[Congressional Record Volume 150, Number 114 (Tuesday, September 21, 2004)]
[Extensions of Remarks]
[Page E1670]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




INTRODUCTION OF THE ``FORTIFYING AMERICA'S INTELLECTUAL PROPERTY RIGHTS 
                              (FAIR) ACT''

                                 ______
                                 

                          HON. ADAM B. SCHIFF

                             of california

                    in the house of representatives

                      Tuesday, September 21, 2004

  Mr. SCHIFF. Mr. Speaker, I rise today to introduce, with my colleague 
Representative Goodlatte, the ``Fortifying America's Intellectual 
Property Rights (FAIR) Act''--legislation that we have worked on for 
some time now, to make a number of important reforms to strengthen our 
fight against the scourge of global piracy.
  International markets are vital to U.S. intellectual property 
industries, providing a strong export base that sustains American jobs. 
However, this important sector of the U.S. economy is under attack due 
to widespread patent and trademark infringement, and the unauthorized 
reproduction, distribution and sale of U.S.-made movies, music, 
software, and other creative works.
  The United States is the world's largest creator, producer and 
exporter of copyrighted materials, accounting for over 5 percent of the 
U.S. GDP and adding $531 billion to the U.S. economy. The motion 
picture industry estimates losses due to global piracy amount to $3.5 
billion annually, not including illegal downloading. In Russia, for 
example, 9 out of 10 DVDs sold are counterfeit copies. Globally, 2 in 5 
music recordings are pirate copies, with annual world-wide pirate sales 
of music estimated at $4-$5 billion. The software industry estimates 
losses of over $13 billion due to worldwide piracy in 2002.
  The Office of the U.S. Trade Representative (USTR) has been charged 
with identifying countries that deny adequate and effective protection 
of intellectual property rights. The negotiation of bilateral free 
trade agreements has proven to be an excellent mechanism for achieving 
legally binding bilateral obligations to address rampant international 
copyright piracy.
  These efforts have been undertaken with only very limited resources 
available, and could be more effective if additional tools and 
resources are provided. The legislation I am introducing today with 
Representative Goodlatte will make a number of reforms in the Office of 
the United States Trade Representative. Specifically, our legislation 
will establish a new USTR office dedicated exclusively to intellectual 
property matters, increase the resources dedicated to securing high 
standards of intellectual property rights protection in trade 
agreements and enforcing these provisions vigorously, and establish 
this as the lead office in the Administration for all international 
trade-related intellectual property matters.
  The protection of our intellectual property rights abroad is vital to 
promoting America's competitive advantages in world commerce. As our 
trade deficit continues to soar, Congress must step in now to ensure 
that we aggressively protect our intellectual property rights at home 
and abroad.

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