[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 1830 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                S. 1830

 To improve enforcement of intellectual property rights, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2011

 Ms. Stabenow introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To improve enforcement of intellectual property rights, 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 ``Protect American 
Innovation Act of 2011''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
   TITLE I--STRENGTHENING ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

                        Subtitle A--Definitions

Sec. 101. Definitions.
Subtitle B--Coordination of Enforcement of Intellectual Property Rights

Sec. 111. Director of Intellectual Property Rights Enforcement.
Sec. 112. U.S. Customs and Border Protection and U.S. Immigration and 
                            Customs Enforcement intellectual property 
                            rights coordinators.
    Subtitle C--Regulatory and Policy Improvements With Respect to 
                  Combating Counterfeiting and Piracy

Sec. 121. Identification of certain unlawful goods.
Sec. 122. Training in new technologies.
Sec. 123. Disclosure of information and samples of shipments to 
                            intellectual property owners.
Sec. 124. Improvements to recordation process.
Sec. 125. Identification of low-risk importers.
Sec. 126. ``Watch List'' database.
Sec. 127. Civil fines for importation of pirated or counterfeit goods.
Sec. 128. Report on effective collection techniques.
                   Subtitle D--Training Enhancements

Sec. 131. International training and technical assistance enhancements.
           Subtitle E--New Legal Tools for Border Enforcement

Sec. 141. Expanded prohibitions on importation, exportation, and 
                            transshipment of counterfeit or pirated 
                            goods.
Sec. 142. Declarations regarding counterfeit and infringing 
                            merchandise.
Sec. 143. Seizure and forfeiture of devices designed to circumvent 
                            intellectual property rights protections.
Sec. 144. Authority of Chief Counsel of U.S. Customs and Border 
                            Protection to represent the United States 
                            in certain forfeiture proceedings.
                 Subtitle F--Administrative Provisions

Sec. 151. Advisory Committee on Import Safety and Intellectual Property 
                            Enforcement.
Sec. 152. Staffing enhancements at U.S. Customs and Border Protection.
Sec. 153. Staffing enhancements at U.S. Immigration and Customs 
                            Enforcement.
Sec. 154. Regulatory authority.
    TITLE II--INCREASED PENALTIES FOR CERTAIN UNFAIR TRADE PRACTICES

Sec. 201. Increased penalties for certain unfair trade practices.

   TITLE I--STRENGTHENING ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS

                        Subtitle A--Definitions

SEC. 101. DEFINITIONS.

    In this title:
            (1) Advisory committee.--The term ``Advisory Committee'' 
        means the Advisory Committee on Import Safety and Intellectual 
        Property Rights Enforcement established pursuant to section 
        151.
            (2) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
            (3) Counterfeiting; counterfeit goods.--
                    (A) Counterfeiting.--The term ``counterfeiting'' 
                means activities related to production of or 
                trafficking in goods, including packaging, that bear a 
                spurious mark or designation that is identical to or 
                substantially indistinguishable from a mark or 
                designation protected under the trademark laws or 
                related laws.  
                    (B) Counterfeit goods.--The term ``counterfeit 
                goods'' means goods described in subparagraph (A).
            (4) Director.--The term ``Director'' means the Director of 
        Intellectual Property Rights Enforcement of the Department of 
        the Treasury established under section 111.
            (5) Enforcement of intellectual property rights.--The term 
        ``enforcement of intellectual property rights'' means 
        activities to enforce--
                    (A) copyrights, patents, trademarks, and other 
                forms of intellectual property, including activities to 
                control counterfeiting and piracy; and
                    (B) exclusion orders issued by the United States 
                International Trade Commission by reason of any of 
                subparagraphs (B) through (E) of subsection (a)(1) of 
                section 337 of the Tariff Act of 1930 (19 U.S.C. 
                1337(a)(1) (B) through (E)).
            (6) Exclusion order.--The term ``exclusion order'' means an 
        order of the United States International Trade Commission 
        issued under section 337 (d) or (e) of the Tariff Act of 1930 
        (19 U.S.C. 1337 (d) and (e)) to exclude goods from entry into 
        the United States.
            (7) Piracy; pirated goods.--
                    (A) Piracy.--The term ``piracy'' means activities 
                related to production of or trafficking in unauthorized 
                copies or phonorecords of works protected under title 
                17, United States Code, or related laws.
                    (B) Pirated goods.--The term ``pirated goods'' 
                means copies or phonorecords described in subparagraph 
                (A).
            (8) Secretary.--Except as otherwise provided, the term 
        ``Secretary'' means the Secretary of the Treasury.
            (9) Transshipment.--The term ``transshipment'' means the 
        shipment of goods through one country that is an intermediate 
        destination to another country that is the final destination of 
        the goods.

Subtitle B--Coordination of Enforcement of Intellectual Property Rights

SEC. 111. DIRECTOR OF INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.

    (a) Establishment.--There is established within the Department of 
the Treasury the position of Director of Intellectual Property Rights 
Enforcement.
    (b) Appointment.--The Director shall be appointed by the Secretary, 
and shall be responsible to and shall report directly to the Deputy 
Secretary of the Treasury.
    (c) Duties.--The Director shall--
            (1) coordinate all activities of the Department of the 
        Treasury involving the enforcement of intellectual property 
        rights and coordinate with U.S. Customs and Border Protection 
        and U.S. Immigration and Customs Enforcement with respect to 
        such enforcement;
            (2) coordinate the policy and regulatory changes set forth 
        in this title;
            (3) serve as staff representative of the Department of the 
        Treasury in interagency bodies with responsibility for 
        coordination of activities involving the enforcement of 
        intellectual property rights;
            (4) conduct an evaluation of the effectiveness of the 
        organizational structure of U.S. Customs and Border Protection 
        for reducing the entry into the United States of counterfeit or 
        pirated goods, goods in violation of exclusion orders, and 
        other goods in violation of other intellectual property rights; 
        and
            (5) carry out other duties, as assigned by the Secretary or 
        Deputy Secretary of the Treasury, to improve the effectiveness 
        of the efforts of the Department of the Treasury under the laws 
        within its jurisdiction with respect to the enforcement of 
        intellectual property rights.

SEC. 112. U.S. CUSTOMS AND BORDER PROTECTION AND U.S. IMMIGRATION AND 
              CUSTOMS ENFORCEMENT INTELLECTUAL PROPERTY RIGHTS 
              COORDINATORS.

    (a) U.S. Customs and Border Protection Intellectual Property Rights 
Coordinator.--
            (1) Appointment.--The Commissioner shall appoint a U.S. 
        Customs and Border Protection coordinator of intellectual 
        property rights enforcement activities (in this subtitle 
        referred to as the ``U.S. Customs and Border Protection 
        Intellectual Property Rights Coordinator''), who shall report 
        directly to the Commissioner.
            (2) Duties.--The U.S. Customs and Border Protection 
        Intellectual Property Rights Coordinator shall--
                    (A) coordinate all efforts, at all ports of entry 
                and elsewhere, carried out by U.S. Customs and Border 
                Protection with respect to the enforcement of 
                intellectual property rights, including training and 
                staffing;
                    (B) supervise the implementation of those aspects 
                of the regulatory and policy reforms set out in this 
                title that involve U.S. Customs and Border Protection 
                and submit a report on such activities to the Director 
                annually; and
                    (C) carry out such other duties, as assigned by the 
                Commissioner, the purpose of which are to improve the 
                performance of U.S. Customs and Border Protection with 
                respect to the enforcement of intellectual property 
                rights.
    (b) U.S. Immigration and Customs Enforcement Intellectual Property 
Rights Coordinator.--
            (1) Appointment.--The Assistant Secretary for U.S. 
        Immigration and Customs Enforcement shall appoint a U.S. 
        Immigration and Customs Enforcement coordinator of intellectual 
        property enforcement activities (in this subtitle referred to 
        as the ``U.S. Immigration and Customs Enforcement Intellectual 
        Property Rights Coordinator''), who shall report directly to 
        the Assistant Secretary for U.S. Immigration and Customs 
        Enforcement.
            (2) Duties.--The U.S. Immigration and Customs Enforcement 
        Intellectual Property Rights Coordinator shall--
                    (A) coordinate all efforts carried out by U.S. 
                Immigration and Customs Enforcement with respect to the 
                enforcement of intellectual property rights, including 
                training and staffing;
                    (B) supervise the implementation of those aspects 
                of the regulatory and policy reforms set out in this 
                title that involve U.S. Immigration and Customs 
                Enforcement; and
                    (C) carry out such other duties, as assigned by the 
                Assistant Secretary for U.S. Immigration and Customs 
                Enforcement, the purpose which are to improve the 
                performance of U.S. Immigration and Customs Enforcement 
                with respect to the enforcement of intellectual 
                property rights.

    Subtitle C--Regulatory and Policy Improvements With Respect to 
                  Combating Counterfeiting and Piracy

SEC. 121. IDENTIFICATION OF CERTAIN UNLAWFUL GOODS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary, acting through the Commissioner, shall prescribe 
regulations to apply risk assessment modeling techniques to border 
enforcement activities with respect to combating counterfeiting and 
piracy. Such efforts shall include--
            (1) preparing a report on and evaluation of the pilot 
        project of U.S. Customs and Border Protection with respect to 
        shipments of counterfeit or pirated products;
            (2) expanding the pilot project to allow for the use of the 
        Automated Targeting System in risk assessment modeling; and
            (3) developing a plan for the development, testing, 
        evaluation, and continuous improvement of risk assessment 
        modeling techniques to facilitate the enforcement of 
        intellectual property rights.

SEC. 122. TRAINING IN NEW TECHNOLOGIES.

    (a) Training of Personnel.--The Commissioner shall consult with the 
Advisory Committee to determine the feasibility of training U.S. 
Customs and Border Protection personnel in the use of new technological 
means for detecting and identifying, at ports of entry, counterfeit and 
pirated goods, and goods that are subject to exclusion orders, whether 
for entry into the United States or for transshipment to other 
destinations.
    (b) Identification of Technologies and Sources of Training.--In 
consultation with the Advisory Committee, the Commissioner shall 
identify--
            (1) cost-effective technologies for detecting and 
        identifying goods described in subsection (a) at ports of 
        entry; and
            (2) economical sources for training U.S. Customs and Border 
        Protection personnel in the use of such technologies.
    (c) Regulatory and Policy Changes.--The Comptroller General of the 
United States shall submit to Congress a report analyzing the costs and 
benefits of making regulatory and policy changes to enable the receipt 
of donations of hardware, software, equipment, and similar 
technologies, and the acceptance of training and other support 
services, from the private sector, to facilitate the training of 
personnel of U.S. Customs and Border Protection under subsection (a).

SEC. 123. DISCLOSURE OF INFORMATION AND SAMPLES OF SHIPMENTS TO 
              INTELLECTUAL PROPERTY OWNERS.

    The Commissioner shall prescribe regulations to--
            (1) improve the process of making samples of shipments of 
        goods suspected of violating intellectual property rights 
        available to the owners of copyrights, trademarks, patents, and 
        other forms of intellectual property, in an efficient and cost-
        effective manner, for the purpose of inspection or analysis, 
        including by developing a process under which--
                    (A) a requirement that such an owner post a bond to 
                receive such a sample may be waived if the value of the 
                sample is less than $100; or
                    (B) such an owner may elect to obtain a continuous 
                bond with respect to such samples; and
            (2) increase disclosure to owners of copyrights, 
        trademarks, patents, and other forms of intellectual property 
        of information about shipments of goods that have been detained 
        at ports of entry on suspicion that the importation into, or 
        transshipment through, the United States of those goods would 
        violate the intellectual property rights of such owners, 
        including--
                    (A) providing a detailed description of the goods, 
                including information on the packaging of the goods 
                such as expiration dates and model, lot, batch, part, 
                or serial numbers or universal product codes (UPC);
                    (B) providing photographs of the goods that do not 
                mask identifying information about the goods;
                    (C) disclosing the identities and contact 
                information of all parties involved in the shipments, 
                including importers, exporters, declarants, consignees, 
                freight forwarders, and warehouse owners;
                    (D) identifying points of origin and destination of 
                the shipments; and
                    (E) providing any other documents relating to the 
                shipments.

SEC. 124. IMPROVEMENTS TO RECORDATION PROCESS.

    (a) Improvements in Recordation Process.--The Commissioner shall 
prescribe regulations to ensure that the system for recordation of 
copyrights, trademarks, patents, and other forms of intellectual 
property that may be subject to recordation, does not impede the rapid 
seizure of goods that violate the rights of the owners of such 
copyrights, trademarks, patents, and other forms of intellectual 
property.
    (b) Simultaneous Recordation.--
            (1) In general.--In consultation with the Under Secretary 
        of Commerce for Intellectual Property and Director of the 
        United States Patent and Trademark Office, and the Register of 
        Copyrights, the Commissioner shall develop a system pursuant to 
        which--
                    (A) trademarks may be recorded with U.S. Customs 
                and Border Protection simultaneously with the issuance 
                of trademark registration; and
                    (B) copyrights of audiovisual works and sound 
                recordings may be recorded with U.S. Customs and Border 
                Protection simultaneously with the filing of an 
                application for a certificate of copyright registration 
                or an application for registration of another 
                intellectual property right under title 17, United 
                States Code.
            (2) Definitions.--In this subsection, the terms 
        ``audiovisual works'' and ``sound recordings'' have the 
        meanings given those terms in section 101 of title 17, United 
        States Code.

SEC. 125. IDENTIFICATION OF LOW-RISK IMPORTERS.

    (a) In General.--The Commissioner shall develop a voluntary 
certification program for importers that have taken specific measures 
to strengthen and protect their supply chains to prevent the 
infiltration into the international supply chain of counterfeit and 
pirated goods, goods that are the subject to exclusion orders, and 
goods that violate other forms of intellectual property rights.
    (b) Self-certification.--The voluntary certification program 
developed under subsection (a) shall rely primarily on self-
certification by importers in determining the eligibility of importers 
for the program.
    (c) Third-Party Verifications.--The Commissioner shall identify any 
circumstances, such as importation from any country with a history of 
being identified under section 182 of the Trade Act of 1974 (19 U.S.C. 
2242) as denying adequate and effective protection of intellectual 
property rights, under which third-party verifications shall be 
required to determine the eligibility of importers for the voluntary 
certification program.
    (d) Benefits.--An importer determined to be eligible for the 
voluntary certification program and to have taken the measures required 
under subsection (a) may receive benefits with respect to customs 
requirements, such as reduced inspections from U.S. Customs and Border 
Protection.
    (e) Definition.--In this section, the term ``international supply 
chain'' has the meaning given that term in section 2 of the Security 
and Accountability for Every Port Act of 2006 (6 U.S.C. 901).

SEC. 126. ``WATCH LIST'' DATABASE.

    (a) In General.--The Secretary, acting through the Commissioner, 
shall develop and implement a database of importers, shippers, freight 
forwarders, and other participants in the import, export, and 
transshipment process, whose activities the Commissioner determines 
merit special scrutiny at ports of entry because of the risk of 
importation, exportation, or transshipment of goods that violate 
intellectual property rights or exclusion orders.
    (b) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary, acting through the Commissioner, shall 
develop a plan to implement the database required under subsection (a). 
The plan shall--
            (1) identify legitimate information sources to be used in 
        determining whether to place persons on the database from--
                    (A) within U.S. Customs and Border Protection;
                    (B) other law enforcement sources; and
                    (C) the private sector;
            (2) establish criteria under which the database should be 
        made available--
                    (A) to qualified officers of U.S. Customs and 
                Border Protection and other law enforcement agencies;
                    (B) for intelligence purposes; and
                    (C) for use in identifying shipments for enhanced 
                inspection;
            (3) identify any regulatory or policy changes that are 
        necessary to make the database operational;
            (4) contain any recommendations for statutory changes to 
        improve the effectiveness of the database;
            (5) include an estimate of the resources necessary to 
        implement and operate the database and to evaluate its 
        effectiveness; and
            (6) include a timetable for implementation of the database.
    (c) Consultations With Advisory Committee.--The Commissioner shall 
consult with the Advisory Committee on the development of criteria for 
the database.

SEC. 127. CIVIL FINES FOR IMPORTATION OF PIRATED OR COUNTERFEIT GOODS.

    (a) Limitation on Mitigation, Dismissal, and Vacation of Fines.--
Unless otherwise ordered by a court of competent jurisdiction, any 
civil fine imposed pursuant to section 526(f) of the Tariff Act of 1930 
(19 U.S.C. 1526(f))--
            (1) may not be mitigated, except pursuant to regulations 
        issued by the Commissioner; and
            (2) may not be dismissed or vacated, except pursuant to 
        regulations issued by the Commissioner that require the 
        specific approval of the Commissioner or the Commissioner's 
        designee for such dismissal or vacation.
    (b) Extraordinary Cases.--In issuing regulations under subsection 
(a), the Commissioner shall ensure that the mitigation, dismissal, or 
vacation of civil fines for involvement in the importation, 
exportation, or transshipment of pirated or counterfeit goods is 
limited to extraordinary cases in which the interests of justice will 
clearly be served by such action.

SEC. 128. REPORT ON EFFECTIVE COLLECTION TECHNIQUES.

    (a) In General.--The Commissioner shall submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a report on--
            (1) the extent to which U.S. Customs and Border Protection 
        uses effective collection techniques for collecting civil fines 
        imposed on persons that import, export, or transship pirated or 
        counterfeit goods;
            (2) any recommendations with respect to improving the use 
        of such techniques by U.S. Customs and Border Protection;
            (3) any recommendations with respect to whether--
                    (A) owners of copyrights or trademarks should be 
                authorized to pursue and collect fines imposed as a 
                result of activities that violate such copyrights or 
                trademarks; and
                    (B) such owners should be allowed to retain some or 
                all of any funds so collected; and
            (4) any other recommendations for statutory, regulatory, or 
        policy changes not under the control of U.S. Customs and Border 
        Protection to improve the agency's ability--
                    (A) to impose civil fines on persons that import, 
                export, or transship pirated or counterfeit goods, at 
                levels that would deter such importation, exportation, 
                and transshipment; and
                    (B) to collect such fines.
    (b) Effective Collection Techniques.--In this section, the term 
``effective collection techniques'' includes--
            (1) confiscation of the proceeds of actions for which civil 
        fines can be imposed;
            (2) seizure of property acquired with such proceeds;
            (3) imposition of liens on the real or personal property of 
        persons upon whom civil fines are imposed;
            (4) use of bonds to secure full payment of fines;
            (5) in any case in which an entity is liable and has no 
        assets or is no longer in business, holding liable any person 
        who--
                    (A) was an officer or director of the entity;
                    (B) in the case of a corporation, held at least 5 
                percent (by vote or value) of the capital structure of 
                the corporation; or
                    (C) in the case of any other entity, held interests 
                representing at least 5 percent of the capital 
                structure of the entity; and
            (6) engaging private sector entities to collect civil fines 
        imposed.

                   Subtitle D--Training Enhancements

SEC. 131. INTERNATIONAL TRAINING AND TECHNICAL ASSISTANCE ENHANCEMENTS.

    The Secretary shall take the necessary steps--
            (1) to increase staffing and resources of offices of U.S. 
        Customs and Border Protection and U.S. Immigration and Customs 
        Enforcement engaged in providing training and technical 
        assistance to the customs services and enforcement agencies of 
        other countries in order to improve the effectiveness of such 
        customs services and enforcement agencies with respect to--
                    (A) detecting and intercepting the exportation, 
                importation, and transshipment of counterfeit or 
                pirated goods, goods that are the subject to exclusion 
                orders, and goods that violate other forms of 
                intellectual property rights; and
                    (B) imposing penalties on persons that export, 
                import, or transship counterfeit or pirated goods at 
                levels that will deter such exportation, importation, 
                and transshipment; and
            (2) to ensure that the Director, in order to make the most 
        efficient and effective use of training and technical 
        assistance resources--
                    (A) coordinates the international training and 
                technical assistance activities of U.S. Customs and 
                Border Protection and U.S. Immigration and Customs 
                Enforcement as part of the Director's coordination 
                responsibilities under section 111;
                    (B) gives priority to international training and 
                technical assistance activities in countries in which 
                such activities can be carried out most effectively and 
                with the greatest benefit to protecting the 
                intellectual property rights of United States persons;
                    (C) takes steps to minimize duplication, overlap, 
                or inconsistency of international training and 
                technical assistance efforts; and
                    (D) coordinates such activities of the Department 
                of the Treasury with international training and 
                technical assistance activities against counterfeiting 
                and piracy carried out by other agencies, and enhances 
                the participation of Department of the Treasury 
                personnel in interagency training and technical 
                assistance activities in this field.

           Subtitle E--New Legal Tools for Border Enforcement

SEC. 141. EXPANDED PROHIBITIONS ON IMPORTATION, EXPORTATION, AND 
              TRANSSHIPMENT OF COUNTERFEIT OR PIRATED GOODS.

    (a) In General.--Section 526 of the Tariff Act of 1930 (19 U.S.C. 
1526) is amended--
            (1) in the section heading, by inserting ``or protected by 
        copyright'' after ``trademark'';
            (2) in subsection (e), by striking ``Any such merchandise'' 
        and all that follows through ``15 U.S.C. 1124),'' and inserting 
        ``Any merchandise bearing a counterfeit mark (as defined in 
        section 2320(e) of title 18, United States Code) that is 
        imported into the United States, exported out of the United 
        States, or transshipped through the United States''; and
            (3) in subsection (f)--
                    (A) by striking paragraph (1) and inserting the 
                following:
    ``(1) Any person who engages in, directs, assists financially or 
otherwise, or aids and abets the importation, exportation, or 
transshipment of merchandise that is seized under subsection (e) of 
this section, or under regulations issued pursuant to section 603(c) of 
title 17, United States Code, shall be subject to a civil fine.'';
                    (B) by redesignating paragraph (4) as paragraph 
                (5); and
                    (C) by inserting after paragraph (3) the following:
    ``(4) When the seizure of merchandise that results in the 
imposition of a civil fine is made under circumstances indicating that 
the importation, exportation, or transshipment of the merchandise was 
for the purpose of sale or public distribution of the merchandise, the 
maximum fine amounts set forth in paragraphs (2) and (3) shall be 
tripled.''.
    (b) Conforming Amendments.--Title 17, United States Code, is 
amended--
            (1) in section 501(a), by inserting ``, exports copies or 
        phonorecords from the United States, or transships copies or 
        phonorecords through the United States'' after ``into the 
        United States'';
            (2) in section 506(c), by inserting 
        ``, exports, or transships'' after ``imports'';
            (3) in section 511(a), by inserting ``, exporting, or 
        transshipping'' after ``importing'';
            (4) in section 602--
                    (A) in the section heading, by striking ``or 
                exportation'' and inserting ``, exportation, or 
                transshipment''; and
                    (B) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in the paragraph heading, by 
                                striking ``or exportation'' and 
                                inserting ``, exportation, or 
                                transshipment''; and
                                    (II) by striking ``or exportation 
                                from the United States'' and inserting 
                                ``, exportation from the United States, 
                                or transshipment through the United 
                                States''; and
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``or exportation'' and 
                                inserting ``, exportation, or 
                                transshipment''; and
                                    (II) in subparagraph (B), by 
                                striking ``or exportation, for the 
                                private use of the importer or 
                                exporter'' and inserting ``, 
                                exportation, or transshipment, for the 
                                private use of the importer, exporter, 
                                or person transshipping copies or 
                                phonorecords'';
            (5) in section 603--
                    (A) in the section heading, by striking 
                ``Importation prohibitions'' and inserting 
                ``Prohibitions on importation, exportation, and 
                transshipment'';
                    (B) in subsection (a), by inserting 
                ``, exportation, and transshipment'' after 
                ``importation'';
                    (C) in subsection (b), by inserting 
                ``, exportation, or transshipment'' after 
                ``importation'' each place it appears; and
                    (D) in subsection (c)--
                            (i) by inserting ``, exported, or 
                        transshipped'' after ``imported'' each place it 
                        appears; and
                            (ii) by inserting ``, exportation, or 
                        transshipped'' after ``importation'';
            (6) by amending the chapter heading for chapter 6 to read 
        as follows:

``CHAPTER 6--MANUFACTURING REQUIREMENTS, IMPORTATION, EXPORTATION, AND 
                            TRANSSHIPMENT'';

            (7) in the table of sections for chapter 6, by amending the 
        items relating to sections 602 and 603 to read as follows:

``602. Infringing importation, exportation, and transshipment of copies 
                            or phonorecords.
``603. Prohibitions on importation, exportation, and transshipment: 
                            Enforcement and disposition of excluded 
                            articles.'';
        and
            (8) in the table of chapters, by amending the item relating 
        to chapter 6 to read as follows:

``6.  Manufacturing Requirements, Importation, Exportation,      601''.
                            and Transshipment.

SEC. 142. DECLARATIONS REGARDING COUNTERFEIT AND INFRINGING 
              MERCHANDISE.

    (a) Declarations.--Section 485(a) of the Tariff Act of 1930 (19 
U.S.C. 1485(a)) is amended--
            (1) in paragraph (1), by striking ``Whether'' and inserting 
        ``whether'';
            (2) in paragraph (2), by striking ``That'' and inserting 
        ``that'';
            (3) in paragraph (3)--
                    (A) by striking ``That'' and inserting ``that''; 
                and
                    (B) by striking ``and'' after the semicolon;
            (4) in paragraph (4)--
                    (A) by striking ``That'' and inserting ``that''; 
                and
                    (B) by striking the period and inserting a 
                semicolon; and
            (5) by adding at the end the following:
            ``(5) that the merchandise being imported does not bear a 
        counterfeit mark (as defined in section 2320(e) of title 18, 
        United States Code);
            ``(6) that the merchandise is not an infringing copy or 
        phonorecord or one whose making would have constituted an 
        infringement of copyright if title 17, United States Code, had 
        applied; and
            ``(7) that the merchandise does not--
                    ``(A) violate an exclusion order of the United 
                States International Trade Commission under section 337 
                (d) or (e) by reason of any of subparagraphs (B) 
                through (E) of subsection (a)(1) of section 337; or
                    ``(B) infringe any other intellectual property 
                right not covered by subparagraph (A) or by paragraph 
                (5) or (6).''.
    (b) Regulations.--The Secretary shall issue regulations requiring 
that the declarations required by paragraphs (5), (6), and (7) of 
section 485(a) of the Tariff Act of 1930, as added by subsection (a) of 
this section, be made by all persons arriving in the United States with 
respect to articles carried on their person or contained in their 
baggage.

SEC. 143. SEIZURE AND FORFEITURE OF DEVICES DESIGNED TO CIRCUMVENT 
              INTELLECTUAL PROPERTY RIGHTS PROTECTIONS.

    Section 596(c)(2) of the Tariff Act of 1930 (19 U.S.C. 1595a(c)(2)) 
is amended--
            (1) in subparagraph (E), by striking ``or'';
            (2) in subparagraph (F), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(G) it is a technology, product, service, device, 
                component, or part thereof the importation of which is 
                prohibited under section 1201(a)(2) of title 17, United 
                States Code.''.

SEC. 144. AUTHORITY OF CHIEF COUNSEL OF U.S. CUSTOMS AND BORDER 
              PROTECTION TO REPRESENT THE UNITED STATES IN CERTAIN 
              FORFEITURE PROCEEDINGS.

    Title V of the Tariff Act of 1930 (19 U.S.C. 1500 et seq.) is 
amended by inserting after section 529 the following:

``SEC. 530. AUTHORITY OF CHIEF COUNSEL OF U.S. CUSTOMS AND BORDER 
              PROTECTION TO REPRESENT THE UNITED STATES IN CERTAIN 
              FORFEITURE PROCEEDINGS.

    ``(a) In General.--Subject to subsection (b), the Chief Counsel of 
U.S. Customs and Border Protection may commence, defend, or intervene 
in, and supervise the litigation of, any civil forfeiture proceeding 
under section 2320(b) of title 18, United States Code, or section 
526(e) of this Act.
    ``(b) Procedure for Exercise of Authority To Litigate or Appeal.--
            ``(1) In general.--Prior to commencing, defending, or 
        intervening in any civil forfeiture proceeding referred to in 
        subsection (a), the Chief Counsel shall submit a written 
        notification to the Attorney General with respect to the 
        proposed proceeding.
            ``(2) Failure to respond.--If, not later than 120 days 
        after the date on which the Chief Counsel submits the 
        notification to the Attorney General under paragraph (1), the 
        Attorney General has failed to commence, defend, or intervene 
        in the proposed proceeding, the Chief Counsel may commence, 
        defend, or intervene in, and supervise the litigation of, the 
        proceeding and any appeal of the proceeding in the name of the 
        Chief Counsel.
            ``(3) Authority of attorney general to intervene.--Nothing 
        in this subsection precludes the Attorney General from 
        intervening on behalf of the United States in any civil 
        forfeiture proceeding under section 2320(b) of title 18, United 
        States Code, or in any appeal of such a proceeding, as may be 
        otherwise provided by law.''.

                 Subtitle F--Administrative Provisions

SEC. 151. ADVISORY COMMITTEE ON IMPORT SAFETY AND INTELLECTUAL PROPERTY 
              ENFORCEMENT.

    (a) Establishment.--
            (1) In general.--The Secretary, acting through the 
        Commissioner and the Assistant Secretary for U.S. Immigration 
        and Customs Enforcement, shall establish an advisory committee 
        which shall be known as the Advisory Committee on Import Safety 
        and Intellectual Property Rights Enforcement.
            (2) Membership.--The Advisory Committee shall consist of 20 
        members appointed by the Secretary. In making appointments to 
        the Advisory Committee, the Secretary shall ensure that--
                    (A) the membership of the Advisory Committee is 
                representative of the individuals and organizations 
                affected by the enforcement of import safety standards 
                and intellectual property rights by U.S. Customs and 
                Border Protection and U.S. Immigration and Customs 
                Enforcement;
                    (B) at least one member of the Advisory Committee 
                is a representative of organized labor;
                    (C) at least one member of the Advisory Committee 
                is a representative of consumer groups; and
                    (D) not more than 10 members of the Advisory 
                Committee belong to the same political party.
    (b) Duties.--The Advisory Committee shall--
            (1) provide advice to the Secretary, the Commissioner, and 
        the Assistant Secretary for U.S. Immigration and Customs 
        Enforcement on all matters involving the enforcement of import 
        safety standards and intellectual property rights by U.S. 
        Customs and Border Protection and U.S. Immigration and Customs 
        Enforcement; and
            (2) submit an annual report to the Committee on Finance of 
        the Senate and the Committee on Ways and Means of the House of 
        Representatives that shall--
                    (A) describe the operations of the Advisory 
                Committee during the preceding year; and
                    (B) set forth any recommendations of the Advisory 
                Committee with respect the enforcement of import safety 
                standards and intellectual property rights by U.S. 
                Customs and Border Protection and U.S. Immigration and 
                Customs Enforcement.
    (c) Presiding Officers.--The Commissioner and the Assistant 
Secretary for U.S. Immigration and Customs Enforcement shall jointly 
preside over meetings of the Advisory Committee.

SEC. 152. STAFFING ENHANCEMENTS AT U.S. CUSTOMS AND BORDER PROTECTION.

    There are authorized to be appropriated to U.S. Customs and Border 
Protection such funds as may be necessary for additional personnel (as 
determined in accordance with the Resource Allocation Model established 
pursuant to section 301(h) of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 2075(h)) to carry out the 
additional responsibilities of U.S. Customs and Border Protection under 
this title regarding the importation, transshipment, and exportation of 
counterfeit or pirated goods, goods that are the subject to exclusion 
orders, and goods that violate other forms of intellectual property 
rights.

SEC. 153. STAFFING ENHANCEMENTS AT U.S. IMMIGRATION AND CUSTOMS 
              ENFORCEMENT.

    There are authorized to be appropriated to U.S. Immigration and 
Customs Enforcement such funds as may be necessary for additional 
personnel to carry out the additional responsibilities of U.S. 
Immigration and Customs Enforcement under this title regarding the 
enforcement of intellectual property rights, including for developing 
and implementing a training program with respect to the enforcement of 
intellectual property rights for each U.S. Immigration and Customs 
Enforcement attache office outside the United States.

SEC. 154. REGULATORY AUTHORITY.

    The Secretary may issue such regulations as are necessary to carry 
out this title.

    TITLE II--INCREASED PENALTIES FOR CERTAIN UNFAIR TRADE PRACTICES

SEC. 201. INCREASED PENALTIES FOR CERTAIN UNFAIR TRADE PRACTICES.

    (a) Expanded Exclusion Orders.--Section 337(d) of the Tariff Act of 
1930 (19 U.S.C. 1337(d)) is amended to read as follows:
    ``(d) Exclusion of Articles From Entry.--
            ``(1) First exclusion order.--Except as provided in 
        paragraph (6), if the Commission determines, as a result of an 
        investigation under this section, that a person has violated 
        this section, the Commission shall direct that the articles 
        that were the subject of the investigation and are imported by 
        that person be excluded from entry into the United States.
            ``(2) Second exclusion order; violation of exclusion 
        order.--Except as provided in paragraph (6), if the Commission 
        determines that a person with respect to which the Commission 
        issued an exclusion order under paragraph (1) engages in a 
        second violation of this section or violates that exclusion 
        order, the measures described in paragraph (4) shall apply for 
        a period of 1 year after the date of the Commission's 
        determination under this subparagraph.
            ``(3) Third exclusion order; subsequent violations of 
        exclusion orders.--Except as provided in paragraph (6), if the 
        Commission determines that a person with respect to which the 
        Commission issued an exclusion order under paragraph (1) or (2) 
        engages in a third violation of this section, a second 
        violation of an exclusion order issued under paragraph (1), or 
        violates an exclusion order issued under paragraph (2), the 
        measures described in paragraph (4) shall apply on and after 
        the date of the Commission's determination under this 
        subparagraph.
            ``(4) Measures described.--The measures described in this 
        paragraph are the following:
                    ``(A) Expanded exclusion order.--The Commission 
                shall direct that articles excluded pursuant to an 
                exclusion order under this subsection, or that were the 
                subject of an investigation relating to a second or 
                third violation of this section, be excluded from entry 
                into the United States if the articles are imported 
                by--
                            ``(i) the person that violated this section 
                        or an exclusion order issued under this 
                        subsection;
                            ``(ii) any officer or member of the board 
                        of directors of a person described in clause 
                        (i); or
                            ``(iii) any person that owns or controls, 
                        or is owned or controlled by, a person 
                        described in clause (i).
                    ``(B) Visa ban.--The Secretary of State shall deny 
                a visa to, and the Secretary of Homeland Security shall 
                exclude from the United States, any alien that is any 
                officer or member of the board of directors of the 
                person that violated this section or an exclusion order 
                issued under this subsection.
            ``(5) Limitations.--The authority of the Commission to 
        order an exclusion from entry of articles under paragraph (1), 
        (2), or (3) shall be limited to articles imported by persons 
        specified in paragraph (1), (2), or (3), as the case may be, 
        unless the Commission determines that--
                    ``(A) a general exclusion from entry of articles is 
                necessary to prevent circumvention of an exclusion 
                order limited to articles of named persons; or
                    ``(B) there is a pattern of violation of this 
                section and it is difficult to identify the source of 
                infringing articles.
            ``(6) Exception.--If the Commission determines that 
        articles should not be excluded from entry into the United 
        States under paragraph (1), (2), or (3), after considering the 
        effect of the exclusion of such articles on the public health 
        and welfare, competitive conditions in the United States 
        economy, the production of like or directly competitive 
        articles in the United States, and United States consumers--
                    ``(A) the Commission shall not be required to 
                direct that such articles be excluded from entry; and
                    ``(B) in case of a determination that articles 
                should not be excluded from entry under paragraph (2) 
                or (3), the Secretary of State shall not be required to 
                deny a visa to, and the Secretary of Homeland Security 
                shall not be required to exclude from the United 
                States, an alien pursuant to paragraph (2) or (3), as 
                the case may be.
            ``(7) Notification to other agencies.--
                    ``(A) Exclusion of articles.--The Commission shall 
                promptly notify the Commissioner responsible for U.S. 
                Customs and Border Protection of a determination of the 
                Commission under paragraph (1), (2), or (3) to direct 
                articles to be excluded from the United States and, 
                upon receipt of such notice, the Commissioner shall 
                refuse the entry of the articles.
                    ``(B) Visa bans.--The Commission shall promptly 
                notify the Secretary of State and the Secretary of 
                Homeland Security of a determination under paragraph 
                (2) or (3) and, upon receipt of such notice, the 
                Secretary of State shall deny a visa to, and the 
                Secretary of Homeland Security shall exclude from the 
                United States, any alien excluded from entry into the 
                United States pursuant to paragraph (2) or (3), as the 
                case may be.''.
    (b) Penalties for Violating Cease and Desist Orders.--Section 
337(f) of the Tariff Act of 1930 (19 U.S.C. 1337(f)) is amended--
            (1) in paragraph (1), by striking ``, or in lieu of,''; and
            (2) in paragraph (2), by striking ``$100,000, twice'' and 
        inserting ``$500,000 or three times''.
    (c) Conforming Amendment.--Section 337(k) of the Tariff Act of 1930 
(19 U.S.C. 1337(k)) is amended by inserting ``paragraphs (2) and (3) of 
subsection (e) and'' after ``Except as provided in''.
                                 <all>