[Congressional Record Volume 154, Number 154 (Friday, September 26, 2008)]
[Senate]
[Pages S9583-S9591]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS ACT OF 2008

  Mr. LEAHY. Mr. President, I ask unanimous consent that the Senate 
proceed to the immediate consideration of Calendar No. 964, S. 3325.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (S. 3325) to enhance remedies for violations of 
     intellectual property laws, and for other purposes.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on the Judiciary, with 
amendments.

                                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.]

                        TITLE VI--MISCELLANEOUS

Sec. 601. GAO study on protection of intellectual property of 
              manufacturers.
Sec. 602. Sense of Congress.

     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 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'';

[[Page S9584]]

       (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] inaccuracy of the 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.'']
       (a) In General.--Section 503(a) of title 17, United States 
     Code, is amended to read as follows:
       ``(a)(1) At any time while an action under this title is 
     pending, the court may order the impounding, on such terms as 
     it may deem reasonable--
       ``(A) of all copies or phonorecords claimed to have been 
     made or used in violation of the exclusive right of the 
     copyright owner;
       ``(B) of all plates, molds, matrices, masters, tapes, film 
     negatives, or other articles by means of which such copies of 
     phonorecords may be reproduced; and
       ``(C) of records documenting the manufacture, sale, or 
     receipt of things involved in any such violation, provided 
     that any records seized under this subparagraph shall be 
     taken into the custody of the court.
       ``(2) For impoundments of records ordered under paragraph 
     (1)(C), the court shall enter an appropriate protective order 
     with respect to discovery and use of any records or 
     information that has been impounded. The protective order 
     shall provide for appropriate procedures to ensure that 
     confidential, private, proprietary, or privileged information 
     contained in such records is not improperly disclosed or 
     used.
       ``(3) The relevant provisions of paragraphs (2) through 
     (11) of section 34(d) of the Trademark Act (15 U.S.C. 
     1116(d)(2) through (11)) shall extend to any impoundment of 
     records ordered under paragraph (1)(C) that is based upon an 
     ex parte application, notwithstanding the provisions of rule 
     65 of the Federal Rules of Civil Procedure. Any references in 
     paragraphs (2) through (11) of section 34(d) of the Trademark 
     Act to section 32 of such Act shall be read as references to 
     section 501 of this title, and references to use of a 
     counterfeit mark in connection with the sale, offering for 
     sale, or distribution of goods or services shall be read as 
     references to infringement of a copyright.''.
       (b) Protective Order for Seized Records.--Section 34(d)(7) 
     of the Trademark Act (15 U.S.C. 1116(d)(7)) is amended to 
     read as follows:
       ``(7) Any materials seized under this subsection shall be 
     taken into the custody of the court. For seizures made under 
     this section, the court shall enter an appropriate protective 
     order with respect to discovery and use of any records or 
     information that has been seized. The protective order shall 
     provide for appropriate procedures to ensure that 
     confidential, private, proprietary, or privileged information 
     contained in such records is not improperly disclosed or 
     used.''.

     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] copyright, or which 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)--
       (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:

[[Page S9585]]

       ``(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. For seizures made under this 
     section, the court shall enter an appropriate protective 
     order with respect to discovery and use of any records or 
     information that has been seized. The protective order shall 
     provide for appropriate procedures to ensure that 
     confidential, private, proprietary, or privileged information 
     contained in such records is not improperly disclosed or 
     used. 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''.
       (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''.

[[Page S9586]]

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

     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]infringement 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) facilitate the issuance of policy guidance to 
     departments and agencies on basic issues of policy and 
     interpretation, to the extent necessary to assure the 
     coordination of intellectual property enforcement policy and 
     consistency with other law;
       ([D]E) report directly to the President and Congress 
     regarding domestic and international intellectual property 
     enforcement programs;
       ([E]F) 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]G) 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.]
       (A) Establishment.--There is established an interagency 
     intellectual property enforcement advisory committee composed 
     of the IPEC, who shall chair the committee, and--
       (i) 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 Department of Agriculture.
       (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; and

       (ii) the Register of Copyrights, or a senior representative 
     of the United States Copyright Office appointed by the 
     Register of Copyrights.
       (B) Functions.--The advisory committee established under 
     subparagraph (A) shall develop the Joint Strategic Plan 
     against counterfeiting and [piracy]infringement 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]infringed goods.

     SEC. 403. JOINT STRATEGIC PLAN.

       (a) Purpose.--The objectives of the Joint Strategic Plan 
     against counterfeiting and [piracy]infringement 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]infringed 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]infringed 
     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]infringed 
     goods.
       (4) Disrupting and eliminating domestic and international 
     counterfeiting and [piracy]infringement 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]infringed 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]infringed 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]infringement, 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]infringement.
       (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

[[Page S9587]]

     intellectual property laws, and the threats to public health 
     and safety created by counterfeiting and 
     [piracy]infringement.
       (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]infringement, 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]infringement. 
     With respect to such programs, the joint strategic plan 
     shall--
       (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]infringed 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]infringement.
       (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]infringed 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]infringement 
     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.]
       (a) Transition From NIPLECC to IPEC.--
       (1) Repeal of niplecc.--Section 653 of the Treasury and 
     General Government Appropriations Act, 2000 (15 U.S.C. 1128) 
     is repealed effective upon confirmation of the IPEC by the 
     Senate and publication of such appointment in the 
     Congressional Record.
       (2) Continuity of performance of duties.--Upon confirmation 
     by the Senate, and notwithstanding paragraph (1), the IPEC 
     may use the services and personnel of the National 
     Intellectual Property Law Enforcement Coordination Council, 
     for such time as is reasonable, to perform any functions or 
     duties which in the discretion of the IPEC are necessary to 
     facilitate the orderly transition of any functions or duties 
     transferred from the Council to the IPEC pursuant to any 
     provision of this Act or any amendment made by this Act.
       (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.]
       (c) Rule of Construction.--Nothing in this title shall 
     derogate from the powers, duties, and functions of any of the 
     agencies, departments, or other entities listed or included 
     under section 401(b)(3)(A).

     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

[[Page S9588]]

     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 9075 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]supported by at 
     least 2 agents of the Federal Bureau of Investigation (in 
     addition to any agent [assigned to]supporting 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) ensure that all Computer Hacking and Intellectual 
     Property Crime Units located at an office of a United States 
     Attorney are assigned at least 2 Assistant United States 
     Attorneys responsible for investigating and prosecuting 
     computer hacking or intellectual property crimes; and 
       (34) 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;
       (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]infringed 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]Assisting in the coordination of 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.]

                        TITLE VI--MISCELLANEOUS

     SEC. 601. GAO STUDY ON PROTECTION OF INTELLECTUAL PROPERTY OF 
                   MANUFACTURERS.

       (a) Study.--The Comptroller General of the Untied States 
     shall conduct a study to help determine how the Federal 
     Government could better protect the intellectual property of 
     manufacturers by quantification of the impacts of imported 
     and domestic counterfeit goods on--
       (1) the manufacturing industry in the United States; and
       (2) the overall economy of the United States.
       (b) Contents.--In conducting the study required under 
     subsection (a), the Comptroller General shall examine--
       (1) the extent that counterfeit manufactured goods are 
     actively being trafficked in and imported into the United 
     States;
       (2) the impacts on domestic manufacturers in the United 
     States of current law regarding defending intellectual 
     property, including patent, trademark, and copyright 
     protections;
       (3) the nature and scope of current statutory law and case 
     law regarding protecting trade dress from being illegally 
     copied;
       (4) the extent which such laws are being used to 
     investigate and prosecute acts of trafficking in counterfeit 
     manufactured goods;
       (5) any effective practices or procedures that are 
     protecting all types of intellectual property; and
       (6) any changes to current statutes or rules that would 
     need to be implemented to more effectively protect the 
     intellectual property rights of manufacturers.
       (c) Report.--Not later than 1 year after the date of the 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report on the results of the study required 
     under subsection (a).

     SEC. 602. SENSE OF CONGRESS.

       It is the sense of Congress that--
       (1) the United States intellectual property industries have 
     created millions of high-skill, high-paying United States 
     jobs and pay billions of dollars in annual United States tax 
     revenues;
       (2) the United States intellectual property industries 
     continue to represent a major source of creativity and 
     innovation, business start-ups, skilled job creation, 
     exports, economic growth, and competitiveness;
       (3) counterfeiting and infringement results in billions of 
     dollars in lost revenue for United States companies each year 
     and even greater losses to the United States economy in terms 
     of reduced job growth, exports, and competitiveness;
       (4) the growing number of willful violations of existing 
     Federal criminal laws involving counterfeiting and 
     infringement by actors in the United States and, 
     increasingly, by foreign-based individuals and entities is a 
     serious threat to the long-term vitality of the United States 
     economy and the future competitiveness of United States 
     industry;
       (5) effective criminal enforcement of the intellectual 
     property laws against such violations in all categories of 
     works should be among the highest priorities of the Attorney 
     General; and
       (6) with respect to criminal counterfeiting and 
     infringement of computer software, the Attorney General 
     should give priority to cases--

[[Page S9589]]

       (A) involving the willful theft of intellectual property 
     for purposes of commercial advantage or private financial 
     gain;
       (B) where the theft of intellectual property is central to 
     the sustainability and viability of the commercial activity 
     of the enterprise (or subsidiary) involved in the violation;
       (C) where the counterfeited or infringing goods or services 
     enables the enterprise to unfairly compete against the 
     legitimate rights holder;
       (D) where there is actual knowledge of the theft of 
     intellectual property by the directors or officers of the 
     enterprise; and
       (E) where the enterprise involved in the theft of 
     intellectual property is owned or controlled by a foreign 
     enterprise or other foreign entity.


                           PROGRAM OVERSIGHT

  Mr. LEAHY. Intellectual property is the lifeblood of our economy, and 
protecting that property from theft and misappropriation is important 
to preserving our place at the economic forefront of the world. 
Combatting intellectual property offenses can help us save jobs for 
Americans, increase tax revenues from legitimate businesses, and 
bolster our productivity, with all the gains that come from that. Some 
of the provisions in this bill authorize significant resources to the 
Department of Justice and the Federal Bureau of Investigation to better 
take on the tasks of battling intellectual property crimes. I have 
confidence in law enforcement, and I also take seriously the obligation 
we have in the Congress to ensure that the public's money is well and 
responsibly spent.
  Mr. COBURN. I, too, believe that intellectual property is important 
to our country, businesses and individual rights holders. Illegal 
importation of counterfeit goods, such as pharmaceuticals, also 
threatens the health and safety of U.S. citizens. It is necessary for 
the Federal Government to protect and enforce intellectual property 
rights domestically and internationally. I believe we are on the way to 
achieving this goal with S. 3325, but we have to ensure that the 
agencies this bill tasks with enforcement of intellectual property 
rights are held responsible. All of us, including those in the 
intellectual property community, would have to agree that enforcement 
of intellectual property rights, even with passage of S. 3325, will 
only become a priority of the Federal Government if agencies, such as 
the Justice Department and FBI, are truly held accountable for 
achieving the goal of increased enforcement.
  Mr. LEAHY. I am committed to vigorous oversight of the Justice 
Department in all its functions, and as the champion of S. 3325, I am 
especially interested in ensuring that these programs are effectively 
and efficiently managed. My interest does not end with the enactment of 
this bill; in fact, this is just the beginning. I am committing myself 
and the Judiciary Committee to oversight of these programs; soon after 
the filing date of the reports required of the Justice Department and 
the FBI, we will hold hearings to ensure that the information we need 
to evaluate these programs and the use of the funds that have been 
appropriated.
  Mr. COBURN. I am glad that the Senator from Vermont is making this 
commitment and am relying on his assurance of oversight of these 
programs so that our government is held responsible and informed 
decisions are made on how to responsibly allocate our scarce Federal 
dollars. Although the criteria we established in this legislation are 
necessary, they will neither have an effect on how the Justice 
Department and FBI prioritize and use the funds authorized under this 
bill, nor ensure grantees appropriately use Federal grant dollars, 
unless we make certain these agencies rigorously follow the standards 
we set forth in this legislation. If the Justice Department and FBI 
continue to receive Federal funding year after year without Congress 
questioning the contents of their required reports or grantees' use of 
funds, all of the efforts of those supporting this bill will be for 
naught, and we will not have succeeded in making IP enforcement a 
priority for this country.
  I thank the Senator from Vermont and the Senator from Pennsylvania 
for their work on this bill. I recognize we have all made compromises 
along the way to ensure we pass the most effective enforcement 
legislation possible, while still maintaining our desire to hold 
Federal agencies, which spend taxpayer dollars, accountable for their 
actions so that this country's intellectual property rights holders are 
protected from counterfeiting and piracy.
  Mr. KYL. Mr. President, I rise today to comment on the impending 
passage of S. 3325, the Enforcement of Intellectual Property Rights Act 
of 2008/Prioritizing Resources and Organization for Intellectual 
Property Act of 2008.
  When I first reviewed the bill, I was concerned that section 301's 
creation of the intellectual property enforcement coordinator, or IPEC, 
a presidentially appointed White House officer, might allow political 
interference with the Justice Department's copyright investigation and 
enforcement decisions. I am now persuaded, however, that the bill's 
creation of this new office does not, and was not intended to, 
influence the exercise of prosecutorial and law enforcement 
decisionmaking by the Department of Justice and other law enforcement 
agencies. Criminal law enforcement is a critical component of Federal 
enforcement of intellectual property rights, and the bill includes 
language that prevents the IPEC from exercising any control over 
criminal investigations and prosecutions. These restrictions are 
consistent with the bill's language, as well as with current Department 
of Justice and White House policies that guard against improper 
contacts between the White House and the Department of Justice on 
prosecutions and investigations.
  For example, the bill contains several important limitations on the 
authority of the IPEC. Section 301(b)(2) of the bill provides that the 
IPEC ``may not control or direct any law enforcement agency, including 
the Department of Justice, in the exercise of its investigative or 
prosecutorial authority.'' Section 305(b) further provides that 
``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.'' Section 306(c) also provides that 
``Nothing in this title--(1) shall derogate from the powers, duties, 
and functions of any of the agencies, departments, or other entities 
listed or included under section 301(b)(3)(A); and (2) shall be 
construed to transfer authority regarding the control, use, or 
allocation of law enforcement resources, or the initiation of 
prosecution of individuals cases or types of case, from the responsible 
law enforcement department or agency.''
  The foregoing provisions of the bill make clear that the IPEC does 
not, and was not intended to, have the authority to influence or 
attempt to influence the law enforcement and prosecutorial 
decisionmaking of the Department of Justice and its law enforcement 
partners. Rather, the IPEC's role is limited to general coordination, 
as defined in the statute, that does not interfere with, or derogate 
from, the existing prosecutorial and law enforcement authority and 
responsibilities of the Department of Justice and other law enforcement 
agencies.
  With this understanding in mind, I interpose no objection to the 
Senate's adoption of this bill and will lend my support to its passage.
  Mr. COBURN. Mr. President I support the overall goals of S. 3325, the 
PRO-IP Act, and believe that our country's intellectual property rights 
should be protected at home and abroad. However, I believe that 
Congress should make both realistic and fiscally responsible 
commitments in the legislation it passes.
  Intellectual property is important to our country, businesses, and 
individual rights holders. Illegal importation of counterfeit goods, 
such as pharmaceuticals, also threatens the health and safety of U.S. 
citizens. It is necessary for the Federal Government to protect and 
enforce intellectual property rights domestically and internationally.
  I believe we are on the way to achieving this goal with this 
legislation, but we have to ensure that the agencies this bill tasks 
with enforcement of intellectual property rights are held responsible. 
All of us, including the members of the intellectual property 
community, would have to agree that enforcement of intellectual 
property rights, even with passage of this legislation, will only 
become a priority of the Federal Government if agencies,

[[Page S9590]]

such as the Department of Justice and Federal Bureau of Investigation, 
are truly held responsible for achieving the goal of increased 
enforcement.
  I believe that the only way to ensure these agencies actually answer 
for their actions, and make intellectual property enforcement a 
priority, is through effective oversight by this Body. We have included 
in this bill two reporting requirements for the Justice Department and 
FBI that will make certain we know: (1) exactly what the agencies were 
doing before this bill was enacted to enforce intellectual property 
laws so that we may establish a performance baseline, and (2) what the 
agencies will be doing in the future as a result of this bill. We have 
also included other standards for State and local law enforcement 
agencies that will be receiving grants from the Justice Department, so 
that the grantees also have standards to meet in order to receive 
Federal funds.
  These reports and standards, however, will neither have an effect on 
how these agencies prioritize and use the funds authorized under this 
bill, nor ensure grantees appropriately use Federal funds unless we 
make certain the criteria we set forth in this bill are met. If the 
Justice Department and FBI continue to receive funding year after year 
under this legislation without Congress questioning the contents of the 
reports they are required to submit, all of the efforts of those 
supporting this bill will be for naught, and we will not have succeeded 
in making intellectual property enforcement a priority for this 
country.
  To be clear, I would prefer actual language in this bill stating 
that, if the Justice Department and FBI fail to submit their reports on 
time, any authorizations under title IV of this bill would be suspended 
until those reports are submitted. However, even though this language 
was not accepted, the Senator from Vermont has assured me that the 
Judiciary Committee will hold oversight hearings early each year so we 
may thoroughly question the contents of the reports required to be 
submitted by the Justice Department and FBI under title IV. It is my 
hope that the outcome of any oversight hearings in the Judiciary 
Committee related to the content of this bill will be effectively 
communicated to the Appropriations Committee so that the members of 
that committee will have detailed information to establish whether 
these agencies have complied with the requirements of S. 3325, and 
enable them to make informed decision on how to responsibly allocate 
our scarce Federal dollars.
  I thank the Senator from Vermont and the Senator from Pennsylvania 
for their work on this bill. I recognize that we have all made 
compromises along the way to ensure we pass the most effective 
enforcement legislation possible, while still maintaining our desire to 
hold Federal agencies, which spend taxpayer dollars, accountable for 
their actions so that this country's intellectual property rights 
holders are protected from counterfeiting and piracy.
  Mr. VOINOVICH. Mr. President, I rise today to join my colleagues, 
Senators Specter, Leahy, Bayh, and others in strong support of S. 3325, 
the Prioritizing Resources and Organization for Intellectual Property 
Act of 2008, PRO IP Act, which was just approved unanimously by the 
Senate today. First, I would ike to express my appreciation to Senator 
Specter and Senator Leahy for the excellent job they have done in 
ensuring that the Senate passed this important piece of legislation 
before we complete our business for the year. I would like to thank 
Senator Bayh. I have partnered with Senator Bayh on this issue for the 
past 3 years. We first introduced intellectual property enforcement 
legislation in the first session o the 109th Congress. I believe it is 
safe to say that we are both pleased that the concepts contained in our 
legislation have become a part of the PRO-IP Act. I think it is 
important to point out that the PRO-IP Act has strong bipartisan 
support in the Senate. When we pass legislation in a bipartisan manner, 
it reveals the best of the Senate.
  For over 4 years, I have been talking about the need for our 
Government to improve its efforts to protect our Nation's intellectual 
property from what I have referred to as the Pirates of the 21st 
Century. At a time when American businesses face some of the fiercest 
competition ever, our Government cannot ignore the growing threat of 
intellectual property theft to companies, workers, and consumers. 
Intellectual property theft is no longer an issue limited to knockoff 
hand bags and pirated DVDs and CDs.
  Today, almost every product made is subject to being counterfeited. 
The problem of intellectual property theft impacts businesses--big and 
small. Genuine products manufactured in the United States are competing 
with phony products, which are sold both here and abroad. At a time 
when so many American businesses and workers are in dire straits, our 
Nation can no longer turn a blind eye to this problem. The economic 
impact of intellectual property theft is overwhelming. According to the 
U.S. Chamber of Commerce, intellectual property theft is costing 
American businesses an estimated $250 billion each year and has cost an 
estimated 750,000 jobs. The chamber estimates that if counterfeit auto 
parts sales were eliminated, the U.S. auto industry could hire up to 
200,000 additional workers. In my home State of Ohio, 200,000 
additional auto industry jobs would make a tremendous impact in 
reversing the loss of manufacturing jobs.
  The costs of intellectual property theft are not limited to lost jobs 
and revenues. There are significant health and safety ramifications. 
For example, during a hearing I held in July 2006, the general counsel 
from Bendix Commercial Vehicle Systems LLC, Bendix, which is 
headquartered in Elyria, OH, testified that counterfeit air brakes used 
in tractor-trailers are so authentic looking that some of these 
counterfeit products are returned to Bendix via its warranty claims 
process. Bendix is so concerned about the safety implications of this 
problem that it is spending $1 million annually on IP protection and 
enforcement activities--that is $1 million that this one company is not 
able to spend each year on other things such as research and 
development or worker training. Moreover, given the proliferation of 
counterfeit goods into areas such as pharmaceuticals and auto parts, it 
is only a matter of time before our Nation sees the dire health and 
safety consequences arising from this problem.
  The passage of the PRO-IP Act is an important step to building upon 
the efforts that have begun under the National Intellectual Property 
Law Enforcement Coordination Council and STOP! initiative. The PRO-IP 
Act will provide increased resources for Department of Justice programs 
to combat intellectual property theft and provide coordination and 
strategic planning of Federal efforts against counterfeiting and 
piracy. I am particularly pleased that the PRO-IP Act will create a 
White House-led coordinator. I believe that the most effective 
intellectual property enforcement coordination requires White House 
leadership. As a result, I believe the efforts underway in each 
Department and agency will have improved effectiveness by placing the 
new IP enforcement coordinator within the Executive Office of the 
President. The coordinator will have both the visibility and the access 
to provide a most effective executive branch voice on IP enforcement.
  Finally, while I am pleased that the Senate completed its work on 
passing intellectual property enforcement legislation, I know that my 
job is not finished. I will continue to work with my colleagues to 
ensure that Congress provides effective oversight over the various 
agencies and departments charged with enforcing and protecting 
intellectual property rights and that these entities have the resources 
necessary to get the job done.
  Mr. LEAHY. Mr. President, I ask unanimous consent that the committee 
amendments be withdrawn; that a Leahy substitute amendment, which is at 
the desk, be agreed to; the bill, as amended, be read a third time and 
passed; the motions to reconsider be laid upon the table, with no 
intervening action or debate; and any statements related to the bill be 
printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 5655) was agreed to:
  The amendment is printed in today's Record under ``Text of 
Amendments.''

[[Page S9591]]

  The bill (S. 3325), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed.
  Mr. LEAHY. Mr. President, we are a nation in the midst of an 
unprecedented financial crisis. It is not just our financial 
enterprises that are shaken but our confidence in our own economic 
strength. The Members of this Congress and the people of this Nation 
are being asked to take extraordinary steps to contain the explosions 
on Wall Street.
  We must not, as we try to repair the structure of our financial 
institutions, neglect the very sources of our economic power. 
Intellectual property--copyrights, patents, trademarks, and trade 
secrets--is an ever-growing sector of our economy. We are the envy of 
the world for the quality and the quantity of our innovative and 
creative goods and services. If we want to continue to lead the world 
in producing intellectual property, we need to protect Americans' 
rights in that property.
  This bill is among the most important I have championed. I drew on 
the experiences of thousands of intellectual property owners, hundreds 
of law enforcement officials, and all the legislators on both sides of 
the aisle in Congress, and we have a bill that provides a focused and 
honed set of improvements to the intellectual property law, targeted 
increases in resources for significant enforcement efforts, streamlined 
interagency efforts to coordinate governmental intellectual property 
policies but also vigorous oversight of the Justice Department's 
programs.
  I thank all those who cosponsored it. Our bill is going to improve 
the enforcement of our Nation's intellectual property laws, they will 
bolster our intellectual property-based economy, and it will protect 
American jobs.
  Mr. President, we are a Nation in the midst of an unprecedented 
financial crisis. It is not just our financial enterprises that are 
shaken, but our confidence in our own economic strength. The Members of 
this Congress, and the people of this Nation, are being asked to take 
extraordinary steps to contain the explosions on Wall Street. We must 
not, as we try to repair the structure of our financial institutions, 
neglect the very sources of our economic power. Intellectual property--
copyrights, patents, trademarks, and trade secrets--is an ever-growing 
sector of our economy. We are the envy of the world for the quality, 
and the quantity, of our innovative and creative goods and services. If 
we want to continue to lead the world in producing intellectual 
property, we need to protect our citizens' rights in that property.
  Long ago, I was the Chittenden County State's Attorney in Vermont. 
There is crime everywhere, even in Vermont, and I prosecuted every kind 
of case. I will never forget how much successful prosecutions depend on 
whether the investigators and lawyers charged with protecting the 
public from crime have the right tools to do so. No matter how 
dedicated the prosecutor, and no matter how outrageous the crime, if 
the laws are not clearly and sensibly drafted, or if the resources are 
simply inadequate, no justice will be done.
  The intellectual property enforcement bill we consider today is 
designed solely and specifically to ensure that law enforcement has the 
tools it needs to protect our Nation's impressive array of intellectual 
property. The revisions to the civil and criminal statutes, the 
provision of directed resources to Government at all levels, the 
coordination across the Federal Government of efforts in creating 
policies and enforcement efforts, and the requirements for reporting to 
the Congress--all of these provisions are focused on strengthening the 
protection of our intellectual property.
  Vermont is special to me, and the goods from Vermont that embody 
intellectual property are prized by consumers around the world. But 
every State in the Union is home to industries based on intellectual 
property. The creative and innovative Vermonters that I am proud to 
call friends and constituents have counterparts in every other State. 
These individuals and industries are essential to restoring and 
building our fiscal health. In a time of such frightening economic 
malaise, we should redouble our efforts to make sure that the 
productive and valuable sectors of our economy are freed from the 
debilitating effects of theft and misappropriation.
  Intellectual property is just as vulnerable as it is valuable. 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.
  This bill is among the most important I have championed. Drawing on 
the experiences of thousands of intellectual property owners, hundreds 
of law enforcement officials, and all of the legislators in Congress, 
it provides a focused and honed set of improvements to the intellectual 
property law, targeted increases in resources for significant 
enforcement efforts, streamlined inter-agency efforts to coordinate 
governmental intellectual property policies, and vigorous oversight of 
the Justice Department's programs. I thank all the cosponsors of this 
legislation for their efforts and support. Our bill will improve the 
enforcement of our Nation's intellectual property laws, bolster our 
intellectual property-based economy, and protect American jobs.

                          ____________________