10 November 2005

United States Seeks Tougher, Updated Intellectual Property Laws, November 10, 2005

(But global efforts needed to counter piracy, theft, attorney general says)

By Andrzej Zwaniecki
Washington File Staff Writer

Washington -- The Bush administration is calling for modernizing and strengthening U.S. laws protecting copyrights, patents and trademarks to make these laws more effective in the fight against counterfeiting and intellectual property piracy.

U.S. Attorney General Alberto Gonzales said that the administration has asked Congress to consider a legislative package that would strengthen penalties for repeat copyright criminals, expand intellectual property rights (IPR) protection and introduce new investigative measures for criminal and civil enforcement.

The proposed changes aim at ensuring authorities’ ability to seize property and illicit proceeds derived from, or used in, intellectual property piracy.  They would also enhance restitution provisions for victim companies and rights holders and punish exporters of counterfeited goods.

Gonzales was one of the officials and private-sector representatives who addressed a November 10 conference in Washington on IPR organized by the U.S. Chamber of Commerce.

He said that countermeasures must advance along with rapid technological progress to keep pace with increasingly sophisticated counterfeiters and intellectual property pirates using the latest technologies.

“This proposed legislative package is a good way to ensure that our laws are in step with the changing nature of intellectual property crimes,” Gonzales said.

He said that the legislative proposal is part of the administration’s broader strategy including an interagency initiative aimed at countering trade in counterfeit and pirated products, helping U.S. businesses secure and enforce their rights in the global marketplace and increasing the number of IPR experts abroad.

Gonzales said, however, that no matter how hard the United States tries to address IPR infringement problems it is unlikely to succeed without international cooperation.

“In the increasingly connected global economy, nothing short of a global effort will suffice,” he said.

Gonzales cited examples of successful international operations, some involving as many as 16 countries. But he said the administration is committed to achieving even greater international cooperation.

Much of the discussion during the conference concentrated on China, which has become one of the largest producers and traders of counterfeit and pirated goods. U.S. companies lose between $200 billion and $250 billion in revenue per year as a result of widespread IPR crimes, much of it to Chinese counterfeiters and pirates, according to the Federal Bureau of Investigation and international organizations.

Gonzales said he will travel to China along with other U.S. officials the week of November 13 to seek new and more effective ways of cooperation and coordination among the two countries’ law enforcement agencies on intellectual property crimes. The  text of Gonzales’ remarks is available on the Justice Department Web site.

U.S., OTHER NATIONS SEEK MORE INFORMATION FROM CHINA

In October, the United States, joined by Switzerland and Japan, filed a formal "transparency request" with the World Trade Organization (WTO), seeking more information from the Chinese government on its enforcement of intellectual property rights.

A number of speakers told the conference that the United States can secure a proper level of cooperation from foreign governments only if it can persuade them and foreign businesses that it is in their best interest to protect IPR. Through stronger laws, rules and enforcement, those governments can nurture innovation, increase tax revenue and help their countries reach good governance goals.

Robert Holleyman, president of the Business Software Alliance, said that China has committed to a number of measures such as revising rules for government procurement of software to enhance IPR enforcement.

Nevertheless, he said, these measures, even if put into practice, are unlikely by themselves to do much about the enormous scale of software piracy in China, which is the second largest market for personal computers but only 25th for software.

“The only thing that can close this gap is China’s conviction that they have to protect IPR if they want to expand globally,” he said.

Holleyman said this already has begun happening with Chinese software companies pressing their government for better IPR protection.

Dan Glickman, president of the Motion Picture Association of America, countered the often-repeated argument of Chinese government officials who claim that they cannot control manufacturing of counterfeit goods and IPR infringements due to a lack of resources.

“They can do something if they want to,” he said. Citing anecdotal evidence, he said that during a Shanghai film festival one could not find pirated copies of movies in the city that normally are available on its streets.

Glickman singled out Russia, however, for his harshest criticism. He said it is the “largest unregulated producer” of pirated movies because, in contrast to some other countries that do not have resources, expertise or both, it mostly lacks political will to tackle rampant piracy of movies and other forms of entertainment.

He said that the administration has a “unique” opportunity to deal with this issue during WTO accession negotiations with Russia.

Under Secretary of State Josette Shiner said that enforcement of IPR is the key to addressing counterfeiting and piracy issues effectively. She said that a number of international fora and initiatives have been dealing with these issues, including an initiative by the Group of Eight (G8) countries aimed at improving coordination of IPR strategies, ensuring closer cooperation among enforcement officials and helping developing countries acquire expertise and build capacity to deal with counterfeiting and piracy.

“We are debating what mechanism would be the best and what agencies to involve,” she said about the G8 program.

The G8 comprises Canada, France, Germany, Italy, Japan, the United Kingdom, the United States and Russia.

For additional information, see Protecting Intellectual Property Rights.