[Congressional Record Volume 154, Number 122 (Thursday, July 24, 2008)]
[Senate]
[Pages S7280-S7287]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. LEAHY (for himself, Mr. Specter, Mr. Bayh, Mr. Voinovich, 
        Mrs. Feinstein, and Mr. Cornyn):
  S. 3325. A bill to enhance remedies for violations of intellectual 
property laws, and for other purposes; to the Committee on the 
Judiciary.
  Mr. LEAHY. Mr. President, before I was a Senator, I was a prosecutor, 
as the Chittenden County State's Attorney for 8 years, I prosecuted all 
varieties of crime in Vermont. I know first hand how important it is 
for criminal investigators, and the lawyers who prosecute those cases, 
to have a full arsenal of legal tools to ensure that justice is done. I 
also know how important the intellectual property industries are to our 
economy, and to our position as a global leader. In Vermont, Hubbardton 
Forge makes beautiful, trademarked lamps. The Vermont Teddy Bear 
Company relies heavily on its patented products. Likewise, SB 
Electronics needs patents for its film capacitor products. Burton's 
snowboards and logo are protected by trademarks and patents.
  While Vermont is closest to my heart, every state in the Nation has 
such companies, and every community

[[Page S7281]]

in the United States is home to creative and productive people. 
Intellectual property--copyrights, patents, and trademarks--is critical 
to our fiscal health and to our continuing dominance of the world 
economy. This valuable property is also terribly vulnerable; by its 
very nature, it is subject to numerous types of thievery and 
misappropriation. The Internet has brought great and positive change to 
all our lives, but it is also an unparalleled tool for piracy. The 
increasing inter-connectedness of the globe, and the efficiencies of 
sharing information quickly and accurately between continents, has made 
foreign piracy and counterfeiting operations profitable in numerous 
countries. Americans suffer when their intellectual property is stolen, 
they suffer when those counterfeit goods displace sales of the 
legitimate products, and they suffer when counterfeit products actually 
harm them, as is sometimes the case with fake pharmaceuticals and 
faulty electrical products.
  The time has come to bolster the Federal effort to protect this most 
valuable and vulnerable property, to give law enforcement the resources 
and the tools it needs to combat piracy and counterfeiting, and to make 
sure that the many agencies that deal with intellectual property 
enforcement have the opportunity and the incentive to talk with each 
other, to coordinate their efforts, and to achieve the maximum effects 
for their efforts. The Enforcement of Intellectual Property Rights Act 
of 2008 does just that.
  First, it gives the Department of Justice the ability to bring civil 
actions against anyone whose conduct constitutes criminal copyright 
infringement. Many times, a criminal sanction is simply too severe for 
the harm done. This provision, the concept of which has passed the 
Senate on three separate occasions as the PIRATE Act, gives the 
Department of Justice an extra tool.
  Second, the bill enhances civil intellectual property rights law by 
eliminating unnecessary burdens to instituting a suit; improving 
remedies; and applying the copyright and trademark laws not only to 
imported goods, but also to exported and transshipped items.
  Third, the bill improves and harmonizes the forfeiture provisions in 
copyright and counterfeiting cases.
  Fourth, the bill addresses concerns that the current governmental 
structure to coordinate intellectual property rights enforcement among 
agencies and departments is impeding the Government from reaching its 
full potential. It creates a Coordinator within the Executive Office of 
the President to chair an inter-agency committee that will produce a 
Joint Strategic Plan to combat piracy and counterfeiting.
  Finally, the bill will increase the resources available to Federal, 
state and local law enforcement.
  We are not addressing theoretical concerns with this bill, nor are we 
making grandiose policy proclamations. We are synthesizing the real-
world experiences of our many constituents who develop and monetize 
intellectual property--the individuals and companies that turn their 
creative and innovative efforts into jobs, goods, and services--with 
the daily frustrations of law enforcement agents who lack the laws, and 
the resources, to vindicate those property rights.
  I was once a prosecutor. I am now a Senator. But I have always been a 
fan of movies. My cameo in the latest Batman movie, The Dark Knight, 
was priceless to me, but we can put real numbers on the value of that 
production to the economy. The Dark Knight shot for 65 days in Chicago, 
pouring almost $36 million into the local economy. Seventeen million 
dollars went to nearly 800 local vendors that were critical to the 
production of the movie. For example, one local lumber supplier 
employing 40 people played a central role in the set construction that 
helped transform Chicago into the mythical ``Gotham City.'' In order to 
fulfill the production needs of the film, the lumber company worked 
closely with 15 other Illinois-based companies. Those 15 suppliers 
employed an additional 350 workers.
  All of that value is threatened by piracy. Just in the movie 
industry, piracy costs 140,000 U.S. jobs and $5.5 billion in wages each 
year. Piracy costs cities, towns and states an estimated $837 million 
in additional tax revenue each year. The movie industry alone produces 
$30.2 billion each year in revenue for 160,000 vendors all across the 
Nation, and 85 percent of those vendors employ 10 people or fewer.
  This is a well balanced bill, drawn from numerous conversations with 
all manner of interested parties. It brings together the best of 
numerous proposals, including important legislation I introduced 
earlier this year with Senator Cornyn. His support on intellectual 
property matters is critical to our success moving forward. I thank 
him, and all the cosponsors of this legislation for their efforts and 
support. This bill will improve the enforcement of our Nation's 
intellectual property laws, bolster our intellectual property-based 
economy, and protect American jobs.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3325

       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 
     ``Enforcement of Intellectual Property Rights Act of 2008''.
       (b) Table of Contents.--The table of contents is as 
     follows:

Sec. 1. Short title; table of contents.
Sec. 2. Reference.
Sec. 3. Definition.

   TITLE I--AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT BY ATTORNEY 
                                GENERAL

Sec. 101. Civil penalties for certain violations.

       TITLE II--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

Sec. 201. Registration of claim.
Sec. 202. Civil remedies for infringement.
Sec. 203. Treble damages in counterfeiting cases.
Sec. 204. Statutory damages in counterfeiting cases.
Sec. 205. Transshipment and exportation of goods bearing infringing 
              marks.
Sec. 206. Importation, transshipment, and exportation.

     TITLE III--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

Sec. 301. Criminal copyright infringement.
Sec. 302. Trafficking in counterfeit labels, illicit labels, or 
              counterfeit documentation or packaging for works that can 
              be copyrighted.
Sec. 303. Unauthorized fixation.
Sec. 304. Unauthorized recording of motion pictures.
Sec. 305. Trafficking in counterfeit goods or services.
Sec. 306. Forfeiture, destruction, and restitution.
Sec. 307. Forfeiture under Economic Espionage Act.
Sec. 308. Technical and conforming amendments.

TITLE IV--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT AGAINST 
                       COUNTERFEITING AND PIRACY

Sec. 401. Intellectual property enforcement coordinator.
Sec. 402. Definition.
Sec. 403. Joint strategic plan.
Sec. 404. Reporting.
Sec. 405. Savings and repeals.
Sec. 406. Authorization of appropriations.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

Sec. 501. Local law enforcement grants.
Sec. 502. Improved investigative and forensic resources for enforcement 
              of laws related to intellectual property crimes.
Sec. 503. Additional funding for resources to investigate and prosecute 
              criminal activity involving computers.
Sec. 504. International intellectual property law enforcement 
              coordinators.
Sec. 505. Annual reports.
Sec. 506. Authorization of appropriations.

     SEC. 2. REFERENCE.

       Any reference in this Act to the ``Trademark Act of 1946'' 
     refers to the Act entitled ``An Act to provide for the 
     registration of trademarks used in commerce, to carry out the 
     provisions of certain international conventions, and for 
     other purposes'', approved July 5, 1946 (15 U.S.C. 1051 et 
     seq.).

     SEC. 3. DEFINITION.

       In this Act, the term ``United States person'' means--
       (1) any United States resident or national,
       (2) any domestic concern (including any permanent domestic 
     establishment of any foreign concern), and
       (3) any foreign subsidiary or affiliate (including any 
     permanent foreign establishment) of any domestic concern that 
     is controlled in fact by such domestic concern,
     except that such term does not include an individual who 
     resides outside the United

[[Page S7282]]

     States and is employed by an individual or entity other than 
     an individual or entity described in paragraph (1), (2), or 
     (3).

   TITLE I--AUTHORIZATION OF CIVIL COPYRIGHT ENFORCEMENT BY ATTORNEY 
                                GENERAL

     SEC. 101. CIVIL PENALTIES FOR CERTAIN VIOLATIONS.

       (a) In General.--Chapter 5 of title 17, United States Code, 
     is amended by inserting after section 506 the following:

     ``SEC. 506A. CIVIL PENALTIES FOR VIOLATIONS OF SECTION 506.

       ``(a) In General.--In lieu of a criminal action under 
     section 506, the Attorney General may commence a civil action 
     in the appropriate United States district court against any 
     person who engages in conduct constituting an offense under 
     section 506. Upon proof of such conduct by a preponderance of 
     the evidence, such person shall be subject to a civil penalty 
     under section 504 which shall be in an amount equal to the 
     amount which would be awarded under section 3663(a)(1)(B) of 
     title 18 and restitution to the copyright owner aggrieved by 
     the conduct.
       ``(b) Other Remedies.--
       ``(1) In general.--Imposition of a civil penalty under this 
     section does not preclude any other criminal or civil 
     statutory, injunctive, common law, or administrative remedy, 
     which is available by law to the United States or any other 
     person.
       ``(2) Offset.--Any restitution received by a copyright 
     owner as a result of a civil action brought under this 
     section shall be offset against any award of damages in a 
     subsequent copyright infringement civil action by that 
     copyright owner for the conduct that gave rise to the civil 
     action brought under this section.''.
       (b) Damages and Profits.--Section 504 of title 17, United 
     States Code, is amended--
       (1) in subsection (b)--
       (A) in the first sentence--
       (i) by inserting ``, or the Attorney General in a civil 
     action,'' after ``The copyright owner''; and
       (ii) by striking ``him or her'' and inserting ``the 
     copyright owner''; and
       (B) in the second sentence by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''; 
     and
       (B) in paragraph (2), by inserting ``, or the Attorney 
     General in a civil action,'' after ``the copyright owner''.
       (c) Technical and Conforming Amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by inserting after the item relating to section 506 
     the following:

``Sec. 506a. Civil penalties for violations of section 506.''.

       TITLE II--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

     SEC. 201. REGISTRATION OF CLAIM.

       (a) Limitation to Civil Actions; Harmless Error.--Section 
     411 of title 17, United States Code, is amended--
       (1) in the section heading, by inserting ``CIVIL'' before 
     ``INFRINGEMENT'';
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``no action'' and 
     inserting ``no civil action''; and
       (B) in the second sentence, by striking ``an action'' and 
     inserting ``a civil action'';
       (3) by redesignating subsection (b) as subsection (c);
       (4) in subsection (c), as so redesignated by paragraph (3), 
     by striking ``506 and sections 509 and'' and inserting ``505 
     and section''; and
       (5) by inserting after subsection (a) the following:
       ``(b)(1) A certificate of registration satisfies the 
     requirements of this section and section 412, regardless of 
     whether the certificate contains any inaccurate information, 
     unless--
       ``(A) the inaccurate information was included on the 
     application for copyright registration with knowledge that it 
     was inaccurate; and
       ``(B) the inaccurate information, if known, would have 
     caused the Register of Copyrights to refuse registration.
       ``(2) In any case in which inaccurate information described 
     under paragraph (1) is alleged, the court shall request the 
     Register of Copyrights to advise the court whether the 
     inaccurate information, if known, would have caused the 
     Register of Copyrights to refuse registration.''.
       (b) Technical and Conforming Amendments.--
       (1) Section 412 of title 17, United States Code, is amended 
     by striking ``411(b)'' and inserting ``411(c)''.
       (2) The item relating to section 411 in the table of 
     sections for chapter 4 of title 17, United States Code, is 
     amended to read as follows:

``Sec. 411. Registration and civil infringement actions.''.

     SEC. 202. CIVIL REMEDIES FOR INFRINGEMENT.

       (a) In General.--Section 503(a) of title 17, United States 
     Code, is amended--
       (1) by striking ``and of all plates'' and inserting ``, of 
     all plates''; and
       (2) by striking the period and inserting ``, and of records 
     documenting the manufacture, sale, or receipt of things 
     involved in such violation. The court shall enter, if 
     appropriate, a protective order with respect to discovery of 
     any records that have been seized. The protective order shall 
     provide for appropriate procedures to ensure that 
     confidential information contained in such records is not 
     improperly disclosed to any party.''.
       (b) Protective Orders for Seized Records.--Section 
     34(d)(1)(A) of the Trademark Act (15 U.S.C. 1116(d)(1)(A)) is 
     amended by adding at the end the following: ``The court shall 
     enter, if appropriate, a protective order with respect to 
     discovery of any records that have been seized. The 
     protective order shall provide for appropriate procedures to 
     ensure that confidential information contained in such 
     records is not improperly disclosed to any party.''.

     SEC. 203. TREBLE DAMAGES IN COUNTERFEITING CASES.

       Section 35(b) of the Trademark Act of 1946 (15 U.S.C. 
     1117(b)) is amended to read as follows:
       ``(b) In assessing damages under subsection (a) for any 
     violation of section 32(1)(a) of this Act or section 220506 
     of title 36, United States Code, in a case involving use of a 
     counterfeit mark or designation (as defined in section 34(d) 
     of this Act), the court shall, unless the court finds 
     extenuating circumstances, enter judgment for three times 
     such profits or damages, whichever amount is greater, 
     together with a reasonable attorney's fee, if the violation 
     consists of--
       ``(1) intentionally using a mark or designation, knowing 
     such mark or designation is a counterfeit mark (as defined in 
     section 34(d) of this Act), in connection with the sale, 
     offering for sale, or distribution of goods or services; or
       ``(2) providing goods or services necessary to the 
     commission of a violation specified in paragraph (1), with 
     the intent that the recipient of the goods or services would 
     put the goods or services to use in committing the violation.
     In such a case, the court may award prejudgment interest on 
     such amount at an annual interest rate established under 
     section 6621(a)(2) of the Internal Revenue Code of 1986, 
     beginning on the date of the service of the claimant's 
     pleadings setting forth the claim for such entry of judgment 
     and ending on the date such entry is made, or for such 
     shorter time as the court considers appropriate.''.

     SEC. 204. STATUTORY DAMAGES IN COUNTERFEITING CASES.

       Section 35(c) of the Trademark Act of 1946 (15 U.S.C. 1117) 
     is amended--
       (1) in paragraph (1)--
       (A) by striking ``$500'' and inserting ``$1,000''; and
       (B) by striking ``$100,000'' and inserting ``$200,000''; 
     and
       (2) in paragraph (2), by striking ``$1,000,000'' and 
     inserting ``$2,000,000''.

     SEC. 205. TRANSSHIPMENT AND EXPORTATION OF GOODS BEARING 
                   INFRINGING MARKS.

       Title VII of the Trademark Act of 1946 (15 U.S.C. 1124) is 
     amended--
       (1) in the title heading, by inserting after 
     ``IMPORTATION'' the following: ``TRANSSHIPMENT, OR 
     EXPORTATION''; and
       (2) in section 42--
       (A) by striking ``imported''; and
       (B) by inserting after ``customhouse of the United States'' 
     the following: ``, nor shall any such article be transshipped 
     through or exported from the United States''.

     SEC. 206. IMPORTATION, TRANSSHIPMENT, AND EXPORTATION.

       (a) In General.--The heading for chapter 6 of title 17, 
     United States Code, is amended to read as follows:

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

       (b) Amendment on Exportation.--Section 602(a) of title 17, 
     United States Code, is amended--
       (1) by redesignating paragraphs (1) through (3) as 
     subparagraphs (A) through (C), respectively, and moving such 
     subparagraphs 2 ems to the right;
       (2) by striking ``(a)'' and inserting ``(a) Infringing 
     Importation, Transshipment, or Exportation.--
       ``(1) Importation.--'';
       (3) by striking ``This subsection does not apply to--'' and 
     inserting the following:
       ``(2) Importation, transhipment, or exportation of 
     infringing items.--Importation into the United States, 
     transshipment through the United States, or exportation from 
     the United States, without the authority of the owner of 
     copyright under this title, of copies or phonorecords, the 
     making of which either constituted an infringement of 
     copyright or would have constituted an infringement of 
     copyright if this title had been applicable, is an 
     infringement of the exclusive right to distribute copies or 
     phonorecords under section 106, actionable under sections 501 
     and 506.
       ``(3) Exceptions.--This subsection does not apply to--'';
       (4) in paragraph (3)(A) (as redesignated by this 
     subsection) by inserting ``or exportation'' after 
     ``importation''; and
       (5) in paragraph (3)(B) (as redesignated by this 
     subsection)--
       (A) by striking ``importation, for the private use of the 
     importer'' and inserting ``importation or exportation, for 
     the private use of the importer or exporter''; and
       (B) by inserting ``or departing from the United States'' 
     after ``United States''.
       (c) Conforming Amendments.--(1) Section 602 of title 17, 
     United States Code, is further amended--
       (A) in the section heading, by inserting ``OR EXPORTATION'' 
     after ``IMPORTATION''; and
       (B) in subsection (b)--

[[Page S7283]]

       (i) by striking ``(b) In a case'' and inserting ``(b) 
     Import Prohibition.--In a case'';
       (ii) by striking ``the United States Customs Service'' and 
     inserting ``United States Customs and Border Protection''; 
     and
       (iii) by striking ``the Customs Service'' and inserting 
     ``United States Customs and Border Protection''.
       (2) Section 601(b)(2) of title 17, United States Code, is 
     amended by striking ``the United States Customs Service'' and 
     inserting ``United States Customs and Border Protection''.
       (3) The item relating to chapter 6 in the table of chapters 
     for title 17, United States Code, is amended to read as 
     follows:

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

     TITLE III--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

     SEC. 301. CRIMINAL COPYRIGHT INFRINGEMENT.

       (a) Forfeiture and Destruction; Restitution.--Section 
     506(b) of title 17, United States Code, is amended to read as 
     follows:
       ``(b) Forfeiture, Destruction, and Restitution.--
     Forfeiture, destruction, and restitution relating to this 
     section shall be subject to section 2323 of title 18, to the 
     extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (b) Seizures and Forfeitures.--
       (1) Repeal.--Section 509 of title 17, United States Code, 
     is repealed.
       (2) Technical and conforming amendment.--The table of 
     sections for chapter 5 of title 17, United States Code, is 
     amended by striking the item relating to section 509.

     SEC. 302. TRAFFICKING IN COUNTERFEIT LABELS, ILLICIT LABELS, 
                   OR COUNTERFEIT DOCUMENTATION OR PACKAGING FOR 
                   WORKS THAT CAN BE COPYRIGHTED.

       Section 2318 of title 18, United States Code, is amended--
       (1) in subsection (a)--
       (A) by redesignating subparagraphs (A) through (G) as 
     clauses (i) through (vii), respectively;
       (B) by redesignating paragraphs (1) and (2) as 
     subparagraphs (A) and (B), respectively; and
       (C) by striking ``Whoever'' and inserting ``(1) Whoever'';
       (2) by amending subsection (d) to read as follows:
       ``(d) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''; and
       (3) by striking subsection (e) and redesignating subsection 
     (f) as subsection (e).

     SEC. 303. UNAUTHORIZED FIXATION.

       (a) Section 2319A(b) of title 18, United States Code, is 
     amended to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.
       (b) Section 2319A(c) of title 18, United States Code, is 
     amended by striking the second sentence and inserting: ``The 
     Secretary of Homeland Security shall issue regulations by 
     which any performer may, upon payment of a specified fee, be 
     entitled to notification by United States Customs and Border 
     Protection of the importation of copies or phonorecords that 
     appear to consist of unauthorized fixations of the sounds or 
     sounds and images of a live musical performance.''.

     SEC. 304. UNAUTHORIZED RECORDING OF MOTION PICTURES.

       Section 2319B(b) of title 18, United States Code, is 
     amended to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 305. TRAFFICKING IN COUNTERFEIT GOODS OR SERVICES.

       (a) In General.--Section 2320 of title 18, United States 
     Code, is amended--
       (1) in subsection (a)--
       (A) by striking ``Whoever'' and inserting ``Offense.--''
       ``(1) In general.--Whoever;'';
       (B) by moving the remaining text 2 ems to the right; and
       (C) by adding at the end the following:
       ``(2) Serious bodily harm or death.--
       ``(A) Serious bodily harm.--If the offender knowingly or 
     recklessly causes or attempts to cause serious bodily injury 
     from conduct in violation of paragraph (1), the penalty shall 
     be a fine under this title or imprisonment for not more than 
     20 years, or both.
       ``(B) Death.--If the offender knowingly or recklessly 
     causes or attempts to cause death from conduct in violation 
     of paragraph (1), the penalty shall be a fine under this 
     title or imprisonment for any term of years or for life, or 
     both.''.
       (b) Forfeiture and Destruction of Property; Restitution.--
     Section 2320(b) of title 18, United States Code, is amended 
     to read as follows:
       ``(b) Forfeiture and Destruction of Property; 
     Restitution.--Forfeiture, destruction, and restitution 
     relating to this section shall be subject to section 2323, to 
     the extent provided in that section, in addition to any other 
     similar remedies provided by law.''.

     SEC. 306. FORFEITURE, DESTRUCTION, AND RESTITUTION.

       (a) In General.--Chapter 113 of title 18, United States 
     Code, is amended by adding at the end the following:

     ``SEC. 2323. FORFEITURE, DESTRUCTION, AND RESTITUTION.

       ``(a) Civil Forfeiture.--
       ``(1) Property subject to forfeiture.--The following 
     property is subject to forfeiture to the United States 
     Government:
       ``(A) Any article, the making or trafficking of which is, 
     prohibited under section 506 or 1204 of title 17, or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title.
       ``(B) Any property used, or intended to be used, in any 
     manner or part to commit or facilitate the commission of an 
     offense referred to in subparagraph (A), except that property 
     is subject to forfeiture under this subparagraph only if the 
     United States Government establishes that there was a 
     substantial connection between the property and the violation 
     of an offense referred to in subparagraph (A).
       ``(C) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of the 
     commission of an offense referred to in subparagraph (A).
       ``(2) Procedures.--The provisions of chapter 46 relating to 
     civil forfeitures shall extend to any seizure or civil 
     forfeiture under this section. At the conclusion of the 
     forfeiture proceedings, unless otherwise requested by an 
     agency of the United States, the court shall order that any 
     property forfeited under paragraph (1) be destroyed, or 
     otherwise disposed of according to law.
       ``(b) Criminal Forfeiture.--
       ``(1) Property subject to forfeiture.--The court, in 
     imposing sentence on a person convicted of an offense under 
     section 506 or 1204 of title 17, or section 2318, 2319, 
     2319A, 2319B, or 2320, or chapter 90, of this title, shall 
     order, in addition to any other sentence imposed, that the 
     person forfeit to the United States Government any property 
     subject to forfeiture under subsection (a) for that offense.
       ``(2) Procedures.--
       ``(A) In general.--The forfeiture of property under 
     paragraph (1), including any seizure and disposition of the 
     property and any related judicial or administrative 
     proceeding, shall be governed by the procedures set forth in 
     section 413 of the Comprehensive Drug Abuse Prevention and 
     Control Act of 1970 (21 U.S.C. 853), other than subsection 
     (d) of that section.
       ``(B) Destruction.--At the conclusion of the forfeiture 
     proceedings, the court, unless otherwise requested by an 
     agency of the United States shall order that any--
       ``(i) forfeited article or component of an article bearing 
     or consisting of a counterfeit mark be destroyed or otherwise 
     disposed of according to law; and
       ``(ii) infringing items or other property described in 
     subsection (a)(1)(A) and forfeited under paragraph (1) of 
     this subsection be destroyed or otherwise disposed of 
     according to law.
       ``(c) Restitution.--When a person is convicted of an 
     offense under section 506 or 1204 of title 17 or section 
     2318, 2319, 2319A, 2319B, or 2320, or chapter 90, of this 
     title, the court, pursuant to sections 3556, 3663A, and 3664 
     of this title, shall order the person to pay restitution to 
     any victim of the offense as an offense against property 
     referred to in section 3663A(c)(1)(A)(ii) of this title.''.
       (b) Technical and Conforming Amendment.--The table of 
     sections for chapter 113 of title 18, United States Code, is 
     amended by adding at the end the following:

``Sec. 2323. Forfeiture, destruction, and restitution.''.

     SEC. 307. FORFEITURE UNDER ECONOMIC ESPIONAGE ACT.

       Section 1834 of title 18, United States Code, is amended to 
     read as follows:

     ``SEC. 1834. CRIMINAL FORFEITURE.

       ``Forfeiture, destruction, and restitution relating to this 
     chapter shall be subject to section 2323, to the extent 
     provided in that section, in addition to any other similar 
     remedies provided by law.''.

     SEC. 308. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Amendments to Title 17, United States Code.--
       (1) Section 109 (b)(4) of title 17, United States Code, is 
     amended by striking ``505, and 509'' and inserting ``and 
     505''.
       (2) Section 111 of title 17, United States Code, is 
     amended--
       (A) in subsection (b), by striking ``and 509'';
       (B) in subsection (c)--
       (i) in paragraph (2), by striking ``and 509'';
       (ii) in paragraph (3), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (iii) in paragraph (4), by striking ``and section 509''; 
     and
       (C) in subsection (e)--
       (i) in paragraph (1), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (ii) in paragraph (2), by striking ``and 509''.
       (3) Section 115(c) of title 17, United States Code, is 
     amended--
       (A) in paragraph (3)(G)(i), by striking ``and 509''; and
       (B) in paragraph (6), by striking ``and 509''.
       (4) Section 119(a) of title 17, United States Code, is 
     amended--
       (A) in paragraph (6), by striking ``sections 509 and 510'' 
     and inserting ``section 510'';
       (B) in paragraph (7)(A), by striking ``and 509'';
       (C) in paragraph (8), by striking ``and 509''; and
       (D) in paragraph (13), by striking ``and 509''.

[[Page S7284]]

       (5) Section 122 of title 17, United States Code, is 
     amended--
       (A) in subsection (d), by striking ``and 509'';
       (B) in subsection (e), by striking ``sections 509 and 510'' 
     and inserting ``section 510''; and
       (C) in subsection (f)(1), by striking ``and 509''.
       (6) Section 411(b) of title 17, United States Code, is 
     amended by striking ``sections 509 and 510'' and inserting 
     ``section 510''.
       (b) Other Amendments.--Section 596(c)(2)(c) of the Tariff 
     Act of 1950 (19 U.S.C. 1595a(c)(2)(c)) is amended by striking 
     ``or 509''.

TITLE IV--COORDINATION AND STRATEGIC PLANNING OF FEDERAL EFFORT AGAINST 
                       COUNTERFEITING AND PIRACY

     SEC. 401. INTELLECTUAL PROPERTY ENFORCEMENT COORDINATOR.

       (a) Intellectual Property Enforcement Coordinator.--The 
     President shall appoint, by and with the advice and consent 
     of the Senate, an Intellectual Property Enforcement 
     Coordinator (in this title referred to as the ``IPEC'') to 
     serve within the Executive Office of the President. As an 
     exercise of the rulemaking power of the Senate, any 
     nomination of the IPEC submitted to the Senate for 
     confirmation, and referred to a committee, shall be referred 
     to the Committee on the Judiciary.
       (b) Duties of IPEC.--
       (1) In general.--The IPEC shall--
       (A) chair the interagency intellectual property enforcement 
     advisory committee established under subsection (b)(3)(A);
       (B) coordinate the development of the Joint Strategic Plan 
     against counterfeiting and piracy by the advisory committee 
     under section 403;
       (C) assist in the implementation of the Joint Strategic 
     Plan by the departments and agencies listed in subsection 
     (b)(3)(A);
       (D) report directly to the President and Congress regarding 
     domestic and international intellectual property enforcement 
     programs;
       (E) report to Congress, as provided in section 404, on the 
     implementation of the Joint Strategic Plan, and make 
     recommendations to Congress for improvements in Federal 
     intellectual property enforcement efforts; and
       (F) carry out such other functions as the President may 
     direct.
       (2) Limitation on authority.--The IPEC may not control or 
     direct any law enforcement agency in the exercise of its 
     investigative or prosecutorial authority.
       (3) Advisory committee.--
       (A) Establishment.--There is established an interagency 
     intellectual property enforcement advisory committee composed 
     of the IPEC, who shall chair the committee, and Senate-
     confirmed representatives of the following departments and 
     agencies who are involved in intellectual property 
     enforcement, and who are, or are appointed by, the respective 
     heads of those departments and agencies:
       (i) The Office of Management and Budget.
       (ii) The Department of Justice.
       (iii) The United States Patent and Trademark Office and 
     other relevant units of the Department of Commerce.
       (iv) The Office of the United States Trade Representative.
       (v) The Department of State, the United States Agency for 
     International Development, and the Bureau of International 
     Narcotics Law Enforcement.
       (vi) The Department of Homeland Security, United States 
     Customs and Border Protection, and United States Immigration 
     and Customs Enforcement.
       (vii) The Food and Drug Administration of the Department of 
     Health and Human Services.
       (viii) The United States Copyright Office.
       (ix) Any such other agencies as the President determines to 
     be substantially involved in the efforts of the Federal 
     Government to combat counterfeiting and piracy.
       (B) Functions.--The advisory committee established under 
     subparagraph (A) shall develop the Joint Strategic Plan 
     against counterfeiting and piracy under section 403.
       (c) Compensation.--Section 5312 of title 5, United States 
     Code, is amended by adding at the end the following: ``United 
     States Intellectual Property Enforcement Coordinator.''.

     SEC. 402. DEFINITION.

       For purposes of this title, the term ``intellectual 
     property enforcement'' means matters relating to the 
     enforcement of laws protecting copyrights, patents, 
     trademarks, other forms of intellectual property, and trade 
     secrets, both in the United States and abroad, including in 
     particular matters relating to combating counterfeit and 
     pirated goods.

     SEC. 403. JOINT STRATEGIC PLAN.

       (a) Purpose.--The objectives of the Joint Strategic Plan 
     against counterfeiting and piracy that is referred to in 
     section 401(b)(1)(B) (in this section referred to as the 
     ``joint strategic plan'') are the following:
       (1) Reducing counterfeit and pirated goods in the domestic 
     and international supply chain.
       (2) Identifying and addressing structural weaknesses, 
     systemic flaws, or other unjustified impediments to effective 
     enforcement action against the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (3) Ensuring that information is identified and shared 
     among the relevant departments and agencies, to the extent 
     permitted by law and consistent with law enforcement 
     protocols for handling information, to aid in the objective 
     of arresting and prosecuting individuals and entities that 
     are knowingly involved in the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (4) Disrupting and eliminating domestic and international 
     counterfeiting and piracy networks.
       (5) Strengthening the capacity of other countries to 
     protect and enforce intellectual property rights, and 
     reducing the number of countries that fail to enforce laws 
     preventing the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (6) Working with other countries to establish international 
     standards and policies for the effective protection and 
     enforcement of intellectual property rights.
       (7) Protecting intellectual property rights overseas by--
       (A) working with other countries and exchanging information 
     with appropriate law enforcement agencies in other countries 
     relating to individuals and entities involved in the 
     financing, production, trafficking, or sale of pirated or 
     counterfeit goods;
       (B) using the information described in subparagraph (A) to 
     conduct enforcement activities in cooperation with 
     appropriate law enforcement agencies in other countries; and
       (C) building a formal process for consulting with 
     companies, industry associations, labor unions, and other 
     interested groups in other countries with respect to 
     intellectual property enforcement.
       (b) Timing.--Not later than 12 months after the date of the 
     enactment of this Act, and not later than December 31 of 
     every third year thereafter, the IPEC shall submit the joint 
     strategic plan to the Committee on the Judiciary and the 
     Committee on Appropriations of the Senate, and to the 
     Committee on the Judiciary and the Committee on 
     Appropriations of the House of Representatives.
       (c) Responsibility of the IPEC.--During the development of 
     the joint strategic plan, the IPEC--
       (1) shall provide assistance to, and coordinate the 
     meetings and efforts of, the appropriate officers and 
     employees of departments and agencies represented on the 
     advisory committee appointed under section 401(b)(3) who are 
     involved in intellectual property enforcement; and
       (2) may consult with private sector experts in intellectual 
     property enforcement in furtherance of providing assistance 
     to the members of the advisory committee appointed under 
     section 401(b)(3).
       (d) Responsibilities of Other Departments and Agencies.--In 
     the development and implementation of the joint strategic 
     plan, the heads of the departments and agencies identified 
     under section 401(b)(3) shall--
       (1) designate personnel with expertise and experience in 
     intellectual property enforcement matters to work with the 
     IPEC and other members of the advisory committee; and
       (2) share relevant department or agency information with 
     the IPEC and other members of the advisory committee, 
     including statistical information on the enforcement 
     activities of the department or agency against counterfeiting 
     or piracy, and plans for addressing the joint strategic plan.
       (e) Contents of the Joint Strategic Plan.--Each joint 
     strategic plan shall include the following:
       (1) A detailed description of the priorities identified for 
     carrying out the objectives in the joint strategic plan, 
     including activities of the Federal Government relating to 
     intellectual property enforcement.
       (2) A detailed description of the means and methods to be 
     employed to achieve the priorities, including the means and 
     methods for improving the efficiency and effectiveness of the 
     Federal Government's enforcement efforts against 
     counterfeiting and piracy.
       (3) Estimates of the resources necessary to fulfill the 
     priorities identified under paragraph (1).
       (4) The performance measures to be used to monitor results 
     under the joint strategic plan during the following year.
       (5) An analysis of the threat posed by violations of 
     intellectual property rights, including the costs to the 
     economy of the United States resulting from violations of 
     intellectual property laws, and the threats to public health 
     and safety created by counterfeiting and piracy.
       (6) An identification of the departments and agencies that 
     will be involved in implementing each priority under 
     paragraph (1).
       (7) A strategy for ensuring coordination between the IPEC 
     and the departments and agencies identified under paragraph 
     (6), including a process for oversight by the executive 
     branch of, and accountability among, the departments and 
     agencies responsible for carrying out the strategy.
       (8) Such other information as is necessary to convey the 
     costs imposed on the United States economy by, and the 
     threats to public health and safety created by, 
     counterfeiting and piracy, and those steps that the Federal 
     Government intends to take over the period covered by the 
     succeeding joint strategic plan to reduce those costs and 
     counter those threats.
       (f) Enhancing Enforcement Efforts of Foreign Governments.--
     The joint strategic plan shall include programs to provide 
     training and technical assistance to foreign governments for 
     the purpose of enhancing the efforts of such governments to 
     enforce laws against counterfeiting and piracy. With respect 
     to such programs, the joint strategic plan shall--

[[Page S7285]]

       (1) seek to enhance the efficiency and consistency with 
     which Federal resources are expended, and seek to minimize 
     duplication, overlap, or inconsistency of efforts;
       (2) identify and give priority to those countries where 
     programs of training and technical assistance can be carried 
     out most effectively and with the greatest benefit to 
     reducing counterfeit and pirated products in the United 
     States market, to protecting the intellectual property rights 
     of United States persons and their licensees, and to 
     protecting the interests of United States persons otherwise 
     harmed by violations of intellectual property rights in those 
     countries;
       (3) in identifying the priorities under paragraph (2), be 
     guided by the list of countries identified by the United 
     States Trade Representative under section 182(a) of the Trade 
     Act of 1974 (19 U.S.C. 2242(a)); and
       (4) develop metrics to measure the effectiveness of the 
     Federal Government's efforts to improve the laws and 
     enforcement practices of foreign governments against 
     counterfeiting and piracy.
       (g) Dissemination of the Joint Strategic Plan.--The joint 
     strategic plan shall be posted for public access on the 
     website of the White House, and shall be disseminated to the 
     public through such other means as the IPEC may identify.

     SEC. 404. REPORTING.

       (a) Annual Report.--Not later than December 31 of each 
     calendar year beginning in 2009, the IPEC shall submit a 
     report on the activities of the advisory committee during the 
     preceding fiscal year. The annual report shall be submitted 
     to Congress, and disseminated to the people of the United 
     States, in the manner specified in subsections (b) and (g) of 
     section 403.
       (b) Contents.--The report required by this section shall 
     include the following:
       (1) The progress made on implementing the strategic plan 
     and on the progress toward fulfillment of the priorities 
     identified under section 403(e)(1).
       (2) The progress made in efforts to encourage Federal, 
     State, and local government departments and agencies to 
     accord higher priority to intellectual property enforcement.
       (3) The progress made in working with foreign countries to 
     investigate, arrest, and prosecute entities and individuals 
     involved in the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (4) The manner in which the relevant departments and 
     agencies are working together and sharing information to 
     strengthen intellectual property enforcement.
       (5) An assessment of the successes and shortcomings of the 
     efforts of the Federal Government, including departments and 
     agencies represented on the committee established under 
     section 401(b)(3).
       (6) Recommendations for any changes in enforcement 
     statutes, regulations, or funding levels that the advisory 
     committee considers would significantly improve the 
     effectiveness or efficiency of the effort of the Federal 
     Government to combat counterfeiting and piracy and otherwise 
     strengthen intellectual property enforcement, including 
     through the elimination or consolidation of duplicative 
     programs or initiatives.
       (7) The progress made in strengthening the capacity of 
     countries to protect and enforce intellectual property 
     rights.
       (8) The successes and challenges in sharing with other 
     countries information relating to intellectual property 
     enforcement.
       (9) The progress made under trade agreements and treaties 
     to protect intellectual property rights of United States 
     persons and their licensees.

     SEC. 405. SAVINGS AND REPEALS.

       (a) Repeal of Coordination Council.--Section 653 of the 
     Treasury and General Government Appropriations Act, 2000 (15 
     U.S.C. 1128) is repealed.
       (b) Current Authorities Not Affected.--Except as provided 
     in subsection (a), nothing in this title shall alter the 
     authority of any department or agency of the United States 
     (including any independent agency) that relates to--
       (1) the investigation and prosecution of violations of laws 
     that protect intellectual property rights;
       (2) the administrative enforcement, at the borders of the 
     United States, of laws that protect intellectual property 
     rights; or
       (3) the United States trade agreements program or 
     international trade.
       (c) Register of Copyrights.--Nothing in this title shall 
     derogate from the duties and functions of the Register of 
     Copyrights.

     SEC. 406. AUTHORIZATION OF APPROPRIATIONS.

       (a) In General.--There are authorized to be appropriated 
     for each fiscal year such sums as may be necessary to carry 
     out this title.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

     SEC. 501. LOCAL LAW ENFORCEMENT GRANTS.

       (a) Authorization.--Section 2 of the Computer Crime 
     Enforcement Act (42 U.S.C. 3713) is amended--
       (1) in subsection (b), by inserting after ``computer 
     crime'' each place it appears the following: ``, including 
     infringement of copyrighted works over the Internet''; and
       (2) in subsection (e)(1), relating to authorization of 
     appropriations, by striking ``fiscal years 2001 through 
     2004'' and inserting ``fiscal years 2009 through 2013''.
       (b) Grants.--The Office of Justice Programs of the 
     Department of Justice shall make grants to eligible State or 
     local law enforcement entities, including law enforcement 
     agencies of municipal governments and public educational 
     institutions, for training, prevention, enforcement, and 
     prosecution of intellectual property theft and infringement 
     crimes (in this subsection referred to as ``IP-TIC grants''), 
     in accordance with the following:
       (1) Use of ip-tic grant amounts.--IP-TIC grants may be used 
     to establish and develop programs to do the following with 
     respect to the enforcement of State and local true name and 
     address laws and State and local criminal laws on anti-
     piracy, anti-counterfeiting, and unlawful acts with respect 
     to goods by reason of their protection by a patent, 
     trademark, service mark, trade secret, or other intellectual 
     property right under State or Federal law:
       (A) Assist State and local law enforcement agencies in 
     enforcing those laws, including by reimbursing State and 
     local entities for expenses incurred in performing 
     enforcement operations, such as overtime payments and storage 
     fees for seized evidence.
       (B) Assist State and local law enforcement agencies in 
     educating the public to prevent, deter, and identify 
     violations of those laws.
       (C) Educate and train State and local law enforcement 
     officers and prosecutors to conduct investigations and 
     forensic analyses of evidence and prosecutions in matters 
     involving those laws.
       (D) Establish task forces that include personnel from State 
     or local law enforcement entities, or both, exclusively to 
     conduct investigations and forensic analyses of evidence and 
     prosecutions in matters involving those laws.
       (E) Assist State and local law enforcement officers and 
     prosecutors in acquiring computer and other equipment to 
     conduct investigations and forensic analyses of evidence in 
     matters involving those laws.
       (F) Facilitate and promote the sharing, with State and 
     local law enforcement officers and prosecutors, of the 
     expertise and information of Federal law enforcement agencies 
     about the investigation, analysis, and prosecution of matters 
     involving those laws and criminal infringement of copyrighted 
     works, including the use of multijurisdictional task forces.
       (2) Eligibility.--To be eligible to receive an IP-TIC 
     grant, a State or local government entity shall provide to 
     the Attorney General--
       (A) assurances that the State in which the government 
     entity is located has in effect laws described in paragraph 
     (1);
       (B) an assessment of the resource needs of the State or 
     local government entity applying for the grant, including 
     information on the need for reimbursements of base salaries 
     and overtime costs, storage fees, and other expenditures to 
     improve the investigation, prevention, or enforcement of laws 
     described in paragraph (1); and
       (C) a plan for coordinating the programs funded under this 
     section with other federally funded technical assistance and 
     training programs, including directly funded local programs 
     such as the Edward Byrne Memorial Justice Assistance Grant 
     Program authorized by subpart 1 of part E of title I of the 
     Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
     3750 et seq.).
       (3) Matching funds.--The Federal share of an IP-TIC grant 
     may not exceed 90 percent of the costs of the program or 
     proposal funded by the IP-TIC grant, unless the Attorney 
     General waives, in whole or in part, the 90 percent 
     requirement.
       (4) Authorization of appropriations.--
       (A) Authorization.--There is authorized to be appropriated 
     to carry out this subsection the sum of $25,000,000 for each 
     of fiscal years 2009 through 2013.
       (B) Limitation.--Of the amount made available to carry out 
     this subsection in any fiscal year, not more than 3 percent 
     may be used by the Attorney General for salaries and 
     administrative expenses.

     SEC. 502. IMPROVED INVESTIGATIVE AND FORENSIC RESOURCES FOR 
                   ENFORCEMENT OF LAWS RELATED TO INTELLECTUAL 
                   PROPERTY CRIMES.

       (a) In General.--Subject to the availability of 
     appropriations to carry out this subsection, the Attorney 
     General, in consultation with the Director of the Federal 
     Bureau of Investigation, shall, with respect to crimes 
     related to the theft of intellectual property--
       (1) create an operational unit of the Federal Bureau of 
     Investigation--
       (A) to work with the Computer Crime and Intellectual 
     Property section of the Department of Justice on the 
     investigation and coordination of intellectual property 
     crimes that are complex, committed in more than 1 judicial 
     district, or international;
       (B) that consists of at least 10 agents of the Bureau; and
       (C) that is located at the headquarters of the Bureau;
       (2) ensure that any unit in the Department of Justice 
     responsible for investigating computer hacking or 
     intellectual property crimes is assigned at least 2 agents of 
     the Federal Bureau of Investigation (in addition to any agent 
     assigned to such unit as of the date of the enactment of this 
     Act) to support such unit for the purpose of investigating or 
     prosecuting intellectual property crimes; and
       (3) implement a comprehensive program--
       (A) the purpose of which is to train agents of the Federal 
     Bureau of Investigation in the investigation and prosecution 
     of such crimes and the enforcement of laws related to 
     intellectual property crimes;

[[Page S7286]]

       (B) that includes relevant forensic training related to 
     investigating and prosecuting intellectual property crimes; 
     and
       (C) that requires such agents who investigate or prosecute 
     intellectual property crimes to attend the program annually.
       (b) Organized Crime Task Force.--Subject to the 
     availability of appropriations to carry out this subsection, 
     and not later than 120 days after the date of the enactment 
     of this Act, the Attorney General, through the United States 
     Attorneys' Offices, the Computer Crime and Intellectual 
     Property section, and the Organized Crime and Racketeering 
     section of the Department of Justice, and in consultation 
     with the Federal Bureau of Investigation and other Federal 
     law enforcement agencies, shall create a Task Force to 
     develop and implement a comprehensive, long-range plan to 
     investigate and prosecute international organized crime 
     syndicates engaging in or supporting crimes relating to the 
     theft of intellectual property.
       (c) Authorization.--There are authorized to be appropriated 
     to carry out this section $12,000,000 for each of fiscal 
     years 2009 through 2013.

     SEC. 503. ADDITIONAL FUNDING FOR RESOURCES TO INVESTIGATE AND 
                   PROSECUTE CRIMINAL ACTIVITY INVOLVING 
                   COMPUTERS.

       (a) Additional Funding for Resources.--
       (1) Authorization.--In addition to amounts otherwise 
     authorized for resources to investigate and prosecute 
     criminal activity involving computers, there are authorized 
     to be appropriated for each of the fiscal years 2009 through 
     2013--
       (A) $10,000,000 to the Director of the Federal Bureau of 
     Investigation; and
       (B) $10,000,000 to the Attorney General for the Criminal 
     Division of the Department of Justice.
       (2) Availability.--Any amounts appropriated under paragraph 
     (1) shall remain available until expended.
       (b) Use of Additional Funding.--Funds made available under 
     subsection (a) shall be used by the Director of the Federal 
     Bureau of Investigation and the Attorney General, for the 
     Federal Bureau of Investigation and the Criminal Division of 
     the Department of Justice, respectively, to--
       (1) hire and train law enforcement officers to--
       (A) investigate crimes committed through the use of 
     computers and other information technology, including through 
     the use of the Internet; and
       (B) assist in the prosecution of such crimes; and
       (2) procure advanced tools of forensic science to 
     investigate, prosecute, and study such crimes.

     SEC. 504. INTERNATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT 
                   COORDINATORS.

       (a) Deployment of Additional Coordinators.--Subject to the 
     availability of appropriations to carry out this section, the 
     Attorney General shall, within 180 days after the date of the 
     enactment of this Act, deploy 5 Intellectual Property Law 
     Enforcement Coordinators, in addition to those serving in 
     such capacity on such date of enactment. Such deployments 
     shall be made to those countries and regions where the 
     activities of such a coordinator can be carried out most 
     effectively and with the greatest benefit to reducing 
     counterfeit and pirated products in the United States market, 
     to protecting the intellectual property rights of United 
     States persons and their licensees, and to protecting the 
     interests of United States persons otherwise harmed by 
     violations of intellectual property rights in those 
     countries. The mission of all International Intellectual 
     Property Law Enforcement Coordinators shall include the 
     following:
       (1) Acting as liaison with foreign law enforcement agencies 
     and other foreign officials in criminal matters involving 
     intellectual property rights.
       (2) Performing outreach and training to build the 
     enforcement capacity of foreign governments against 
     intellectual property-related crime in the regions in which 
     the coordinators serve.
       (3) Coordinating United States law enforcement activities 
     against intellectual property-related crimes in the regions 
     in which the coordinators serve.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated for each fiscal year such sums as may be 
     necessary for the deployment and support of all International 
     Intellectual Property Enforcement Coordinators of the 
     Department of Justice, including those deployed under 
     subsection (a).

     SEC. 505. ANNUAL REPORTS.

       Not later than 1 year after the date of the enactment of 
     this Act, and annually thereafter, the Attorney General shall 
     submit to the Committees on the Judiciary of the Senate and 
     the House of Representatives a report on actions taken to 
     carry out this title.

     SEC. 506. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for each fiscal 
     year such sums as may be necessary to carry out this title.

  Mr. SPECTER. Mr. President, I am pleased to speak today on the 
introduction of the Enforcement of Intellectual Property Rights Act of 
2008, which I am sponsoring with Senator Leahy.
  The United States has always placed a high value on creativity and 
innovation. As a result, we rank number 1 for innovation in the World 
Economic Forum's Global Competition Report. Yet, the U.S. does not even 
make it into the ``top 20'' countries when it comes to the protection 
of intellectual property. When you consider that intellectual property 
contributes over $5 trillion annually to our national economy, this is 
not acceptable.
  If we want to profit from our intellectual property, then we must 
protect it. Counterfeiting and piracy, though, are on the rise. 
Counterfeiting, which at one time involved mainly ``knocking off' 
products in the high end and luxury goods markets, is now much more 
pervasive. According to FBI, Interpol, World Customs Organization and 
International Chamber of Commerce estimates, roughly 7-8 percent of 
world trade every year is in counterfeit goods. That is the equivalent 
of as much as $512 billion in global lost sales. Of that amount, U.S. 
companies annually lose between $200 billion and $250 billion in sales.
  Counterfeiting, piracy, and the theft of intellectual property, are 
not victimless crimes. Exporters face unfair competition abroad. Non-
exporters face counterfeit imports at home. Businesses face legal, 
health and safety risks from the threat of counterfeit goods entering 
their supply chains. Consumers, too, face serious health and safety 
risks.
  For every legitimate product on the market, one can find a 
counterfeit version, being passed off as the same quality at a fraction 
of the cost. Counterfeit products run the gamut from low end products 
such as razor blades, shampoos, batteries, and cigarettes to more 
specialized products like auto and plane parts. Although these products 
may look real, they are not subjected to the same quality protocols as 
their legitimate counterparts and a consumer--be they knowing or not--
uses the product at their own risk. Counterfeit products that are 
substandard goods have been the subject of public recalls and seizures 
in industries ranging from food products both human and pet 
consumables, pharmaceuticals both lifestyle and life-saving drugs, 
aircraft or automobile parts, toys and baby furniture, and building and 
manufacturing components. The potential for harm is very serious. Every 
day, our newspapers are filled with stories of the damage that 
counterfeit products have caused.
  Further, each counterfeit item that is manufactured overseas and 
distributed in the United States costs American workers their jobs. 
According to the U.S. Chamber of Commerce, overall intellectual 
property theft costs 750,000 U.S. jobs a year. These are losses that 
directly impact each and every person listening to my voice by 
inhibiting the growth of the American economy. Although private 
industry is more vigilant than ever in pursuing infringers civilly and 
devoting enormous amounts of human and financial capital to combat 
violations of their intellectual property rights, the U.S. Government 
must do its part to protect one of our Nation's most valuable assets.
  Building on the work of the House with the Prioritizing Resources and 
Organization of Intellectual Property Act of 2007, better known as the 
PRO-IP Act, and Senators Bayh and Voinovich with the Intellectual 
Property Rights Enforcement Act, Senators Leahy and I have crafted a 
comprehensive intellectual property that responds to that need.
  This bill will provide the current and future administrations with 
the additional tools it needs to combat intellectual property theft by, 
amongst other things: Giving the Attorney General the authority, in 
lieu of a criminal action, to pursue a civil action for intellectual 
property infringement and collect damages and profits resulting from 
infringement; enhancing the civil and criminal penalties for 
intellectual property violations in order to deter new criminal 
organizations from entering into ``the business'' of counterfeiting and 
piracy; elevating the intergovernmental coordination of intellectual 
property enforcement efforts; and authorizing funding for State and 
local governments for pursuing intellectual property related 
investigations.
  Alan Greenspan stated in ``The Age of Turbulence'' that, ``Arguably, 
the single most important economic decision our lawmakers and courts 
will face in the next twenty-five years is to clarify the rules of 
intellectual property.''

[[Page S7287]]

  Great legislation does not happen overnight--nor should it. When 
considering any reforms to something as valuable as our intellectual 
property assets--whether it is reforms to our Nations patents, 
trademarks, or more relevantly to this group, copyright laws--we must 
act cautiously and with a careful understanding of the effects that any 
such changes will have on the interested industries. That said, I 
believe that we can work together in the few remaining days that is 
left in this Congress in not just a bipartisan but a nonpartisan manner 
to pass and send this bill to the President this Congress.
                                 ______