[Congressional Record (Bound Edition), Volume 154 (2008), Part 6]
[House]
[Pages 7835-7847]
[From the U.S. Government Publishing Office, www.gpo.gov]




 PRIORITIZING RESOURCES AND ORGANIZATION FOR INTELLECTUAL PROPERTY ACT 
                                OF 2008

  Mr. CONYERS. Mr. Speaker, I move to suspend the rules and pass the 
bill (H.R. 4279) to enhance remedies for violations of intellectual 
property laws, and for other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 4279

       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 
     ``Prioritizing Resources and Organization for Intellectual 
     Property 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--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

Sec. 101. Registration of claim.
Sec. 102. Registration and infringement actions.
Sec. 103. Civil remedies for infringement.
Sec. 104. Treble damages in counterfeiting cases.
Sec. 105. Statutory damages in counterfeiting cases.
Sec. 106. Exportation of goods bearing infringing marks.
Sec. 107. Importation and exportation.

     TITLE II--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

Sec. 201. Criminal infringement of a copyright.
Sec. 202. Harmonization of forfeiture procedures for intellectual 
              property offenses.
Sec. 203. Directive to United States Sentencing Commission.
Sec. 204. Trafficking in counterfeit goods or services.

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

     Subtitle A--Office of the United States Intellectual Property 
                       Enforcement Representative

Sec. 301. Office of the United States Intellectual Property Enforcement 
              Representative.
Sec. 302. Definition.

                    Subtitle B--Joint Strategic Plan

Sec. 321. Joint Strategic Plan.
Sec. 322. Reporting.
Sec. 323. Savings and repeals.
Sec. 324. Authorization of appropriations.

          TITLE IV--INTERNATIONAL ENFORCEMENT AND COORDINATION

Sec. 401. Intellectual property attaches.
Sec. 402. Duties and responsibilities of intellectual property 
              attaches.
Sec. 403. Training and designation of assignment.
Sec. 404. Coordination.
Sec. 405. Authorization of appropriations.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

                        Subtitle A--Coordination

Sec. 501. Intellectual Property Enforcement Officer.

                 Subtitle B--Law Enforcement Resources

Sec. 511. Local law enforcement grants.
Sec. 512. CHIP units, training, and additional resources.
Sec. 513. Transparency of prosecutorial decisionmaking.
Sec. 514. Authorization of appropriations.

                  Subtitle C--International Activities

Sec. 521. International intellectual property law enforcement 
              coordinators.
Sec. 522. International training activities of the computer crime and 
              intellectual property section.

        Subtitle D--Coordination, Implementation, and Reporting

Sec. 531. Coordination.
Sec. 532. Annual reports.

     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--ENHANCEMENTS TO CIVIL INTELLECTUAL PROPERTY LAWS

     SEC. 101. REGISTRATION OF CLAIM.

       Section 410 of title 17, United States Code, is amended--
       (1) by redesignating subsections (c) and (d) as subsections 
     (d) and (e), respectively; and
       (2) by inserting after subsection (b) the following:
       ``(c)(1) A certificate of registration satisfies the 
     requirements of section 411 and section 412 regardless of any 
     inaccurate information contained in the certificate, unless--
       ``(A) the inaccurate information was included on the 
     application for copyright registration with knowledge that it 
     was inaccurate; and
       ``(B) the inaccuracy of the information, if known, would 
     have caused the Register of Copyrights to refuse 
     registration.
       ``(2) In any case in which inaccuracies described under 
     paragraph (1) are alleged, the court shall request the 
     Register of Copyrights to advise the court whether the 
     inaccuracy of the information, if known, would have caused 
     the Register of Copyrights to refuse registration. The 
     Register shall respond to the court's request within 45 days 
     after the request is made.
       ``(3) Nothing in this subsection shall affect any rights, 
     obligations, or requirements of a person related to 
     information contained in a registration certificate except 
     for the institution of and remedies in infringement actions 
     under sections 411 and 412.''.

     SEC. 102. REGISTRATION AND INFRINGEMENT ACTIONS.

       (a) Registration in Civil Infringement Actions.--Section 
     411 of title 17, United States Code, is amended--
       (1) in the section heading, by inserting ``civil'' after 
     ``and'' ; and
       (2) in subsection (a), by striking ``no action'' and 
     inserting ``no civil action''.
       (b) Technical and Conforming Amendment.--Section 411(b) of 
     title 17, United States Code, is amended by striking ``506 
     and sections 509 and'' and inserting ``505 and section''.

     SEC. 103. CIVIL REMEDIES FOR INFRINGEMENT.

       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 at the end and inserting the 
     following: ``, and records documenting the manufacture, sale, 
     or receipt of things involved in such violation. The court 
     shall enter an appropriate protective order with respect to 
     discovery by the applicant of any records that have been 
     seized. The protective order shall provide for appropriate 
     procedures to assure that confidential information contained 
     in such records is not improperly disclosed to the 
     applicant.''.

     SEC. 104. 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:

[[Page 7836]]

       ``(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;
       ``(2) intentionally inducing another to engage in a 
     violation specified in paragraph (1); or
       ``(3) 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. 105. 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. 106. 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: ``OR EXPORTATION''; and
       (2) in section 42--
       (A) by striking the word ``imported''; and
       (B) by inserting after ``customhouse of the United States'' 
     the following: ``, nor shall any such article be exported 
     from the United States''.

     SEC. 107. IMPORTATION 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, 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 and Exportation.--
       ``(1) Importation.--'';
       (3) by striking ``This subsection does not apply to--'' and 
     inserting the following:
       ``(2) Importation or exportation of infringing items.--
     Importation into the United States or exportation from the 
     United States, without the authority of the owner of 
     copyright under this title, of copies or phonorecords, the 
     making of which either constituted an infringement of 
     copyright or would have constituted an infringement of 
     copyright if this title had been applicable, is an 
     infringement of the exclusive right to distribute copies or 
     phonorecords under section 106, actionable under sections 501 
     and 506.
       ``(3) Exceptions.--This subsection does not apply to--'';
       (4) in paragraph (3)(A) (as redesignated by this 
     subsection) by inserting ``or exportation'' after 
     ``importation''; and
       (5) in paragraph (3)(B) (as redesignated by this 
     subsection)--
       (A) by striking ``importation, for the private use of the 
     importer'' and inserting ``importation or exportation, for 
     the private use of the importer or exporter''; and
       (B) by inserting ``or departing from the United States'' 
     after ``United States''.
       (c) Conforming Amendments.--(1) Section 602 of title 17, 
     United States Code, is further amended--
       (A) in the section heading, by inserting ``or exportation'' 
     after ``importation''; and
       (B) in subsection (b)--
       (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 ``U.S. Customs and Border Protection''; and
       (iii) by striking ``the Customs Service'' and inserting 
     ``U.S. 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 ``U.S. 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 II--ENHANCEMENTS TO CRIMINAL INTELLECTUAL PROPERTY LAWS

     SEC. 201. CRIMINAL INFRINGEMENT OF A COPYRIGHT.

       Section 2319 of title 18, United States Code, is amended--
       (1) in subsection (b)(2)--
       (A) by inserting ``is a felony and'' after ``offense'' the 
     first place such term appears; and
       (B) by striking ``paragraph (1)'' and inserting 
     ``subsection (a)'';
       (2) in subsection (c)(2)--
       (A) by inserting ``is a felony and'' after ``offense'' the 
     first place such term appears; and
       (B) by striking ``paragraph (1)'' and inserting 
     ``subsection (a)'';
       (3) in subsection (d)(3)--
       (A) by inserting ``is a felony and'' after ``offense'' the 
     first place such term appears; and
       (B) by inserting ``under subsection (a)'' before the 
     semicolon; and
       (4) in subsection (d)(4), by inserting ``is a felony and'' 
     after ``offense'' the first place such term appears.

     SEC. 202. HARMONIZATION OF FORFEITURE PROCEDURES FOR 
                   INTELLECTUAL PROPERTY OFFENSES.

       (a) Trafficking in Counterfeit Labels.--Section 2318 of 
     title 18, United States Code, is amended--
       (1) by amending subsection (d) to read as follows:
       ``(d) Forfeiture and Destruction; Restitution.--
       ``(1) Civil forfeiture proceedings.--(A) The following 
     property is subject to forfeiture to the United States:
       ``(i) Any counterfeit documentation or packaging, and any 
     counterfeit label or illicit label and any article to which a 
     counterfeit label or illicit label has been affixed, which a 
     counterfeit label or illicit label encloses or accompanies, 
     or which was intended to have had such label affixed, 
     enclosing, or accompanying.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of a 
     violation of subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or facilitate the commission of a violation of 
     subsection (a) that is owned or predominantly controlled by 
     the violator or by a person conspiring with or aiding and 
     abetting the violator in committing the violation, except 
     that property is subject to forfeiture under this clause only 
     if the Government establishes that there was a substantial 
     connection between the property and the violation of 
     subsection (a).
       ``(B) The provisions of chapter 46 relating to civil 
     forfeitures shall extend to any seizure or civil forfeiture 
     under subparagraph (A). At the conclusion of the forfeiture 
     proceedings, the court shall order that any forfeited 
     counterfeit labels or illicit labels and any article to which 
     a counterfeit label or illicit label has been affixed, which 
     a counterfeit label or illicit label encloses or accompanies, 
     or which was intended to have had such label affixed, 
     enclosing, or accompanying, be destroyed or otherwise 
     disposed of according to law.
       ``(C) In this paragraph, the term `aiding and abetting' 
     means knowingly providing aid to the violator with the intent 
     to facilitate the violation.
       ``(2) Criminal forfeiture proceedings.--(A) The court, in 
     imposing sentence on a person convicted of an offense under 
     this section, shall order, in addition to any other sentence 
     imposed, that the person forfeit to the United States the 
     following property:
       ``(i) Any counterfeit documentation or packaging, and any 
     counterfeit label or illicit label, that was used, intended 
     for use, or possessed with intent to use in the commission of 
     an offense under subsection (a), and any article to which 
     such a counterfeit label or illicit label has been affixed, 
     which such a counterfeit label or illicit label encloses or 
     accompanies, or which was intended to have had such label 
     affixed, enclosing, or accompanying.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of an 
     offense under subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or substantially facilitate the commission of an 
     offense under subsection (a).
       ``(B) The forfeiture of property under subparagraph (A), 
     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. 
     At the conclusion of the forfeiture proceedings, the court 
     shall order that any counterfeit label or illicit label and 
     any article to which a counterfeit label or illicit label has 
     been affixed, which a counterfeit label or illicit label 
     encloses or accompanies, or which was intended to have had 
     such label affixed, enclosing, or accompanying, be destroyed 
     or otherwise disposed of according to law.
       ``(3) Restitution.--When a person is convicted of an 
     offense under this section, the

[[Page 7837]]

     court, pursuant to sections 3556, 3663A, and 3664, shall 
     order the person to pay restitution to the owner of the marks 
     or copyrighted works involved in the offense and any other 
     victim of the offense as an offense against property referred 
     to in section 3663A(c)(1)(A)(ii).'';
       (2) by striking subsection (e); and
       (3) by redesignating subsection (f) as subsection (e).
       (b) Criminal Infringement of a Copyright.--
       (1) In general.--Section 2319 of title 18, United States 
     Code, is amended by adding at the end the following:
       ``(g) Forfeiture and Destruction; Restitution.--
       ``(1) Civil forfeiture proceedings.--(A) The following 
     property is subject to forfeiture to the United States:
       ``(i) Any copies or phonorecords manufactured, reproduced, 
     distributed, sold, or otherwise used, intended for use, or 
     possessed with intent to use in violation of section 506(a) 
     of title 17, any plates, molds, matrices, masters, tapes, 
     film negatives, or other articles by means of which such 
     copies or phonorecords may be made, and any electronic, 
     mechanical, or other devices for manufacturing, reproducing, 
     or assembling such copies or phonorecords.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of a 
     violation of section 506(a) of title 17.
       ``(iii) Any property used, or intended to be used, to 
     commit or facilitate the commission of a violation of section 
     506(a) of title 17 that is owned or predominantly controlled 
     by the violator or by a person conspiring with or aiding and 
     abetting the violator in committing the violation, except 
     that property is subject to forfeiture under this clause only 
     if the Government establishes that there was a substantial 
     connection between the property and the violation of section 
     506(a) of title 17.
       ``(B) The provisions of chapter 46 relating to civil 
     forfeitures shall extend to any seizure or civil forfeiture 
     under this section. At the conclusion of the forfeiture 
     proceedings, the court shall order that any forfeited 
     infringing copies or phonorecords, and any plates, molds, 
     matrices, masters, tapes, and film negatives by means of 
     which such unauthorized copies or phonorecords may be made, 
     be destroyed or otherwise disposed of according to law.
       ``(C) In this paragraph, the term `aiding and abetting' 
     means knowingly providing aid to the violator with the intent 
     to facilitate the violation.
       ``(2) Criminal forfeiture proceedings.--(A) The court, in 
     imposing sentence on a person convicted of an offense under 
     subsection (a), shall order, in addition to any other 
     sentence imposed, that the person forfeit to the United 
     States the following property:
       ``(i) Any copies or phonorecords manufactured, reproduced, 
     distributed, sold, or otherwise used, intended for use, or 
     possessed with intent to use in the commission of an offense 
     under subsection (a), any plates, molds, matrices, masters, 
     tapes, film negatives, or other articles by means of which 
     the copies or phonorecords may be reproduced, and any 
     electronic, mechanical, or other devices for manufacturing, 
     reproducing, or assembling such copies or phonorecords.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of an 
     offense under subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or substantially facilitate the commission of an 
     offense under subsection (a).
       ``(B) The forfeiture of property under subparagraph (A), 
     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. 
     At the conclusion of the forfeiture proceedings, the court 
     shall order that any forfeited infringing copies or 
     phonorecords, and any plates, molds, matrices, masters, 
     tapes, and film negatives by means of which such infringing 
     copies or phonorecords may be made, be destroyed or otherwise 
     disposed of according to law.
       ``(3) Restitution.--When a person is convicted of an 
     offense under this section, the court, pursuant to sections 
     3556, 3663A, and 3664, shall order the person to pay 
     restitution to the copyright owner and any other victim of 
     the offense as an offense against property referred to in 
     section 3663A(c)(1)(A)(ii).''.
       (2) Conforming amendments.--(A) Section 506(b) of title 17, 
     United States Code, is amended by striking all that follows 
     ``destruction'' and inserting the following: ``of property as 
     prescribed by section 2319(g) of title 18.''.
       (B) Section 509 of title 17, United States Code, relating 
     seizure and forfeiture, and the item relating to section 509 
     in the table of sections at the beginning of chapter 5 of 
     title 17, United States Code, are repealed.
       (c) Unauthorized Fixation and Trafficking.--
       (1) In general.--Section 2319A of title 18, United States 
     Code, is amended--
       (A) by striking subsection (c) and redesignating 
     subsections (d), (e), and (f) as subsections (c), (d), and 
     (e), respectively; and
       (B) by amending subsection (b) to read as follows:
       ``(b) Forfeiture and Destruction; Restitution.--
       ``(1) Civil forfeiture proceedings.--(A) The following 
     property is subject to forfeiture to the United States:
       ``(i) Any copies or phonorecords of a live musical 
     performance described in subsection (a)(1) that are made 
     without the consent of the performer or performers involved, 
     and any plates, molds, matrices, masters, tapes, and film 
     negatives by means of which such copies or phonorecords may 
     be made.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of a 
     violation of subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or facilitate the commission of a violation of 
     subsection (a) that is owned or predominantly controlled by 
     the violator or by a person conspiring with or aiding and 
     abetting the violator in committing the violation, except 
     that property is subject to forfeiture under this clause only 
     if the Government establishes that there was a substantial 
     connection between the property and the violation of 
     subsection (a).
       ``(B) The provisions of chapter 46 relating to civil 
     forfeitures shall extend to any seizure or civil forfeiture 
     under paragraph (1). At the conclusion of the forfeiture 
     proceedings, the court shall order that any forfeited 
     unauthorized copies or phonorecords of live musical 
     performances, and any plates, molds, matrices, maters, tapes, 
     and film negatives by means of which such unauthorized copies 
     or phonorecords may be made, be destroyed or otherwise 
     disposed of according to law.
       ``(C) In this paragraph, the term `aiding and abetting' 
     means knowingly providing aid to the violator with the intent 
     to facilitate the violation.
       ``(2) Criminal forfeiture proceedings.--(A) The court, in 
     imposing sentence on a person convicted of an offense under 
     this section, shall order, in addition to any other sentence 
     imposed, that the person forfeit to the United States the 
     following property:
       ``(i) Any unauthorized copies or phonorecords of a live 
     musical performance that were used, intended for use, or 
     possessed with intent to use in the commission of an offense 
     under subsection (a), and any plates, molds, matrices, 
     masters, tapes, and film negatives by means of which such 
     copies or phonorecords may be made.
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of an 
     offense under subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or substantially facilitate the commission of an 
     offense under subsection (a).
       ``(B) The forfeiture of property under subparagraph (A), 
     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. 
     At the conclusion of the forfeiture proceedings, the court 
     shall order that any forfeited unauthorized copies or 
     phonorecords of live musical performances, and any plates, 
     molds, matrices, masters, tapes, and film negatives by means 
     of which such unauthorized copies of phonorecords may be 
     made, be destroyed or otherwise disposed of according to law.
       ``(3) Notification of importation.--The Secretary of 
     Homeland Security shall issue regulations by which any 
     performer may, upon payment of a specified fee, be entitled 
     to notification by U.S. 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 prohibited by this section.
       ``(4) Restitution.--When a person is convicted of an 
     offense under this section, the court, pursuant to sections 
     3556, 3663A, and 3664, shall order the person to pay 
     restitution to the performer or performers involved, and any 
     other victim of the offense as an offense against property 
     referred to in section 3663A(c)(1)(A)(ii).''.
       (2) Applicability.--Section 2319A(e), as redesignated by 
     paragraph (1) of this subsection, is amended by inserting 
     before the period the following: ``, except that the 
     forfeiture provisions under subsection (b)(2), as added by 
     the Prioritizing Resources and Organization for Intellectual 
     Property Act, shall apply only in a case in which the 
     underlying act or acts occur on or after the date of the 
     enactment of that Act''.
       (d) Unauthorized Recording of Motion Pictures.--Section 
     2319B(b) of title 18, United States Code, is amended to read 
     as follows:
       ``(b) Forfeiture and Destruction; Restitution.--
       ``(1) Civil forfeiture proceedings.--(A) The following 
     property is subject to forfeiture to the United States:
       ``(i) Any copies of a motion picture or other audiovisual 
     work protected under title 17 that are made without the 
     authorization of the copyright owner.

[[Page 7838]]

       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of a 
     violation of subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or facilitate the commission of a violation of 
     subsection (a) that is owned or predominantly controlled by 
     the violator or by a person conspiring with or aiding and 
     abetting the violator in committing the violation, except 
     that property is subject to forfeiture under this clause only 
     if the Government establishes that there was a substantial 
     connection between the property and the violation of 
     subsection (a).
       ``(B) The provisions of chapter 46 relating to civil 
     forfeitures shall extend to any seizure or civil forfeiture 
     under this section. At the conclusion of the forfeiture 
     proceedings, the court shall order that any forfeited 
     unauthorized copies or phonorecords of a motion picture or 
     other audiovisual work, or part thereof, and any plates, 
     molds, matrices, masters, tapes, and film negatives by means 
     of which such unauthorized copies or phonorecords may be 
     made, be destroyed or otherwise disposed of according to law.
       ``(C) In this paragraph, the term `aiding and abetting' 
     means knowingly providing aid to the violator with the intent 
     to facilitate the violation.
       ``(2) Criminal forfeiture proceedings.--(A) The court, in 
     imposing sentence on a person convicted of an offense under 
     this section, shall order, in addition to any other sentence 
     imposed, that the person forfeit to the United States the 
     following property:
       ``(i) Any unauthorized copies of a motion picture or other 
     audiovisual work protected under title 17, or part thereof, 
     that were used, intended for use, or possessed with intent to 
     use in the commission of an offense under subsection (a).
       ``(ii) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of an 
     offense under subsection (a).
       ``(iii) Any property used, or intended to be used, to 
     commit or substantially facilitate the commission of an 
     offense under subsection (a).
       ``(B) The forfeiture of property under subparagraph (A), 
     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. 
     At the conclusion of the forfeiture proceedings, the court 
     shall order that any forfeited unauthorized copies or 
     phonorecords of a motion picture or other audiovisual work, 
     or part thereof, and any plates, molds, matrices, masters, 
     tapes, and film negatives by means of which such unauthorized 
     copies or phonorecords may be made, be destroyed or otherwise 
     disposed of according to law.
       ``(3) Restitution.--When a person is convicted of an 
     offense under this chapter, the court, pursuant to sections 
     3556, 3663A, and 3664, shall order the person to pay 
     restitution to the owner of the copyright in the motion 
     picture or other audiovisual work and any other victim of the 
     offense as an offense against property referred to in section 
     3663A(c)(1)(A)(ii).''.
       (e) Applicability.--The amendments made by this section 
     shall apply only in a case in which the underlying act or 
     acts occur on or after the date of the enactment of this Act.

     SEC. 203. DIRECTIVE TO UNITED STATES SENTENCING COMMISSION.

       (a) Review and Amendment.--The United States Sentencing 
     Commission, pursuant to its authority under section 994 of 
     title 28, United States Code, shall review and, if 
     appropriate, amend the Federal sentencing guidelines and 
     policy statements applicable in any case sentenced under 
     section 2B5.3 of the Federal sentencing guidelines for 
     exporting infringing items in violation of section 602(a)(2) 
     of title 17, United States Code, to determine whether a 
     defendant in such case should receive an upward adjustment in 
     the offense level, on the grounds that exportation introduces 
     infringing items into the stream of foreign commerce in a 
     manner analogous to the manner in which manufacturing, 
     importing, and uploading such items introduces them into the 
     stream of commerce.
       (b) Authorization.--The United States Sentencing Commission 
     may amend the Federal sentencing guidelines under subsection 
     (a) in accordance with the procedures set forth in section 
     21(a) of the Sentencing Act of 1987 (28 U.S.C. 994 note) as 
     though the authority under that section had not expired.

     SEC. 204. 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.''; and
       (2) in subsection (b)(l)--
       (A) by redesignating subparagraph (B) as subparagraph (C); 
     and
       (B) by inserting after subparagraph (A) the following:
       ``(B) Any property constituting or derived from any 
     proceeds obtained directly or indirectly as a result of a 
     violation of subsection (a).''.

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

     Subtitle A--Office of the United States Intellectual Property 
                       Enforcement Representative

     SEC. 301. OFFICE OF THE UNITED STATES INTELLECTUAL PROPERTY 
                   ENFORCEMENT REPRESENTATIVE.

       (a) Establishment Within Executive Office of the 
     President.--There is established within the Executive Office 
     of the President the Office of the United States Intellectual 
     Property Enforcement Representative (in this title referred 
     to as ``the Office'').
       (b) United States Intellectual Property Enforcement 
     Representative.--The head of the Office shall be the United 
     States Intellectual Property Enforcement Representative (in 
     this title referred to as the ``IP Enforcement 
     Representative'') who shall be appointed by the President, by 
     and with the advice and consent of the Senate. As an exercise 
     of the rulemaking power of the Senate, any nomination of the 
     IP Enforcement Representative submitted to the Senate for 
     confirmation, and referred to a committee, shall be referred 
     to the Committee on the Judiciary.
       (c) Duties of IP Enforcement Representative.--
       (1) In general.--The IP Enforcement Representative shall--
       (A) have primary responsibility for developing the Joint 
     Strategic Plan against counterfeiting and piracy under 
     section 321 and facilitating the implementation of the Joint 
     Strategic Plan by the departments and agencies listed in 
     subsection (d)(2)(A);
       (B) serve as a principal advisor to the President on 
     domestic and international intellectual property enforcement 
     policy;
       (C) assist the United States Trade Representative--
       (i) concerning negotiations on behalf of the United States 
     relating to international intellectual property enforcement, 
     including negotiations on any intellectual property 
     enforcement matter considered under the auspices of the World 
     Trade Organization or in the course of commodity or direct 
     investment negotiations in which the United States 
     participates; and
       (ii) in the programs of the United States Trade 
     Representative to monitor and enforce intellectual property 
     enforcement obligations of other countries under trade 
     agreements with the United States;
       (D) coordinate the issuance of policy guidance to 
     departments and agencies on basic issues of policy and 
     interpretation that arise in the exercise of domestic and 
     international intellectual property enforcement functions, to 
     the extent necessary to assure the coordination of 
     intellectual property enforcement policy and consistency with 
     any other law;
       (E) act as a principal spokesperson of the President on 
     domestic and international intellectual property enforcement 
     matters;
       (F) report directly to the President and the Congress 
     regarding domestic and international intellectual property 
     enforcement programs;
       (G) advise the President and the Congress with respect to 
     domestic and international intellectual property enforcement 
     challenges and priorities;
       (H) report to the Congress, as provided in section 322, on 
     the implementation of the Joint Strategic Plan, and make 
     recommendations to the Congress for improvements in Federal 
     intellectual property enforcement efforts;
       (I) chair the interagency intellectual property enforcement 
     advisory committee established under subsection (d)(2), and 
     consult with such advisory committee in the performance of 
     the functions of the IP Enforcement Representative; and
       (J) carry out such other functions as the President may 
     direct.
       (2) Limitation on authority.--The IP Enforcement 
     Representative may not control or direct any law enforcement 
     agency in the exercise of its investigative or prosecutorial 
     authority in particular cases.
       (3) Sense of congress.--It is the sense of the Congress 
     that the IP Enforcement Representative should--
       (A) be a senior representative on any body that the 
     President may establish for the purpose of providing to the 
     President advice on overall policies in which intellectual 
     property enforcement matters predominate; and
       (B) be included as a participant in economic summit and 
     other international meetings at which international 
     intellectual property enforcement is a significant topic.
       (4) Delegation.--The IP Enforcement Representative may--

[[Page 7839]]

       (A) delegate any of the IP Enforcement Representative's 
     functions, powers, and duties to such officers and employees 
     of the Office as the IP Enforcement Representative may 
     designate; and
       (B) authorize such successive redelegations of such 
     functions, powers, and duties to such officers and employees 
     of the Office as the IP Enforcement Representative considers 
     appropriate.
       (d) Coordination of Intellectual Property Enforcement 
     Actions.--
       (1) In general.--In carrying out the functions of the IP 
     Enforcement Representative, the IP Enforcement Representative 
     shall develop recommendations on the allocation of Federal 
     resources for intellectual property enforcement.
       (2) Advisory committee.--
       (A) Establishment.--There is established an interagency 
     intellectual property enforcement advisory committee composed 
     of the IP Enforcement Representative, who shall chair the 
     committee, and senior representatives of the following 
     departments and agencies who are involved in intellectual 
     property enforcement, and are appointed by the respective 
     heads of those departments and agencies:
       (i) The Department of Justice (including the Intellectual 
     Property Enforcement Officer appointed under section 501).
       (ii) The United States Patent and Trademark Office and 
     other relevant units of the Department of Commerce.
       (iii) The Office of the United States Trade Representative.
       (iv) The Department of State (including the United States 
     Agency for International Development and the Bureau of 
     International Narcotics Law Enforcement).
       (v) The Department of Homeland Security (including U.S. 
     Customs and Border Protection and U.S. Immigration and 
     Customs Enforcement).
       (vi) The United States International Trade Commission.
       (vii) The Food and Drug Administration of the Department of 
     Health and Human Services.
       (viii) The United States Copyright Office.
       (ix) Such other agencies as the IP Enforcement 
     Representative determines to be substantially involved in the 
     efforts of the Federal Government to combat counterfeiting 
     and piracy.
       (B) Functions.--The advisory committee established under 
     subparagraph (A) shall, under the guidance of the IP 
     Enforcement Representative, develop the Joint Strategic Plan 
     against counterfeiting and piracy under section 321.
       (3) Exemption from federal advisory committee act.--The 
     Federal Advisory Committee Act shall not apply to the 
     interagency intellectual property enforcement advisory 
     committee established under paragraph (2) or to any of the 
     activities conducted by the IP Enforcement Representative in 
     developing the Joint Strategic Plan under section 321.
       (e) Identification of Countries That Deny Adequate 
     Protection of Intellectual Property Rights.--Section 
     182(b)(2)(A) of the Trade Act of 1974 (19 U.S.C. 
     2242(b)(2)(A)) is amended by inserting ``the United States 
     Intellectual Property Enforcement Representative,'' after 
     ``consult with''.
       (f) Powers of IP Enforcement Representative.--In carrying 
     out the responsibilities under this title, the IP Enforcement 
     Representative may--
       (1) select, appoint, employ, and fix the compensation of 
     such officers and employees as may be necessary to carry out 
     those responsibilities;
       (2) request the head of a department, agency, or program of 
     the Federal Government to place personnel of such department, 
     agency, or program who are engaged in intellectual property 
     enforcement activities on temporary detail to the Office of 
     the IP Enforcement Representative to assist in carrying out 
     those responsibilities;
       (3) use, with the consent of the Federal, State, and local 
     government agencies concerned, the available services, 
     equipment, personnel, and facilities of such Federal, State, 
     and local government agencies;
       (4) procure the services of experts and consultants in 
     accordance with section 3109 of title 5, United States Code, 
     relating to the procurement of temporary and intermittent 
     services, at rates of compensation for individuals not to 
     exceed the daily equivalent of the rate of pay payable under 
     level IV of the Executive Schedule under section 5315 of 
     title 5, United States Code, and while such experts and 
     consultants are so serving away from their homes or regular 
     place of business, pay such employees travel expenses and per 
     diem in lieu of subsistence at rates authorized by section 
     5703 of title 5, United States Code, for persons in 
     Government service employed intermittently;
       (5) issue such regulations as may be necessary to carry out 
     the functions vested in the IP Enforcement Representative;
       (6) enter into and perform such contracts, leases, 
     cooperative agreements, or other transactions as may be 
     necessary in the conduct of the work of the Office and on 
     such terms as the IP Enforcement Representative considers 
     appropriate, with any department, agency, or instrumentality 
     of the United States, or with any public or private person, 
     firm, association, corporation, or institution;
       (7) accept voluntary and uncompensated services, 
     notwithstanding the provisions of section 1342 of title 31, 
     United States Code;
       (8) adopt an official seal, which shall be judicially 
     noticed; and
       (9) accept, hold, administer, and use gifts, devises, and 
     bequests of property, both real and personal, for the purpose 
     of aiding or facilitating the work of the Office.
       (g) Compensation.--Section 5312 of title 5, United States 
     Code, is amended by adding at the end the following:
       ``United States Intellectual Property Enforcement 
     Representative.''.

     SEC. 302. DEFINITION.

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

                    Subtitle B--Joint Strategic Plan

     SEC. 321. JOINT STRATEGIC PLAN.

       (a) Purpose.--The objectives of the Joint Strategic Plan 
     against counterfeiting and piracy that is referred to in 
     section 301(c)(1)(A) (in this section referred to as the 
     ``joint strategic plan'') are the following:
       (1) Reducing counterfeit and pirated goods in the domestic 
     and international supply chain.
       (2) Identifying and addressing structural weaknesses, 
     systemic flaws, or other unjustified impediments to effective 
     enforcement action against the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (3) Assuring that information is identified and shared 
     among the relevant departments and agencies, to the extent 
     permitted by law and consistent with law enforcement 
     protocols for handling information, to aid in the objective 
     of arresting and prosecuting individuals and entities that 
     are knowingly involved in the financing, production, 
     trafficking, or sale of counterfeit or pirated goods.
       (4) Disrupting and eliminating domestic and international 
     counterfeiting and piracy networks.
       (5) Strengthening the capacity of other countries to 
     protect and enforce intellectual property rights, and 
     reducing the number of countries that fail to enforce laws 
     preventing the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (6) Working with other countries to establish international 
     standards and policies for the effective protection and 
     enforcement of intellectual property rights.
       (7) Protecting intellectual property rights overseas by--
       (A) working with other countries to ensure that such 
     countries--
       (i) have adequate and effective laws protecting copyrights, 
     trademarks, patents, and other forms of intellectual 
     property;
       (ii) have legal regimes that enforce their own domestic 
     intellectual property laws, eliminate counterfeit and piracy 
     operations, and arrest and prosecute those who commit 
     intellectual property crimes;
       (iii) provide their law enforcement officials with the 
     authority to seize, inspect, and destroy pirated and 
     counterfeit goods, including at ports of entry; and
       (iv) provide for the seizure of property used to produce 
     pirated and counterfeit goods;
       (B) exchanging information with appropriate law enforcement 
     agencies in other countries relating to individuals and 
     entities involved in the financing, production, trafficking, 
     or sale of pirated or counterfeit goods;
       (C) using the information described in subparagraph (B) to 
     conduct enforcement activities in cooperation with 
     appropriate law enforcement agencies in other countries; and
       (D) 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 IP Enforcement 
     Representative shall submit the joint strategic plan to the 
     President, to the Committee on the Judiciary and the 
     Committee on Appropriations of the House of Representatives, 
     and to the Committee on the Judiciary and the Committee on 
     Appropriations of the Senate.
       (c) Responsibility of the IP Enforcement Representative.--
     During the development of the joint strategic plan, the IP 
     Enforcement Representative--
       (1) shall consult and coordinate with the appropriate 
     officers and employees of departments and agencies 
     represented on the advisory committee appointed under section 
     301(d)(2) who are involved in intellectual property 
     enforcement; and
       (2) may consult with private sector experts in intellectual 
     property enforcement.
       (d) Responsibilities of Other Departments and Agencies.--To 
     assist in the development and implementation of the joint 
     strategic plan, the heads of the departments

[[Page 7840]]

     and agencies identified under section 301(d)(2)(A) (including 
     the heads of any other agencies identified by the IP 
     Enforcement Representative under section 301(d)(2)(A)(ix)) 
     shall--
       (1) designate personnel with expertise and experience in 
     intellectual property enforcement matters to work with the IP 
     Enforcement Representative; and
       (2) share relevant department or agency information with 
     the IP Enforcement Representative, including statistical 
     information on the enforcement activities of the department 
     or agency against counterfeiting or piracy, and plans for 
     addressing the joint strategic plan.
       (e) Contents of the Joint Strategic Plan.--Each joint 
     strategic plan shall include the following:
       (1) A detailed description of the priorities identified for 
     carrying out the objectives in the joint strategic plan, 
     including activities of the Federal Government relating to 
     intellectual property enforcement.
       (2) A detailed description of the means and methods to be 
     employed to achieve the priorities, including the means and 
     methods for improving the efficiency and effectiveness of the 
     Federal Government's enforcement efforts against 
     counterfeiting and piracy.
       (3) Estimates of the resources necessary to fulfill the 
     priorities identified under paragraph (1).
       (4) The performance measures to be used to monitor results 
     under the joint strategic plan during the following year.
       (5) An analysis of the threat posed by violations of 
     intellectual property rights, including targets, risks, and 
     threats of intellectual property infringement, the costs to 
     the economy of the United States resulting from violations of 
     intellectual property laws, and the threats to public health 
     and safety created by counterfeiting and piracy.
       (6) An identification of the departments and agencies that 
     will be involved in implementing each priority under 
     paragraph (1).
       (7) A strategy for ensuring coordination between the IP 
     Enforcement Representative and the departments and agencies 
     identified under paragraph (6), including a process for 
     oversight by the executive branch of, and accountability 
     among, the departments and agencies responsible for carrying 
     out the strategy.
       (8) Such other information as is necessary to convey the 
     costs imposed on the United States economy by, and the 
     threats to public health and safety created by, 
     counterfeiting and piracy, and those steps that the Federal 
     Government intends to take over the period covered by the 
     succeeding joint strategic plan to reduce those costs and 
     counter those threats.
       (f) Enhancing Enforcement Efforts of Foreign Governments.--
     The joint strategic plan shall include programs to provide 
     training and technical assistance to foreign governments for 
     the purpose of enhancing the efforts of such governments to 
     enforce laws against counterfeiting and piracy. With respect 
     to such programs, the joint strategic plan shall--
       (1) seek to enhance the efficiency and consistency with 
     which Federal resources are expended, and seek to minimize 
     duplication, overlap, or inconsistency of efforts;
       (2) identify and give priority to those countries where 
     programs of training and technical assistance can be carried 
     out most effectively and with the greatest benefit to 
     reducing counterfeit and pirated products in the United 
     States market, to protecting the intellectual property rights 
     of United States persons and their licensees, and to 
     protecting the interests of United States persons otherwise 
     harmed by violations of intellectual property rights in those 
     countries;
       (3) in identifying the priorities under paragraph (2), be 
     guided by the list of countries identified by the United 
     States Trade Representative under section 182(a) of the Trade 
     Act of 1974 (19 U.S.C. 2242(a)); and
       (4) develop metrics to measure the effectiveness of the 
     Federal Government's efforts to improve the laws and 
     enforcement practices of foreign governments against 
     counterfeiting and piracy.
       (g) Dissemination of the Joint Strategic Plan.--The joint 
     strategic plan shall be posted for public access on the 
     website of the White House, and shall be disseminated to the 
     public through such other means as the IP Enforcement 
     Representative may identify.

     SEC. 322. REPORTING.

       (a) Annual Report.--Not later than December 31 of each 
     calendar year beginning in 2009, the IP Enforcement 
     Representative shall submit a report on the activities of the 
     Office during the preceding fiscal year. The annual report 
     shall be submitted to the President and the Congress, and 
     disseminated to the people of the United States, in the 
     manner specified in subsections (b) and (g) of section 321.
       (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 321(e), including an analysis of the 
     performance measures used to monitor results described in 
     section 321(e)(4).
       (2) The progress made in efforts to encourage Federal, 
     State, and local government departments and agencies to 
     accord higher priority to intellectual property enforcement.
       (3) The progress made in working with foreign countries to 
     investigate, arrest, and prosecute entities and individuals 
     involved in the financing, production, trafficking, and sale 
     of counterfeit and pirated goods.
       (4) The manner in which the relevant departments and 
     agencies are working together and sharing information to 
     strengthen intellectual property enforcement.
       (5) An assessment of the successes and shortcomings of the 
     efforts of the Federal Government, including departments and 
     agencies represented on the committee established under 
     section 301(d)(2)(A), in fulfilling the priorities identified 
     in the applicable joint strategic plan during the preceding 
     fiscal year and in implementing the recommendations developed 
     under section 301(d)(1).
       (6) Recommendations for any changes in enforcement 
     statutes, regulations, or funding levels that the IP 
     Representative considers would significantly improve the 
     effectiveness or efficiency of the effort of the Federal 
     Government to combat counterfeiting and piracy and otherwise 
     strengthen intellectual property enforcement, including 
     through the elimination or consolidation of duplicative 
     programs or initiatives.
       (7) The progress made in strengthening the capacity of 
     countries to protect and enforce intellectual property 
     rights.
       (8) The successes and challenges in sharing with other 
     countries information relating to intellectual property 
     enforcement.
       (9) The progress of the United States Trade Representative 
     in taking the appropriate action under any trade agreement or 
     treaty to protect intellectual property rights of United 
     States persons and their licensees.

     SEC. 323. SAVINGS AND REPEALS.

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

     SEC. 324. 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.
       (b) Submission of Projected Budget.--By not later than the 
     date on which the President submits to the Congress the 
     budget of the United States Government for a fiscal year, the 
     IP Representative shall submit to the Committees on the 
     Judiciary of the House of Representatives and the Senate the 
     projected amount of funds for the succeeding fiscal year that 
     will be necessary for the Office to carry out its functions.

          TITLE IV--INTERNATIONAL ENFORCEMENT AND COORDINATION

     SEC. 401. INTELLECTUAL PROPERTY ATTACHES.

       The Under Secretary of Commerce for Intellectual Property 
     and Director of the United States Patent and Trademark Office 
     (in this title referred to as the ``Director''), in 
     consultation with the Director General of the United States 
     and Foreign Commercial Service, shall, within 2 years after 
     the date of the enactment of this Act, appoint at least 10 
     intellectual property attaches to serve in United States 
     embassies or other diplomatic missions. The appointments 
     under this section shall be in addition to those individuals 
     serving in the capacity of intellectual property attaches at 
     United States embassies or other diplomatic missions on the 
     date of the enactment of this Act. The Director shall provide 
     such managerial, administrative, research, and other services 
     as the Secretary of Commerce considers necessary to assist 
     the intellectual property attaches in carrying out their 
     responsibilities.

     SEC. 402. DUTIES AND RESPONSIBILITIES OF INTELLECTUAL 
                   PROPERTY ATTACHES.

       The intellectual property attaches appointed under section 
     401, as well as others serving as intellectual property 
     attaches of the Department of Commerce, shall have the 
     following responsibilities:
       (1) To promote cooperation with foreign governments in the 
     enforcement of intellectual property laws generally, and in 
     the enforcement of laws against counterfeiting and piracy in 
     particular.
       (2) To assist United States persons holding intellectual 
     property rights, and the licensees of such United States 
     persons, in their efforts to combat counterfeiting and piracy 
     of their products or works within the host country, including 
     counterfeit or pirated goods exported from or transshipped 
     through that country.

[[Page 7841]]

       (3) To chair an intellectual property protection task force 
     consisting of representatives from all other relevant 
     sections or bureaus of the embassy or other mission.
       (4) To coordinate with representatives of the embassies or 
     missions of other countries in information sharing, private 
     or public communications with the government of the host 
     country, and other forms of cooperation for the purpose of 
     improving enforcement against counterfeiting and piracy.
       (5) As appropriate and in accordance with applicable laws 
     and the diplomatic status of the attaches, to engage in 
     public education efforts against counterfeiting and piracy in 
     the host country.
       (6) To coordinate training and technical assistance 
     programs of the United States Government within the host 
     country that are aimed at improving the enforcement of laws 
     against counterfeiting and piracy.
       (7) To assist in the coordination of the efforts of the 
     United States Intellectual Property Enforcement 
     Representative, Federal agencies, and private organizations 
     engaged in the promotion of United States intellectual 
     property interests abroad so as to maximize their 
     effectiveness and minimize duplicative efforts.
       (8) To identify and promote other means to more effectively 
     combat counterfeiting and piracy activities under the 
     jurisdiction of the host country.

     SEC. 403. TRAINING AND DESIGNATION OF ASSIGNMENT.

       (a) Training of Attaches.--The Director shall ensure that 
     each attache appointed under section 401 is fully trained for 
     the responsibilities of the position before assuming duties 
     at the United States embassy or other mission in question.
       (b) Priority Assignments.--In designating the embassies or 
     other missions to which attaches are assigned, the Director 
     shall give priority to those countries where the activities 
     of an attache can be carried out most effectively and with 
     the greatest benefit to reducing counterfeit and pirated 
     products in the United States market, to protecting the 
     intellectual property rights of United States persons and 
     their licensees, or to protecting the interests of United 
     States persons otherwise harmed by violations of intellectual 
     property rights in those countries.

     SEC. 404. COORDINATION.

       (a) In General.--The activities authorized by this title 
     shall be carried out in coordination with the United States 
     Intellectual Property Enforcement Representative appointed 
     under section 301.
       (b) Report on Attaches.--The Inspector General of the 
     Department of Commerce shall perform yearly audits of the 
     intellectual property attaches of the Department, and shall 
     report to the Committees on the Judiciary of the House of 
     Representatives and the Senate the results of each such 
     audit. In addition to an overview of the activities and 
     effectiveness of the intellectual property attache 
     operations, the audit shall include--
       (1) an evaluation of the current placement of foreign-based 
     personnel and recommendations for transferring such personnel 
     in response to newly emerging intellectual property issues 
     abroad; and
       (2) an evaluation of the personnel system and its 
     management, including the recruitment, assignment, promotion, 
     and performance appraisal of personnel, and the use of 
     limited appointees.

     SEC. 405. AUTHORIZATION OF APPROPRIATIONS.

       There are authorized to be appropriated for each fiscal 
     year such sums as may be necessary for the training and 
     support of the intellectual property attaches appointed under 
     section 401 and of other individuals serving as intellectual 
     property attaches of the Department of Commerce.

                TITLE V--DEPARTMENT OF JUSTICE PROGRAMS

                        Subtitle A--Coordination

     SEC. 501. INTELLECTUAL PROPERTY ENFORCEMENT OFFICER.

       (a) Establishment.--There is established within the Office 
     of the Deputy Attorney General in the Department of Justice 
     the ``Intellectual Property Enforcement Division''. The head 
     of the Intellectual Property Enforcement Division shall be 
     the Intellectual Property Enforcement Officer (in this title 
     referred to as the ``IP Officer''). The IP Officer shall be 
     appointed by the Attorney General and shall report directly 
     to the Deputy Attorney General.
       (b) Duties.--The IP Officer shall--
       (1) coordinate all efforts of the Department of Justice 
     relating to the enforcement of intellectual property rights 
     and to combating counterfeiting and piracy;
       (2) serve as the lead representative of the Department of 
     Justice on the advisory committee provided for in section 
     301(d)(2) and as the liaison of the Department of Justice 
     with foreign governments with respect to training conducted 
     under section 522; and
       (3) carry out such other related duties that may be 
     assigned by the Deputy Attorney General.
       (c) Transfer of Functions.--
       (1) Criminal intellectual property enforcement.--There are 
     transferred to the Intellectual Property Enforcement Division 
     those functions of the Computer Crime and Intellectual 
     Property Section of the Criminal Division of the Department 
     of Justice that relate to the enforcement of criminal laws 
     relating to the protection of intellectual property rights 
     and trade secrets, including the following:
       (A) Sections 506 and 1204 of title 17, United States Code.
       (B) Sections 2318 through 2320 of title 18, United States 
     Code.
       (C) Sections 1831 and 1832 of title 18, United States Code.
       (D) Any other provision of law, including the following, to 
     the extent such provision involves the enforcement of any 
     provision of law referred to in subparagraphs (A) through (C) 
     or comparable provision of law:
       (i) Section 1341 of title 18, United States Code, relating 
     to frauds and swindles.
       (ii) Section 1343 of title 18, United States Code, relating 
     to fraud by wire, radio, or television.
       (iii) Section 2512 of title 18, United States Code, 
     relating to trafficking in interception devices.
       (iv) Section 633 of the Communications Act of 1934 (47 
     U.S.C. 553), relating to the unauthorized reception of cable 
     service.
       (v) Section 705 of the Communications Act of 1934 (47 
     U.S.C. 605), relating to the unauthorized publication or use 
     of communications.
       (2) Intellectual property enforcement coordinators.--The 
     Intellectual Property Law Enforcement Coordinators of the 
     Department of Justice to whom section 521 applies shall also 
     be in the Intellectual Property Enforcement Division.

                 Subtitle B--Law Enforcement Resources

     SEC. 511. 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 multi-jurisdictional task forces.
       (2) Eligibility.--To be eligible to receive an IP-TIC 
     grant, a State or local government entity must provide to the 
     Attorney General--
       (A) assurances that the State in which the government 
     entity is located has in effect laws described in paragraph 
     (1);
       (B) an assessment of the resource needs of the State or 
     local government entity applying for the grant, including 
     information on the need for reimbursements of base salaries 
     and overtime costs, storage fees, and other expenditures to 
     improve the investigation, prevention, or enforcement of laws 
     described in paragraph (1); and
       (C) a plan for coordinating the programs funded under this 
     section with other federally funded technical assistance and 
     training programs, including directly funded local

[[Page 7842]]

     programs such as the Edward Byrne Memorial Justice Assistance 
     Grant Program authorized by subpart 1 of part E of title I of 
     the Omnibus Crime Control and Safe Streets Act of 1968 (42 
     U.S.C. 3750 et seq.).
       (3) Matching funds.--The Federal share of an IP-TIC grant 
     may not exceed 90 percent of the costs of the program or 
     proposal funded by the IP-TIC grant, unless the Attorney 
     General waives, in whole or in part, the 90 percent 
     requirement.
       (4) Authorization of appropriations.--
       (A) Authorization.--There is authorized to be appropriated 
     to carry out this subsection the sum of $25,000,000 for each 
     of fiscal years 2008 through 2012.
       (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. 512. CHIP UNITS, TRAINING, AND ADDITIONAL RESOURCES.

       (a) Evaluation of CHIP Units.--The Attorney General shall 
     review the allocation and activities of the Computer Hacking 
     and Intellectual Property (in this section referred to as 
     ``CHIP'') units that have been established in various Federal 
     judicial districts, with the goals of--
       (1) improving the effectiveness of CHIP units in 
     investigating and prosecuting criminal offenses arising from 
     counterfeiting or piracy activities;
       (2) ensuring that CHIP units are established and funded in 
     every judicial district in which they can be effectively 
     deployed;
       (3) upgrading the training and expertise of Department of 
     Justice personnel participating in CHIP units; and
       (4) improving the coordination of the activities of CHIP 
     units with corresponding efforts of State and local law 
     enforcement agencies operating within the Federal judicial 
     district in question.
       (b) Requirements.--In addition to any initiatives 
     undertaken as a result of the review conducted under 
     subsection (a), the Attorney General, in consultation with 
     the Director of the Federal Bureau of Investigation, shall 
     ensure that--
       (1) each CHIP unit is supported by at least 2 additional 
     agents of the Federal Bureau of Investigation for the purpose 
     of investigating intellectual property crimes;
       (2) each CHIP unit is assigned at least 1 additional 
     assistant United States attorney to support such unit for the 
     purpose of prosecuting intellectual property crimes or other 
     crimes involved in counterfeiting or piracy activities;
       (3) CHIP units are established and staffed in at least 10 
     Federal judicial districts in addition to those districts in 
     which CHIP units exist on the date of the enactment of this 
     Act; and
       (4) an operational unit is created consisting of not less 
     than 5 agents of the Federal Bureau of Investigation, 
     attached to the headquarters of the Federal Bureau of 
     Investigation in Washington, D.C., and dedicated to working 
     with the Intellectual Property Enforcement Division 
     established by section 501 on the development, investigation, 
     and coordination of complex, multi-district, and 
     international criminal intellectual property cases.
       (c) Coordination With State and Local Authorities.--The 
     United States attorney for each Federal judicial district in 
     which a CHIP unit is in operation shall ensure that the 
     activities of that unit are coordinated with the 
     corresponding activities of State and local law enforcement 
     agencies operating within that Federal judicial district in 
     the investigation of intellectual property crimes and other 
     crimes involved in counterfeiting or piracy, including by 
     coordinating Federal, State, and local operations and 
     intelligence sharing to the extent appropriate.
       (d) Additional Responsibilities of the Attorney General.--
     The Attorney General, in consultation with the Director of 
     the Federal Bureau of Investigation as appropriate, shall 
     ensure the following:
       (1) All assistant United States attorneys who are assigned 
     to CHIP units, and all agents of the Federal Bureau of 
     Investigation who support those units, have received advanced 
     training, on an annual basis, in the investigation and 
     prosecution of intellectual property crimes and other crimes 
     involved in counterfeiting and piracy.
       (2) All relevant units of the Department of Justice are 
     allocated sufficient funding and other resources as may be 
     necessary to provide expert computer forensic assistance, 
     including from nongovernmental entities, in investigating and 
     prosecuting intellectual property crimes in a timely manner. 
     For purposes of this paragraph, the term ``all relevant 
     units'' includes those officers and employees assigned to 
     carry out the functions transferred by section 501(c)(1), 
     CHIP units, offices of the United States attorneys, and units 
     of the Federal Bureau of Investigation that are engaged in 
     the investigation of intellectual property crimes.

     SEC. 513. TRANSPARENCY OF PROSECUTORIAL DECISIONMAKING.

       (a) In General.--The Attorney General shall direct each 
     United States attorney--
       (1) to review the formal or informal standards currently in 
     effect in that Federal judicial district for accepting or 
     declining prosecution of cases involving criminal violations 
     of intellectual property laws;
       (2) to consider whether the standards should be modified or 
     applied more flexibly--
       (A) to ensure that significant violations are not being 
     declined for prosecution inappropriately; or
       (B) in light of the broader impact of individual cases on 
     the overall strategy to combat counterfeiting and piracy; and
       (3) to review the practices and procedures currently in 
     place for providing information to complainants and victims 
     in cases and investigations involving criminal violations of 
     intellectual property laws regarding the status of such cases 
     and investigations, including the practices and procedures 
     for apprising interested parties of the decision to decline 
     prosecution of such cases.
       (b) Construction.--
       (1) Prosecutorial matters.--Nothing in this section shall 
     be construed to impinge on the appropriate exercise of 
     prosecutorial discretion with respect to cases involving 
     criminal violations of intellectual property laws or to 
     require the promulgation of formal standards or thresholds 
     regarding prosecution of any cases.
       (2) No claims, etc., may be asserted.--Nothing in the 
     section shall give rise to any claim, cause of action, 
     defense, privilege, or immunity that may be asserted by any 
     party to Federal litigation.

     SEC. 514. AUTHORIZATION OF APPROPRIATIONS.

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

                  Subtitle C--International Activities

     SEC. 521. INTERNATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT 
                   COORDINATORS.

       (a) Deployment of Additional Coordinators.--The Attorney 
     General shall, within 180 days after the date of the 
     enactment of this Act, deploy 5 Intellectual Property Law 
     Enforcement Coordinators, in addition to those serving in 
     such capacity on such date of enactment. Such deployments 
     shall be made to those countries and regions where the 
     activities of such a coordinator can be carried out most 
     effectively and with the greatest benefit to reducing 
     counterfeit and pirated products in the United States market, 
     to protecting the intellectual property rights of United 
     States persons and their licensees, and to protecting the 
     interests of United States persons otherwise harmed by 
     violations of intellectual property rights in those 
     countries. The mission of all International Intellectual 
     Property Law Enforcement Coordinators shall include the 
     following:
       (1) Acting as liaison with foreign law enforcement agencies 
     and other foreign officials in criminal matters involving 
     intellectual property rights.
       (2) Performing outreach and training to build the 
     enforcement capacity of foreign governments against 
     intellectual property-related crime in the regions in which 
     the coordinators serve.
       (3) Coordinating United States law enforcement activities 
     against intellectual property-related crimes in the regions 
     in which the coordinators serve.
       (4) Coordinating with the activities of the intellectual 
     property attaches appointed under title IV in the countries 
     or regions to which the coordinators are deployed.
       (5) Coordinating the activities of the coordinators with 
     the IP Officer.
       (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. 522. INTERNATIONAL TRAINING ACTIVITIES OF THE COMPUTER 
                   CRIME AND INTELLECTUAL PROPERTY SECTION.

       (a) Increased Training and Technical Assistance to Foreign 
     Governments.--The Attorney General shall increase the efforts 
     of the Department of Justice to provide training and 
     technical assistance to foreign governments, including 
     foreign law enforcement agencies and foreign courts, to more 
     effectively combat counterfeiting and piracy activities 
     falling within the jurisdiction of such governments.
       (b) Conduct of Programs.--The increased training and 
     technical assistance programs under subsection (a) shall be 
     carried out by the Intellectual Property Enforcement Division 
     established by section 501, as well as through such other 
     divisions, sections, or agencies of the Department of Justice 
     as the Attorney General may direct.
       (c) Priority Countries.--The Attorney General, in providing 
     increased training and technical assistance programs under 
     this section, shall give priority to those countries where 
     such programs can be carried out most effectively and with 
     the greatest likelihood of reducing counterfeit and pirated 
     products in the United States market, of protecting the 
     intellectual property rights of United States persons, or of 
     protecting the interests of United States persons otherwise 
     harmed by violations of intellectual property rights in those 
     countries.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated for each fiscal year such sums as may be 
     necessary to carry out this section.

[[Page 7843]]



        Subtitle D--Coordination, Implementation, and Reporting

     SEC. 531. COORDINATION.

       The IP officer shall ensure that activities undertaken 
     under this title are carried out in a manner consistent with 
     the joint strategic plan developed under section 321.

     SEC. 532. 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, including a report on the activities of 
     the IP Officer.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Michigan (Mr. Conyers) and the gentleman from Texas (Mr. Smith) each 
will control 20 minutes.
  The Chair recognizes the gentleman from Michigan.


                             General Leave

  Mr. CONYERS. Mr. Speaker, I ask unanimous consent that all Members 
have 5 legislative days to revise and extend their remarks and include 
extraneous material.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Michigan?
  There was no objection.
  Mr. CONYERS. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, today we move to dramatically step up our Nation's 
intellectual property laws and enforcement efforts. With so much 
unpleasant economic news in the headlines, the measure before us, H.R. 
4279, puts resources towards aiding a sector of the economy that 
employs an estimated 18 million workers. That is 13 percent of our 
labor force and accounts for half of all of the United States exports 
driving 40 percent of the country's growth.
  As a result of less-than-effective enforcement, however, 
counterfeiting and piracy cost the United States' economy somewhere in 
the neighborhood of $250 billion a year and creates the loss of about 
750,000 American jobs.
  And so H.R. 4279 will do these important things: It will prioritize 
intellectual property protection to the highest level of our government 
by creating an office in the White House that will be responsible for 
coordinating the intellectual property efforts of eight diverse 
agencies and producing a national Joint Strategic Plan for IP 
enforcement. It will elevate IP enforcement within the Department of 
Justice and provide more resources for investigating and prosecuting IP 
crimes.
  It will make changes to both civil and criminal IP laws to enhance 
the ability of intellectual property owners to effectively protect 
their rights, and it will increase penalties for IP violations that 
endanger public health and safety.
  Throughout the process of developing this bill, we heard many 
expressions of support as well as a number of expressions of concern. 
But we've been able to work out these issues on a bipartisan basis at 
every step of the process.
  I congratulate the distinguished members of the Judiciary Committee, 
both Republicans and Democrats, for their cooperation in this process. 
And so now as a result, the measure is supported by the Consumer 
Electronics Association, the Digital Media Association, the Net 
Coalition, the Internet Commerce Coalition, the Coalition for 
Consumers' Picture Rights, the Printing Industries Association and 
more.
  That is in addition to the support we've already had from the 
Teamsters, the Directors Guild of America, SEIU, AFTRA, Unite Here, 
AFM, OPEIU, the Coalition Against Counterfeiting in Piracy, the Motor 
Equipment Manufacturing Association, the Motion Picture Association of 
America, PHARMA, and NBC Universal.
  Intellectual property protection is among the key issues that will 
determine American competitiveness in the 21st century. The ability to 
create, innovate, and generate the best artistic, technological, and 
knowledge-based intellectual property is the formula for continued 
growth in the global economy and is fundamental to the promotion of 
human progress.
  This committee of ours, the Judiciary Committee, has given these 
items involved in the measure extensive consideration, lots of 
compromise back and forth, and we feel that this bill will make 
important contributions to the fight against counterfeiting and piracy. 
It was reported by voice with strong bipartisan statements of support, 
and I urge my colleagues to vote for its passage.
  Mr. Speaker, I reserve the balance of my time.

                              {time}  1415

  Mr. SMITH of Texas. Mr. Speaker, I yield myself such time as I may 
consume.
  Mr. Speaker, at the outset I want to recognize Chairman Conyers, 
Subcommittee Chairman Berman and Ranking Member Howard Coble of the 
subcommittee, each of whom I have enjoyed working with in developing 
and advancing this legislation.
  Mr. Speaker, at a time when many Americans are facing a slowing 
economy and increasing costs of food and fuel, it is imperative that 
Congress put aside any differences we may have and work together to 
promote the interests of U.S. entrepreneurs and industry.
  Over the past 25 years, perhaps no group of industries has 
contributed more to the tremendous and sustained growth in our economy 
than those who rely on strong patent, trademark and copyright 
protections.
  American intellectual property industries, including entertainment, 
high-tech and pharmaceutical industries, account for over half of all 
U.S. exports, represent 40 percent of the country's economic growth and 
employ 18 million American workers.
  American technology, entertainment and productivity-based enterprises 
serve as the cornerstone of our economic and export strength.
  Because of the important role IP industries play in our economy, we 
cannot take these innovations, or their creativity and investment 
required to bring them to life, for granted.
  Unfortunately, the tremendous success of these innovators, creators 
and rights-holders has made them prime targets for thieves who seek out 
items protected by patent, copyright, trademark or trade secret 
designation. These thieves not only steal the creations of others, but 
also reap the monetary benefits by reproducing and distributing the 
products themselves.
  And the losses attributed to counterfeiting and piracy affect more 
than the inventor. According to the U.S. Government, American 
businesses lose approximately $250 billion each year to pirated and 
counterfeited goods.
  The theft of intellectual property has also cost nearly 750,000 
Americans their jobs. Given the current state of the economy, 
preventing these crimes and enforcing IP laws must be a top priority 
for the Federal Government.
  H.R. 4279, the Prioritizing Resources and Organization for 
Intellectual Property Act of 2008, which is also known as PRO-IP, is a 
measure designed to respond directly to these challenges.
  Specifically, the bill strengthens our laws against counterfeiting 
and piracy; provides new resources to key agencies involved in the 
enforcement of IP rights; and mandates a new and unprecedented level of 
coordination and leadership on IP enforcement issues from the White 
House.
  Mr. Speaker, the incentive to innovate and the ability to profit from 
the creation of new intellectual property cannot be sustained without 
enforcing the rights that protect the ownership of such valuable, 
intangible property.
  And while our government agencies are doing more today to protect 
intellectual property than ever before, the reality is that we must do 
much more. We must make it increasingly difficult, and costly, for 
counterfeiters and traffickers, some of whom are connected to organized 
crime, to steal and profit from American innovations.
  Because intellectual property is such an important asset for both the 
inventor and the economy as a whole, Congress has a responsibility to 
ensure that IP enforcement is made a permanent priority of every 
administration.
  By supporting the PRO-IP bill, the House will send a clear message 
that there is a bipartisan commitment to ensure the next President and 
succeeding administrations have the resources, organizations and 
strategies required to protect our vital national and economic 
interests.

[[Page 7844]]

  Mr. Speaker, I urge my colleagues to support this bill, H.R. 4279.
  I reserve the balance of my time.
  Mr. CONYERS. Mr. Speaker, I rise now to yield to my dear friend and 
chairman of the Intellectual Property Subcommittee who's worked on this 
subject matter for so many years. Howard Berman has been a bellwether 
in bringing together the groups, and I'm happy to yield him as much 
time as he may consume.
  Mr. BERMAN. Thank you, Chairman Conyers, for those kind words.
  I rise today in support of H.R. 4279. American inventors, artists and 
businesses rely on intellectual property rights to protect the value of 
their creative works. These works, unfortunately, are being ripped off 
around the world. The rampant counterfeiting and piracy of U.S. 
products is having a devastating impact on our economy.
  Counterfeit and pirated products may account for up to 8 percent of 
world trade, and a significant portion of this illicit trade are knock-
offs of American products. Latest estimates indicate that U.S. 
businesses lose up to $250 billion a year due to intellectual property 
theft. This level of counterfeiting and piracy of U.S. intellectual 
property rights translates to job losses, lower tax receipts, and a 
greater trade deficit. It has also led to public health and safety 
threats ranging from exploding batteries to toxic pharmaceuticals to 
sawdust brake pads.
  The economic threat and safety problems that counterfeit and pirated 
products pose for U.S. businesses and consumers must be dealt with. 
Given the difficult economic times we find ourselves in, it is that 
much more important that we address these problems quickly and 
effectively.
  I am aware of the recent efforts the administration has taken to stem 
the tide of counterfeit and pirated products. The Department of 
Homeland Security has seized record numbers of counterfeit and pirated 
goods coming through the border. The Department of Justice is 
prosecuting and convicting more intellectual property thieves. The 
Patent and Trademark Office has stationed representatives in foreign 
countries to advocate for better enforcement. However, despite these 
efforts, intellectual property theft is on the rise. More must be done. 
H.R. 4279 is more.
  The Act strengthens our civil and criminal laws in ways that attack 
the organizational structures intellectual property thieves are using 
and reduce the economic incentives that thieves have to engage in 
commercial scale counterfeiting and piracy. The Act devotes more 
resources to investigate and prosecute intellectual property crimes. 
The Act also provides more resources for the U.S. Government to work 
with other governments to improve intellectual property enforcement 
abroad.
  And probably most importantly, H.R. 4279 provides a permanent and 
effective means of coordinating intellectual property enforcement 
activities. This includes the creation of an intellectual property 
enforcement representative in the Executive Office of the President and 
requiring that a national strategic plan to counter intellectual 
property theft be created, complete with clear goals and benchmarks 
that will facilitate accountability.
  I'd like very much to thank Chairman Conyers, Ranking Member Smith, 
and Subcommittee Ranking Member Coble and all of their staffs, as well 
as mine, for the hard work they've put into crafting this bill. The 
hard work shows in both the scope of the reforms and in the strong 
support for the bill by U.S. businesses and labor groups, and Chairman 
Conyers outlined a number of those organizations and the broad sweep 
that they cover and their strong endorsement.
  I'm also pleased to say that the amendments adopted in the bill 
before us go a long way in alleviating concerns raised over the 
operational independence of agencies like the USTR and the Department 
of Justice, without compromising the underlying reforms.
  H.R. 4279 will bolster U.S. efforts to combat counterfeiting and 
piracy, and I urge support of the bill.
  Mr. SMITH of Texas. Mr. Speaker, I yield to the gentleman from North 
Carolina (Mr. Coble), the ranking member of the Intellectual Property 
Subcommittee and the former chairman of the Intellectual Property 
Subcommittee, as much time as he may consume.
  Mr. COBLE. I thank the gentleman from Texas and, Mr. Speaker, at the 
outset I, too, want to recognize and express thanks to Judiciary 
Chairman John Conyers, Ranking Member Lamar Smith, and Subcommittee 
Chairman Howard Berman for having made every effort to address all 
concerns raised during the development of this legislation.
  Mr. Speaker, the Prioritizing Resources and Organization for 
Intellectual Property Act of 2008 reflects a bipartisan recognition and 
shared commitment to the strengthening of our Nation's intellectual 
property laws.
  A comprehensive measure, it is not confined to making marginal 
improvements in the available civil and criminal authorities. Instead, 
it incorporates bold and urgently needed provisions that will 
permanently elevate the importance of intellectual property, IP, 
enforcement in future administrations.
  This is accomplished by providing focused and accountable strategic 
leadership in the Executive Office of the President and at key 
enforcement agencies.
  Mr. Speaker, in considering why we should take steps to improve the 
enforcement of U.S. IP rights, Members should be aware that U.S. losses 
from global copyright piracy and counterfeiting cost our innovators and 
entrepreneurs from $200 to $250 billion each and every year.
  The impact in America has been widespread. More than 750,000 
Americans in communities across our land have lost their jobs due to 
counterfeiting and piracy. Counterfeit goods lack proper quality 
control and can be dangerous. Toothpaste, medicines, cigarettes, and 
fake auto parts are but a small sample of the virtually unlimited 
supply of goods that have been counterfeited.
  The United States Chamber of Commerce has done an excellent job of 
documenting the extent of this problem. I encourage anyone interested 
in learning about these issues to visit the Chamber's Web site for 
additional information or to take the time to watch the documentary 
Illicit which was produced by National Geographic and the Chamber.
  Mr. Speaker, fighting piracy and counterfeiting, as you all know, is 
easier said than done because most of this illicit activity occurs 
outside our borders. In recent years, the Federal Government has made 
progress in improving both our domestic and global enforcement efforts, 
but it is also clear that achieving success in the fight against piracy 
and counterfeiting requires government-wide coordination and 
cooperation.
  In addition to authorizing the Office of the United States 
Intellectual Property Enforcement Representative, H.R. 4279 also raises 
the profile of IP enforcement within the Department of Justice through 
the creation of a new IP enforcement division. This is absolutely 
necessary in my opinion.
  The bill creates an additional 10 attaches at the United States 
Patent and Trademark Office who will be assigned to work with foreign 
countries to better coordinate our international enforcement efforts.
  And the bill enhances existing anti-piracy and counterfeiting 
criminal statutes, authorizes grants to assist local anti-piracy and 
counterfeiting efforts, and directs the Justice Department to refine 
its policies for investigating and prosecuting piracy and 
counterfeiting operations.
  Before closing, Mr. Speaker, I'd like to note for the Record three 
final amendments the managers agreed to incorporate into the bill. The 
first is designed to harmonize the cooperative provisions in title II 
of the bill.
  The second, in section 301, places an affirmative limitation on the 
authority of the new IP enforcement representative that makes clear the 
official has no authority to control or direct law enforcement agencies 
in the exercise of their respective investigative or prosecutorial 
discretion in particular cases.

[[Page 7845]]

  And the third, which amends section 323 of the bill, simply contains 
technical and conforming changes to make the text of the bill clearer.
  Finally, Mr. Speaker, I want to recognize some of the stakeholders 
who have worked so diligently on this effort. Specifically, I'd like to 
note the efforts of the Coalition Against Counterfeiting and Piracy, 
which has been so ably led by Mr. Rick Cotton; and the U.S. Chamber of 
Commerce, which, of course, is led by President Tom Donohue; and the 
Congressional International Anti-Piracy Caucus, which is led by 
Representatives Adam Schiff of California and Bob Goodlatte of 
Virginia.
  In closing, I urge my colleagues to support H.R. 4279, and I thank 
the distinguished gentleman from Texas for having yielded to me.
  Mr. CONYERS. Mr. Speaker, I think I have only one speaker left, but 
might I say a word about the distinguished ranking member, Lamar Smith 
of Texas, who's worked with us incredibly, with deliberation. He's 
brought parties together. There has been an enormous amount of work 
behind the scenes for which nobody knows how much he's done to make 
this possible. I thank him publicly.
  I now yield the rest of our time to the gentleman from Tennessee (Mr. 
Cohen).

                              {time}  1430

  Mr. COHEN. I want to thank the chairman and the chairmen for the work 
they've done, and for the ranking member, on this bill.
  I rise in support of H.R. 4279, the Prioritizing Resources and 
Organization for Intellectual Property Act of 2008, or the PRO-IP Act.
  Our Nation's intellectual property is the basis for our economic 
success and security. That is something that can't be undermined by 
cheap labor prices overseas. It's an American product. Therefore, 
protecting our intellectual property must be among our highest 
priorities.
  In addition to undermining our global economic primacy, counterfeit 
and pirated products can threaten the health and safety of American 
consumers, American pet owners, steal income from legitimate 
businesses, deprive American workers of good jobs, and undermine the 
necessary incentive for innovation and creativity which has made 
America the great country that it is. It is for these reasons I'm an 
original cosponsor of the PRO-IP Act.
  The PRO-IP Act will help strengthen enforcement of intellectual 
property rights domestically and internationally through enhanced 
criminal and civil penalties for intellectual property crimes, better 
high-level coordination among Federal Government agencies, and 
increased resources to domestic and foreign law enforcement 
authorities.
  This bill, Mr. Speaker, rightfully enjoys broad support from a wide 
range of industries, including the entertainment, pharmaceutical, food, 
automobile parts and software industries. It has such diverse partners 
as the Chamber of Commerce and the Teamsters. When the Chamber of 
Commerce and the Teamsters come together it's like E.F. Hutton--we 
listen. We've listened well and need to pass this bill.
  This coalition that supports PRO-IP is indicative of the broad 
support and the need for passage of such legislation. I urge my 
colleagues to heed the words and vote in favor of this important 
legislation.
  Mr. SMITH of Texas. Mr. Speaker, first of all, I'd like to thank the 
chairman of the Judiciary Committee, Mr. Conyers, for his earlier very 
generous comments.
  Mr. Speaker, I submit the following extraneous material for the 
Record:

                                Congress of the United States,

                                      Washington, DC, May 5, 2008.
     Re support H.R. 4279, the PRO-IP Act.

       Dear Colleague: We want to alert all Congressional Caucus 
     on Intellectual Property Promotion and Piracy Prevention 
     Members that tomorrow the House will consider H.R. 4279, the 
     Prioritizing Resources and Organization for Intellectual 
     Property Act of 2007 (PRO IP Act) under suspension of the 
     rules. As a caucus dedicated to enforcing IP rights, it is 
     not only critical that our Members support this legislation, 
     but also make an effort to educate other Members about the 
     value of protecting American IP.
       It has become increasingly clear that IP-based industries 
     are the key to the future competitiveness and economic 
     prosperity of the United States. They currently account for 
     between $5-5.5 trillion of the U.S. gross domestic product 
     and this sector is responsible for 40% of the nation's 
     economic growth. It is therefore imperative that our 
     government protect IP industries from criminal networks that 
     engage in counterfeiting and piracy, which cost U.S. 
     businesses $250 billion annually and have caused the loss of 
     750,000 American jobs.
       Unfortunately, the counterfeiting and piracy problem will 
     continue to worsen without strong, resolute action by 
     Congress. The PRO IP Act addresses this disturbing trend by 
     strengthening civil and criminal IP laws to deter offenders 
     and also provides increased government resources and 
     coordination to enforce Americans' IP rights in the U.S. and 
     around the world.
       Given the extent of the counterfeiting and piracy problem 
     and its impact on U.S. economic security, jobs, and consumer 
     health and safety, it is not surprising that H.R. 4279 is 
     supported by an array of businesses, trade associations and 
     organized labor groups.
       We urge you to support this legislation.
       If you have any questions about the Congressional Caucus on 
     Intellectual Property Promotion and Piracy Prevention please 
     feel free to contact the following Member Offices Rep. Robert 
     Wexler (Ellen McLaren, 202-225-3001), Rep. Mary Bono Mack 
     (Paul Cancienne, 202-225-5330), Rep. Tom Feeney (D. Cameron 
     Smith, 202-225-2706), or Rep. Adam Smith (Jonathan Pawlow, 
     202-225-8901).
           Sincerely,
     Robert Wexler,
       Member of Congress.
     Tom Feeney,
       Member of Congress.
     Mary Bono Mack,
       Member of Congress.
     Adam Smith,
       Member of Congress.
                                  ____

                                        Chamber of Commerce of the


                                     United States of America,

                                   Washington, DC, April 29, 2008.
     Hon. John Conyers, Jr.,
     Chairman, Committee on the Judiciary, House of 
         Representatives, Washington, DC.
     Hon. Lamar Smith,
     Ranking Member, Committee on the Judiciary, House of 
         Representatives, Washington, DC.
       Dear Chairman Conyers and Ranking Member Smith: The U.S. 
     Chamber of Commerce, the world's largest business federation 
     representing more than three million businesses and 
     organizations of every size, sector, and region, would like 
     to thank you for scheduling a full committee markup of H.R. 
     4279, the ``Prioritizing Resources and Organization for 
     Intellectual Property Act of 2007,'' (PRO-IP Act).
       Protection of intellectual property (IP) is critical to 
     America's continued competitiveness and future economic 
     security. Counterfeiting and piracy of IP costs the United 
     States an estimated 750,000 jobs and U.S. companies close to 
     $250 billion in annual revenue. Moreover, counterfeit 
     products such as auto and aviation parts, toothpaste, 
     prescription drugs, and many others pose a severe health and 
     safety risk to American consumers.
       Unfortunately, the incidence of counterfeiting and piracy 
     has increased faster than the government resources necessary 
     to stop this problem and current legal penalties are 
     insufficient to deter criminals. H.R. 4279 addresses these 
     concerns by providing increased resources and coordination 
     within the executive branch for IP enforcement and enhancing 
     civil and criminal IP laws.
       The Chamber appreciates your leadership on this important 
     issue and supports expeditious approval of the PRO-IP Act by 
     the Judiciary Committee and the full House of 
     Representatives.
           Sincerely,

                                              R. Bruce Josten,

                                         Executive Vice President,
     Government Affairs.
                                  ____

                                                   April 29, 2008.
     Hon. John Conyers, Jr.,
     Chairman, Committee on the Judiciary, House of 
         Representatives, Washington, DC.
     Hon. Lamar Smith,
     Ranking Member, Committee on the Judiciary, House of 
         Representatives, Washington, DC.
       Dear Chairman Conyers and Ranking Member Smith: The 
     Coalition Against Counterfeiting and Piracy (CACP), which 
     includes more than 500 businesses and associations, thanks 
     you for scheduling a markup of H.R. 4279, the ``Prioritizing 
     Resources and Organization for Intellectual Property Act of 
     2007,'' (PRO-IP Act).
       As you know, intellectual property (IP) accounts for more 
     than $5 trillion of the U.S. gross domestic product, 
     comprises more than half of all U.S. exports, and represents 
     40 percent of U.S. economic growth. Counterfeiting and piracy 
     of IP are growing problems that threaten the ability of 
     businesses to remain competitive and continue providing 
     quality jobs to Americans. Additionally, unsafe counterfeit 
     products pose a severe risk to U.S. consumer health and 
     safety.
       CACP members strongly support passage of the PRO-IP Act 
     because it will help the U.S.

[[Page 7846]]

     government significantly improve IP protection and 
     enforcement both internationally and domestically. It is 
     crucial that Congress address counterfeiting and piracy 
     before the end of this session. CACP therefore urges the 
     Committee on the Judiciary not to adopt any controversial 
     amendments that might jeopardize swift enactment of this 
     legislation.
       The CACP thanks you again for sponsoring the PRO-IP Act and 
     for your continued leadership in moving this critical bill 
     through the legislative process.
           Sincerely,

                                                  Rick Cotton,

                                   Chairman, The Coalition Against
     Counterfeiting and Piracy.
                                  ____

                                           International Trademark


                                                  Association,

                                      Washington, DC, May 5, 2008.
       Dear Member, The International Trademark Association (INTA) 
     would like to express its full support for the legislation, 
     ``Prioritizing Resources and Organization for Intellectual 
     Property Act of 2007'' (H.R. 4279). INTA is a not-for-profit 
     membership association of more than 5,500 trademark owners 
     and professionals dedicated to the support and advancement of 
     trademarks and related intellectual property (``IP'') as 
     elements of fair and effective national and international 
     commerce. We urge you to vote ``YES'' on H.R, 4279.
       We commend the House of Representatives for this bill, 
     which seeks to improve the protection of IP and enhances the 
     capacity for enforcement and coordination activities. The 
     protection of intellectual property is a global challenge and 
     requires a focus on strengthening and streamlining U.S. law 
     and policy as well as a mechanism for creating new 
     opportunities for enforcement and collaboration on a global 
     level. H.R. 4279 succeeds in achieving these objectives.
       Counterfeiting is a growing problem that is affecting the 
     health and well-being of consumers throughout the world. It 
     steals the identity of trademark owners and robs consumers of 
     a safe and reliable marketplace. For the U.S. economy, it 
     translates into lost jobs and lost tax revenues. 
     Specifically, the cost to the U.S. economy is estimated at 
     $200 to $250 billion per year. Passage of H.R. 4279 is a 
     crucial step to counteract the challenges and burdens 
     presented by counterfeiting.
       INTA is pleased to see a united effort by Congress to 
     address this growing problem and INTA looks forward to 
     passage of this legislation in the House of Representatives.
       Thank you.
           Sincerely,
                                                  Alan C. Drewsen,
     Executive Director.
                                  ____

                                        Motion Picture Association


                                             of America, Inc.,

                                      Washington, DC, May 6, 2008.
     Hon. Nancy Pelosi,
     House of Representatives,
     Washington, DC.
     Hon. John Boehner,
     House of Representatives,
     Washington, DC.
       Dear Speaker Pelosi and Leader Boehner: On behalf of the 
     Motion Picture Association of America, I write to convey our 
     strong support for House passage of H.R. 4279, the 
     Prioritizing Resources and Organization for Intellectual 
     Property Act of 2007. H.R. 4279 is a comprehensive bi-
     partisan measure that will strength protections for 
     intellectual property and thereby strengthen our nation's 
     economy and generate more jobs for American workers.
       Theft of intellectual property by counterfeiting and 
     copyright piracy have a profoundly detrimental impact on our 
     nation's economy. Theft of intellectual property costs 
     American industry more than $250 billion annually, as well as 
     an estimated 750,000 jobs. Piracy costs the motion picture 
     and television production industries alone over 140,000 U.S. 
     jobs each year. Absent piracy, workers employed by the motion 
     picture and television production industries would earn an 
     additional $5.5 billion per year, and cities, towns and 
     states would receive $837 million in additional tax revenue 
     annually. Protecting intellectual property is vital to our 
     nation's continuing economic strength and H.R. 4279 includes 
     important and much needed provisions that will help do so.
       H.R. 4279 will ensure that federal authorities have the 
     resources necessary to investigate and prosecute criminal 
     intellectual property crimes. It will also ensure that 
     intellectual property protection remains a federal priority 
     by creating a new office within the White House dedicated to 
     this important goal. Finally, H.R. 4279 increases the 
     protection of American intellectual property abroad by 
     enhancing critically important international enforcement 
     resources.
       Intellectual property is among America's most precious 
     commodities. Protecting intellectual property is good for 
     America's economy, will produce more jobs for U.S. workers 
     and more and better products for consumers. H.R. 4279 is a 
     measured, reasonable and much-needed piece of legislation 
     that will ensure that the American intellectual property 
     system remains the world leader. This important legislation 
     has strong bi-partisan support and enjoys broad support from 
     both the American business community, and labor unions. 
     Accordingly, we urge House Members to vote in favor of H.R. 
     4279.
           Sincerely,

                                                 Dan Glickman,

                                                      Chairman and
                                          Chief Executive Officer.

  Ms. JACKSON-LEE of Texas. Mr. Speaker, I rise in strong support of 
H.R. 4279, the ``Prioritizing Resources and Organization for 
Intellectual Property (PRO-IP) Act of 2007.'' I urge my colleagues to 
join me in voting for this legislation. I am confident that working 
together we can address and strengthen criminal and civil enforcement 
of United States intellectual property law.
  The purpose of H.R. 4279 is to strengthen criminal and civil 
enforcement of United States intellectual property law focusing, in 
particular, on copyright violations (piracy) and trademark violations 
(counterfeiting). In addition, the PRO-IP Act seeks to modernize and 
improve U.S. government efforts for coordination and enforcement of our 
nation's IP laws.
  The knowledge and innovation of American citizens contributes 
significantly to the economic strength of our nation. Intellectual 
property law provides the principal incentives that are calculated to 
lead to the creation and production of new works. This bill is needed 
because the effect of piracy and counterfeiting on the economy is 
devastating. Total global losses to United States companies from 
counterfeiting and copyright piracy amount to $250 billion per year. 
Every company in every industry is vulnerable.
  Because these illegal activities represent a growing public health, 
safety and law enforcement problem, H.R. 4279 provides additional 
targeted resources for investigation, enforcement and prosecution; 
requires the development and promulgation of a national Joint Strategic 
Plan to combat counterfeiting and piracy; and provides for enhanced 
Presidential level leadership and coordination among federal agencies 
involved with preserving and protecting intellectual property rights.
  Title I of H.R. 4279 provides enhancements to civil intellectual 
property laws. Specifically, Title I makes it clear that a certificate 
of registration will satisfy registration requirements regardless of 
whether there is any inaccurate information on the registration 
application, unless the inaccurate information was included with 
knowledge that it was inaccurate.
  Title I also broadens the civil remedies for infringement by 
broadening the scope of articles that may be ordered impounded by the 
court upon a finding that the article was made or used in violation of 
a copyright. This Title also directs the court to enter a protective 
order to ensure that confidential information is not improperly 
disclosed.
  Title II provides enhancements to criminal intellectual property laws 
by addressing repeat offender penalties for criminal acts contained 
within the criminal copyright statute. Title II clarifies that a repeat 
offender is a person that commits the same criminal act twice. The bill 
clarifies that any property subject to forfeiture must be owned or 
predominantly controlled by the violator in order to be seized and 
directs the United States Sentencing Commission to consider whether the 
sentencing guidelines should be expanded to include the export of 
infringing items. There are enhanced maximum statutory penalties for 
counterfeit offenses that endanger public health and safety.
  Title III of H.R. 4279 provides greater coordination and strategic 
planning of federal efforts against counterfeiting and piracy. 
Specifically, this Title establishes within the Executive Office of the 
President, the Office of the United States Intellectual Property 
Enforcement Representative and, within that Office, the United
  States Intellectual Property Enforcement Representative, appointed by 
the President of the United States. Lastly, Titles IV and V provide 
international, national, and local enforcement.
  The bill has several important enforcement provisions that are worthy 
to discuss. First, it places a 45-day time limit on the Register of 
Copyrights' response to a court. Second, it strikes the section 
allowing for multiple statutory damages for compilation infringement. 
Third, it clarifies that there must be a substantial nexus between the 
property and the crime to institute civil forfeiture proceedings. 
Lastly, it removes the requirements for Federal Bureau of Investigation 
agents to receive IP related crime training.
  While I support the bill, I would have liked to consider ways to 
ensure diversity in the Computer Hacking and Intellectual Property 
(CHIPs) units that are established by this bill. I would have liked to 
work to ensure that minorities be represented in hiring and that 
special recruitment initiatives be launched at historically black 
colleges and universities and other minority serving institutions. We 
should do all within our efforts to guarantee that minorities receive 
the necessary training and be recruited to help in the IP enforcement 
at the Executive, State, and local levels.

[[Page 7847]]

  Mr. Speaker, H.R. 4279 is a first step toward the promotion of the 
American economy. It ensures that American innovation will remain 
crucial to the United States economy and that American innovation will 
allow the United States to remain a global economic power. Indeed, this 
bill ensures that the United States IP laws are enforced and that the 
American intellectual property system remains one of the best in the 
world.
  Mr. Speaker, I urge all members to support this much needed and 
thoughtful legislation.
  Ms. ZOE LOFGREN of California. Mr. Speaker, I rise in opposition to 
H.R. 4279.
  While this administration can and should do more to protect 
intellectual property rights, I do not think that the answer lies in 
this bill's creation of new forfeiture provisions, a new ``IP Czar,'' 
or a new IP-only division within the Department of Justice.
  In recent civil actions pursued by some within the content industry, 
we have seen unduly aggressive tactics that occasionally target 
innocent individuals. I am concerned that given the bill's thrust 
toward more aggressive enforcement of copyright infringement, enhanced 
forfeiture provisions similarly may sweep up wholly innocent students, 
parents, and consumers in larger enforcement actions.
  I regret that more was not done to strike the appropriate balance 
between protecting copyright owners from those who unlawfully benefit 
from infringement and ensuring that we do not inadvertently punish 
innocent bystanders.
  I also have concerns with Title III's creation of a new office of the 
U.S. IP Enforcement Representative. I appreciate the work that has been 
done to refine the scope of Title III. Nonetheless, Title III still 
creates a position that is a coequal of the U.S. Trade Representative 
in the Department of Commerce. There is a strong possibility that the 
USTR and the ``IP Czar'' will come to conflicting policy decisions in 
matters affecting both IP enforcement and international trade.
  The bill offers little guidance with respect to how those conflicts 
will be resolved. Nor does it contain adequate safeguards to ensure 
that the IP Czar does not target legitimate innovation out of 
overstated concerns about contributory infringement.
  Finally, I share the authors' frustration with this administration's 
failure to engage in a more constructive dialogue about how best to 
focus the DOJ's resources on IP enforcement without harming and 
disrupting equally important law enforcement priorities. Nonetheless, 
that potential harm and disruption cannot be ignored and has not been 
addressed adequately.
  I share the goals of the authors of this legislation but not the 
means by which they sought to achieve them. I thank the authors for 
their work to improve this bill, but regret that it was not improved 
further.
  Mr. GOODLATTE. Mr. Speaker, I rise in strong support of this 
important legislation to strengthen our nation's laws against 
counterfeiting and intellectual property violations which passed the 
House yesterday.
  Article I Section 8 of our Constitution lays the framework for our 
nation's copyright and patent laws. It grants Congress the power to 
award inventors and creators, for limited periods of time, exclusive 
rights to their inventions and works. The founding fathers realized 
that this type of incentive was crucial to ensure that America would 
become the world's leader in innovation and creativity. As we continue 
our journey into the digital age, we must be sure to continue to reward 
our innovators with the exclusive rights to their works for limited 
periods of time. This incentive is still necessary to maintain 
America's position as the world leader in innovation.
  Because the United States has been the pioneer for intellectual 
property protections, it is no surprise that the copyright industries 
are so successful and play such an increasingly crucial role in our 
national economy. The U.S. copyright industries have created millions 
of high-skilled, high-paying U.S. jobs and have contributed billions to 
our economy. However, the proliferation of copyright piracy and 
counterfeiting in America is growing and is threatening to undermine 
the very copyright protections our founding fathers envisioned.
  In 1999, I introduced legislation with my friend, Representative Zoe 
Lofgren, to prohibit the alteration or removal of product 
identification codes on goods or packaging, prohibit the manufacture 
and distribution of devices primarily used to alter or remove product 
identification codes, and allow the seizure of decoded goods and 
decoding devices.
  In addition, for the better part of the past six years I have been 
pleased to work with retailers and law enforcement agencies to attempt 
to solve the growing problem of organized retail crime, which has 
resulted in billions of dollars of loss to retailers, has often 
resulted in counterfeit, diverted products being placed back on store 
shelves, has threatened the safety of such products as baby formula and 
medicine, and has been linked to major organized crime rings.
  I am equally pleased to be an original cosponsor of H.R. 4279. This 
legislation builds on current laws in many ways, including increasing 
penalties for both civil violations of copyright laws and repeat 
offenders, allowing treble damages in certain counterfeiting cases, and 
increasing the maximum penalties for trafficking in counterfeit goods 
when those offenses endanger public health and safety. The bill also 
raises the profile of intellectual property within the Administrative 
Branch by creating an Office of U.S. IP Enforcement Representative 
within the Executive Office of the President to coordinate all the 
various agencies and departments that work on IP enforcement issues, 
and to serve as the President's principal advisor for IP matters. In 
addition, it increases the number of IP liaisons from the PTO in U.S. 
embassies around the world and enhances DOJ's computer crime units to 
make sure they are equipped and being used to prosecute IP violations.
  I believe this legislation is a major step in the right direction, 
and I look forward to continuing to work on this bill as it progresses 
through the legislative process.
  Mr. SMITH of Texas. I yield back the balance of my time.
  Mr. CONYERS. Mr. Speaker, I follow suit and yield back any time 
remaining on this side.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Michigan (Mr. Conyers) that the House suspend the rules 
and pass the bill, H.R. 4279, as amended.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. FRELINGHUYSEN. Mr. Speaker, I object to the vote on the ground 
that a quorum is not present and make the point of order that a quorum 
is not present.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX and the 
Chair's prior announcement, further proceedings on this motion will be 
postponed.
  The point of no quorum is considered withdrawn.

                          ____________________