 
        engine'' means a service made available via the Internet that 
        searches, crawls, categorizes, or indexes information or Web 
        sites available elsewhere on the Internet and on the basis of a 
        user query or selection that consists of terms, concepts, 
        categories, questions, or other data returns to the user a 
        means, such as a hyperlinked list of Uniform Resource Locators, 
        of locating, viewing, or downloading such information or data 
        available on the Internet relating to such query or selection.
            (17) Internet site.--The term ``Internet site'' means the 
        collection of digital assets, including links, indexes, or 
        pointers to digital assets, accessible through the Internet 
        that are addressed relative to a common domain name or, if 
        there is no domain name, a common Internet Protocol address.
            (18) Lanham act.--The term ``Lanham Act'' means the Act 
        entitled ``An Act to provide for the registration and 
        protection of trademarks used in commerce, to carry out the 
        provisions of certain international conventions, and for other 
        purposes'', approved July 5, 1946 (commonly referred to as the 
        ``Trademark Act of 1946'' or the ``Lanham Act'').
            (19) Nonauthoritative domain name server.--The term 
        ``nonauthoritative domain name server'' means a server that 
        does not contain complete copies of domains but uses a cache 
        file that is comprised of previous domain name server lookups, 
        for which the server has received an authoritative response in 
        the past.
            (20) Owner; operator.--The terms ``owner'' or ``operator'', 
        when used in connection with an Internet site, includes, 
        respectively, any owner of a majority interest in, or any 
        person with authority to operate, such Internet site.
            (21) Payment network provider.--
                    (A) In general.--The term ``payment network 
                provider'' means an entity that directly or indirectly 
                provides the proprietary services, infrastructure, and 
                software to effect or facilitate a debit, credit, or 
                other payment transaction.
                    (B) Rule of construction.--For purposes of this 
                paragraph, a depository institution (as such term is 
                defined under section 3 of the Federal Deposit 
                Insurance Act) or credit union that initiates a payment 
                transaction shall not be construed to be a payment 
                network provider based solely on the offering or 
                provision of such service.
            (22) Service provider.--The term ``service provider'' means 
        a service provider as defined in section 512(k)(1) of title 17, 
        United States Code, that operates a nonauthoritative domain 
        name system server.
            (23) U.S.-directed site.--The term ``U.S.-directed site'' 
        means an Internet site or portion thereof that is used to 
        conduct business directed to residents of the United States, or 
        that otherwise demonstrates the existence of minimum contacts 
        sufficient for the exercise of personal jurisdiction over the 
        owner or operator of the Internet site consistent with the 
        Constitution of the United States, based on relevant evidence 
        that may include whether--
                    (A) the Internet site is used to provide goods or 
                services to users located in the United States;
                    (B) there is evidence that the Internet site or 
                portion thereof is intended to offer or provide--
                            (i) such goods and services,
                            (ii) access to such goods and services, or
                            (iii) delivery of such goods and services,
                to users located in the United States;
                    (C) the Internet site or portion thereof does not 
                contain reasonable measures to prevent such goods and 
                services from being obtained in or delivered to the 
                United States; and
                    (D) any prices for goods and services are indicated 
                or billed in the currency of the United States.
            (24) United states.--The term ``United States'' includes 
        any commonwealth, possession, or territory of the United 
        States.

SEC. 102. ACTION BY ATTORNEY GENERAL TO PROTECT U.S. CUSTOMERS AND 
              PREVENT U.S. SUPPORT OF FOREIGN INFRINGING SITES.

    (a) Definition.--For purposes of this section, a foreign Internet 
site or portion thereof is a ``foreign infringing site'' if--
            (1) the Internet site or portion thereof is a U.S.-directed 
        site and is used by users in the United States;
            (2) the owner or operator of such Internet site is 
        committing or facilitating the commission of criminal 
        violations punishable under section 2318, 2319, 2319A, 2319B, 
        or 2320, or chapter 90, of title 18, United States Code; and
            (3) the Internet site would, by reason of acts described in 
        paragraph (1), be subject to seizure in the United States in an 
        action brought by the Attorney General if such site were a 
        domestic Internet site.
    (b) Action by the Attorney General.--
            (1) In personam.--The Attorney General may commence an in 
        personam action against--
                    (A) a registrant of a domain name used by a foreign 
                infringing site; or
                    (B) an owner or operator of a foreign infringing 
                site.
            (2) In rem.--If through due diligence the Attorney General 
        is unable to find a person described in subparagraph (A) or (B) 
        of paragraph (1), or no such person found has an address within 
        a judicial district of the United States, the Attorney General 
        may commence an in rem action against a foreign infringing site 
        or the foreign domain name used by such site.
            (3) Notice.--Upon commencing an action under this 
        subsection, the Attorney General shall send a notice of the 
        alleged violation and intent to proceed under this section--
                    (A) to the registrant of the domain name of the 
                Internet site--
                            (i) at the postal and electronic mail 
                        addresses appearing in the applicable publicly 
                        accessible database of registrations, if any, 
                        and to the extent such addresses are reasonably 
                        available; and
                            (ii) via the postal and electronic mail 
                        addresses of the registrar, registry, or other 
                        domain name registration authority that 
                        registered or assigned the domain name of the 
                        Internet site, to the extent such addresses are 
                        reasonably available; or
                    (B) to the owner or operator of the Internet site--
                            (i) at the primary postal and electronic 
                        mail addresses for such owner or operator that 
                        is provided on the Internet site, if any, and 
                        to the extent such addresses are reasonably 
                        available; or
                            (ii) if there is no domain name of the 
                        Internet site, via the postal and electronic 
                        mail addresses of the Internet Protocol 
                        allocation entity appearing in the applicable 
                        publicly accessible database of allocations and 
                        assignments, if any, and to the extent such 
                        addresses are reasonably available; or
                    (C) in any other such form as the court may 
                provide, including as may be required by rule 4(f) of 
                the Federal Rules of Civil Procedure.
            (4) Service of process.--For purposes of this section, the 
        actions described in this subsection shall constitute service 
        of process.
            (5) Relief.--On application of the Attorney General 
        following the commencement of an action under this section, the 
        court may issue a temporary restraining order, a preliminary 
        injunction, or an injunction, in accordance with rule 65 of the 
        Federal Rules of Civil Procedure, against a registrant of a 
        domain name used by the foreign infringing site or an owner or 
        operator of the foreign infringing site or, in an action 
        brought in rem under paragraph (2), against the foreign 
        infringing site or a portion of such site, or the domain name 
        used by such site, to cease and desist from undertaking any 
        further activity as a foreign infringing site.
    (c) Actions Based on Court Orders.--
            (1) Service.--A process server on behalf of the Attorney 
        General, with prior approval of the court, may serve a copy of 
        a court order issued pursuant to this section on similarly 
        situated entities within each class described in paragraph (2). 
        Proof of service shall be filed with the court.
            (2) Reasonable measures.--After being served with a copy of 
        an order pursuant to this subsection, the following shall 
        apply:
                    (A) Service providers.--
                            (i) In general.--A service provider shall 
                        take technically feasible and reasonable 
                        measures designed to prevent access by its 
                        subscribers located within the United States to 
                        the foreign infringing site (or portion 
                        thereof) that is subject to the order, 
                        including measures designed to prevent the 
                        domain name of the foreign infringing site (or 
                        portion thereof) from resolving to that domain 
                        name's Internet Protocol address. Such actions 
                        shall be taken as expeditiously as possible, 
                        but in any case within 5 days after being 
                        served with a copy of the order, or within such 
                        time as the court may order.
                            (ii) Limitations.--A service provider shall 
                        not be required--
                                    (I) other than as directed under 
                                this subparagraph, to modify its 
                                network, software, systems, or 
                                facilities;
                                    (II) to take any measures with 
                                respect to domain name resolutions not 
                                performed by its own domain name 
                                server; or
                                    (III) to continue to prevent access 
                                to a domain name to which access has 
                                been effectively disabled by other 
                                means.
                            (iii) Construction.--Nothing in this 
                        subparagraph shall affect the limitation on the 
                        liability of a service provider under section 
                        512 of title 17, United States Code.
                            (iv) Text of notice.--The Attorney General 
                        shall prescribe the text of any notice 
                        displayed to users or customers of a service 
                        provider taking actions pursuant to this 
                        subparagraph. Such text shall state that an 
                        action is being taken pursuant to a court order 
                        obtained by the Attorney General.
                    (B) Internet search engines.--A provider of an 
                Internet search engine shall take technically feasible 
                and reasonable measures, as expeditiously as possible, 
                but in any case within 5 days after being served with a 
                copy of the order, or within such time as the court may 
                order, designed to prevent the foreign infringing site 
                that is subject to the order, or a portion of such site 
                specified in the order, from being served as a direct 
                hypertext link.
                    (C) Payment network providers.--
                            (i) Preventing affiliation.--A payment 
                        network provider shall take technically 
                        feasible and reasonable measures, as 
                        expeditiously as possible, but in any case 
                        within 5 days after being served with a copy of 
                        the order, or within such time as the court may 
                        order, designed to prevent, prohibit, or 
                        suspend its service from completing payment 
                        transactions involving customers located within 
                        the United States or subject to the 
                        jurisdiction of the United States and the 
                        payment account--
                                    (I) which is used by the foreign 
                                infringing site, or portion thereof, 
                                that is subject to the order; and
                                    (II) through which the payment 
                                network provider would complete such 
                                payment transactions.
                            (ii) No duty to monitor.--A payment network 
                        provider shall be considered to be in 
                        compliance with clause (i) if it takes action 
                        described in that clause with respect to 
                        accounts it has as of the date on which a copy 
                        of the order is served, or as of the date on 
                        which the order is amended under subsection 
                        (e).
                    (D) Internet advertising services.--
                            (i) Required actions.--An Internet 
                        advertising service that contracts to provide 
                        advertising to or for the foreign infringing 
                        site, or portion thereof, that is subject to 
                        the order, or that knowingly serves advertising 
                        to or for such site or such portion thereof, 
                        shall take technically feasible and reasonable 
                        measures, as expeditiously as possible, but in 
                        any case within 5 days after being served with 
                        a copy of the order, or within such time as the 
                        court may order, designed to--
                                    (I) prevent its service from 
                                providing advertisements to or relating 
                                to the foreign infringing site that is 
                                subject to the order or a portion of 
                                such site specified in the order;
                                    (II) cease making available 
                                advertisements for the foreign 
                                infringing site or such portion 
                                thereof, or paid or sponsored search 
                                results, links, or other placements 
                                that provide access to such foreign 
                                infringing site or such portion 
                                thereof; and
                                    (III) cease providing or receiving 
                                any compensation for advertising or 
                                related services to, from, or in 
                                connection with such foreign infringing 
                                site or such portion thereof.
                            (ii) No duty to monitor.--An internet 
                        advertising service shall be considered to be 
                        in compliance with clause (i) if it takes 
                        action described in that clause with respect to 
                        accounts it has as of the date on which a copy 
                        of the order is served, or as of the date on 
                        which the order is amended under subsection 
                        (e).
            (3) Communication with users.--Except as provided under 
        paragraph (2)(A)(iv), an entity taking an action described in 
        this subsection shall determine the means to communicate such 
        action to the entity's users or customers.
            (4) Enforcement of orders.--
                    (A) In general.--To ensure compliance with orders 
                issued pursuant to this section, the Attorney General 
                may bring an action for injunctive relief--
                            (i) against any entity served under 
                        paragraph (1) that knowingly and willfully 
                        fails to comply with the requirements of this 
                        subsection to compel such entity to comply with 
                        such requirements; or
                            (ii) against any entity that knowingly and 
                        willfully provides or offers to provide a 
                        product or service designed or marketed for the 
                        circumvention or bypassing of measures 
                        described in paragraph (2) and taken in 
                        response to a court order issued pursuant to 
                        this subsection, to enjoin such entity from 
                        interfering with the order by continuing to 
                        provide or offer to provide such product or 
                        service.
                    (B) Rule of construction.--The authority granted 
                the Attorney General under subparagraph (A)(i) shall be 
                the sole legal remedy to enforce the obligations under 
                this section of any entity described in paragraph (2).
                    (C) Defense.--A defendant in an action under 
                subparagraph (A)(i) may establish an affirmative 
                defense by showing that the defendant does not have the 
                technical means to comply with this subsection without 
                incurring an unreasonable economic burden, or that the 
                order is not authorized by this subsection. Such 
                showing shall not be presumed to be a complete defense 
                but shall serve as a defense only for those measures 
                for which a technical limitation on compliance is 
                demonstrated or for such portions of the order as are 
                demonstrated to be unauthorized by this subsection.
                    (D) Definition.--For purposes of this paragraph, a 
                product or service designed or marketed for the 
                circumvention or bypassing of measures described in 
                paragraph (2) and taken in response to a court order 
                issued pursuant to this subsection includes a product 
                or service that is designed or marketed to enable a 
                domain name described in such an order--
                            (i) to resolve to that domain name's 
                        Internet protocol address notwithstanding the 
                        measures taken by a service provider under 
                        paragraph (2) to prevent such resolution; or
                            (ii) to resolve to a different domain name 
                        or Internet Protocol address that the provider 
                        of the product or service knows, reasonably 
                        should know, or reasonably believes is used by 
                        an Internet site offering substantially similar 
                        infringing activities as those with which the 
                        infringing foreign site, or portion thereof, 
                        subject to a court order under this section was 
                        associated.
            (5) Immunity.--
                    (A) Immunity from suit.--Other than in an action 
                pursuant to paragraph (4), no cause of action shall lie 
                in any Federal or State court or administrative agency 
                against any entity served with a copy of a court order 
                issued under this subsection, or against any director, 
                officer, employee, or agent thereof, for any act 
                reasonably designed to comply with this subsection or 
                reasonably arising from such order.
                    (B) Immunity from liability.--Other than in an 
                action pursuant to paragraph (4)--
                            (i) any entity served with a copy of an 
                        order under this subsection, and any director, 
                        officer, employee, or agent thereof, shall not 
                        be liable for any act reasonably designed to 
                        comply with this subsection or reasonably 
                        arising from such order; and
                            (ii) any--
                                    (I) actions taken by customers of 
                                such entity to circumvent any 
                                restriction on access to the foreign 
                                infringing site, or portion thereof, 
                                that is subject to such order, that is 
                                instituted pursuant to this subsection, 
                                or
                                    (II) act, failure, or inability to 
                                restrict access to a foreign infringing 
                                site, or portion thereof, that is 
                                subject to such order, in spite of good 
                                faith efforts to comply with such order 
                                by such entity,
                        shall not be used by any person in any claim or 
                        cause of action against such entity.
    (d) Modification or Vacation of Orders.--
            (1) In general.--At any time after the issuance of an order 
        under subsection (b), a motion to modify, suspend, or vacate 
        the order may be filed by--
                    (A) any person, or owner or operator of property, 
                that is subject to the order;
                    (B) any registrant of the domain name, or the owner 
                or operator, of the Internet site that is subject to 
                the order;
                    (C) any domain name registrar, registry, or other 
                domain name registration authority that has registered 
                or assigned the domain name of the Internet site that 
                is subject to the order; or
                    (D) any entity that has been served with a copy of 
                an order pursuant to subsection (c) that requires such 
                entity to take action prescribed in that subsection.
            (2) Relief.--Relief under this subsection shall be proper 
        if the court finds that--
                    (A) the foreign Internet site subject to the order 
                is no longer, or never was, a foreign infringing site; 
                or
                    (B) the interests of justice otherwise require that 
                the order be modified, suspended, or vacated.
            (3) Consideration.--In making a relief determination under 
        paragraph (2), a court may consider whether the domain name of 
        the foreign Internet site has expired or has been re-registered 
        by an entity other than the entity that is subject to the order 
        with respect to which the motion under paragraph (1) is 
        brought.
            (4) Intervention.--An entity required to take action 
        pursuant to subsection (c) if an order issues under subsection 
        (b) may intervene at any time in any action commenced under 
        subsection (b) that may result in such order, or in any action 
        to modify, suspend, or vacate such order under this subsection.
    (e) Amended Orders.--The Attorney General, if alleging that a 
foreign Internet site previously adjudicated in an action under this 
section to be a foreign infringing site is accessible or has been 
reconstituted at a different domain name or Internet Protocol address, 
may petition the court to amend the order issued under this section 
accordingly.
    (f) Law Enforcement Coordination.--
            (1) In general.--The Attorney General shall inform the 
        Intellectual Property Enforcement Coordinator and the heads of 
        appropriate law enforcement agencies of all court orders issued 
        under subsection (b), and all amended orders issued under 
        subsection (e), regarding foreign infringing sites.
            (2) Alterations.--The Attorney General shall, and the 
        defendant may, inform the Intellectual Property Enforcement 
        Coordinator of the modification, suspension, expiration, or 
        vacation of a court order issued under subsection (b) or an 
        amended order issued under subsection (e).

SEC. 103. MARKET-BASED SYSTEM TO PROTECT U.S. CUSTOMERS AND PREVENT 
              U.S. FUNDING OF SITES DEDICATED TO THEFT OF U.S. 
              PROPERTY.

    (a) Definitions.--In this section:
            (1) Dedicated to theft of u.s. property.--An ``Internet 
        site is dedicated to theft of U.S. property'' if--
                    (A) it is an Internet site, or a portion thereof, 
                that is a U.S.-directed site and is used by users 
                within the United States; and
                    (B) either--
                            (i) the U.S.-directed site is primarily 
                        designed or operated for the purpose of, has 
                        only limited purpose or use other than, or is 
                        marketed by its operator or another acting in 
                        concert with that operator for use in, offering 
                        goods or services in a manner that engages in, 
                        enables, or facilitates--
                                    (I) a violation of section 501 of 
                                title 17, United States Code;
                                    (II) a violation of section 1201 of 
                                title 17, United States Code; or
                                    (III) the sale, distribution, or 
                                promotion of goods, services, or 
                                materials bearing a counterfeit mark, 
                                as that term is defined in section 
                                34(d) of the Lanham Act or section 2320 
                                of title 18, United States Code; or
                            (ii) the operator of the U.S.-directed 
                        site--
                                    (I) is taking, or has taken, 
                                deliberate actions to avoid confirming 
                                a high probability of the use of the 
                                U.S.-directed site to carry out acts 
                                that constitute a violation of section 
                                501 or 1201 of title 17, United States 
                                Code; or
                                    (II) operates the U.S.-directed 
                                site with the object of promoting, or 
                                has promoted, its use to carry out acts 
                                that constitute a violation of section 
                                501 or 1201 of title 17, United States 
                                Code, as shown by clear expression or 
                                other affirmative steps taken to foster 
                                infringement.
            (2) Qualifying plaintiff.--The term ``qualifying 
        plaintiff'' means, with respect to a particular Internet site 
        or portion thereof, a holder of an intellectual property right 
        harmed by the activities described in paragraph (1) occurring 
        on that Internet site or portion thereof.
    (b) Denying U.S. Financial Support of Sites Dedicated to Theft of 
U.S. Property.--
            (1) Payment network providers.--Except in the case of an 
        effective counter notification pursuant to paragraph (5), a 
        payment network provider shall take technically feasible and 
        reasonable measures, as expeditiously as possible, but in any 
        case within 5 days after delivery of a notification under 
        paragraph (4), that are designed to prevent, prohibit, or 
        suspend its service from completing payment transactions 
        involving customers located within the United States and the 
        Internet site, or portion thereof, that is specified in the 
        notification under paragraph (4).
            (2) Internet advertising services.--Except in the case of 
        an effective counter notification pursuant to paragraph (5), an 
        Internet advertising service that contracts with the operator 
        of an Internet site, or portion thereof, that is specified in a 
        notification delivered under paragraph (4), to provide 
        advertising to or for such site or portion thereof, or that 
        knowingly serves advertising to or for such site or portion 
        thereof, shall take technically feasible and reasonable 
        measures, as expeditiously as possible, but in any case within 
        5 days after delivery the notification under paragraph (4), 
        that are designed to--
                    (A) prevent its service from providing 
                advertisements to or relating to the Internet site, or 
                portion thereof, that is specified in the notification;
                    (B) cease making available advertisements for such 
                Internet site, or portion thereof, that is specified in 
                the notification, or paid or sponsored search results, 
                links, or other placements that provide access to such 
                Internet site, or portion thereof, that is specified in 
                the notification; and
                    (C) cease providing or receiving any compensation 
                for advertising or related services to, from, or in 
                connection with such Internet site, or portion thereof, 
                that is specified in the notification.
            (3) Designated agent.--
                    (A) In general.--Each payment network provider and 
                each Internet advertising service shall designate an 
                agent to receive notifications described in paragraph 
                (4), by making available through its service, including 
                on its Web site in a location accessible to the public, 
                and by providing to the Copyright Office, substantially 
                the following:
                            (i) The name, address, phone number, and 
                        electronic mail address of the agent.
                            (ii) Other contact information that the 
                        Register of Copyrights considers appropriate.
                    (B) Directory of agents.--The Register of 
                Copyrights shall maintain and make available to the 
                public for inspection, including through the Internet, 
                in electronic format, a current directory of agents 
                designated under subparagraph (A).
            (4) Notification regarding internet sites dedicated to 
        theft of u.s. property.--
                    (A) Requirements.--Subject to subparagraph (B), a 
                notification under this paragraph is effective only if 
                it is a written communication that is provided to the 
                designated agent of a payment network provider or an 
                Internet advertising service and includes substantially 
                the following:
                            (i) A physical or electronic signature of a 
                        person authorized to act on behalf of the 
                        holder of an intellectual property right harmed 
                        by the activities described in subsection 
                        (a)(1).
                            (ii) Identification of the Internet site, 
                        or portion thereof, dedicated to theft of U.S. 
                        property, including either the domain name or 
                        Internet Protocol address of such site, or 
                        both.
                            (iii) Identification of the specific facts 
                        to support the claim that the Internet site, or 
                        portion thereof, is dedicated to theft of U.S. 
                        property and to clearly show that immediate and 
                        irreparable injury, loss, or damage will result 
                        to the holder of the intellectual property 
                        right harmed by the activities described in 
                        subsection (a)(1) in the absence of timely 
                        action by the payment network provider or 
                        Internet advertising service.
                            (iv) Information reasonably sufficient to 
                        establish that the payment network provider or 
                        Internet advertising service is providing 
                        payment processing or Internet advertising 
                        services for such site.
                            (v) Information reasonably sufficient to 
                        permit the payment network provider or Internet 
                        advertising service to contact the holder of 
                        the intellectual property right harmed by the 
                        activities described in subsection (a)(1).
                            (vi) A statement that the holder of the 
                        intellectual property right has a good faith 
                        belief that the use of the owner's works or 
                        goods in which the right exists, in the manner 
                        described in the notification, is not 
                        authorized by the holder, its agent, or law.
                            (vii) A statement that the information in 
                        the notification is accurate, and, under 
                        penalty of perjury, that the signatory is 
                        authorized to act on behalf of the holder of 
                        the intellectual property right harmed by the 
                        activities described in subsection (a)(1).
                            (viii) Identification of the evidence 
                        indicating that the site (or portion thereof) 
                        is a U.S.-directed site.
                    (B) Service if no agent designated.--If a payment 
                network provider or Internet advertising service has 
                not designated an agent under paragraph (3), the 
                notification under subparagraph (A) may be provided to 
                any officer or legal representative of such provider or 
                service.
                    (C) Notice to internet site identified in 
                notification.--Upon receipt of an effective 
                notification under this paragraph, a payment network 
                provider or Internet advertising service shall take 
                appropriate steps to ensure timely delivery of the 
                notification to the Internet site identified in the 
                notification.
            (5) Counter notification.--
                    (A) Requirements.--Subject to subparagraph (B), a 
                counter notification is effective under this paragraph 
                only if it is a written communication that is provided 
                to the designated agent of a payment network provider 
                or an Internet advertising service and includes 
                substantially the following:
                            (i) A physical or electronic signature of 
                        the owner or operator of the Internet site, or 
                        portion thereof, specified in a notification 
                        under paragraph (4) subject to which action is 
                        to be taken by the payment network provider or 
                        Internet advertising service under paragraph 
                        (1) or (2), or of the registrant of the domain 
                        name used by such site or portion thereof.
                            (ii) In the case of an Internet site 
                        specified in the notification under paragraph 
                        (4) that is a foreign Internet site, a 
                        statement that the owner or operator, or 
                        registrant, consents to the jurisdiction of the 
                        courts of the United States, and will accept 
                        service of process from the person who provided 
                        notification under paragraph (4), or an agent 
                        of such person, for purposes of adjudicating 
                        whether the site is an Internet site dedicated 
                        to theft of U.S. property under this section.
                            (iii) A statement under penalty of perjury 
                        that the owner or operator, or registrant, has 
                        a good faith belief that it does not meet the 
                        criteria of an Internet site dedicated to theft 
                        of U.S. property as set forth under this 
                        section.
                            (iv) The name, address, email address, and 
                        telephone number of the owner, operator, or 
                        registrant.
                    (B) Service if no agent designated.--If a payment 
                network provider or Internet advertising service has 
                not designated an agent under paragraph (3), the 
                counter notification under subparagraph (A) may be 
                provided to any officer or legal representative of such 
                provider or service.
            (6) Misrepresentations.--Any provider of a notification or 
        counter notification who knowingly materially misrepresents 
        under this section--
                    (A) that a site is an Internet site dedicated to 
                the theft of U.S. property, or
                    (B) that such site does not meet the criteria of an 
                Internet site dedicated to the theft of U.S. property,
        shall be liable for damages, including costs and attorneys' 
        fees, incurred by the person injured by such misrepresentation 
        as a result of the misrepresentation.
    (c) Limited Injunctive Relief in Cases of Counter Notification.--
            (1) In personam.--If an effective counter notification is 
        made under subsection (b)(5), or if a payment network provider 
        fails to comply with subsection (b)(1), or an Internet 
        advertising service fails to comply with subsection (b)(2), 
        pursuant to a notification under subsection (b)(4) in the 
        absence of such a counter notification, a qualifying plaintiff 
        may commence an in personam action against--
                    (A) a registrant of a domain name used by the 
                Internet site, or portion thereof, that is subject to 
                the notification under subsection (b)(4); or
                    (B) an owner or operator of the Internet site or 
                portion thereof.
            (2) In rem.--If through due diligence a qualifying 
        plaintiff who is authorized to bring an in personam action 
        under paragraph (1) with respect to an Internet site dedicated 
        to theft of U.S. property is unable to find a person described 
        in subparagraphs (A) or (B) of paragraph (1), or no such person 
        found has an address within a judicial district of the United 
        States, the qualifying plaintiff may commence an in rem action 
        against that Internet site or the domain name used by such 
        site.
            (3) Notice.--Upon commencing an action under this 
        subsection, the qualifying plaintiff shall send a notice of the 
        alleged activity described in subsection (a)(1) and intent to 
        proceed under this subsection--
                    (A) to the registrant of the domain name of the 
                Internet site, or portion thereof, that is the subject 
                to the notification under subsection (b)(4)--
                            (i) at the postal and electronic mail 
                        addresses appearing in the applicable publicly 
                        accessible database of registrations, if any, 
                        and to the extent such addresses are reasonably 
                        available; and
                            (ii) via the postal and electronic mail 
                        addresses of the registrar, registry, or other 
                        domain name registration authority that 
                        registered or assigned the domain name of the 
                        Internet site, or portion thereof, to the 
                        extent such addresses are reasonably available;
                    (B) to the owner or operator of the Internet site, 
                or portion thereof--
                            (i) at the primary postal and electronic 
                        mail addresses for such owner or operator that 
                        are provided on the Internet site, or portion 
                        thereof, if any, and to the extent such 
                        addresses are reasonably available; or
                            (ii) if there is no domain name of the 
                        Internet site or portion thereof, via the 
                        postal and electronic mail addresses of the 
                        Internet Protocol allocation entity appearing 
                        in the applicable publicly accessible database 
                        of allocations and assignments, if any, and to 
                        the extent such addresses are reasonably 
                        available; or
                    (C) in any other such form as the court may 
                prescribe, including as may be required by rule 4(f) of 
                the Federal Rules of Civil Procedure.
            (4) Service of process.--For purposes of this section, the 
        actions described in this subsection shall constitute service 
        of process.
            (5) Relief.--On application of a qualifying plaintiff 
        following the commencement of an action under this section with 
        respect to an Internet site dedicated to theft of U.S. 
        property, the court may issue a temporary restraining order, a 
        preliminary injunction, or an injunction, in accordance with 
        rule 65 of the Federal Rules of Civil Procedure, against a 
        registrant of a domain name used by the Internet site, or 
        against an owner or operator of the Internet site, or, in an 
        action brought in rem under paragraph (2), against the Internet 
        site, or against the domain name used by the Internet site, to 
        cease and desist from undertaking any further activity as an 
        Internet site dedicated to theft of U.S. property.
    (d) Actions Based on Court Orders.--
            (1) Service and response.--
                    (A) Service by qualifying plaintiff.--A qualifying 
                plaintiff, with the prior approval of the court, may 
                serve a copy of a court order issued under subsection 
                (c) on similarly situated entities described in 
                paragraph (2). Proof of service shall be filed with the 
                court.
                    (B) Response.--An entity served under subparagraph 
                (A) shall, not later than 7 days after the date of such 
                service, file with the court a certification 
                acknowledging receipt of a copy of the order and 
                stating that such entity has complied or will comply 
                with the obligations imposed under paragraph (2), or 
                explaining why the entity will not so comply.
                    (C) Venue for service.--A copy of the court order 
                may be served in any judicial district where an entity 
                resides or may be found.
            (2) Reasonable measures.--After being served with a copy of 
        an order pursuant to this subsection, the following shall 
        apply:
                    (A) Payment network providers.--
                            (i) Preventing affiliation.--A payment 
                        network provider shall take technically 
                        feasible and reasonable measures, as 
                        expeditiously as possible, but in any case 
                        within 5 days after being served with a copy of 
                        the court order, or within such time as the 
                        court may order, that are designed to prevent, 
                        prohibit, or suspend its service from 
                        completing payment transactions involving 
                        customers located within the United States or 
                        subject to the jurisdiction of the United 
                        States and any account--
                                    (I) which is used by the Internet 
                                site dedicated to theft of U.S. 
                                property that is subject to the order; 
                                and
                                    (II) through which the payment 
                                network provider would complete such 
                                payment transactions.
                            (ii) No duty to monitor.--A payment network 
                        provider is in compliance with clause (i) if it 
                        takes action described in that clause with 
                        respect to accounts it has as of the date of 
                        service of the order, or as of the date of any 
                        subsequent notice that its service is being 
                        used to complete payment transactions described 
                        in clause (i).
                    (B) Internet advertising services.--
                            (i) Required actions.--An Internet 
                        advertising service that contracts with the 
                        Internet site dedicated to theft of U.S. 
                        property that is subject to the order to 
                        provide advertising to or for such Internet 
                        site, or that knowingly serves advertising to 
                        or for such internet site, shall take 
                        technically feasible and reasonable measures, 
                        as expeditiously as possible, but in any case 
                        within 5 days after being served with a copy of 
                        the order, or within such time as the court may 
                        order, that are designed to--
                                    (I) prevent its service from 
                                providing advertisements to or relating 
                                to the Internet site;
                                    (II) cease making available 
                                advertisements for the Internet site, 
                                or paid or sponsored search results, 
                                links, or other placements that provide 
                                access to the Internet site; and
                                    (III) cease providing or receiving 
                                any compensation for advertising or 
                                related services to, from, or in 
                                connection with the Internet site.
                            (ii) No duty to monitor.--An internet 
                        advertising service is in compliance with 
                        clause (i) if it takes action described in that 
                        clause with respect to accounts it has as of 
                        the date on which a copy of the order is 
                        served, or as of the date of any subsequent 
                        notice that its service is being used for 
                        activities described in clause (i).
            (3) Communication with users.--An entity taking an action 
        described in this subsection shall determine the means to 
        communicate such action to the entity's users or customers.
            (4) Enforcement of orders.--
                    (A) Rule of construction.--The authority under this 
                subsection shall be the sole legal remedy to enforce 
                the obligations of any entity under this subsection.
                    (B) Procedures and relief.--
                            (i) Show cause order.--On a showing by the 
                        qualifying plaintiff of probable cause to 
                        believe that an entity served with a copy of a 
                        court order issued under subsection (c) has not 
                        complied with its obligations under this 
                        subsection by reason of such court order, the 
                        court shall require the entity to show cause 
                        why an order should not issue--
                                    (I) to require compliance with the 
                                obligations of this subsection; and
                                    (II) to impose an appropriate 
                                monetary sanction, consistent with the 
                                court's exercise of its equitable 
                                authority, to enforce compliance with 
                                its lawful orders, if the entity--
                                            (aa) has knowingly and 
                                        willfully failed to file a 
                                        certification required by 
                                        paragraph (1)(B);
                                            (bb) has filed such a 
                                        certification agreeing to 
                                        comply but has knowingly and 
                                        willfully failed to do so; or
                                            (cc) has knowingly and 
                                        willfully certified falsely 
                                        that compliance with the 
                                        requirements of paragraph (2) 
                                        is not required by law.
                            (ii) Service of process.--The order to show 
                        cause, and any other process, may be served in 
                        any judicial district where the entity resides 
                        or may be found.
                    (C) Defense.--An entity against whom relief is 
                sought under subparagraph (B) may establish an 
                affirmative defense by showing that the entity does not 
                have the technical means to comply with this subsection 
                without incurring an unreasonable economic burden, or 
                that the order is not authorized by this subsection. 
                Such showing shall not be presumed to be a complete 
                defense but shall serve as a defense only for those 
                measures for which a technical limitation on compliance 
                is demonstrated or for such portions of the order as 
                are demonstrated to be unauthorized by this subsection.
            (5) Immunity.--
                    (A) Immunity from suit.--Other than in an action 
                pursuant to paragraph (4), no cause of action shall lie 
                in any Federal or State court or administrative agency 
                against any entity served with a copy of a court order 
                issued under subsection (c), or against any director, 
                officer, employee, or agent thereof, for any act 
                reasonably designed to comply with this subsection or 
                reasonably arising from such order.
                    (B) Immunity from liability.--Other than in an 
                action pursuant to paragraph (4)--
                            (i) any entity served with a copy of an 
                        order under this subsection, and any director, 
                        officer, employee, or agent thereof, shall not 
                        be liable for any acts reasonably designed to 
                        comply with this subsection or reasonably 
                        arising from such order; and
                            (ii) any--
                                    (I) actions taken by customers of 
                                such entity to circumvent any 
                                restriction on access to the Internet 
                                site, or portion thereof that is 
                                subject to such order, that is 
                                instituted pursuant to this subsection, 
                                or
                                    (II) act, failure, or inability to 
                                restrict access to an Internet site or 
                                portion thereof that is subject to such 
                                order, despite good faith efforts to 
                                comply with such order by such entity,
                        shall not be used by any person in any claim or 
                        cause of action against such entity.
    (e) Modification or Vacation of Orders.--
            (1) In general.--At any time after the issuance of an order 
        under subsection (c), or an amended order issued under 
        subsection (f), with respect to an Internet site dedicated to 
        theft of U.S. property, a motion to modify, suspend, or vacate 
        the order may be filed by--
                    (A) any person, or owner or operator of property, 
                that is subject to the order;
                    (B) any registrant of the domain name, or the owner 
                or operator, of such Internet site;
                    (C) any domain name registrar, registry, or other 
                domain name registration authority that has registered 
                or assigned the domain name of such Internet site; or
                    (D) any entity that has been served with a copy of 
                an order under subsection (d), or an amended order 
                under subsection (f), that requires such entity to take 
                action prescribed in that subsection.
            (2) Relief.--Relief under this subsection shall be proper 
        if the court finds that--
                    (A) the Internet site subject to the order is no 
                longer, or never was, an Internet site dedicated to 
                theft of U.S. property; or
                    (B) the interests of justice otherwise require that 
                the order be modified, suspended, or vacated.
            (3) Consideration.--In making a relief determination under 
        paragraph (2), a court may consider whether the domain name of 
        the Internet site has expired or has been re-registered by an 
        entity other than the entity that is subject to the order with 
        respect to which the motion under paragraph (1) is brought.
            (4) Intervention.--An entity required to take action 
        pursuant to subsection (d) if an order issues under subsection 
        (c) may intervene at any time in any action commenced under 
        subsection (c) that may result in such order, or in any action 
        to modify, suspend, or vacate such order under this subsection.
    (f) Amended Orders.--The qualifying plaintiff, if alleging that an 
Internet site previously adjudicated in an action under this section to 
be an Internet site dedicated to theft of U.S. property is accessible 
or has been reconstituted at a different domain name or Internet 
Protocol address, may petition the court to amend the order issued 
under this section accordingly.
    (g) Reporting of Orders.--
            (1) In general.--The qualifying plaintiff shall inform the 
        Intellectual Property Enforcement Coordinator of any court 
        order issued under subsection (c) or amended order issued under 
        subsection (f).
            (2) Alterations.--Upon the modification, suspension, 
        expiration, or vacation of a court order issued under 
        subsection (c) or an amended order issued under subsection (f), 
        the qualifying plaintiff shall, and the defendant may, so 
        inform the Intellectual Property Enforcement Coordinator.

SEC. 104. IMMUNITY FOR TAKING VOLUNTARY ACTION AGAINST SITES DEDICATED 
              TO THEFT OF U.S. PROPERTY.

    No cause of action shall lie in any Federal or State court or 
administrative agency against, no person may rely in any claim or cause 
of action against, and no liability for damages to any person shall be 
granted against, a service provider, payment network provider, Internet 
advertising service, advertiser, Internet search engine, domain name 
registry, or domain name registrar for taking any action described in 
section 102(c)(2), section 103(d)(2), or section 103(b) with respect to 
an Internet site, or otherwise voluntarily blocking access to or ending 
financial affiliation with an Internet site, in the reasonable belief 
that--
            (1) the Internet site is a foreign infringing site or is an 
        Internet site dedicated to theft of U.S. property; and
            (2) the action is consistent with the entity's terms of 
        service or other contractual rights.

SEC. 105. IMMUNITY FOR TAKING VOLUNTARY ACTION AGAINST SITES THAT 
              ENDANGER PUBLIC HEALTH.

    (a) Refusal of Service.--A service provider, payment network 
provider, Internet advertising service, advertiser, Internet search 
engine, domain name registry, or domain name registrar, acting in good 
faith and based on credible evidence, may stop providing or refuse to 
provide services to an Internet site that endangers the public health.
    (b) Immunity From Liability.--An entity described in subsection 
(a), including its directors, officers, employees, or agents, that 
ceases or refuses to provide services under subsection (a) shall not be 
liable to any person under any Federal or State law for such action.
    (c) Definitions.--In this section:
            (1) Adulterated.--The term ``adulterated'' has the meaning 
        given that term in section 501 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 351).
            (2) Internet site that endangers the public health.--The 
        term ``Internet site that endangers the public health'' means 
        an Internet site that is primarily designed or operated for the 
        purpose of, has only limited purpose or use other than, or is 
        marketed by its operator or another acting in concert with that 
        operator for use in--
                    (A) offering, selling, dispensing, or distributing 
                any prescription medication, and does so regularly 
                without a valid prescription; or
                    (B) offering, selling, dispensing, or distributing 
                any prescription medication that is adulterated or 
                misbranded.
            (3) Misbranded.--the term ``misbranded'' has the meaning 
        given that term in section 502 of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 352).
            (4) Prescription medication.--
                    (A) Prescription medication.--The term 
                ``prescription medication'' means a drug that is 
                subject to section 503(b) of the Federal Food, Drug, 
                and Cosmetic Act (21 U.S.C. 353(b)).
                    (B) Drug.--The term ``drug'' has the meaning given 
                that term in section 201(g)(1) of the Federal Food 
                Drug, and Cosmetic Act (21 U.S.C. 321(g)(1)).
            (5) Valid prescription.--The term ``valid prescription'' 
        has the meaning given that term in section 309(e)(2)(A) of the 
        Controlled Substances Act (21 U.S.C. 829(e)(2)(A)).

SEC. 106. GUIDELINES AND STUDY.

    (a) Guidelines.--The Attorney General shall--
            (1) provide appropriate resources and procedures for case 
        management and development to effect timely disposition of 
        actions brought under this title;
            (2) develop a deconfliction process in consultation with 
        appropriate law enforcement agencies, including U.S. 
        Immigration and Customs Enforcement, to coordinate enforcement 
        activities under this title;
            (3) publish procedures developed in consultation with 
        appropriate law enforcement agencies, including U.S. 
        Immigration and Customs Enforcement, to receive information 
        from the public relevant to the enforcement of this title; and
            (4) provide guidance to intellectual property rights 
        holders about what information such rights holders should 
        provide to assist in initiating an investigation or to 
        supplement an ongoing investigation pursuant to this title.
    (b) Study.--
            (1) Nature of study.--The Register of Copyrights, in 
        consultation with appropriate departments and agencies of the 
        United States and other stakeholders, shall conduct a study on 
        the enforcement and effectiveness of this title and on any need 
        to amend the provisions of this title to adapt to emerging 
        technologies.
            (2) Reports to congress.--Not later than 2 years after the 
        date of the enactment of this Act, the Register of Copyrights 
        shall submit to the Committees on the Judiciary of the House of 
        Representatives and the Senate a report containing the results 
        of the study conducted under this subsection and any 
        recommendations that the Register may have as a result of the 
        study.

SEC. 107. DENYING U.S. CAPITAL TO NOTORIOUS FOREIGN INFRINGERS.

    (a) Identification and Recommendations Regarding Notorious Foreign 
Infringers.--
            (1) In general.--Using existing resources, the Intellectual 
        Property Enforcement Coordinator, in consultation with the 
        Secretaries of Treasury and Commerce, the United States Trade 
        Representative, the Chairman of the Securities and Exchange 
        Commission, and the heads of other departments and appropriate 
        agencies, shall identify and conduct an analysis of notorious 
        foreign infringers whose activities cause significant harm to 
        holders of intellectual property rights in the United States.
            (2) Public input.--In carrying out paragraph (1), the 
        Intellectual Property Enforcement Coordinator shall solicit and 
        give consideration to the views and recommendations of members 
        of the public, including holders of intellectual property 
        rights in the United States.
    (b) Report to Congress.--The Intellectual Property Enforcement 
Coordinator shall, not later than 6 months after the date of the 
enactment of this Act, submit to the Committees on the Judiciary of the 
House of Representatives and the Senate a report that includes the 
following:
            (1) An analysis of notorious foreign infringers and a 
        discussion of how these infringers violate industry norms 
        regarding the protection of intellectual property.
            (2) An analysis of the significant harm inflicted by 
        notorious foreign infringers on consumers, businesses, and 
        intellectual property industries in the United States and 
        abroad.
            (3) An examination of whether notorious foreign infringers 
        have attempted to or succeeded in accessing capital markets in 
        the United States for funding or public offerings.
            (4) An analysis of the adequacy of relying upon foreign 
        governments to pursue legal action against notorious foreign 
        infringers.
            (5) A discussion of specific policy recommendations to 
        deter the activities of notorious foreign infringers and 
        encourage foreign businesses to adopt industry norms that 
        promote the protection of intellectual property globally, 
        including addressing--
                    (A) whether notorious foreign infringers that 
                engage in significant infringing activity should be 
                prohibited by the laws of the United States from 
                seeking to raise capital in the United States, 
                including offering stock for sale to the public; and
                    (B) whether the United States Government should 
                initiate a process to identify and designate foreign 
                entities from a list of notorious foreign infringers 
                that would be prohibited from raising capital in the 
                United States.

TITLE II--ADDITIONAL ENHANCEMENTS TO COMBAT INTELLECTUAL PROPERTY THEFT

SEC. 201. STREAMING OF COPYRIGHTED WORKS IN VIOLATION OF CRIMINAL LAW.

    (a) Title 17 Amendments.--Section 506(a) of title 17, United States 
Code, is amended to read as follows:
    ``(a) Criminal Infringement.--
            ``(1) In general.--Any person who willfully infringes a 
        copyright shall be punished as provided under section 2319 of 
        title 18, if the infringement was committed--
                    ``(A) for purposes of commercial advantage or 
                private financial gain;
                    ``(B) by the reproduction or distribution, 
                including by electronic means, during any 180-day 
                period, of 1 or more copies or phonorecords of 1 or 
                more copyrighted works, or by the public performance by 
                means of digital transmission, during any 180-day 
                period, of 1 or more copyrighted works, when the total 
                retail value of the copies or phonorecords, or of the 
                public performances, is more than $1,000; or
                    ``(C) by the distribution or public performance of 
                a work being prepared for commercial dissemination, by 
                making it available on a computer network accessible to 
                members of the public, if such person knew or should 
                have known that the work was intended for commercial 
                dissemination.
            ``(2) Evidence.--For purposes of this subsection, evidence 
        of reproduction, distribution, or public performance of a 
        copyrighted work, by itself, shall not be sufficient to 
        establish willful infringement of a copyright.
            ``(3) Definition.--In this subsection, the term `work being 
        prepared for commercial dissemination' means--
                    ``(A) a computer program, a musical work, a motion 
                picture or other audiovisual work, or a sound 
                recording, if, at the time of unauthorized distribution 
                or public performance--
                            ``(i)(I) the copyright owner has a 
                        reasonable expectation of commercial 
                        distribution; and
                            ``(II) the copies or phonorecords of the 
                        work have not been commercially distributed in 
                        the United States by or with the authorization 
                        of the copyright owner; or
                            ``(ii)(I) the copyright owner does not 
                        intend to offer copies of the work for 
                        commercial distribution but has a reasonable 
                        expectation of other forms of commercial 
                        dissemination of the work; and
                            ``(II) the work has not been commercially 
                        disseminated to the public in the United States 
                        by or with the authorization of the copyright 
                        owner;
                    ``(B) a motion picture, if, at the time of 
                unauthorized distribution or public performance, the 
                motion picture--
                            ``(i)(I) has been made available for 
                        viewing in a motion picture exhibition 
                        facility; and
                            ``(II) has not been made available in 
                        copies for sale to the general public in the 
                        United States by or with the authorization of 
                        the copyright owner in a format intended to 
                        permit viewing outside a motion picture 
                        exhibition facility; or
                            ``(ii) had not been commercially 
                        disseminated to the public in the United States 
                        by or with the authorization of the copyright 
                        owner more than 24 hours before the 
                        unauthorized distribution or public 
                        performance.''.
    (b) Title 18 Amendments.--Section 2319 of title 18, United States 
Code, is amended--
            (1) in subsection (b)(1), by striking ``during any 180-day 
        period'' and all that follows and insert ``of at least 10 
        copies or phonorecords, or of at least 10 public performances 
        by means of digital transmission, of 1 or more copyrighted 
        works, during any 180-day period, which have a total retail 
        value of more than $2,500;'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``of 10 or more 
                copies or phonorecords'' and all that follows and 
                inserting ``including by electronic means, of at least 
                10 copies or phonorecords, or of at least 10 public 
                performances by means of digital transmission, of 1 or 
                more copyrighted works, during any 180-day period, 
                which have a total retail value of more than $2,500;''; 
                and
                    (B) in paragraph (3), by striking ``if the 
                offense'' and all that follows and inserting ``in any 
                other case;'';
            (3) in subsection (d)(4), by striking ``under paragraph 
        (2)'' and inserting ``committed for purposes of commercial 
        advantage or private financial gain under subsection (a)'';
            (4) in subsection (f)--
                    (A) by amending paragraph (2) to read as follows:
            ``(2) the terms `reproduction', `distribution', and `public 
        performance' refer to the exclusive rights of a copyright owner 
        under paragraphs (1), (3), (4), and (6), respectively, of 
        section 106 (relating to exclusive rights in copyrighted 
        works), as limited by sections 107 through 122, of title 17; 
        and'';
                    (B) in paragraph (3), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking paragraph (4); and
            (5) by adding at the end the following new subsection:
    ``(g) Evidence of Total Retail Value.--For purposes of this section 
and section 506(a) of title 17, total retail value may be shown by 
evidence of--
            ``(1) the total retail price that persons receiving the 
        reproductions, distributions, or public performances 
        constituting the offense would have paid to receive such 
        reproductions, distributions, or public performances lawfully;
            ``(2) the total economic value of the reproductions, 
        distributions, or public performances to the infringer or to 
        the copyright owner, as shown by evidence of fee, advertising, 
        or other revenue that was received by the person who commits 
        the offense, or that the copyright owner would have been 
        entitled to receive had such reproductions, distributions, or 
        public performances been offered lawfully; or
            ``(3) the total fair market value of licenses to offer the 
        type of reproductions, distributions, or public performances 
        constituting the offense.''.
    (c) Rule of Construction.--Any person acting with a good faith 
reasonable basis in law to believe that the person's conduct is lawful 
shall not be considered to have acted willfully for purposes of the 
amendments made by this section. Such person includes, but is not 
limited to, a person engaged in conduct forming the basis of a bona 
fide commercial dispute over the scope of existence of a contract or 
license governing such conduct where such person has a reasonable basis 
in law to believe that such conduct is noninfringing. Nothing in this 
subsection shall affect the application or interpretation of the 
willfulness requirement in any other provision of civil or criminal 
law.

SEC. 202. TRAFFICKING IN INHERENTLY DANGEROUS GOODS OR SERVICES.

    Section 2320 of title 18, United States Code, is amended as 
follows:
            (1) Subsection (a) is amended to read as follows:
            ``(1) In general.--
                    ``(A) Offenses.--Whoever--
                            ``(i) intentionally traffics or attempts to 
                        traffic in goods or services and knowingly uses 
                        a counterfeit mark on or in connection with 
                        such goods or services,
                            ``(ii) intentionally traffics or attempts 
                        to traffic in labels, patches, stickers, 
                        wrappers, badges, emblems, medallions, charms, 
                        boxes, containers, cans, cases, hangtags, 
                        documentation, or packaging of any type or 
                        nature, knowing that a counterfeit mark has 
                        been applied thereto, the use of which is 
                        likely to cause confusion, to cause mistake, or 
                        to deceive, or
                            ``(iii) intentionally imports, exports, or 
                        traffics in counterfeit drugs or intentionally 
                        participates in or knowingly aids drug 
                        counterfeiting,
                shall, if an individual, be fined not more than 
                $2,000,000 or imprisoned not more than 10 years, or 
                both, and, if a person other than an individual, be 
                fined not more than $5,000,000.
                    ``(B) Subsequent offenses.--In the case of an 
                offense by a person under this paragraph that occurs 
                after that person is convicted of another offense under 
                this paragraph, the person convicted, if an individual, 
                shall be fined not more than $5,000,000 or imprisoned 
                not more than 20 years, or both, and if other than an 
                individual, shall be fined not more than $15,000,000.
            ``(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, for an individual, 
                a fine of not more than $5,000,000 or imprisonment for 
                any term of years or for life, or both, and for other 
                than an individual, a fine of not more than 
                $15,000,000.
                    ``(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, for an individual, a fine of not more than 
                $5,000,000 or imprisonment for any term of years or for 
                life, or both, and for other than an individual, a fine 
                of not more than $15,000,000.
            ``(3) Military goods or services.--
                    ``(A) In general.--A person who commits an offense 
                under paragraph (1) shall be punished in accordance 
                with subparagraph (B) if--
                            ``(i) the offense involved a good or 
                        service described in paragraph (1) that if it 
                        malfunctioned, failed, or was compromised, 
                        could reasonably be foreseen to cause--
                                    ``(I) serious bodily injury or 
                                death;
                                    ``(II) disclosure of classified 
                                information;
                                    ``(III) impairment of combat 
                                operations; or
                                    ``(IV) other significant harm--
                                            ``(aa) to a member--

                                                    ``(AA) of the Armed 
                                                Forces; or

                                                    ``(BB) of a 
                                                Federal, State, or 
                                                local law enforcement 
                                                agency; or

                                            ``(bb) to national security 
                                        or critical infrastructure; and
                            ``(ii) the person had knowledge that the 
                        good or service is falsely identified as 
                        meeting military standards or is intended for 
                        use in a military or national security 
                        application, or a law enforcement or critical 
                        infrastructure application.
                    ``(B) Penalties.--
                            ``(i) Individual.--An individual who 
                        commits an offense described in subparagraph 
                        (A) shall be fined not more than $5,000,000, 
                        imprisoned for not more than 20 years, or both.
                            ``(ii) Person other than an individual.--A 
                        person other than an individual that commits an 
                        offense described in subparagraph (A) shall be 
                        fined not more than $15,000,000.
                    ``(C) Subsequent offenses.--
                            ``(i) Individual.--An individual who 
                        commits an offense described in subparagraph 
                        (A) after the individual is convicted of an 
                        offense under subparagraph (A) shall be fined 
                        not more than $15,000,000, imprisoned not more 
                        than 30 years, or both.
                            ``(ii) Person other than an individual.--A 
                        person other than an individual that commits an 
                        offense described in subparagraph (A) after the 
                        person is convicted of an offense under 
                        subparagraph (A) shall be fined not more than 
                        $30,000,000.''.
            (2) Subsection (e) is amended--
                    (A) in paragraph (1), by striking the period at the 
                end and inserting a semicolon;
                    (B) in paragraph (3), by striking ``and'' at the 
                end;
                    (C) in paragraph (4), by striking the period at the 
                end and inserting a semicolon; and
                    (D) by adding at the end the following:
            ``(5) the term `counterfeit drug' has the meaning given 
        that term in section 201(g)(2) of the Federal Food Drug, and 
        Cosmetic Act (21 U.S.C. 321(g)(2));
            ``(6) the term `critical infrastructure' has the meaning 
        given that term in section 2339D(c);
            ``(7) the term `drug counterfeiting' means any act 
        prohibited by section 301(i) of the Federal Food Drug, and 
        Cosmetic Act (21 U.S.C. 331(i));
            ``(8) the term `final dosage form' has the meaning given 
        that term in section 735(4) of the Federal Food, Drug, and 
        Cosmetic Act (21 U.S.C. 379g(4));
            ``(9) the term `falsely identified as meeting military 
        standards' relating to a good or service means there is a 
        material misrepresentation that the good or service meets a 
        standard, requirement, or specification issued by the 
        Department of Defense, an Armed Force, or a reserve component;
            ``(10) the term `use in a military or national security 
        application' means the use of a good or service, independently, 
        in conjunction with, or as a component of another good or 
        service--
                    ``(A) during the performance of the official duties 
                of the Armed Forces of the United States or the reserve 
                components of the Armed Forces; or
                    ``(B) by the United States to perform or directly 
                support--
                            ``(i) combat operations; or
                            ``(ii) critical national defense or 
                        national security functions; and
            ``(11) the term `use in a law enforcement or critical 
        infrastructure application' means the use of a good or service, 
        independently, in conjunction with, or as a component of, 
        another good or service by a person who is directly engaged 
        in--
                    ``(A) Federal, State, or local law enforcement; or
                    ``(B) an official function pertaining to critical 
                infrastructure.''.

SEC. 203. PROTECTING U.S. BUSINESSES FROM FOREIGN AND ECONOMIC 
              ESPIONAGE.

    (a) For Offenses Committed by Individuals.--Section 1831(a) of 
title 18, United States Code, is amended, in the matter after paragraph 
(5)--
            (1) by striking ``15 years'' and inserting ``20 years''; 
        and
            (2) by striking ``not more than $500,000'' and inserting 
        ``not less than $1,000,000 and not more than $5,000,000''.
    (b) For Offenses Committed by Organizations.--Section 1831(b) of 
such title is amended by striking ``$10,000,000'' and inserting ``not 
more than the greater of $10,000,000 or 3 times the value of the stolen 
trade secret to the organization (including expenses for research and 
design or other costs of reproducing the trade secret that the 
organization has thereby avoided)''.

SEC. 204. AMENDMENTS TO SENTENCING GUIDELINES.

     Not later than 180 days after the date of the enactment of this 
Act, pursuant to its authority under section 994(p) of title 28, United 
States Code, the United States Sentencing Commission shall--
            (1) review, and if appropriate, amend Federal Sentencing 
        Guidelines and policy statements applicable to persons 
        convicted of--
                    (A) intellectual property offenses;
                    (B) an offense under section 2320(a) of title 18, 
                United States Code; or
                    (C) an offense under section 1831 of title 18, 
                United States Code;
            (2) in carrying out such review, consider amending such 
        Guidelines and policy statements to--
                    (A) apply an appropriate offense level enhancement 
                for intellectual property offenses committed in 
                connection with an organized criminal enterprise;
                    (B) apply an appropriate offense level enhancement 
                to the simple misappropriation of a trade secret;
                    (C) apply an additional appropriate offense level 
                enhancement if the defendant transmits or attempts to 
                transmit the stolen trade secret outside of the United 
                States and an additional appropriate enhancement if the 
                defendant instead commits economic espionage;
                    (D) provide that when a defendant transmits trade 
                secrets outside of the United States or commits 
                economic espionage, that the defendant should face a 
                minimum offense level;
                    (E) provide for an offense level enhancement for 
                Guidelines relating to the theft of trade secrets and 
                economic espionage, including trade secrets transferred 
                or attempted to be transferred outside of the United 
                States;
                    (F) apply an appropriate offense level enhancement 
                and minimum offense level for offenses under section 
                2320(a) of title 18, United States Code, that involve a 
                product intended for use in a military or national 
                security application, or a law enforcement or critical 
                infrastructure application;
                    (G) ensure that the Guidelines and policy 
                statements (including section 2B5.3 of the Federal 
                Sentencing Guidelines (and any successor thereto)) 
                reflect--
                            (i) the serious nature of the offenses 
                        described in section 2320(a) of title 18, 
                        United States Code;
                            (ii) the need for an effective deterrent 
                        and appropriate punishment to prevent offenses 
                        under section 2320(a) of title 18, United 
                        States Code; and
                            (iii) the effectiveness of incarceration in 
                        furthering the objectives described in clauses 
                        (i) and (ii); and
                    (H) ensure reasonable consistency with other 
                relevant directives and Guidelines and Federal 
                statutes;
            (3) submit to Congress a report detailing the Commission's 
        actions with respect to each potential amendment described in 
        paragraph (2);
            (4) make such conforming amendments to the Federal 
        Sentencing Guidelines as the Commission determines necessary to 
        achieve consistency with other Guideline provisions and 
        applicable law; and
            (5) promulgate the Guidelines, policy statements, or 
        amendments provided for in this section as soon as practicable 
        in accordance with the procedure set forth in section 21(a) of 
        the Sentencing Act of 1987 (28 U.S.C. 994 note), as though the 
        authority under that Act had not expired.

SEC. 205. DEFENDING INTELLECTUAL PROPERTY RIGHTS ABROAD.

    (a) Resources To Protect Intellectual Property Rights.--
            (1) Policy.--The Secretary of State and the Secretary of 
        Commerce, in consultation with the Register of Copyrights, 
        shall ensure that the protection in foreign countries of the 
        intellectual property rights of United States persons is a 
        significant component of United States foreign and commercial 
        policy in general, and in relations with individual countries 
        in particular.
            (2) Dedication of resources.--The Secretary of State and 
        the Secretary of Commerce, in consultation with the Register of 
        Copyrights, and the heads of other appropriate departments and 
        agencies, shall ensure that adequate resources are available at 
        the United States embassy or diplomatic mission (as the case 
        may be) in any country that is identified under section 
        182(a)(1) of the Trade Act of 1974 (19 U.S.C. 2242(a)(1)) to 
        ensure--
                    (A) aggressive support for enforcement action 
                against violations of the intellectual property rights 
                of United States persons in such country;
                    (B) cooperation with and support for the host 
                government's efforts to conform its applicable laws, 
                regulations, practices, and processes to enable the 
                host government to honor its international and 
                bilateral obligations with respect to the protection of 
                intellectual property rights;
                    (C) consistency with the policy and country-
                specific priorities set forth in the most recent report 
                of USTR under such section 182(a)(1); and
                    (D) support for holders of United States 
                intellectual property rights and industries whose 
                access to foreign markets is improperly restricted by 
                intellectual property related issues.
    (b) New Appointments.--
            (1) Appointments and administration.--The Secretary of 
        State and the Secretary of Commerce, in consultation with the 
        Register of Copyrights, shall appoint at least one intellectual 
        property attache to be assigned to the United States embassy or 
        diplomatic mission (as the case may be) in a country in each 
        geographic region covered by a regional bureau of the 
        Department of State. The Director of the Patent and Trademark 
        Office shall maintain authority over hiring, personnel ratings, 
        and objectives for the attaches, in consultation with the 
        Secretary of State. Depending on experience and expertise, 
        intellectual property attaches shall be designated as the 
        diplomatic rank in-mission of First Secretary or Counselor.
            (2) Regions defined.--The geographic regions referred to in 
        paragraph (1) are the following:
                    (A) Africa.
                    (B) Europe and Eurasia.
                    (C) East Asia and the Pacific.
                    (D) The Near East.
                    (E) South and Central Asia and the Pacific.
                    (F) The Western Hemisphere.
            (3) Duties.--The intellectual property attaches appointed 
        under this subsection shall focus primarily on intellectual 
        property matters, including the development, protection, and 
        enforcement of applicable law. Each intellectual property 
        attache shall work, in accordance with guidance from the 
        Director, and in coordination with appropriate staff at the 
        Departments of Commerce and State and the Copyright Office, to 
        advance the policy goals and priorities of the United States 
        Government. Those policy goals and priorities shall be 
        consistent with USTR's reports under section 182(a)(1) of the 
        Trade Act of 1974. The intellectual property attaches shall 
        work with United States holders of intellectual property rights 
        and industry to address intellectual property rights violations 
        in the countries where the attaches are assigned.
    (c) Priority Assignments.--
            (1) In general.--Subject to paragraph (2), in designating 
        the United States embassies or diplomatic missions where 
        attaches will be assigned under subsection (b), the Secretary 
        of State and the Secretary of Commerce shall give priority to 
        countries where the activities of an attache are likely to 
        achieve the greatest potential benefit in reducing intellectual 
        property infringement in the United States market, to advance 
        the intellectual property rights of United States persons and 
        their licensees, and to advance the interests of United States 
        persons who may otherwise be harmed by violations of 
        intellectual property rights in those countries.
            (2) Assignments to priority countries.--In carrying out 
        paragraph (1), the Secretary of State and the Secretary of 
        Commerce shall consider assigning intellectual property 
        attaches--
                    (A) to the countries that have been identified 
                under section 182(a)(1) of the Trade Act of 1974 (19 
                U.S.C. 2242(a)(1)); and
                    (B) to countries of critical economic importance to 
                the advancement of United States intellectual property 
                rights and interests.
    (d) Training.--The Secretary of State and the Secretary of Commerce 
shall ensure that each intellectual property attache appointed under 
subsection (b) is fully trained for the responsibilities of the 
position before assuming duties at the United States embassy or 
diplomatic mission to which the attache is assigned.
    (e) Coordination.--The activities of intellectual property attaches 
under this section shall be determined in consultation with the 
Intellectual Property Enforcement Coordinator. The Director shall 
assist in coordinating the policy priorities and activities of the 
intellectual property attaches and oversee administrative and personnel 
matters.
    (f) Training and Technical Assistance.--
            (1) Consistency.--Using existing resources, all training 
        and technical assistance provided by intellectual property 
        attaches appointed under subsection (b), or under other 
        authority, relating to intellectual property enforcement and 
        protection abroad shall be designed to be consistent with the 
        policy and country-specific priorities set forth in the most 
        recent report of USTR under section 182(a) of the Trade Act of 
        1974.
            (2) Role of ipec.--Such training and technical assistance 
        programs shall be carried out in consultation with the 
        Intellectual Property Enforcement Coordinator. The Director 
        shall assist in coordinating the training and technical 
        assistance programs conducted by intellectual property 
        attaches.
    (g) Activities in Other Countries.--In the case of countries that 
are not identified under section 182(a)(1) of the Trade Act of 1974, 
the activities of Federal departments and agencies with respect to 
intellectual property rights in those countries, intellectual property 
programs and outreach of the United States Government in those 
countries, and training and technical assistance programs of the United 
States Government relating to intellectual property in those countries 
may be conducted to the extent they are consistent with compelling 
commercial or foreign policy interests of the United States.
    (h) Reports to Congress.--The Intellectual Property Enforcement 
Coordinator shall include in the annual report submitted under section 
314 of the Prioritizing Resources and Organization for Intellectual 
Property Act of 2008 (15 U.S.C. 8114) on the activities of the advisory 
committee established under section 301 of that Act (15 U.S.C. 8111) 
information on the appointment, designation for assignment, and 
activities of all intellectual property attaches of any Federal 
department or agency who are serving abroad.
    (i) Definitions.--In this section:
            (1) Director.--The terms ``Director of the Patent and 
        Trademark Office'' and ``Director'' mean the Under Secretary 
        for Intellectual Property and Director of the Untied States 
        Patent and Trademark Office.
            (2) Intellectual property enforcement.--The term 
        ``intellectual property enforcement'' has the meaning given 
        that term in section 302 of the Prioritizing Resources and 
        Organization for Intellectual Property Act of 2008 (15 U.S.C. 
        8112).
            (3) Intellectual property enforcement coordinator.--The 
        term ``Intellectual Property Enforcement Coordinator'' means 
        the Intellectual Property Enforcement Coordinator appointed 
        under section 301 of the Prioritizing Resources and 
        Organization for Intellectual Property Act of 2008 (15 U.S.C. 
        8111).
            (4) Intellectual property rights.--The term ``intellectual 
        property rights'' means the rights of holders of copyrights, 
        patents, trademarks, other forms of intellectual property, and 
        trade secrets.
            (5) USTR.--The term ``USTR'' means the United States Trade 
        Representative.
            (6) United states person.--The term ``United States 
        person'' means--
                    (A) any United States resident or national;
                    (B) any corporation, partnership, other business 
                entity, or other organization, that is organized under 
                the laws of the United States; and
                    (C) any foreign subsidiary or affiliate (including 
                any permanent foreign establishment) of any 
                corporation, partnership, business entity, or 
                organization described in subparagraph (B), that is 
                controlled in fact by such corporation, partnership, 
                business entity, or organization.
    (j) Authorization of Appropriations.--The Secretary of State and 
the Secretary of Commerce shall provide for the training and support of 
the intellectual property attaches appointed under subsection (b) using 
existing resources.
                                 <all>