House Passes Anti-Counterfeiting Bill
Traffickers and counterfeiters have more to lose, now that a Federal bill that will close loopholes and strengthen criminal penalties has passed the United States House of Representatives.
On March 7, the House voted to pass H.R. 32, also known as the “Stop Counterfeiting in Manufactured Goods Act.” The Senate passed the bill in February.
The bill, which goes next to President Bush for his signature, provides for the destruction of the machinery, supplies and tools used to create counterfeit goods, in addition to the seizure and destruction of the counterfeit goods themselves. It also amends current law to prohibit the trafficking of counterfeit patches, labels and hangtags that are unattached to goods.
According to the International Anti-Counterfeiting Coalition, prior to this legislation, counterfeit-goods traffickers were able to skirt criminal liability by importing unmarked goods and counterfeit labels separately only to affix the labels after the goods had cleared customs.
The bill also takes aim at counterfeiters’ pockets. If convicted of a counterfeiting offense, the court will order the person to pay restitution to the owner of the mark and any other victim of the offense.
According to Congress, the United States loses millions of dollars in tax revenue and thousands of jobs because of the manufacture, distribution and sale of counterfeit goods. The Bureau of Customs and Border Protection estimates that counterfeiting costs the country $200 billion annually in the apparel, automotive, electrical and pharmaceutical industries. —Erin Barajas
