FOR IMMEDIATE RELEASE
THURSDAY, SEPTEMBER 28, 2006
Commerce: Dan Nelson, 202-482-4883
DHS: Jarrod Agen, 202-282-8010
Justice: Brian Roehrkasse, 202-616-2777
State: Tom Casey, 202-647-2492
USTR: Gretchen Hamel, 202-395-3230
Bush Administration Releases Report on
Intellectual Property Enforcement and Protection
WASHINGTON – Today the Bush Administration released
the 2006 Report to the President and Congress on Coordination of
Property Enforcement and Protection. The report sets forth the
actions and initiatives that the U.S. government has taken over the past
year to combat the rising tide of global counterfeiting and piracy, and
the importance of these efforts because of the critical role intellectual
property (IP) plays in the country’s economic strength and the health
and safety of consumers.
The report was produced by the National Intellectual Property Law
Coordination Council (NIPLECC). The Council brings together the leaders of
the key federal government agencies responsible for intellectual property
enforcement to support the Bush Administration’s efforts. The Council
is composed of representatives from the Departments of Commerce, Homeland
Security, Justice and State, the Office of the U.S. Trade Representative,
and the U.S. Coordinator for International Intellectual Property
“Protecting the ideas and technology of U.S. businesses is a critical
task, and it is clearly on the front burner for the Bush Administration.
are devoting more time and resources to keep the pressure on the bad guys,”
Commerce Secretary Carlos M. Gutierrez. “There is much we’ve
achieved in the past year, but we cannot be satisfied. Complacency
has no place in today’s global economy. So I look forward to
working with businesses to keep America competitive in the years
“This report verifies our significant and substantial efforts to stem
the tide of intellectual property theft,” said Attorney General Alberto
Gonzales. “The Department of Justice is committed to working
very closely with its partners as this Administration wages an
effort to crack down on the growing global trade in counterfeit and
“Whether it is referred to as counterfeiting, or piracy, or willful
infringement of trademarks and copyrights, it all comes under the less
heading of stealing – pure and simple – and we must continue
our efforts to stop it,” said U.S. Trade Representative Susan Schwab. “For
the global trading system to work, producers and consumers in the United
States and around the world must be confident the rules of the game are
and evenly applied. This report underscores that the resources of the U.S.
government are fully engaged in thwarting pirates, counterfeiters and
“Strong intellectual property protection and enforcement are essential
for America's global competitiveness and the further growth of emerging
economies in the developing world,” said Assistant Secretary of State
for Economic and Business Affairs Dan Sullivan. “This report
highlights the robust commitment of agencies across government to
piracy and counterfeiting and to safeguarding American ideas, brands and
inventions. The State Department is making a critical contribution to this
work through its Office of International Intellectual Property Enforcement
and its network of Embassies and consulates, which are advocating for U.S.
right holders around the world.”
Highlights of the 2006 report include:
Working with U.S. Industry and Engaging our Trading
- The Bush Administration is expanding STOP! (Strategy Targeting
Piracy) education outreach events for small and medium-sized
including China-focused programs.
- The Administration is expanding the StopFakes.gov website and
online resources for innovators and industry.
- Bush Administration leadership led to the development and announcement
of a G8 Statement on Combating IPR Piracy and Counterfeiting.
- Leadership from the Administration led to the launch of the U.S.-EU
Strategy for the Enforcement of Intellectual Property Rights.
- The Commerce Department is continuing to expand its IP attaché program
in China and positioning new regional attachés in Brazil, Russia,
India, Thailand and the Middle East.
- The Commerce Department and USTR are working to strengthen IP
with Canada and Mexico as part of the Administration’s Security
and Prosperity Partnership (SPP).
- USTR is utilizing the Special 301 process and other trade tools,
World Trade organization (WTO) tools as appropriate, to seek
of U.S. concerns regarding IP protection and enforcement.
- USTR is continuing its work to strengthen IPR laws and enforcement and
forge an international alliance against counterfeiting and
- The Commerce Department is expanding its education and capacity
programs through the Global IP Academy located at the USPTO.
- As part of STOP!, the Commerce Department is promoting IPR protection
at trade fairs. These efforts include educating trade fair organizers,
exhibitors, and attendees about IPR; helping U.S. businesses guard
infringement at trade fairs; and promoting IPR protection at trade
and pavilions that Commerce operates, certifies, or supports.
- The State Department has significantly expanded training of Embassy
in IPR issues to increase their effectiveness as first responders to
Increasing Efforts to Seize Counterfeit Goods at Our Borders
- Since 2001, the Department of Homeland Security has initiated more
31,000 seizures of counterfeit products with an estimated retail value
in excess of $482 million. Seizures of fake and counterfeit goods at
America’s borders have doubled since 2001.
- The Department of Homeland Security deployed an online recordation
for rights holders to record their trademarks and copyrights with CBP.
provides a higher level of protection for trademarks and copyrights
makes it easier for DHS to identify fake goods at our borders.
Pursuing Criminal Enterprises
- The Bush Administration is working with Congress to strengthen laws
penalties related to intellectual property rights enforcement.
- Passage of the Stop Counterfeiting in Manufactured Goods Act,
H.R. 32 (Enacted in March 2006) - Prohibits the
of counterfeit labels, emblems, containers or similar labeling
components that may be used to facilitate counterfeiting;
for forfeiture of articles bearing or consisting of a
mark and proceeds of any property derived from proceeds of, or
used in the commission of, a violation; expands the definition
of "trafficking" for certain counterfeiting crimes
and clarifying that trafficking in counterfeit goods or labels
includes possession with intent to traffic in such items.
- The Department of Justice is expanding its IP law enforcement attaché
to cover Asia and Eastern Europe.
- The Department of Justice created five new Computer Hacking and
Property (CHIP) units in the U.S. Attorney’s Offices in Nashville,
Orlando, Pittsburgh, Sacramento, and Washington D.C., bringing the
number of specialized units to 25. DOJ also increased the total number
of CHIP prosecutors nationwide to 230.
- In districts with CHIP units, the number of defendants charged
federal IP crimes climbed from 109 in FY2004 to 180 in FY2005 – a
- Over the past 5 years, approximately half of all defendants
of federal intellectual property crimes in the United States
some amount of jail time.
Congressional Direction and Presidential Leadership
- Congress created the position of U.S. Coordinator for International
Property Enforcement to strengthen U.S. government coordination,
the Council and provide renewed focus and leadership. In July 2005,
President Bush appointed the first U.S. IPR Coordinator, Chris Israel,
and created the Coordinator’s office within the Commerce Department
to help lead his Administration’s ongoing commitment to IPR protection.
- The Bush Administration’s Office of the U.S. Coordinator for
IP Enforcement works to leverage the capabilities and resources of the
United States to promote effective, global enforcement of intellectual
property rights. The Coordinator’s office leads inter-agency
such as STOP! and outreach with the private sector and our
Demonstrating the Impact of Coordination
- China: The U.S. government is working on many fronts to engage
China on IPR concerns and, under President Bush’s leadership, has
developed a focused China IP strategy. The Bush Administration’s
China IP strategy is built on five pillars: (1) bilateral engagement;
(2) effective use of trade tools; (3) expanding law enforcement
(4) education and capacity building; and (5) working with the private
sector. We are utilizing all of our resources to effectively implement
and coordinate our approach.
- El Salvador: The recent experience with CAFTA-DR is one example
of different agencies working together to effect real change. U.S.
trade agreements, including CAFTA-DR, put in place cutting-edge
for intellectual property rights with strong rules to combat
and piracy. As part of El Salvador’s commitments under CAFTA-DR,
USTR and other agencies worked with El Salvador on implementing
to enact a provision that requires authorities to act ex officio
the inherent authority of their office) against piracy and
Commerce Department’s Patent and Trademark Office conducted trainings
in El Salvador on use of this new authority. El Salvadoran law
enforcement, working with U.S. law enforcement officials (DHS), then
used this new provision to conduct a series of raids that disrupted a
major counterfeiting operation, resulting in the seizure of equipment,
raw materials and DVDs.
Priorities for the Coming Year
- The Council is working to set objectives and establish priorities that
will enable us to strengthen and better coordinate our education,
and capacity building activities around the world.
- The Council is redoubling its efforts to work with U.S. industry to
better resources and assistance to small businesses. It will explore
the utilization of technology to protect IP and assure that U.S.
efforts and activities are well coordinated with industry enforcement
activities and priorities.
- The Bush Administration is actively working with Congress to pass the
Intellectual Property Protection Act of 2005. The Act is a
reform package that would toughen penalties for IP crimes, expand
IP protection, and add investigative tools for criminal and civil IPR
Attachment: Report to the President and Congress on Coordination of Intellectual
Property Enforcement and Protection, September 2006