Chamber Applauds Senate Passage of Anti-Counterfeiting Bill

WASHINGTON, D.C.—The United States Chamber of Commerce applauded last night's

Senate passage of H.R. 32, the Stop Counterfeiting in Manufactured Goods Act.

"This legislation would strengthen our domestic trademark law and criminal statute against trafficking in counterfeited good by closing existing loopholes that allow counterfeiters to avoid prosecution, maintain control of assets for criminal enterprises, and unjustly profit from their illegal activities," said Bruce Josten, Chamber executive vice president for Government Affairs.

According to FBI estimates, counterfeiting costs U.S. businesses as much as $250 billion every year and results in the loss of 750,000 jobs. Internationally, the World Customs Organization and Interpol estimate that the annual global trade in illegitimate goods has increased from $5.5 billion in 1982 to roughly $600 billion today, and it continues to grow.

H.R. 32 would strengthen anti-counterfeiting laws by prohibiting the trafficking in counterfeit labels, patches, stickers, hangtags, or medallions that are unattached to goods. In addition, the bill would make mandatory the forfeiture and destruction of counterfeit goods, as well as the assets used to produce, package, and distribute them, and would require the forfeiture of property and assets derived from counterfeiting.

The Senate added an important provision to the bill to change the definition of "traffic," to that contained S. 1095, the Protecting American Good and Services Act, to ensure that all transfers of counterfeit goods may be penalized, even if the transfer occurs without the exchange of value.

"This modification would eliminate ambiguity in the current statute that allows counterfeiters to avoid punishment when they transfer counterfeit goods in exchange for some future benefit," said Mike Zaneis, director for Congressional and Public Affairs.

The U.S. Chamber is the world's largest business federation representing more than
3 million businesses and organizations of every size, sector and region.

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