Stop Counterfeiting in Manufactured Goods Act

President Bush signed the Stop Counterfeiting in Manufactured Goods Act, H.R. 32, on March 16, 2006, amending the federal criminal Trademark Counterfeiting Act, 18 U.S.C. §2320.  The amended statute attacks counterfeiting at its heart and gives prosecutors the power to permanently disable pirating enterprises.  The Act:

• Makes it illegal to traffic in phony labels even if detached from any “good”, thus closing a loophole in the federal Trademark Counterfeiting Act, 18 USC §2320.  U.S. Immigration and Customs Enforcement and the U.S. Attorney now have the power to prosecute counterfeiters at every level of the chain, from printers of counterfeit labels to sellers of counterfeit goods.
• Makes it illegal to import, export or possess counterfeit goods or labels with the intent to transport, transfer or dispose of them.
• Provides for forfeiture of any property used in counterfeiting as well as any property derived from the proceeds of counterfeiting.  This will prevent a defendant from handing off the operation to accomplices who simply pack it up and move it elsewhere.  
• Requires destruction of all counterfeits goods and labels seized from a counterfeiter. 
• Requires courts to order convicted counterfeiters to pay restitution to the owner of the counterfeited trademark.
• Instructs the U.S. Sentencing Commission to review and, if appropriate, amend the Sentencing Guidelines for persons convicted of violating the Trademark Counterfeiting Act.