Intellectual Property Protection and Enforcement Manual - Ipr-policy.eu

In 2006, the Stop Counterfeiting in Manufactured Goods Act (H.R. 32) modified the federal
criminal law relating to the trafficking in counterfeit goods and services by prohibiting trafficking
in labels, documents, or packaging that bear counterfeit marks intended for goods or services.
The amendment closed a loophole created by a federal court decision which held that individuals
who merely traffic in counterfeit marks themselves (for example, labels, patches, or medallions)
not attached to any goods did not violate the federal anti-counterfeiting law. Additionally, the act
provides for the mandatory destruction of the counterfeit goods and the forfeiture of any assets
traceable to illegal counterfeiting activities and expands the definitions of “traffic” and “financial gain”
under the federal anti-counterfeiting law to include any distribution of counterfeits (or possession
with the intent to distribute counterfeit goods), with the expectation of gaining something of value. 28
Federal Civil Copyright Laws
A federal court action for copyright infringement under the U.S. Copyright Act is the exclusive recourse
for copyright owners seeking to enforce their copyrights in a civil action. The act protects against the
unauthorized use or copying of a copyrighted work. In an infringement action, unauthorized use or
copying would typically be established by demonstrating that the alleged infringer had access to the
copyrighted work and that the alleged infringement is substantially similar to the infringing work. A
copyright registration is a prerequisite for filing a copyright infringement action. 29
Under the Copyright Act, a successful plaintiff can receive (1) injunctive relief, (2) the plaintiff’s
actual damages and any additional profits of the defendants or statutory damages, and (3) the costs of
the action and its reasonable attorneys’ fees. Statutory damages can range between $750 and $30,000
for infringement of any one work and can be increased up to $150,000 for any one work if the
infringement is shown to be willful. 30
Further, while a copyright infringement action is pending, the court may order the impounding of
all copies or phonorecords claimed to have been made or used in violation of the copyright owner’s
rights and of all plates, molds, matrices, masters, tapes, film negatives, or other articles by means of
which such copies or phonorecords may be reproduced. Also, as part of any final judgment or decree,
the court may order the destruction or other reasonable disposition of all copies or phonorecords
found to have been made or used in violation of the copyright owner’s rights, and of all plates,
molds, matrices, masters, tapes, film negatives, or other articles by means of which such copies or
phonorecords may be reproduced. 31
Federal Criminal Copyright Laws
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Copyright infringement is a felony punishable by up to three years’ imprisonment and a
$250,000 fine when the defendant willfully reproduces or distributes at least one or more copies
of phonorecords or one or more copyrighted works with a total retail value of more than $2,500
within a 180-day period. The maximum penalty is increased up to five years of imprisonment if
the defendant acted for commercial advantage or for private financial gain. Misdemeanor copyright
infringement with imprisonment less than one year can occur where the value of the copyrighted
work exceeds $1,000 but is equal to or less than $2,500. 32