Fact Sheet

Annual Report to the President and Congress on Coordination of Intellectual Property Enforcement and Protection

2007 Accomplishments and Actions

• Prosecutions Up. The Department of Justice’s (DOJ) efforts have yielded substantial increases in federal investigations and prosecutions of intellectual property (IP) violations: DOJ filed 217 IP cases in FY2007, representing a 7% increase over cases reported in FY2006 (204), and a 33% increase over cases reported in FY2005 (169). Also in FY2007, 287 defendants were sentenced for IP crimes, representing a 35% increase over FY2006 (213) and a 92% increase over FY2005 (149).

• $200 Million in Goods Seized at Borders. The Department of Homeland Security’s (DHS) commitment to combating IP violations is evidenced in its annual IP seizure statistics. In FY2007, Customs and Border Protection (CBP) processed nearly 14,000 seizures of counterfeit and pirated merchandise, representing a leveling off in the total number of seizures per year after five consecutive years of steady increases. However, the estimated value of the goods seized continued to rise, up by 27% in FY07 to approximately $200 million.

• IP-Related Dispute with China Brought to WTO. In 2007, the Office of the U.S. Trade Representative (USTR) expanded engagement within the World Trade Organization (WTO) in an attempt to resolve IP-related trade disputes. In April, the U.S. brought the first IP-related disputes against China in the WTO.

• Anti-Counterfeiting Trade Agreement Launched. In October, USTR announced it will begin to negotiate a major international agreement on IP enforcement, the Anti-Counterfeiting Trade Agreement (ACTA), with a leadership group of interested countries, including Canada, the European Union, Japan, Korea, Mexico, New Zealand, and Switzerland.

• IP Attachés Dispatched Worldwide. The Department of Commerce (DOC) expanded the IP Attaché program to now include 8 attachés in 6 countries (Brazil, China, Egypt, India, Russia, and Thailand). The Department of Justice’s IP Law Enforcement Coordinator program has posted two attachés abroad, in Romania and Thailand.

• Government and Industry Engagement Increased. As an example of U.S. Government and industry engagement, in 2007, USPTO held “Road Shows” in nine cities across the country, reaching out primarily to small and medium sized enterprises (SMEs) on the fundamentals of IP enforcement.

• Public Health and Safety Efforts Redoubled. The administration has expanded its focus on the public health and safety implications of counterfeit goods.Counterfeit and pirated goods pose an ever-increasing threat to the health and safety of Americans and consumers around the world.

• IP: Top Priority in International Engagement. The U.S. continues to bring IP enforcement to the forefront of nearly all multilateral and bilateral relationships. This includes work with the U.S.-EU, G8, and Security & Prosperity Partnership (SPP) IP working groups. In addition, IP enforcement remains a major priority with trading partners such as China, India, and Russia.

2008 Priorities

• Empowering American Innovators. NIPLECC will increase focus on IP protection for small and medium sized enterprises (SMEs) by continuing to develop and market programs to help SMEs protect and enforce their IP at home and abroad. Additionally, NIPLECC will seek to identify sources to assist SMEs to finance foreign IP registrations and evaluate assets through IPR audits; and expand outreach to SMEs and the public through programs that address traditional economic IP issues as well as public safety issues related to IP counterfeiting.

• Increasing efforts to seize goods at the border. DHS will continue to expand the use of the innovative techniques such as risk modeling and IPR audits to supplement activities at the border and employ a layered approach to IP enforcement; continue to work internationally with like-minded partners to enforce IP globally; focus efforts on high-priority targets that have health, safety and security concerns; and continue to develop and expand investigative techniques to maximize international partnerships with foreign law enforcement counterparts.

• Pursuing criminal enterprises. DOJ will continue to develop more multi-district and international IP prosecutions and investigations; aggressively pursue organized international crime groups that traffic in stolen and counterfeit IP, especially those groups committing offenses that threaten public health and safety;reduce IP theft through increased support to, and coordination with, international trading partners; and focus efforts on targeted developing economies and countries identified by the U.S. Government as posing especially strong challenges to U.S. business competitiveness.

• Working closely and creatively with industry. NIPLECC will continue to increase the activity and services of the STOP! Hotline; conduct more outreach across the country to better inform businesses of all the Federal Government resources available for IP education and protection; and expand partnerships with industry to support global engagements on IP enforcement.

• Aggressively engaging our trading partners. NIPLECC will continue to work toward the completion of the Anti-Counterfeiting Trade Agreement;execute and build upon the strong commitments to IP enforcement made within the G8, U.S.-EU, and SPP forums; continue working to promote and improve IP protection and enforcement in key countries such as China and Russia; help developing countries establish effective systems to protect and promote innovation, including strengthening customs and law enforcement; provide funding for government-to-government foreign law enforcement-related training and technical assistance projects to combat IP crime in selected developing countries; create a long-term strategic training plan to better leverage the U.S. Government IP training and capacity building resources and increase coordination among NIPLECC agencies.

NIPLECC is composed of the five federal agencies involved in intellectual property enforcement, including the Departments of Commerce, Homeland Security, and Justice; the State Department; and the Office of the U.S. Trade Representative. To learn more about the 2008 Report to the President and Congress on Coordination of Intellectual Property Enforcement and Protection, the Administration’s STOP! Initiative, and NIPLECC please see www.stopfakes.gov.