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S 1984 IS

To safeguard the national security and economic health of the United States by improving the management, coordination, and effectiveness of domestic and international intellectual property rights enforcement, and for other purposes.

November 9, 2005

Mr. BAYH (for himself and Mr. VOINOVICH) introduced the following bill; which was read twice and referred to the Committee on the Judiciary

To safeguard the national security and economic health of the United States by improving the management, coordination, and effectiveness of domestic and international intellectual property rights enforcement, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `The Intellectual Property Rights Enforcement Act'.

SEC. 2. FINDINGS.

The Congress makes the following findings:

(1) Funds generated from intellectual property theft have financed acts of terrorism.

(2) Terrorist groups have advocated the sale of counterfeit goods to finance their activities.

(3) Counterfeit medicines and automobile and aviation parts have resulted in serious health problems and death.

(4) The greatest economic assets of the United States are its innovators, entrepreneurs, and workers.

(5) Counterfeiting and piracy costs United States businesses, authors, and artists hundreds of billions of dollars annually.

(6) Counterfeiting and piracy has resulted in the loss of hundreds of thousands of American jobs.

(7) The World Customs Organization estimates that up to 7 percent of global trade is in counterfeit goods.

(8) The World Customs Organization estimates that global trade in counterfeit and pirated goods has increased from $5,500,000,000 to more than $600,000,000,000 annually.

(9) The domestic and international efforts of the United States to curb intellectual property theft have largely been ineffective.

(10) The efforts to enforce intellectual property rights should be elevated to the same level as the efforts of the United States to combat other crimes, including money laundering.

(11) The domestic and international efforts of the United States to combat money laundering serves as a useful model for strengthening domestic and international intellectual property rights enforcement.

(12) The Financial Crimes Enforcement Network (FinCEN) represents a key effort by the United States to combat money laundering and other financial crimes.

(13) FinCEN has effectively enhanced the exchange of information relating to money laundering and terrorist financing, both domestically and internationally.

(14) FinCEN combats money laundering internationally by partnering with other enforcement-minded countries through the Financial Action Task Force (FATF) and Egmont.

(15) FATF members have established effective standards that they collectively agree to implement and against which they agree to be assessed through peer review.

(16) The success of intellectual property rights enforcement requires that United States Government agencies form an effective network to share information for the purpose of enhancing the enforcement capabilities of each agency.

(17) The success of intellectual property enforcement requires that a network of government agencies work closely with Federal, State, and local law enforcement.

(18) The success of international intellectual property rights enforcement requires that the United States partner with other countries that also suffer from extensive intellectual property theft.

(19) The success of international intellectual property rights enforcement requires that the United States share intelligence within an effective international task force of countries that are dedicated to achieving results in the fight against intellectual property theft.

(20) The success of international intellectual property rights enforcement will be enhanced if the United States and other reliable international partners engage in joint enforcement operations.

(21) An effective exchange of intelligence domestically and internationally will enhance the ability of the United States Trade Representative to enforce violations of trade agreements.

(22) The success of domestic and international intellectual property rights enforcement requires an effective partnership between the public and private sector, and other interested groups.

SEC. 3. THE INTELLECTUAL PROPERTY ENFORCEMENT NETWORK.

(a) Establishment-

(1) IN GENERAL- There is established the Intellectual Property Enforcement Network (in this section referred to as the `Network').

(2) MEMBERSHIP- The Network shall consist of the following officials:

(A) The Deputy Director for Management of the Office of Management and Budget (OMB), who shall serve as the chairperson of the Network.

(B) The Deputy Attorney General.

(C) The Deputy Secretary for Homeland Security.

(D) The Under Secretary of Treasury for Terrorism and Financial Intelligence.

(E) The Under Secretary of Commerce for Intellectual Property and Director of the United States Patent and Trademark Office.

(F) The Deputy Secretary of State.

(G) The Deputy United States Trade Representative.

(H) The Under Secretary of Commerce for International Trade.

(I) The Deputy Director of the Central Intelligence Agency.

(J) The Coordinator for Intellectual Property Enforcement.

(K) Such other officials as the members of the Network shall consider necessary and appropriate.

(b) Organization-

(1) MEETINGS- The Network shall meet at least once every 6 months to approve the ongoing operations of the Network, to provide overall direction, to approve the report referred to in subsection (h), and to approve the budget referred to in paragraph (2)(B)(ii).

(2) COORDINATOR-

(A) IN GENERAL- The day-to-day functions of the Network shall be carried out by a Coordinator for Intellectual Property Enforcement (in this Act referred to as the `Coordinator') who shall be appointed by the President.

(B) OTHER RESPONSIBILITIES- In addition to the responsibilities described in subparagraph (A), the Coordinator shall be responsible for the following:

(i) Developing for each fiscal year, with the advice of the officials of the Network and any other departments and agencies with responsibilities for intellectual property rights protection and intellectual property law enforcement, a budget proposal to implement the policies, objectives, and priorities described in subsection (c).

(ii) Drafting and transmitting to the President and the Congress the report referenced in subsection (h).

(c) Duties- The Network established under subsection (a) shall be responsible for the following:

(1) Establishing policies, objectives, and priorities concerning international intellectual property protection and intellectual property law enforcement. The policies, objectives, and priorities shall include--

(A) eliminating counterfeit and pirated goods from the international supply chain;

(B) identifying individuals, companies, banks, and other entities involved in the financing, production, trafficking, and sale of counterfeit and pirated goods;

(C) arresting and prosecuting persons who are knowingly involved in the financing, production, trafficking, and sale of counterfeit and pirated goods;

(D) disrupting and shutting down counterfeit and piracy networks;

(E) reducing the number of countries that fail to enforce laws that prevent the financing, production, trafficking, and sale of counterfeit and pirated goods; and

(F) establishing international standards for effective intellectual property protection and enforcement.

(2) Protecting United States intellectual property rights overseas, including--

(A) working with similar networks in foreign countries to create a small and effective international intellectual property enforcement task force (in this Act referred to as the `international task force');

(B) ensuring the international task force described in subparagraph (A) consists of networks in countries that--

(i) have intellectual property theft problems that are similar to those of the United States;

(ii) have adequate and effective laws protecting copyrights, trademarks, and patents;

(iii) have legal regimes that permit enforcement, and are taking a serious approach to enforcement, including a track record of arresting and prosecuting intellectual property criminals;

(iv) have officials who have ex-officio authority to seize, inspect, and destroy pirated and counterfeit goods at ports of entry (or are working toward providing their officials with the authority);

(v) have officials who can order the seizure of pirated and counterfeit goods (or are working toward providing their officials with the authority);

(vi) have laws in place that permit officials to seize property used to produce pirated and counterfeit goods (or are working toward providing their officials with the authority);

(vii) are not on the Priority Watch List issued by the United States Trade Representative under the Trade Act of 1974; and

(viii) have met additional standards to be established by the international task force.

(C) exchanging intelligence with networks in the international task force relating to individuals and entities involved in financing, production, trafficking, and sale of pirated and counterfeit goods;

(D) utilizing the intelligence to conduct enforcement activities in cooperation with the networks of other countries in the international task force; and

(E) building a formal process for consulting with companies, industry associations, labor unions, and other interested groups in the countries that have networks in the international task force.

(3) Coordinating and overseeing implementation by agencies with responsibility for intellectual property protection and intellectual property law enforcement of the policies, objectives, and priorities described in paragraph (1) and the fulfillment of the responsibilities assigned to such agencies to complete the actions described in paragraph (2).

(d) Staff-

(1) IN GENERAL- The Coordinator shall, in consultation with affected agencies, appoint, and fix the compensation of, such officers and employees of the Network as may be necessary to carry out the functions of the Network and may request the temporary assignment of personnel from any department or agency.

(2) ASSIGNMENT AND COOPERATION OF OTHER FEDERAL EMPLOYEES- Each member of the Network listed in subsection (a) shall designate personnel from their department or agency to work with the Network and shall ensure that all units in their agencies that have responsibility for intellectual property enforcement provide information and personnel to the Network in order for the Network to achieve the priorities, objectives, and policies described in subsection (c)(1).

(3) CENTRAL INTELLIGENCE AGENCY INFORMATION AND PERSONNEL- The Deputy Director of the Central Intelligence Agency shall--

(A) provide information to members and employees of the Network with appropriate security clearance; and

(B) assign employees of the Central Intelligence Agency to work on achieving the priorities, objectives, and policies described in subsection (c).

(e) Responsibility of Agencies Represented in the Network- The agencies in the Network shall take the following actions:

(1) Share amongst themselves the information they collect to increase the intelligence and effectiveness of law enforcement with respect to intellectual property rights.

(2) Coordinate civil and criminal actions with respect to persons who violate intellectual property rights.

(3) Utilize information collected domestically, and from other countries in the international task force, to--

(A) investigate, arrest, and prosecute entities and individuals involved in financing, producing, trafficking, and selling counterfeit and pirated goods;

(B) aid the United States Bureau of Customs and Border Protection and other agencies in identifying, seizing, and destroying counterfeit and pirated goods;

(C) aid the United States Trade Representative in bringing cases in the World Trade Organization against countries with a poor record of enforcing World Trade Organization intellectual property rules; and

(D) aid the United States Trade Representative in bringing cases under the dispute settlement procedures of free trade agreements.

(4) Establish a formal process for working with State and local government agencies to investigate, arrest, and prosecute entities and individuals involved in the financing, production, trafficking, and sale of counterfeit and pirated goods.

(5) Establish a formal process for consulting with companies, their designated representatives, and industry associations to strengthen enforcement.

(6) Establish a formal process for consulting with labor unions, writers and artists (and their organizations and unions), and other interested persons and groups that suffer from counterfeiting and piracy.

(f) Consultation Required- The members of the Network shall consult with the Register of Copyrights on law enforcement matters relating to copyright and related rights and matters.

(g) Priority in International Talks- Considering the threat that counterfeit and pirated goods pose to the economic health and national security of the United States, the President and relevant agency officers, when meeting with foreign countries described in subsection (c)(2)(B), should--

(1) stress the importance of establishing the international task force described in subsection (c)(2)(A);

(2) strongly encourage countries to participate in the international task force; and

(3) strongly encourage countries participating in the international task force to cooperate with the United States in ensuring the success of the international task force.

(h) Report-

(1) IN GENERAL- The Director of the Office of Management and Budget and the Coordinator shall report annually on the Network's enforcement and coordination activities to the President, and to the Committees on Homeland Security and Governmental Affairs and Appropriations of the Senate, and the Committees on Government Reform and Appropriations of the House of Representatives.

(2) CONTENTS- The report required by this subsection shall include the following information:

(A) The progress made toward establishing an international task force described in subsection (c)(2).

(B) The progress made in working with foreign networks in the international task force to investigate, arrest, and prosecute entities and individuals involved in the financing, production, trafficking, and sale of counterfeit and pirated goods.

(C) The manner in which the agencies that are members of the Network are working together and sharing information to strengthen intellectual property enforcement.

(D) For each foreign network admitted or denied entry into the international task force, the rationale for admitting or denying entry to that network, including reasons for admitting networks from those countries that are currently on the Watch List issued by the United States Trade Representative.

(E) The successes and challenges in sharing intelligence with countries in the international task force.

(F) The progress of the United States Trade Representative in bringing cases in the World Trade Organization against countries with a poor record of enforcing World Trade Organization intellectual property rules.

(G) The progress made in establishing and improving the formal process described in subsection (e)(4).

(H) The progress made in establishing and improving the formal process described in subsection (e)(5).

(I) The progress made in establishing and improving the formal process described in subsection (e)(6).

(i) Government Accountability Office Report- Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall complete a report and submit the report to the Congress on the progress made on the items described in subsection (h).

(j) Other Intellectual Property Activities- If other government intellectual property initiatives include enforcement activities similar or identical to the activities described in this Act, those activities should be consolidated into the work of the Network in order to prevent duplication. Other activities that may improve enforcement may continue outside of the Network, including capacity building, outreach to countries that would not qualify for membership in the international task force, and other bilateral and multilateral cooperative efforts.

SEC. 4. NATIONAL INTELLECTUAL PROPERTY LAW ENFORCEMENT COORDINATION COUNCIL REPEAL.

Section 653 of the Treasury and General Government Appropriations Act, 2000 (15 U.S.C. 1128) is repealed.

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