[Congressional Record (Bound Edition), Volume 151 (2005), Part 6]
[Senate]
[Pages 7771-7774]
[From the U.S. Government Publishing Office, www.gpo.gov]




    EXPRESSING SENSE OF CONGRESS ON WORLD INTELLECTUAL PROPERTY DAY

  Mr. FRIST. Mr. President, I ask unanimous consent that the Senate now 
proceed to the consideration of S. Con. Res. 28, which was submitted 
earlier today.
  The PRESIDING OFFICER. The clerk will report the concurrent 
resolution by title.
  The legislative clerk read as follows:

       A concurrent resolution (S. Con. Res 28) expressing the 
     sense of Congress on World Intellectual Property Day 
     regarding the importance of protecting intellectual property 
     rights globally.

  There being no objection, the Senate proceeded to consider the 
concurrent resolution.
  Mr. LUGAR. Mr. President, today, on World Intellectual Property Day, 
I rise in support of a resolution I have submitted recognizing the 
importance of protecting intellectual property. One of the key benefits 
of protecting intellectual property is preserving innovation. Only with 
enforcement of protections will there be incentives for inventors to 
create and protect their innovations. As the sharing of goods and ideas 
transcends national boundaries, it is vital that these protections be 
able to accompany the ideas that they protect globally.
  Although most of our trading partners have national domestic laws 
protecting intellectual property piracy and are even parties to 
agreements which contain intellectual property protections, piracy 
continues largely due to lack of enforcement. Theft of intellectual 
property results in competitive disadvantages to U.S. industries and 
job loss for American workers.
  Counterfeiting and digital piracy have increased dramatically in 
recent years. In addition to the direct impact on the sales and profits 
of the subject industries, there is also significant harm and deception 
to consumers who believe they are purchasing legal and legitimate 
goods. Piracy and counterfeiting of copyrighted products in digital and 
other formats have grown to an enormous scale because these illegal 
activities offer a high rate of return with minimal risk to the 
criminal producing element. This element can conduct piracy with little 
capital investment, and in many countries, little chance of 
apprehension. Even if apprehended, the penalties may be so minor that 
they offer no deterrent.
  There are various agreements between nations implemented at different 
levels for the protection of intellectual property. One of these is 
part of the World Trade Organization, WTO, charter, the Trade Related 
Aspects of Intellectual Property Rights, TRIPS. Key TRIPS provisions 
require all WTO members to provide certain minimum standards of 
protection for patents, copyrights, trademarks, trade secrets, 
geographical indicators, and other forms of intellectual property. 
There is also a requirement to provide effective enforcement of each 
nation's domestic intellectual property regulations.
  Also currently in force are two copyright treaties of the World 
Intellectual Property Organization: the WIPO Copyright Treaty and the 
WIPO Performances and Phonograms Treaty, which entered into force in 
2002. These treaties help raise the minimum standards of intellectual 
property protection around the world, particularly with respect to 
internet-based delivery of copyrighted works. As with the TRIPS 
agreement, enforcement of obligations by member countries remains the 
issue.
  This resolution focuses on two nations, China and Russia, with which 
we have significant trading relationships, yet, are still not offering 
the necessary enforcement of protections. China has become a leading 
exporter of counterfeit and pirated goods to the world. It is, 
therefore, critical that we address the issue of protection and 
enforcement in China. At the April 2004 meeting of the Joint Commission 
on Commerce and Trade, JCCT, the Chinese Government indicated that it 
would undertake a series of actions to significantly reduce 
infringement throughout the country. Piracy rates in China have 
remained at extremely high levels for the past decade, despite numerous 
actions by the Chinese Government such as the seizure and destruction 
of millions of pirated products, often via highly publicized 
steamrollings of counterfeited discs. As a fellow member of the WTO, we 
must ensure that China fulfills its commitments to enforce intellectual 
property protections under the rules of the WTO.
  Piracy in Russia continues to be a growing problem. Only a few pirate 
optical disc factories existed in Russia in the late 1990s. Reports 
indicate that there are now over 30 such plants producing pirated 
products in Russia, ruining the Russian market for American right-
holders and substantially undermining other markets in Europe as well. 
The Russian Government has made many promises to solve this problem, 
but meaningful results have yet to occur. Russia recognizes that its 
domestic laws and enforcement measures still do not meet TRIPS 
requirements; however, the required legislation has not been 
implemented. We should encourage the Government of Russia to act 
promptly and implement these measures so that it can fully comply with 
the rules of the WTO.
  The problem of protecting intellectual property is evident. Going 
forward, our focus should be on the solutions. What enforcement methods 
should be utilized that have not been thus far? Should our 
international agreements and treaties with our trading partners be 
better utilized to ensure enforcement of intellectual property rights 
laws? Some progress has been made in these areas, yet there is much 
more ground to cover. I encourage the administration to insure that our 
trading partners fulfill their commitments and agreements to abide by 
global intellectual property rules.
  I ask unanimous consent that relevant material be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

 [From the International Intellectual Property Alliance, Apr. 26, 2005]

     Statement of the International Intellectual Property Alliance 
              Celebrating World Intellectual Property Day

       Washington, DC.--The International Intellectual Property 
     Alliance (IIPA), a coalition of six trade associations 
     representing 1,300 U.S.-based copyright companies, today 
     celebrates 2005 World Intellectual Property Day. Eric H. 
     Smith, President of IIPA, issued the following statement:
       ``The theme for 2005's World Intellectual Property Day is 
     `Think, Imagine, Create.' This message from the Director 
     General of the World Intellectual Property Organization 
     (WIPO), Kamil Idris, is directed at the world's young people 
     to build awareness about the importance of creativity--and 
     the protection of the intellectual property that supports 
     that creativity--to the daily lives of every global citizen. 
     Without providing this protection, many of the great cultural 
     and technological assets that we now take for granted would 
     never have been available to us to improve our lives. Strong 
     protection and enforcement of the world's laws that nurture 
     the creativity embodied in intellectual property are all too 
     often taken for granted or viewed by a few as no longer 
     necessary. We too often forget the important cultural and 
     economic benefits, jobs, contributions to GDP and tax 
     revenues that are dependent on a strong intellectual property 
     system.
       ``U.S. creators have benefited significantly from a strong 
     global system of protection enshrined in treaties and 
     conventions to which virtually all the world's nations 
     belong. Yet weak laws and inadequate enforcement of those 
     laws continue to plague all those individuals and companies 
     that contribute to this great global creative and 
     technological explosion.
       ``Today, Senators Lugar and Baucus introduced a Sense of 
     the Congress Resolution, celebrating World Intellectual 
     Property Day, and highlighting the massive damage done--over 
     $4 billion just to U.S. creators of copyright products 
     alone--to global creativity by just two countries, China and 
     Russia, through their failure to abide by internationally-
     agreed standards of protection and enforcement. The message 
     to these countries is clear: they are cheating themselves by 
     failing to take effective action to prevent the creative 
     works of their own citizens, U.S. citizens and those of other 
     countries, from blatant theft. IIPA members join with the

[[Page 7772]]

     sponsors of this Resolution to call upon these governments to 
     take earnest measures to halt this theft and upon the U.S. 
     government to use all the tools provided by Congress to see 
     that these countries take effective action to prevent pirates 
     from stealing intellectual property with impunity. Economic 
     and cultural development is increasingly dependent on the 
     creation and protection of intellectual property of all 
     kinds. The resolution hits the mark in targeting two of the 
     world's worst offenders of intellectual property rights.''
                                  ____


           [From the Association of American Publishers News]

   Publishers Applaud Senate Resolution on Safeguarding Intellectual 
                           Property Worldwide

       Washington, DC, April 26, 2005.--The U.S. publishing 
     industry enthusiastically welcomed today's introduction in 
     the Senate of a bipartisan Concurrent Resolution stressing 
     the importance of protecting intellectual property rights 
     around the world. The Association of American Publishers 
     (AAP) expressed special thanks to Senator Richard Lugar (R-
     IN), Chairman of the Foreign Relations Committee, and Senator 
     Max Baucus (D-MT), Ranking Member of the Finance Committee, 
     who joined in sponsoring the resolution to mark the 
     observance of World Intellectual Property Day.
       Noting that the theft of intellectual property hurts the 
     U.S. economy and costs American jobs, and citing deep concern 
     over the failure of many U.S. trading partners to fulfill 
     obligations to protect intellectual property, the resolution 
     is particularly critical of China and Russia, where piracy 
     threatens the very existence of legitimate markets for 
     copyright products. The resolution calls on the 
     Administration to use ``all available tools provided by 
     Congress,'' and the leverage provided by bi-lateral and 
     multi-lateral trade agreements (including, where appropriate, 
     WTO commitments) as well as terms regulating benefits such as 
     the Generalized System of Preferences (GSP) program, to 
     protect the intellectual property rights of American 
     businesses.
       AAP President and CEO Pat Schroeder congratulated Senators 
     Lugar and Baucus for focusing attention on the serious matter 
     of international piracy. ``Chinese pirates are decimating 
     markets for legitimate commercial best sellers, academic arid 
     professional works and English language learning materials. 
     Russia leads its region in consumption of pirated books in 
     both English and translation, and the impact on American 
     publishers will only deepen as demand for English language 
     materials grows in the region. Piracy cost American 
     publishers an estimated $50 million last year in China, and 
     $42 million in Russia, and the situation is worsening with 
     the growth of the Internet as a distribution channel for 
     pirated works,'' Mrs. Schroeder said. ``In marking World 
     Intellectual Property Day, this strong statement of 
     Congress'' commitment to protect American creativity is very 
     welcome.''
       The Association of American Publishers is the national 
     trade association of the U.S. book publishing industry. AAP's 
     approximately 300 members include most of the major 
     commercial book publishers in the United States, as well as 
     smaller and non-profit publishers, university presses and 
     scholarly societies. The protection of intellectual property 
     rights in all media, the defense of intellectual freedom, and 
     the promotion of reading and literacy are among the 
     Association's primary concerns.
                                  ____


            [From the Motion Picture Association of America]

     MPAA Chief Praises World Intellectual Property Day Resolution

       Washington, DC.--Motion Picture Association President and 
     CEO Dan Glickman today praised a concurrent resolution 
     introduced by Senator Richard Lugar (R-IN) and Senator Max 
     Baucus (D-MT) that expressed the sense of the Congress 
     stressing the importance of protecting intellectual property 
     rights, particularly in China and Russia where piracy and 
     counterfeiting are rampant.
       ``I thank Senator Lugar and Senator Baucus for this 
     resolution celebrating World Intellectual Property Day, and 
     more importantly, for taking a leadership role in fighting 
     for intellectual property rights across the globe.''
       ``Of course, my special concern is protecting the magic of 
     the movies. Our industry loses $3.5 million each year through 
     hard goods piracy, and billions more in internet piracy. If 
     the black market is allowed to flourish, and if thieves are 
     allowed to continue to steal our products, it makes it more 
     and more difficult to make the movies that entertain people 
     the world over.''
       ``But this isn't just about the movies. As the resolution 
     itself says, the American economy depends increasingly on the 
     work of authors, inventors, programmers and many others who 
     create intellectual products of high value. In fact, close to 
     twelve million Americans are employed by the copyright 
     industries. For America, intellectual property means jobs.''
       ``But intellectual property is important for the rest of 
     the world as well. Enforcing intellectual property laws in 
     China and in Russia will only help these economies prosper in 
     the long run.'' ``I applaud this bold resolution and I thank 
     both Senator Lugar and Senator Baucus for introducing it 
     today.''
                                  ____



                                        Universal Music Group,

                                 Santa Monica, CA, April 25, 2005.
     Hon. Richard G. Lugar,
     U.S. Senate, Hart Senate Office Building, Washington, DC.
       Dear Senator Lugar: I am the President and Chief Operating 
     Officer of Universal Music Group, the worlds' largest music 
     company. I write to tell you how much my company and I 
     appreciate Congress' commitment to the fight against piracy. 
     We recognize that you and Senator Baucus have been particular 
     champions of this cause for some time now. The Resolution 
     that you and Senator Baucus are introducing is another 
     indication of your commitment to the many Americans who earn 
     their livelihoods by bringing new artists and sounds to 
     consumers around the globe.
       It is clear that innovation and the strong protection of 
     intellectual property laws will be vital to America's 
     economic future. The United States Government must do all 
     that it can to ensure that our trading partners vigorously 
     enforce the treaties and other commitments they make to the 
     United States, and it is our hope that your Senate colleagues 
     will join you in sending that message by supporting the 
     Lugar-Baucus Resolution.
           Very truly yours,
                                                    Zach Horowitz,
     President and COO.
                                  ____


  [From the Recording Industry Association of America, April 26, 2005]

              Statement on World Intellectual Property Day

       On behalf of America's music community, we wish to thank 
     Chairman Lugar and Senator Baucus for the resolution that 
     they have jointly introduced today highlighting the need for 
     greater vigilance in the fight against piracy in global 
     markets. In particular, there is an urgent need to direct 
     attention to markets like Russia and China, which remain 
     essentially closed to U.S. businesses due to stifling piracy 
     rates. As the Senators aptly mention, piracy in these markets 
     and elsewhere around the world ``is open, notorious and 
     permitted to operate without meaningful hindrance from the 
     government.''
       There may be no single economic issue that has a greater 
     bearing on American competitiveness in the 21st century than 
     the protection of intellectual property. As such, it is 
     imperative that we not shy away from demands that our trading 
     partners meet their obligations under international 
     agreements as well as the criteria for participating in US. 
     trade programs affording unilaterally extended trade 
     benefits. We simply cannot enter into political arrangements 
     that fail to protect our greatest economic assets.
       On the occasion of World Intellectual Property Day, we wish 
     to call upon the Russian and Chinese governments to reform 
     their approach to this critical issue and to begin to 
     seriously address the rampant piracy that is so endemic in 
     their societies today. It is of utmost importance that the 
     Sino-U.S. and U.S.-Russia relationships are built upon a 
     mutual understanding of shared obligations and a strong 
     commitment to embracing and enforcing the rule of law. While 
     we very much want to see Russia join the community of nations 
     bound to one another in the World Trade Organization, 
     negotiations cannot conclude without marked improvement and a 
     commitment on the part of the Russian government to the 
     protection of intellectual property.
       We also wish to express our great concern about the current 
     state of affairs in China and the apparent determination of 
     the Chinese government to limit the ability of U.S. companies 
     to meaningfully engage in the Chinese market. At present, the 
     Chinese government continues to maintain significant barriers 
     to entry for some of our nation's most competitive 
     industries, particularly in the area of music and film 
     production and distribution. In addition, the government 
     continues to permit Chinese pirate businesses to be built on 
     the back of American creativity. Without question, these 
     practices must change if China wishes to maintain a secure 
     and stable relationship with the United States.
       We appreciate the continued attention of our nation's 
     political leaders to this pressing issue--on both the 
     occasion of World Intellectual Property Day and beyond. We 
     look forward to working with Congress and the Administration 
     to help produce--and if necessary, demand--effective changes 
     to create a more level playing field and a global environment 
     that values and respects American intellectual property.
                                                    Mitch Bainwol,
                                                 Chairman and CEO.

  Mr. BAUCUS. Mr. President, the theme of this year's World 
Intellectual Property Day, which we commemorate today, is ``Think, 
Imagine, Create.''
  Think, imagine, create, these simple words are at the center of what 
makes

[[Page 7773]]

America great and what continues to drive our progress. American 
thought produced our Constitution and our system of government. 
American imagination put a person on the moon. And American creativity 
has made U.S. culture the envy of the world.
  It is astounding how important intellectual property has become in 
our everyday life. It is even more astounding how much we take human 
creativity and intellectual property for granted. Just think about it 
for a moment and imagine what a world would be like without 
intellectual property rights.
  Without copyrights, who would want to write the books we read, 
produce the movies we watch, or compose the music that fills our ears?
  Without trademarks, who would want to invest the enormous time, 
energy, and resources required to develop a brand name synonymous with 
quality and reliability?
  And without patents, who would have the incentive to innovate and 
produce inventions that change our world and save our lives?
  Intellectual property rights are not just some abstract legal concept 
the sole province of lawyers and judges. They are an essential motor of 
our economy.
  Look at the copyright industry. These are the folks who produce 
newspapers, books, movies, computer software, and radio/TV 
broadcasting. This industry alone accounts for 12 percent of our gross 
domestic product. That's $1.25 trillion.
  If these numbers don't impress, then let's look at the impact the 
copyright industries have on U.S. jobs. They alone employ roughly 11.5 
million workers. That is nearly 8.5 percent of total U.S. employment. 
Believe it or not, that number approaches the level of employment in 
the heath care sector or the entire manufacturing sector. And between 
1997 and 2002, the rate of job growth in the copyright industry 
exceeded that of the U.S. economy as a whole.
  That is why protecting intellectual property rights worldwide is 
critical. It is not just a concern for the overall health of the U.S. 
economy. And it is not just a concern of this or that company. It is a 
concern of each and every worker that the intellectual property 
industries employ. And it is a concern of each and every one of us that 
enjoys going to see the latest movie, likes wearing a hip new pair of 
Nike shoes, or needs the most innovative life saving drug.
  Unfortunately, while we have a robust IPR regime here in America, 
some of our trading partners do not. In certain countries, IPR theft is 
rampant.
  China is probably the most notorious example. USTR reports that 
counterfeiting and piracy in China are at ``epidemic levels and cause 
serious harm to U.S. businesses in virtually every sector of the 
economy.'' In fact, as USTR pointed out, one U.S. trade association 
claims that counterfeiting and piracy in China exceeds 90 percent. 
Estimates of the value of counterfeit and pirated goods in China are 
between $19 billion and $24 billion in 2001. That translates into 
losses of $2.5 to $3.8 billion to U.S. industry.
  Russia is also a serial IPR violator. The scale of intellectual 
property rights infringement there is vast and growing. Russia's legal 
framework has huge gaps, and the enforcement of existing laws is lax. 
This has real costs. Estimated losses to U.S. copyright industries due 
to piracy of films, videos, sound recordings, books, and computer 
software continue to exceed $1 billion annually. Over 80 percent of all 
DVDs on the Russian market are estimated to be pirated. Pirated music 
is estimated at 66 percent of sales, and software piracy is estimated 
at about 88 percent.
  IPR violations in Brazil are also very troubling, particularly given 
that Brazil is both a WTO member and receives benefits from the United 
States under the Generalized System of Preferences. USTR reports that 
estimated losses in Brazil due to piracy of copyrighted materials 
totaled over $930 million in 2004 alone. An estimated 75 percent of 
audiocassettes sold in Brazil are pirated.
  These violations run counter to the entire spirit and purpose of 
World Intellectual Property Day. Rather than foster an environment that 
encourages thought, imagination, and creativity, IPR violations in 
China, Russia, Brazil, and other countries stifle creativity and 
innovation. They send the chilling message that the short-term profit 
of pirates, counterfeiters, and other IPR thieves matter more than the 
long term gains of society.
  We need to crack down on countries that fail to protect and enforce 
intellectual property rights. We should use all tools at our disposal 
to address barriers to thought, imagination, and creativity.
  In my view, we are long overdue in initiating a WTO case with China 
for its failure to comply with its obligations under the WTO's TRIPS 
agreement, particularly in the area of copyrights.
  In my view, we should not give a green light to Russia's bid to join 
the WTO until Russia makes visible and sustained improvements to its 
legal regime as well as a demonstrable commitment to long-term 
enforcement.
  And in my view, we should not continue to give countries with serious 
intellectual property deficiencies, like Russia and Brazil, GSP 
benefits until they clean up their act.
  That is why I am today cosponsoring with Senator Lugar a sense-of-
the-Senate resolution on the importance of protecting intellectual 
property. Among other things, this resolution urges the administration 
to use all effective remedies to address the lack of intellectual 
property protection. It also urges the administration to take action to 
ensure that China, Russia, and our other trading partners comply with 
their international trade obligations.
  Think, imagine, create, that is the theme of this year's World 
Intellectual Property Day. I hope that next year we can celebrate an 
improved global environment that truly fosters these important 
aspirations.
  Mr. FRIST. Mr. President, I ask unanimous consent that the concurrent 
resolution be agreed to, the preamble be agreed to, and the motion to 
reconsider be laid upon the table.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The concurrent resolution (S. Con. Res. 28) was agreed to.
  The preamble was agreed to.
  The concurrent resolution, with its preamble, reads as follows:

                            S. Con. Res. 28

       Whereas protection of intellectual property is critical to 
     our nation's economic competitiveness, cultural diversity, 
     health and scientific development;
       Whereas the United States economy depends increasingly on 
     the work of authors, artists, inventors, programmers, and 
     many others who create intellectual products of high value;
       Whereas theft of intellectual property results in 
     competitive disadvantages to United States industries and job 
     losses for American workers, and for the United States 
     economy as a whole;
       Whereas the copyright industries employ approximately 
     11,500,000 workers or 8.41 percent of total employment in the 
     United States, a number that approaches the levels of 
     employment in the health care and social assistance sector 
     (15,300,000 employees) and the entire manufacturing sector 
     (14,500,000 workers in 21 manufacturing industries);
       Whereas there is great concern about the failure of many of 
     our trading partners to live up to their international 
     obligations in the area of intellectual property protection;
       Whereas counterfeiting of copyrighted products in digital 
     and other formats, as well as counterfeiting of all types of 
     trademarked products, has grown to an enormous scale;
       Whereas many of our trading partners, in particular Russia 
     and China, have laws in place to prevent piracy and 
     counterfeiting, but are failing to enforce the laws;
       Whereas Russia and China alone are responsible for over 
     $4,000,000,000 in losses a year to United States industries 
     due to piracy;
       Whereas piracy in Russia and China is open, notorious, and 
     permitted to operate without meaningful hindrance from the 
     governments of those countries;
       Whereas China should be encouraged to meet its intellectual 
     property protection obligations as a member of the World 
     Trade Organization (WTO);
       Whereas Russia should be encouraged to explore means to 
     provide effective piracy protection enabling compliance with 
     the rules set forth by the WTO;
       Whereas the United States Government must convey to these 
     countries that failure

[[Page 7774]]

     to act will have political and economic consequences for 
     relationships with the United States; and
       Whereas Congress has enacted legislation regarding the 
     protection of intellectual property, including measures which 
     direct the Administration to censure countries that fail to 
     provide adequate and effective protection for intellectual 
     property: Now, therefore, be it
       Resolved by the Senate (the House of Representatives 
     concurring), That--
       (1) the Administration should utilize effective remedies 
     and solutions in addressing the lack of intellectual property 
     protection in China and Russia, using all available tools 
     provided by Congress;
       (2) the Administration should ensure that any country that 
     enjoys benefits under the Generalized System of Preferences 
     (GSP) program, such as Russia, lives up to its obligations to 
     provide adequate and effective protection for intellectual 
     property rights, or lose its eligibility to participate in 
     trade preference programs;
       (3) the Administration should ensure that action is taken 
     against any country with which the United States shares 
     mutual commitments under the WTO, such as China, when the 
     country fails to live up to its WTO commitments;
       (4) the Administration should urge Russia to promote 
     measures to enforce intellectual property protection which 
     will enable compliance with the intellectual property 
     commitments required by the WTO; and
       (5) the President should take any additional action the 
     President considers appropriate to protect the intellectual 
     property rights of United States businesses.

                          ____________________