2013 Us Ipec Joint Strategic Plan

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U.S. Intellectual Property

Enforcement Coordinator

J U N E 2 0 1 3

2013 JOINT STRATEGIC PLAN

ON INTELLECTUAL

PROPERTY ENFORCEMENT


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Tbl Ctts

Letter to the President o the United States and to the Congress 1

Introduction 5

Building on the 00 Joint Strategic Plan 7

Administration Joint Strategic Plan 13

I. LEADING BY EXAMPLE 13

. Secure the U.S. Government Supply Chain Against Countereits 13

. Use o Sotware by the Federal Government 14

II. TRANSPARENCY AND PUBLIC OUTREACH 15

. Improve Transparency in Intellectual Property Policymaking and International

Negotiations 15

4. Improve Law Enorcement Communication with Stakeholders 16

5. Evaluate Enorcement Process o Exclusion Orders Issued by the U.S. International

Trade Commission 17

6. Educate Authors on Fair Use 18

7. Raise Public Awareness 18

III. ENSURING EFFICIENCY AND COORDINATION 198. Improve National Law Enorcement Eorts to Protect Intellectual Property Rights 19

9. Improve Ecacy o Enorcement by Leveraging Advanced Technology and Expertise 21

0. Improve Eectiveness o Personnel Stationed Abroad 22

. Coordination o International Capacity-Building and Training 23

. Consider Alternative Forums or Enorcement o Rights 24

IV. ENFORCING OUR RIGHTS ABROAD 25

. Enhance Foreign Law Enorcement Cooperation 25

4. Strengthen Intellectual Property Enorcement through International Organizations 26

5. Promote Enorcement o U.S. Intellectual Property Rights through Trade Policy Tools 28

6. Combat Foreign-Based and Foreign-Controlled Websites that Inringe American

Intellectual Property Rights 30

7. Protect Intellectual Property at ICANN 31

8. Support U.S. Small and Medium-Size Enterprises (SMEs) in Foreign Markets 32


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2 0 1 3 JOI N T S T R AT E GI C P LAN ON I N T E LLE C T UAL P R OP E R T Y E N F OR C E ME N T

ii

9. Examine Labor Conditions Associated with Inringing Goods 34

V. SECURING THE SUPPLY CHAIN 34

0. Expand Inormation-Sharing by DHS to Identiy Countereit Goods at the Border 34

. Increase Focus on Working with Express Carriers and on Countereits Shippedthrough International Mail 35

. Facilitate Voluntary Initiatives to Reduce Online Intellectual Property Inringement

and Illegal Internet Pharmacies 35

. Combat the Prolieration o Countereit Pharmaceuticals and Medical Devices 37

VI. DATA DRIVEN GOVERNMENT 40

4. Conduct Comprehensive Review o Domestic Laws to Determine Needed

Legislative Changes to Improve Enorcement 40

5. Assess the Economic Impact o Intellectual Property-Intensive Industries 41

6. Monitor U.S. Government Resources Spent on Intellectual Property Enorcement 41

Perormance Data 43

Agencies 2013 Major Intellectual Property Enorcement Activities to Date 47

Department o Commerce 47

Department o Health and Human Services 58

Department o Homeland Security 62

Department o Justice 69

Department o State 76

United States Copyright Oce 80

United States Trade Representative 83

Annex 87

Intellectual Property Enorcement Legislative Recommendations Enacted 87


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Ltt t t Pst tUt Stts t t Css

Dear Mr. President and Members o Congress,

I am pleased to transmit the 0 Joint Strategic Plan on Intellectual Property Enorcement. This is the

second Joint Strategic Plan and will guide our activities over the next three years. The Joint Strategic Plan

also contains a report on the progress made since the Oce o the U.S. Intellectual Property Enorcement

Coordinator was established and the Administrations rst Joint Strategic Plan was issued in June 00.

Our Nation rightly prides itsel on the innovation and creativity that has been the engine o our economy

throughout our history. Predictable and eective enorcement o intellectual property rights supports

jobs, maintains our global competiveness, and protects health and saety.

There have been a number o accomplishments since the rst Joint Strategic Plan was released: sig-

nicant increases in law enorcement; an innovative approach to Internet enorcement that includes

law enorcement and voluntary initiatives by the private sector; improved eciency and coordination

in how agencies act together and how resources are deployed; and concrete progress by our trading

partners abroad. Specically, since the 00 Joint Strategic Plan:

U.S. law enorcement has signicantly increased its enorcement against inringement that

threatens the vitality o the U.S. economy and the health and saety o the American people.

Since FY 009:

U.S. Immigration and Customs Enorcement (ICE)-Homeland Security Investigations (HSI)

new cases are up 7 percent, arrests are up 59 percent, convictions are up 0 percent,

and indictments are up 64 percent.

Pending Federal Bureau o Investigation (FBI) health and saety-ocused investigations are

up 08 percent, FBI health and saety arrests are up 86 percent, and new trade secret thet

cases are up 9 percent.

Customs and Border Protection (CBP) and ICE seizures o inringing imports have increased

by 5 percent.

Private sector companies have voluntarily agreed to adopt best practices aimed at curbing the

sale o countereit goods and reducing online piracy. For example:

American Express, Discover, eNom, Facebook, Go Daddy, Google, MasterCard, Microsot,

Neustar, PayPal, Visa, and Yahoo! established the Center or Sae Internet Pharmaciesa

new non-prot to combat ake online pharmacies selling dangerous illegal drugs over

the Internet.

AT&T, Cablevision, Comcast, Time Warner Cable, Verizon, and major and independent music

labels and movie studios entered into a voluntary agreement to reduce online piracy. Under

the agreement, Internet Service Providers (ISPs) will notiy subscribers, through a series o alerts,


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when their Internet service accounts appear to be misused or inringement on peer-to-peer

networks.

American Express, Discover, MasterCard, PayPal, and Visa agreed to a set o best practices to

withdraw payment services or online sales o countereit and pirated goods.

The Association o National Advertisers and the American Association o AdvertisingAgencies issued a leadership pledge to not support online piracy and countereiting with

advertising revenue.

In March 0, my oce released the Administrations White Paper on Intellectual Property

Enorcement Legislative Recommendations, setting out 0 legislative recommendations or

Congress to strengthen intellectual property enorcement. To date, seven o the recommenda-

tions are now law. Congress has:

Increased penalties or countereit goods or services sold to, or or use by, the military or

national security apparatus;

Bolstered criminal penalties or economic espionage and directed the U.S. SentencingCommission (USSC) to consider increasing oense levels or trade secret crimes;

Granted CBP authority to share inormation regarding suspected countereit goods with

trademark owners in order to assist CBP in making inringement determinations;

Increased penalties or tracking in countereit drugs;

Directed USSC to review guidelines and policy statements related to oenses that involve

countereit drugs;

Granted the U.S. Food and Drug Administration (FDA) authority to destroy, without the

opportunity to export, countereit or adulterated drugs imported to the United States insmall packages; and

Granted the FDA authority to require pharmaceutical manuacturers to report when a drug

they manuacture has been ound to be countereited or stolen.

It is also worth noting the enactment o Public Law -6 - The Thet o Trade Secrets

Clarication Act o 2012, which closed a loophole by clariying that the scope o the Economic

Espionage Act protects trade secrets related to a product or service used in or intended or

use in interstate or oreign commerce, is in line with the overall Administration priority o

combatting thet o trade secrets.

The Oce o the U.S. Trade Representative (USTR) worked with Korea, Panama, and Colombiato bring our Free Trade Agreements into orce, is negotiating a Trans-Pacic Partnership trade

agreement that will include state-o the-art intellectual property protection and enorcement

provisions, and is preparing to launch negotiation o a comprehensive Transatlantic Trade and

Investment Partnership agreement with the European Union.

In March 0, Department o Commerce (DOC), in coordination with the Council o Economic

Advisors and the chie economists o USTR, Department o Labor (DOL), and other Federal
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L e T T e r T o T h e P r e S ide n T o f T h e Un iT e d S T aT e S an d T o T h e C o n gr e S S

agencies, released an economic report titled Intellectual Property and the U.S. Economy: Industries

in Focus, detailing the breadth and depth o intellectual property industries and the jobs they

support. The report concluded that, in 00 alone:

Intellectual property industries accounted or $5.06 trillion in value added, or 4.8 percent

o U.S. gross domestic product; Intellectual property industries created 7. million jobs and indirectly supported another

.9 million jobs;

Intellectual property industries accounted or over 60 percent o all U.S. exports; and

The average weekly wage in intellectual property industries overall was 4 percent higher

in 00 than in other industries. In patent and copyright industries, wages were 7 and 77

percent higher, respectively.

Moving orward, the Administration will continue to improve upon these eorts. We will ocus on

inringement that has a signicant impact on the economy, the global economic competitiveness o

the United States, the security o our Nation, and the health and saety o the American public.

We will increase eorts to improve enorcement o intellectual property rights here at home, improve

cooperation with oreign governments, and use our trade tools to improve protection around the world.

We will promote the use o private sector voluntary best practices to reduce inringement online and

in conventional marketplaces. We will press vigorously or protection o trade secrets overseas and

enorcement actions to address their thet or misappropriation.

I look orward to working with you to urther enorce and protect American intellectual property rights.

With continued leadership by the Administration and with the support o Congress, the American people

will continue to lead the world in innovation and economic progress.

Victoria A. Espinel

U.S. Intellectual Property Enorcement Coordinator
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ituct

As President Obama has made clear, [o]ur single greatest asset is the innovation and the ingenuity and

creativity o the American people. It is essential to our prosperity and it will only become more so in this

century. So it matters that we have the right approach to intellectual property enorcement; one that isorceul yet thoughtul, dedicated and eective, and that makes good and ecient use o our resources.

Ours is a Nation o entrepreneurs, inventors, innovators, and artists. The ideas that American citizens

generate catalyze cutting edge research, ensure longer and healthier lives, and power the globes most

productive economy. Our ingenuity and entrepreneurial spirit make the United States great, and we

must ercely deend that competitive advantage. As President Obama has said, i the playing eld is

level, I promise youAmerica will always win.

In June 00, we issued the Administrations irst Joint Strategic Plan or Intellectual Property

Enorcement. Since then, we have made great progress: law enorcement operations have increased in

scope and eciency, and investigations, seizures, arrests, and convictions have increased signicantly;several industry-led voluntary initiatives to reduce inringement online have been concluded and are

in orce; there is more eciency and coordination among Federal agencies; the Federal government

is now more aware o and active in eliminating countereits in its supply chain; and gains have been

made in coordination and cooperation with our trading partners. We have worked cooperatively with

Congress, and as a result o these eorts, seven Administration legislative recommendations to improve

our enorcement system have become law.

Nonetheless, we know that inringement o intellectual property continues to pose signicant risk to

our economy and to our ability to compete globally. So we must continue to look orward, building on

what has already been accomplished. On June 5, 0, we asked the public or input in developing

the Administrations second strategy. Incorporating this input, we worked with agencies rom across theU.S. Government, including the Departments o Agriculture, Commerce (DOC), Deense (DOD), Health

and Human Services (HHS), Homeland Security (DHS), Justice (DOJ), Labor (DOL), State (DOS), Treasury,

and the Oce o the United States Trade Representative (USTR) and other oces within the Executive

Oce o the President (EOP), as well as the U.S. Copyright Oce to develop the strategy.

In this resultant Joint Strategic Plan, we seek to build upon ongoing work with an eye to increasing U.S.

Government coordination and eciency and to anticipating the challenges o the uture. As with the

original Joint Strategic Plan, we have set out a number o commitments by the Administration that we

will undertake in order to improve enorcement.

Our primary concerns remain the same: creation o American jobs, promotion o the global competitive-ness o American businesses and enterprises, protection o public health and saety, and preservation

o the Constitutional rights o American citizens.

There are a number o issues that we anticipate will continue to be a ocus o discussion. One o those

issues is troubling patent litigation tactics that present a signicant and growing challenge to innova-

tion. President Obama recently identied this as an area to be addressed and on June 4, 0, ollow-

ing a review by the White House Task Force on High-Tech Patent Issues, the Administration issued ve


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executive actions and seven legislative recommendations designed to curb abusive patent litigation

and to ensure the highest-quality patents in our system. We believe it is in the countrys best interest

or companies involved in patent disputes to resolve them amicably so that they can get back to doing

what they do bestcreating innovative and useul products that spur the economy.

We are also concerned about eorts by oreign governments to condition market access or the abilityto do business on the transer o trade secrets or proprietary inormation. Forced technology transer is

not an acceptable tactic in the global trade environment.

As we move orward, we are aware that new technologies, evolving social norms, new business models,

and novel global distribution mechanisms will present new challenges and opportunities to combat

inringement o American intellectual property rights. Among these trends and innovations are increases

in the power and prevalence o cloud computing, mobile computing, data storage, database manage-

ment, inormation security, increased interoperability, and D printing.

Mobile devices will continue to increase in ubiquity, adding capabilities that will entrench such devices

ever deeper into our daily lives and routines. There will be more connected devices than human beings

by the end o this year. In 0, average smartphone use grew 8 percent, mobile network connection

speeds more than doubled, and video accounted or more than 50 percent o all mobile trac or the rst

time.1 In 0, also or the rst time, a majority o American adults now own smartphones.2 Applications

(apps) will grow in number, complexity, and useulness as use o mobile devices increases. Some apps

will be used to distribute inringing digital goods. Additionally, we are hearing reports that some apps

themselves are being countereited by those seeking to unairly capitalize on the success o others, and

apps are being hacked to gain access to value-added services without payment.

D printing has the capacity to revolutionize manuacturing and research and development capabilities

or inventors, entrepreneurs, artists, academic researchers, and major global businesses. Much as the

personal computer democratized computing power, D printing has the opportunity to enable greatermarket participation and innovation by reducing traditional barriers such as production, labor, and

shipping costs. Whether it is the hobbyist in the garage coming up with a prototype or a new gadget

to make our lives easier or the scientist producing lie-saving medical devices, D printing brings with

it a new set o opportunities or rapid and ecient trade, innovation, and creativity. And, just as D

printing oers the opportunity to make meaningul contributions to our society, there also exists the

opportunity or individuals who look to exploit others hard work to abuse this technology by trading

in countereit and pirated goods, o which we must be cognizant and diligent in our eorts to prevent.

We believe that technological developments present new and improved opportunities to help protect

American intellectual property. We envision new technologies able to screen trucks and shipping con-

tainers at our borders aster, more eciently, and more comprehensively than is possible at present. Wehope to see increased engagement between technology experts and the U.S. Government, including

the possible creation o advisory groups or other mechanisms or receiving input, and the placement o

experts within certain relevant government agencies and departments. We will continue to encourage

. Cisco Visual Networking Index: Global Mobile Data Trac Forecast Update, 0-07; http://www.cisco.com/en/US/solutions/collateral/ns4/ns55/ns57/ns705/ns87/white_paper_c-5086.pd

. Smartphone Ownership 0; http://www.pewinternet.org/~/media//Files/Reports/0/PIP_Smartphone_adoption_0.pd.
http://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdfhttp://www.cisco.com/en/US/solutions/collateral/ns341/ns525/ns537/ns705/ns827/white_paper_c11-520862.pdf


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voluntary initiatives to reduce inringement online and in the physical world, and we hope to see tech-

nological solutions that acilitate better access to, and educate the public about, legitimate alternatives.

With respect to the online environment, the Administration believes that when Americans and people

around the world are given real choices between legal and illegal options, the vast majority will want

to choose the legal option. Accordingly, we encourage the urther development and use o legitimateonline services as an important part o an eective approach to reducing inringing activity. Today there

are a myriad o legitimate ways to obtain music, video, books, games, sotware, and other entertainment

and educational materials through a wide variety o business models. These include paying per use, pay-

ing per copy, and paying a ee or access to a collection o works; allowing customers to pay what they

wish; and legitimate content that is available or ree, including entertainment industry portals and artists

and authors using systems to permit ree distribution o their works under conditions that they choose.

We believe that legitimate goods, including digital goods, oer clear advantages over inringing ones

regardless o price. Use o legitimate goods compensates artists, creators, and those who invest in bring-

ing their works to the public, and provide incentives or uture creation and distribution. In addition,

legitimate goods are oten o higher quality, come with express or implied warranties or guaranteeso quality, oer customer services, and do not pose the same risk o viruses or malware. They may also

include extra eatures not available with inringing content. And, increasingly, they may be more con-

venient and easier to nd.

We support and will look or additional ways to encourage and acilitate eorts that will help expand

the reach o legitimate alternatives to inringement, including through the development o copyright

registries and online databases, micro-licensing arrangements, and other market-driven mechanisms

to acilitate smooth and ecient access to content. We also encourage the work o the U.S. Copyright

Oce to update and improve the copyright registration and recordation system in ways that will acilitate

licensing and encourage public-private partnerships.

We can best provide the legal, regulatory, and policy environment appropriate or a rapidly evolving

intellectual property landscape through continued dialogue and discussion with industry, associations,

labor unions, public interest groups, and academia, with the ull range o interested stakeholders. Social

media and networking tools allow consumers, employees, and members o the general public to make

their views known in an increasing number o ways to infuence companies decisions as well as provide

input to policymakers. Thereore, moving orward, IPEC and the wider Administration will remain com-

mitted to working with all stakeholders to learn about and take into account emerging trends, innovative

ideas, and new technologies likely to aect American intellectual property rights in the uture.

Building on the 2010 Joint Strategic PlanThe underlying approach and many o the specic action items rom the original Joint Strategic Plan

are continued in this strategy. In addition, we are expanding on several action items and adding entirely

new action items including eorts to:

Facilitate voluntary initiatives to reduce online intellectual property inringement. IPEC will reach

out to additional sectors (which may include data storage services, domain name registrars, and


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search engines) and will also encourage rightholders to adopt a set o best practices. USPTO

will start a process to assess the voluntary initiatives;

Conduct a comprehensive review o domestic laws to determine needed legislative changes to

improve enorcement;

Support small and medium-size enterprises in oreign markets. DOC will increase outreach andsupport to such enterprises through nationwide educational eorts;

Evaluate the enorcement process o exclusion orders issued by the U.S. International Trade

Commission (ITC). IPEC will chair an interagency working group to improve the process or

enorcement o Section 7/ITC exclusion orders;

Coordinate international capacity-building and training. IPEC will reorganize the interagency

working group on capacity-building and training and embassies will ollow up on a regular

basis with governments that receive training to evaluate results;

Improve transparency in intellectual property policymaking. IPEC will look or additional ways to

hear concerns and gather input rom a wide range o stakeholders;

Improve law enorcement communication with stakeholders. DOJ and ICE will look or additional

ways to engage a broad range o stakeholders in an eort to increase understanding o law

enorcement operations and expand stakeholder relationships;

Assess the economic impact o intellectual property-intensive industries. DOC will issue an annual

report on the number o jobs and contribution to the GDP o such industries;

Use legal sotware. IPEC, with the Federal Procurement Policy Administrator and the U.S. Chie

Inormation Ocer will review the mechanisms that agencies have in place in order to share

best practices and ensure legal use;

Examine labor conditions. DOS will examine the relationship between unacceptable labor condi-

tions and the manuacture and distribution o countereits and take urther action i necessary;

Improve IPR enorcement ecacy by leveraging advanced technology and expertise. IPEC will chair

an interagency working group to identiy and advance new and innovative technologies to

improve enorcement capabilities at the border. In addition, law enorcement agencies will look

or ways to engage outside technology experts and Internet engineers to increase expertise on

online enorcement approaches;

Increase ocus on countereits shipped through international mail and work with express carriers.

CBP will work to obtain advance data rom international post operators and express carrier

companies to improve targeting;

Educate authors on air use copyright doctrine.The U.S. Copyright Oce will summarize current

law and provide general guidance targeted to artists seeking to apply the law to their own

situations;

Protect intellectual property at the Internet Corporation or Assigned Names and Numbers (ICANN).

The National Telecommunications and Inormation Administration (NTIA) and the FBI will work


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with ICANN, in collaboration with stakeholders, so that new top-level domains do not become

new venues or inringement; and

Consider copyright and patent small claims courts. The U.S. Copyright Oce and USPTO are

considering alternative adjudicatory processes or hearing small claims cases brought by

copyright and patent holders.Although we have made signicant progress over the last three years, we still ace many challenges.

Inringement o intellectual property rights continues to harm U.S. businesses and unjustly usurps or

undermines American innovation. More work must be done to ensure that countereits are eliminated

rom the government supply chain, especially in relation to the national security apparatus. We will con-

tinue to look or ways to improve eciency and coordination; collaborate with the IPR Center to identiy

relevant criminal patterns and trends and develop solutions to address those threats; and encourage

voluntary initiatives to reduce inringement in the online and physical world.

Addressing the thet and transer o trade secrets overseas or innovative technology will continue to be

a priority ocus. Over the next three years, we will continue to work to ensure that standards, procure-

ment, and regulatory policies o oreign countries do not unairly exclude or prejudice innovative or

creative American products and services. We hope that Congress acts on the Administrations remaining

legislative recommendations rom the 0 White Paper on Intellectual Property Enorcement and on

any urther recommendations we deliver in the uture.

As the United States powers the world out o the global recession with its innovative economic engine,

intellectual property enorcement remains as essential as ever. As long as the intellectual property rights

o Americans are protected and American workers, engineers, entrepreneurs, creators, and innovators are

given a level playing eld unhindered by inringement, we will continue to produce the technology and

works o art that drive the worlds economy and enable healthier, happier, and more prosperous lives.
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Action Item

Lead

ingby

Exa

mple Secure the U.S. Government Supply Chain Against Countereits

Use o Sotware by the Federal Government

TransparencyandPublic

O

utreach

Improve Transparency in Intellectual Property Policymaking and Interna-tional Negotiations

Improve Law Enorcement Communication with Stakeholders

Evaluate Enorcement Process o Exclusion Orders Issued by the Interna-tional Trade Commission

Educate Authors on Fair Use

Raise Public Awareness

EnsuringEfciency

andCoordina

tion

Improve National Law Enorcement Eorts to Protect Intellectual PropertyRights

Improve Ecacy o Enorcement by Leveraging Advanced Technology andExpertise

Improve Eectiveness o Personnel Stationed Abroad

Coordination o International Capacity-Building and Training

Consider Alternative Forums or Enorcement o Rights

EnorcingOu

r

RightsAbroa

d Enhance Foreign Law Enorcement Cooperation

Strengthen Intellectual Property Enorcement through International Orga-nizations

Promote Enorcement o Intellectual Property Rights through Trade PolicyTools


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Action Item

EnorcingOurRights

Abroad(Continu

ed)

Combat Foreign-Based and Foreign-Controlled Websites that InringeAmerican Intellectual Property Rights

Protect Intellectual Property at ICANN

Support U.S. Small and Medium-Size Enterprises (SMEs) in Foreign Markets

Examine Labor Conditions Associated with Inringing Goods

SecuringtheSupply

Chain

Expand Inormation-Sharing by DHS to Identiy Countereit Goods at theBorder

Increase Focus on Countereits Shipped through International Mail andExpress Carriers

Facilitate Voluntary Initiatives to Reduce Online Intellectual Property In-ringement and Illegal Internet Pharmacies

Combat the Prolieration o Countereit Pharmaceuticals and Medical De-vices

Data-Driv

en

Government

Conduct Comprehensive Review o Domestic Laws to Determine NeededLegislative Changes to Improve Enorcement

Assess the Economic Impact o Intellectual Property-Intensive Industries

Monitor U.S. Government Resources Spent on Intellectual Property En-orcement


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astt Jt Sttc Pl

act its

I. LEADING BY EXAMPLE

1 Secure the US Government Supply Chain Against Countereits

Countereits entering the U.S. Government supply chain pose a particularly serious problem due to the

damaging impact they can have on an agencys ability to accomplish its mission, the substantial waste

o resources and taxpayer money, and the signicant national security implications. For example, the

inadvertent use o countereit parts within U.S. Government systems will increase the risk o equipment

malunctions, degrade operations and communications capabilities and perormance, and urther

expose U.S. Government assets to security breaches rom opportunistic actors. Further, the deliberate

insertion o malware or spyware on countereit parts with the intent o selling them to, or installing them

in, U.S. Government systems could increase the opportunity or unauthorized actors to gain access to

U.S. Government networks. The Administration has two primary objectives: to reduce the incidence o

countereits in the U.S. Government supply chain and to increase law enorcement eorts against those

who knowingly sell countereits to the U.S. Government.

Since the June 00 Joint Strategic Plan:

IPEC established an interagency working group to develop a comprehensive strategy to avoid

countereits entering the U.S. Government supply chain that is fexible enough to accommodate

the broad set o missions across the U.S. Government and their respective levels o countereit

risk. The interagency working group chaired by IPEC includes ocials rom: DOD, the Oce oFederal Procurement Policy (OFPP), the National Aeronautics and Space Administration, DHS,

DOJ, DOC, the Department o Energy, the Department o Transportation, the General Services

Administration, the Small Business Administration, the Environmental Protection Agency, the

National Reconnaissance Oce, and the Nuclear Regulatory Commission.

In 0, the IPR Center launched Operation Chain Reaction to serve as a coordinated and

comprehensive initiative directed at curtailing the fow o countereit items entering the U.S.

Government supply chain. Today, with 5 Federal agencies participating in this initiative,

Operation Chain Reaction has led to several criminal convictions and the recoupment o millions

o dollars or Federal agencies that were supplied countereit goods.

In March 0, the AdministrationsWhite Paper on Intellectual Property Enorcement Legislative

Recommendations recommended that Congress authorize strong anti-countereit measures

and inormation sharing authorities as well as increase penalties or those selling countereits

to the U.S. military.

On December , 0, President Obama signed Public Law 112-81 - The National Deense

Authorization Act or Fiscal Year 2012, which provides or strong anti-countereit measures
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within the deense supply chain. It also provides CBP with certain inormation sharing author-

ity with regard to imports o goods suspected o being countereit and increases penalties or

countereit goods or services sold to or or use by the military or national security applications.

Pursuant to Public Law 112-81 - The National Deense Authorization Act or Fiscal Year 2012, DOD

published a Countereit Prevention Guidance employing a risk-based approach to the detection,prevention, reporting and disposal o countereit parts and, is nearing completion o DOD-wide

Countereit Prevention Policy to minimize the introduction o countereit parts into the DOD

supply chain.

At the conclusion o the Camp David G-8 meeting in May 0, G-8 leaders issued a joint state-

ment arming the signicance o strong IPR protection and enorcement in a number o priority

areas including eorts to combat countereits entering government supply chains.

Going orward:

IPEC is working with the relevant Federal agencies and with other oces within the Executive Oce o

the President, including the National Security Sta, to develop a strategy coordinated with the ongo-

ing eorts to secure the global supply chain and cybersecurity. It is intended that this Administration

Strategy on Countereits in the U.S. Government Supply Chain will serve as a critical pillar to comple-

ment the security paradigm established by National Strategies or Global Supply Chain Security and

Cybersecurity.

The Administration is working to nalize the Strategy on Countereits in the U.S. Government Supply

Chain and expects to release it in 0.

Simultaneously, Operation Chain Reaction will continue to be a ocus or the IPR Center. DOS and IPEC

will continue to work with the G-8 governments on implementation o their G-8 commitments on

countereits in government supply chains.

2 Use o Sotware by the Federal Government

It is important that we take all necessary steps to ensure that the U.S. Government only uses legal

sotware.


IPEC has been working with Federal agencies to review the U.S. Governments practices and

policies regarding the use o sotware by Federal agencies and contractors to promote the use

o only legal sotware.

On January 7, 0, the U.S. Chie Inormation Ocer, the Administrator or Federal Procurement

Policy and the U.S. Intellectual Property Enorcement Coordinator issued a Joint Statement

to Senior Procurement Executives and Chie Inormation Oicers that highlighted the

Administrations technology-neutral procurement policy and reiterated the Administrations

policy that all technology used must be properly licensed in accordance with applicable law.
http://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/memotociostechnologyneutrality.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/memotociostechnologyneutrality.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/memotociostechnologyneutrality.pdfhttp://www.whitehouse.gov/sites/default/files/omb/assets/egov_docs/memotociostechnologyneutrality.pdf


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a d mi n i S T ra T i o n J o i n T S T r aT e g i C P L an

5

Going orward:

It is important or Federal agencies to ensure compliance with the terms o their licensing agreements

both as a matter o law and as a strong example or our trading partners and the international com-

munity. In 998, President Clinton issued Executive Order 0 which requires that Federal agencies

take steps to ensure against the acquisition or use o illegal sotware.The U.S. Chie Inormation Ocer,

the Administrator or Federal Procurement Policy, and IPEC will coordinate with departmental Chie

Inormation Ocers (CIOs) through the Federal CIO Council and review the measures Federal agencies

have taken to implement Executive Order 0. To the extent this review results in additional inorma-

tion about best practices or sotware acquisition and use, the Federal CIO Council will distribute this

inormation and implement measures based on those best practices.

II. TRANSPARENCY AND PUBLIC OUTREACH

3 Improve Transparency in Intellectual Property Policymaking and International

Negotiations

The Administration strongly supports improved transparency in intellectual property enorcement

policy-making and international negotiations.


IPEC has maintained an open door policy, meeting with hundreds o stakeholders, large and

small, across a broad range o sectors in developing and implementing the Administrations

strategy or intellectual property enorcement.

The Administration has solicited and received public input through ormal mechanisms such

as Federal Register notices. For example, IPEC, USTR, and the U.S. Patent and Trademark Oce

(USPTO) have issued Federal Register notices seeking input and comments on a variety o intel-lectual property enorcement issues.

IPEC issues periodic reports called the Intellectual Property Spotlight, highlighting the

Administrations ongoing eorts to improve intellectual property enorcement. The Spotlight

is available to any member o the public through an e-mail subscription and on the IPEC website.

USPTO established and maintains a publicly-available database (www.usipr.gov) o intellec-

tual property-related technical assistance and capacity-building programs delivered by U.S.

Government agencies that increases transparency by allowing the public to see how the U.S.

Government is allocating resources on intellectual property training.

As part o FDAs implementation oPublic Law 112-144 - The Food and Drug AdministrationSaety and Innovation Act, signed into law by President Obama on July 9, 0, FDA established

FDASIA-TRACK, a webpage dedicated to providing the public with inormation detailing FDAs

progress on implementing the new law, as well as identiying lead oces and associated points

o contact responsible or driving FDAs implementation eorts.
http://www.gpo.gov/fdsys/pkg/FR-1998-10-05/pdf/98-26799.pdfhttp://www.whitehouse.gov/omb/intellectualproperty/spotlighthttp://www.gpo.gov/fdsys/pkg/PLAW-12tpubl144/pdf/PLAW-12tpubl144.pdfhttp://www.gpo.gov/fdsys/pkg/PLAW-12tpubl144/pdf/PLAW-12tpubl144.pdfhttp://www.fda.gov/aboutfda/transparency/track/ucm328907.htmhttp://www.fda.gov/aboutfda/transparency/track/ucm328907.htmhttp://www.gpo.gov/fdsys/pkg/PLAW-12tpubl144/pdf/PLAW-12tpubl144.pdfhttp://www.gpo.gov/fdsys/pkg/PLAW-12tpubl144/pdf/PLAW-12tpubl144.pdfhttp://www.whitehouse.gov/omb/intellectualproperty/spotlighthttp://www.gpo.gov/fdsys/pkg/FR-1998-10-05/pdf/98-26799.pdf


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6

Going orward:

IPEC will continue to maintain an open door policy and actively seek input rom a wide range o stake-

holders in developing and implementing the Administrations strategy or intellectual property enorce-

ment. This will include Federal Register notices, or example, as appropriate or the relevant process.

IPEC will continue to issue the Spotlightto keep the public inormed o the Administrations intellectual

property enorcement eorts.

IPEC will consider additional means to receive input rom a broad range o stakeholders and to eectively

disseminate inormation to the public, including the possible establishment o an advisory group o

stakeholders, as well as working more closely with existing advisory groups.

4 Improve Law Enorcement Communication with Stakeholders

Federal law enorcement must maintain communication with a broad range o stakeholders in order

to gain an understanding o the issues these groups ace. Additionally, as the quality o countereit

products improves, trademark owners are best positioned to provide law enorcement assistance in

identiying countereit products.Since the June 00 Joint Strategic Plan:

The IPR Center has increased its outreach eorts 65 percent through Operation Joint Venture.

Over 50,000 representatives rom the private sector, oreign law enorcement and domestic law

enorcement have participated in more than 600 Joint Venture training events.

In FY 0, Operation Joint Venture conducted 70 trainings or more than 0,000 individuals.

Going orward:

Federal law enorcement responsible or the investigation and prosecution o intellectual property

crimes will continue to carry on regular contact with rightholders and victims o inringement. This willalso include improved communication on mitigating the thet o U.S. trade secrets by oreign competi-

tors and oreign governments.

Federal law enorcement will continue to identiy opportunities to hear directly rom stakeholders that

have an interest in enorcement o intellectual property.

With respect to trade secret thet, the Oce o the Director o National Intelligence (ODNI) will coordinate

within the intelligence community to inorm the private sector about ways to identiy and prevent the

thet o trade secrets. The ODNI will coordinate expanded discussions between the intelligence com-

munity and the private sector on the threat posed by trade secret thet.

The FBI will continue its outreach and education eorts with the private sector through various local,regional and national initiatives. At the local level, each o the FBIs 56 eld oces will continue to work

with academic institutions, manuacturers, laboratories and other entities that are located within the

eld oces area o responsibility and are perceived as being potentially at risk or trade secret thet.

At the regional level, the FBI will continue to meet regularly with other government agencies, industry,

and academia to share inormation about insider threats, economic espionage and trade secret thet.


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7

5 Evaluate Enorcement Process o Exclusion Orders Issued by the US International

Trade Commission

Under Section 7 o the Tari Act o 90, the U.S. International Trade Commission (ITC) investigates

allegations regarding unair practices in import trade, including allegations related to intellectual

property inringement, as well as other orms o unair competition. Once the ITC nds a violation oSection 7 and issues an exclusion order barring the importation o inringing goods, CBP and the ITC

are responsible or determining whether imported articles all within the scope o the exclusion order.

Because o these shared responsibilities, it is critical that the ITC and CBP have clear communication

on what the order means to improve the orders enorcement and prevent importation o inringing

product. Moreover, this determination can oten be challenging, particularly in cases in which a tech-

nologically sophisticated product such as a smartphone has been successully redesigned to not all

within the scope o the exclusion order.


ITC began immediately sharing drat language or potential exclusion orders with CBP so that

i ITC issued an exclusion order, CBP would be better prepared to enorce the order.

ITC has developed a way to electronically transmit exclusion orders and the many condential

documents associated with the investigation or streamlined and more ecient review o

Section 7 cases.

Going orward:

The ITC and CBP will continue using the more eective mechanisms or communication that have been

put in place.

In addition, IPEC will chair a new interagency eort directed at strengthening the processes that CBP

uses with regard to enorcement o ITC exclusion orders pertaining to intellectual property. The working

group will be comprised o representatives rom the ITC; DHS, DOC, Treasury, and DOJ; oces within the

Executive Oce o the President including USTR, OSTP, NEC; and other relevant agencies as necessary.

The interagency working group will review existing procedures that CBP and the ITC use to evaluate the

scope o ITC exclusion orders and work to ensure the process and standards utilized during exclusion

order enorcement activities are transparent, eective, and ecient. To help inorm its review, IPEC will

seek public input through issuance o a Federal Register Notice.

Among others, one ocus o the interagency review will be on ensuring that CBP uses transparent and

accurate procedures or determining whether an article is covered by the ITC exclusion order. Further,

the working group will evaluate opportunities to improve the eectiveness o directions provided by

the ITC to assist CBP with the challenges o enorcement.

Within six months o the issuance o the Administrations 0 Joint Strategic Plan on Intellectual

Property Enorcement, the interagency working group will prepare recommendations.


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8

6 Educate Authors on Fair Use

Eective enorcement is critical to providing meaningul protection o intellectual property rights, but

enorcement approaches should not discourage authors rom building appropriately upon the works o

others. We recognize the work that agencies across the U.S. Government are doing in the area o intel-

lectual property education, and their eorts to increase and improve this work in the digital environment.This work includes eorts at the USPTO and the U.S. Copyright Oce to help the general public better

understand the Constitutional purpose and value o intellectual property laws, and the scope o both

protections and exceptions in such laws.

The Administration believes, and the U.S. Copyright Oce agrees, that authors (including visual artists,

songwriters, lmmakers, and writers) would benet rom more guidance on the air use doctrine. Fair

use is a core principle o American copyright law. The Supreme Court has repeatedly underscored air

use provisions in the Copyright Act as a key means o protecting ree speech, and many courts across

the land have upheld the application o air use as an armative deense to inringement, in a wide

variety o circumstances.

In order to make air use more accessible to the authors o the st century, ease conusion about permis-

sible uses, and thereby encourage the production o a greater variety o creative works, the U.S. Copyright

Oce, working in consultation with the Administration, will publish and maintain an index o major air

use decisions, including a summary o the holdings and some general questions and observations that

may in turn guide those seeking to apply the decisions to their own situations.

7 Raise Public Awareness

A signicant component o an eective intellectual property enorcement strategy is to change public

attitudes toward inringing activities.


The Administration has worked with Federal agencies and a broad set o stakeholders to bring

greater attention to the implications that countereiting and other intellectual property crimes

have on jobs, the economy and the health and saety o consumers.

On November 9, 0, Attorney General Eric Holder, IPEC Victoria Espinel, Acting Secretary o

Commerce Rebecca Blank, ICE Director John Morton, and President/CEO o the National Crime

Prevention Council Ann Harkins unveiled the rst comprehensive public awareness campaign to

inorm the public about the dangers o countereits and piracy. The campaign, unded through

DOJs Oce o Justice Programs, includes television advertisements, print media advertisements,

radio advertisements, Internet videos, and posters. Inormation about the campaign can beound at: http://www.ncpc.org/topics/intellectual-property-thet.

The State Department has allocated public diplomacy unds to increase respect or intellectual

property rights through public outreach. During FY 00-0, DOS, in partnership with host

country public and/or private sector institutions, supported a total o 75 IPR public outreach

campaigns across 5 countries to raise public awareness o the dangers surrounding countereit

products, including countereit medicines and Internet piracy.
http://www.ncpc.org/topics/intellectual-property-thefthttp://www.ncpc.org/topics/intellectual-property-theft


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9

On May , 0, the FBI unveiled a public education campaign aimed at raising awareness o

trade secret thet and the harm that could result rom it.

On September 8, 0, FDA launched BeSaeRx, a national campaign to educate consumers

about the dangers o buying medicine rom ake online pharmacies and help people saely

buy medicine online. Inormation and resources or consumers and health proessionals areavailable through FDAs BeSaeRx website.

Going orward:

Federal agencies will continue to look or opportunities to raise awareness and increase understanding

o the risks rom intellectual property inringement.

III. ENSURING EFFICIENCY AND COORDINATION

8 Improve National Law Enorcement Eorts to Protect Intellectual Property Rights

Numerous Federal law enorcement agencies investigate criminal intellectual property violations. Toavoid duplication and waste and to benet rom the specialized expertise o particular agencies, it is

critical that Federal law enorcement work together in an eective, ecient, and coordinated manner,

that they coordinate and support state and local law enorcement, and that they track and report law

enorcement activities.


The IPR Center, which brings together law enorcement rom across the U.S. Government and

international partners to create greater coordination, improved use o resources and more eec-

tive enorcement, increased the number o law enorcement partners rom to and now

includes our international partnersEuropol, INTERPOL, the Royal Canadian Mounted Police,

and the Mexican Revenue Service (a list o current IPR Center partner agencies can be ound onpage 6). IPR Center partner agencies have participated in joint operations and investigations

which has resulted in:

The de-confiction o 4,704 investigations.

Operation Network Raider, a joint initiative by DOJ, ICE-HSI, CBP, and the FBI, resulting in

more than 0 elony convictions nationwide in cases involving the sale o countereit Cisco

products imported rom China and sold to the U.S. military or use in Iraq.

DOJ, ICE-HSI, CBP, the Naval Criminal Investigative Service (NCIS), and the U.S. Postal

Inspection Service (USPIS), investigated and successully prosecuted an employee o an

integrated circuit importer or selling countereit circuits to the U.S. military. The coun-

tereit circuits were imported rom China and intended or use in missile and antennae

technologies.

DOJ, ICE-HSI, FDA-Oce o Criminal Investigations (OCI), and USPIS obtained the convic-

tions o deendants who manuactured and tracked in a countereit version o the diet

drug Alli. Ater a number o consumers who purchased rom these deendants reported
http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/BuyingMedicinesOvertheInternet/BeSafeRxKnowYourOnlinePharmacy/default.htmhttp://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/BuyingMedicinesOvertheInternet/BeSafeRxKnowYourOnlinePharmacy/default.htm


24/92


0

adverse side eects, FDA issued a warning stating that the countereit product posed a

very serious health risk.

In June 00, the IPR Center initiated Operation In Our Sites, the rst coordinated and sus-

tained law enorcement eort to target websites that distribute countereit merchandise

and pirated works. Since the operations inception, Federal law enorcement agencies, inconjunction with DOJ, have conducted operations targeting sites ocused on particular

subject matter such as sports apparel or luxury goods and resulting in the seizure o more

than ,700 domain names o inringing websites and monetary seizures o over $ million.

In April and May 0, as a result o investigations generated by the IPR Center led Operation

In Our Sites, in two separate cases ICE-HSI, working with DOJ, seized over $ million in

proceeds rom online sales o countereit goods by Chinese perpetrators. The unds were

seized rom correspondent bank accounts located at the Bank o China in New York under 8

U.S.C. 98(k), which permits the U.S. Government to seize unds rom a oreign institutions

interbank accounts in the United States or oreiture to the Treasury. This was ICE-HSIs rst

use o section 98(k) to seize illicitly-derived proceeds identied as part o an intellectualproperty rights criminal investigation deposited in a Chinese bank.

In November, the IPR Center issued its rst international intelligence bulletin to INTERPOL,

Europol, and the World Customs Organization reporting the dangers o countereit airbags.

ICE-HSI and the National Trac Highway Saety Administration (NHTSA) issued a saety

advisory to U.S. consumers in October. The advisory was as a result o testing conducted

by the NHTSA o airbags purchased online by ICE-HSI agents during the course o criminal

investigations into the distribution o countereit airbags through online sales. The airbags

were ordered online directly rom China or rom oreign-based wholesale business to

wholesale business websites and were represented as the genuine manuacturers part.

In an eort to share inormation with international partners, the IPR Center transmittedan international intelligence bulletin to consumers outside the U.S. who could be at risk i

these airbags are installed in their vehicles.

DHS has continued to dedicate more law enorcement resources towards protecting intellectual

property:

ICE-HSI has increased the number o its Intellectual Property Thet Enorcement Teams

(IPTET) rom to 6. ICE-HSI has conducted 40 state and local trainings nationwide.

ICE-HSI increased IPR investigations initiated by 7 percent since FY 009 and increased

arrests by 59 percent since FY 009. In FY 0, ICE-HSI initiated ,5 IPR investigations

and made 69 arrests.

ICE-HSI and CBP have combined to seize 47,640 countereit and pirated items. The combined

Manuacturers Suggested Retail Price (MSRP) value o these seizures was $.7 billion.

CBP began reporting on enorcement activities related to circumvention devices. Since 00,

when recordkeeping on such seizures began, CBP has seized 75 shipments o circumven-

tion devices.


25/92


DOJ has continued its ocus on intellectual property enorcement:

The FBI has placed and trained 5 agents dedicated to intellectual property enorcement

in major U.S. cities and established an IPR Unit which is embedded at the IPR Center.

Enhanced intellectual property investigative squads are located in our o those cities.

The FBI has increased arrests by 68 percent since 00. In FY 0, the FBI initiated 70 IPRinvestigations and made arrests.

DOJ Bureau o Justice Assistance (BJA) program grantees have seized approximately $0

million worth o inringing goods and currency. This is approximately times the value o

the grants awarded.

DOJ through the National White Collar Crime Center and the National Association o

Attorneys General has held training events or state and local law enorcement personnel

seminars nationwide.

In 0, DOJ created a network o Federal prosecutors with special training in computer

crimes and national security to support law enorcement agencies in the investigation o,among other things, economic espionage and trade secret thet perpetrated by national

security threat actors.

Since FY 009, the US Attorneys Oces led 78 intellectual property cases against 54

deendants, representing a percent increase in cases led and a 4 percent increase in

deendants charged compared to the prior year.

Going orward:

IPEC will continue to work with Federal agencies to ensure that there is cooperation and coordination

among agencies at the Federal, state, and local level. DOJ and DHS will continue to track and report their

enorcement activities as well as activities that support state and local law enorcement.CBP will increase analysis o enorcement, investigative and trade data to proactively target shipments

o pharmaceuticals, electronics, and textiles.

The IPR Center will also expand its partnerships with state and local agencies to develop solution-ori-

ented approaches to address distribution o countereit and pirated products. Federal law enorcement

will continue eorts to disrupt the capabilities o large-scale intellectual property crime by a variety o

means, including seeking seizure and oreiture o acilitating property and illicit proceeds.

9 Improve Ecacy o Enorcement by Leveraging Advanced Technology and Expertise

Developments in technology can improve IPR enorcement. For example, deployment o additionalmobile tools to personnel in the eld such as CBPs Enorcement Link to Mobile Operations could

decrease the cycle time or inspection and inringement determination. The development o intellectual

property protection technologies is an important anti-countereiting objective to urther Federal agency

eorts, particularly those with national security or intelligence unctions, to guard against countereits

entering the U.S. Government supply chain.


26/92


Going orward:

IPEC will bring together an interagency working group to help identiy new and innovative technologies

to improve our IPR enorcement capabilities. One area o ocus will be on identiying new technologies

to enhance the ability o border enorcement agencies such as CBP to identiy shipments o authentic

goods without inspection, enabling inspection resources to be more eectively deployed to shipments

that pose a higher risk o containing countereit goods.

Further, we will work to provide opportunities or experts to assist agencies engaged in IPR enorcement

better navigate highly technical areas such as Internet architecture.

10 Improve Eectiveness o Personnel Stationed Abroad

Combating intellectual property inringement overseas is a priority or the Administration, and it is critical

that U.S. Government personnel covering intellectual property issues on the ground in key countries are

well-coordinated, both within the Embassy, and also with home agencies, to ensure their eectiveness

with regard to addressing intellectual property protection and enorcement.


IPEC established an interagency working group that is led by IPEC and DOSs Bureau o Economic

and Business Aairs (EB) and consists o representatives rom the DOSs Bureau o International

Narcotics and Law Enorcement Aairs (INL), the U.S. Agency or International Development,

the Department o the Treasury, DOJ (CCIPS and FBI), DHS (CBP and ICE-HSI), DOC (USPTO, ITA,

and the Commercial Law Development Program (CLDP)), USTR, and the U.S. Copyright Oce.

The working group identied 7 key countriesBrazil, Russia, India, China, Canada, Chile,

Colombia, Egypt, Israel, Mexico, Nigeria, Peru, Saudi Arabia, Spain, Thailand, Turkey, and

Ukrainewhere intellectual property protection and enorcement is a priority.

The U.S. Embassies in the7 key countries established senior-level internal IP Working Groupsbringing together all embassy personnel who play a role in IPR enorcement.

The 7 embassies developed country-specic internal Embassy IP Work Plans with short-term

(achievable within months and less), and long-term goals (over months to accomplish).

The Embassy IP Working Groups meet regularly to discuss the Embassy IP Work Plans, to share

inormation, and to collaborate on activities under the Plans.

IPEC regularly communicates with these posts to ensure the eectiveness and eciency o U.S.

Government-wide engagement on international IPR issues, and the 7 key U.S. Embassies report

to the interagency working group in Washington on a regular basis regarding their progress on

implementing the Embassy IP Work Plans.

IPEC and the interagency working group meet with stakeholders on an annual basis to gather

country-specic suggestions or possible inclusion in the Embassy IP Work Plans.

USPTO has placed IPR Attachs in seven countries, including the deployment o two new

Attachs: one in Shanghai, China and one in Mexico City, Mexico. Their mission is to promote

high standards o IP protection and enorcement internationally. The FBI posted an intellectual


27/92


property-trained agent in Beijing, China in September 0 to work ull time on intellectual

property crime or a year. As a result o the promise shown, the FBI has renewed this eort and

deployed a replacement in February 0 with a ocused emphasis on joint investigations.

Going orward:

The 7 key U.S. Embassies will continue to report regularly to the interagency working group regardingtheir progress on implementing the Embassy IP Work Plans. USPTO will continue to post IPR Attachs in

high-priority countries, including Brazil, India, and Russia, three postings in China, Egypt, Mexico, and

Thailand, and will examine the easibility o including other key countries. The IPR Attaches will continue

to participate actively in and contribute tothe U.S. Embassies IP Working Groups on enorcement related

issues. Law enorcement agencies will leverage their internationally-located ocials to increase ocus

on intellectual property crime. DOJ would deploy up to our ICHIP attorneys, cross-designated as DOJ

Attachs, i unded as called or in the Presidents FY 04 Budget, to strategic locations to strengthen

international cooperation on enorcement, to address threats at the source, and to enhance international

cooperation and capacity-building eorts.

11 Coordination o International Capacity-Building and Training

The U.S. Government has engaged in a range o training and capacity-building programs to strengthen

intellectual property protection and enorcement internationally. IPEC has established processes to

acilitate interagency coordination in the delivery o international enorcement-related capacity-building

and training, and to ensure the most ecient use o limited training resources.


IPEC established and leads an interagency working group, comprised o representatives rom

DOC (USPTO, ITA, and CLDP), DOS (EB and INL), and USAID, the Department o the Treasury,

DOJ (CCIPS, FBI, and the Oce o Overseas Prosecutorial Development, Assistance and Training

(OPDAT)), DHS (CBP and ICE), USTR, and the U.S. Copyright Oce, to ensure eciency and coor-

dination in the design and delivery o international technical assistance and capacity-building

programs. The interagency working group regularly meets to share inormation on past and

upcoming programs and works together to prioritize countries and topics or training.

USPTO established and administers a searchable database website entitled the Global

Intellectual Property Education Database (www.usipr.gov) o intellectual property-related

technical assistance and capacity-building programs delivered by U.S. Government agen-

cies. The website is designed to prevent duplication o programming and resources and to

improve eciency and programming results by building upon past programs and targeting

U.S. Government eorts on countries and topics o highest priority. DHS, DOC, DOJ, and DOS have collaborated on and delivered intellectual property capacity-

building and enorcement programs, including those on civil and criminal aspects o online

enorcement and border enorcement, as well as combating countereit drugs, among many

others. For examples, please see agency reports.
http://www.usipr.gov/http://www.usipr.gov/


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4

Going orward:

IPEC and DOS will organize the interagency working group on U.S. Government personnel

overseas on a regional basis to better coordinate on IP enorcement-ocused region-wide issues

and best practices.

All agencies delivering IP-related training and capacity-building programs will provide quarterlysubmissions o accurate and up-to-date data through the Global Intellectual Property Education

Database.

DOJ, USPTO, and DOS will continue to ocus eorts on building awareness and understanding

o intellectual property among oreign judges, particularly with respect to technological trends

in inringement and technological advances in investigations o inringement. Agencies will also

continue to use opportunities and encounters with judicial authorities to share inormation on

their agencies work.

USPTO and DOJ will continue to include in training and capacity-building programs, discussions

o alternative dispute resolution and other ways to resolve appropriate intellectual property

cases airly and eciently, particularly in countries where heavy judicial backlogs are prevent-

ing intellectual property cases rom being heard in a timely manner and options are being

considered to increase the eciency o the judicial system.

USPTO, DOJ, ITA, and DOS will include trade secret thet among potential topics or program-

ming, particularly in countries that are known to present high-risk conditions or trade secret

thet.

USPTO, DOS, and the U.S. Copyright Oce will continue to provide technical assistance and

capacity-building programs on the U.S. copyright system, including, as appropriate, its strong

incentives or authors and creators, the role o limitations and exceptions, and eective enorce-

ment measures.

Appropriate members o the relevant Embassy IP Working Group will ollow-up with techni-

cal assistance/capacity-building program recipients on an ongoing basisor example, at

the two-month, six-month, and one-year markollowing a U.S. Government sponsored IPR

enorcement-related program to assess local actions, i any, that resulted since the program.

12 Consider Alternative Forums or Enorcement o Rights

Photographers, illustrators, inventors, and others have expressed rustration that the current Federal

court litigation ramework or pursuing civil enorcement o their intellectual property rights is time

consuming and prohibitively expensive, eectively impacting their ability to pursue inringement claims

that have a relatively small economic value.

With respect to copyright claims, over the past year, the U.S. Copyright Oce has been examining the

easibility o a copyright small claims adjudicatory process through extensive public outreach, including

soliciting written comments through notices in the Federal Register, and holding public meetings to

obtain input rom interested parties. The U.S. Copyright Oce has commenced its study at the request
http://www.usipr.gov/http://www.usipr.gov/http://www.usipr.gov/http://www.usipr.gov/


29/92


5

o Congress and expects to deliver recommendations regarding the easibility o a copyright small claims

system in the all o 0. This is an issue the Administration is watching with great interest.

With respect to patent claims,USPTO is examining closely, with the American Bar Association (ABA),

the Federal judiciary, and others, the concept o a patent small claims court proceeding. USPTO has

organized public outreach, will continue to solicit public comments, and will provide recommendationsregarding the concept in due course thereater, in consultation with the ABA, the Federal judiciary, and

other stakeholders.

IV. ENFORCING OUR RIGHTS ABROAD

13 Enhance Foreign Law Enorcement Cooperation

International law enorcement cooperation is a critical element to achieving the overall goal o combat-

ing countereiting, piracy, and trade secret thet. The global nature o these crimes demands that U.S.

law enorcement agencies develop relationships with international counterparts.


The IPR Center has added our international law enorcement partners to the center.

The Royal Canadian Mounted Police

The Mexico Revenue Service

INTERPOL

Europol

For the rst time, a joint customs enorcement operation was conducted through the auspices o

the Asia-Pacic Economic Cooperation (APEC) that led to over ,00 enorcement actions againstsubstandard, spurious, alsely-labeled, alsied, or countereit pharmaceutical shipments.

Operation Pangea, an annual World Customs Organization operation to combat countereit

pharmaceuticals, has expanded rom 45 countries to 00 participating countries.

In March 0, Operation Short Circuit was initiated across 4 participating countries to increase

their targeting, inspection, interdiction, and investigation o imports containing substandard

and countereit electrical items such as power supplies, power adaptors, chargers, surge protec-

tors, extension cords, holiday lights, and batteries. This global operation resulted in the seizure

o over 4,000 boxes o extension cords and surge protectors, 79,96 individual batteries, over

75,000 power supplies and power adaptors, 5,7 chargers, and 4,760 boxes o holiday lights.

DOJ has secured the extradition o several individuals indicted or Federal IPR violations and

has received international cooperation on numerous others.

In 00, Rodolo Rodriguez Cabrera and Henry Mantilla were extradited to the U.S. rom

Latvia. Both men were convicted o producing and tracking in countereit slot machines.


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In 00, Manuel Calvelo was extradited rom Costa Rica to ace charges o operating an

illegal online pharmacy that was distributing countereit drugs. Calvelo was convicted and

sentenced to 48 months in Federal prison.

In 0, Ali Moussa Hamdan was extradited rom Paraguay to ace charges o distributing

countereit goods and providing material support to Hezbollah. In January 0, the FBI and DOJ collaborated with law enorcement in Australia, Canada,

Germany, Hong Kong, the Netherlands, New Zealand, and the United Kingdom to arrest ve

individuals who were charged with operating an international organized criminal enter-

prise allegedly responsible or massive worldwide online piracy through Megaupload.com

and other related sites. Through the assistance o international counterparts, the FBI and

cooperating agencies executed more than 5 search warrants and seized approximately

$50 million in assets in the U.S. and abroad.

Going orward:

Federal law enorcement will continue to pursue cooperation and assistance rom oreign counterparts

through the training o oreign counterparts.Federal law enorcement personnel deployed abroad will

continue to cultivate relationships that lead to investigative assistance and cooperative eorts to address

IPR inringement outside the territorial boundaries o the United States.Additionally, the Presidents

04 Budget called or our International Computer Hacking and Intellectual Property (ICHIP) attorneys,

cross-designated as DOJ Attachs, to address threats at the source and to enhance international coop-

eration and capacity-building eorts.The IPR Center will continue its eorts to expand its international

partnerships, and will also continue to coordinate large scale global enorcement operations that target

countereit goods and pirated works.

14 Strengthen Intellectual Property Enorcement through International Organizations

International organizations can and should play a positive role in improving enorcement o intellectual

property.


As part o the 0 G-8 summit in France, G-8 leaders expressed strong support or intellectual

property protections as a key principle, particularly as a component o the Internet economy and

as a system to incentivize innovation and growth. The G-8 Declaration urther articulated that:

With regard to the protection o intellectual property, in particular copyright, trademarks, trade

secrets and patents, we recognize the need to have national laws and rameworks or improved

enorcement. We are thus renewing our commitment to ensuring eective action against

violations o intellectual property rights in the digital arena, including action that addresses

present and uture inringements. We recognize that the eective implementation o intellectual

property rules requires suitable international cooperation o relevant stakeholders, including

with the private sector. We are committed to identiying ways o acilitating greater access and

openness to knowledge, education and culture, including by encouraging continued innovation

in legal online trade in goods and content that are respectul o intellectual property rights.


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During the Camp David G-8 meeting on May 8-9, 0, G-8 leaders again airmed the

signicance o IPR protection and enorcement through a spectrum o approaches, including

private-sector led voluntary codes o best practices to address online IPR inringement in the

digital environment, implementing government procurement processes to combat countereits

entering supply chains, and exchanging best practices on combating countereit pharmaceu-

ticals and inormation on ake Internet pharmacies.

In 0, CBP led an enorcement partnership in the APEC orum targeting countereit pharma-

ceuticals shipped via mail and express carrier services that led to more than ,00 enorcement

actions against shipments containing more than 7 million ake or suspect pills and development

o model eective practices or enorcing IPR in mail and express carrier acilities.

The APEC 0 Leaders Agreement on Promoting Eective, Non-Discriminatory, and Market-

driven Innovation Policy included commitments by APEC member economies to: provide

eective protection and enorcement o IPR, rerain rom local research and development

requirements related to government procurement preerences, and ensure terms and condi-

tions or technology transer are voluntary and mutually agreed between individual enterprises.These commitments are expected to be implemented by November 0 and should improve

the environment or exports and direct oreign investment in the APEC region.

In 0 and 0, U.S. law enorcement and Federal agencies, including DHS through ICE-HSI

and CBP, DOJ, and FDA, participated in Operation Pangea IV and V, a global enorcement eort

led by INTERPOL and the WCO that is aimed at disrupting organized crime networks behind

the illicit online sale o ake drugs. In 0, Operation Pangea IV resulted in the seizure o 7,90

packages with a value o $6. million in countries around the world. In 0, Operation Pangea

V resulted in 79 arrests and the seizure o .7 million doses o potentially lie-threatening sub-

standard, spurious, alsely-labeled, alsied, or countereit medicines worth an estimated value

o $0.5 million, and approximately 8,000 websites engaged in the sale o countereit drugsbeing taken down.

Going orward:

CBP and DOS will continue to support the World Customs Organizations development o a Cargo

Targeting System (CTS) that can be integrated into existing import and export operations management

systems maintained by partner oreign governments. Successul deployment o CTS will support oreign

partner governments capabilities to curb illicit trade practices, including the fow o countereit goods

prior to their attempted importation into the United States.

CBP will work to build upon the successes realized in 0, particularly during the APEC Operation to

expand enorcement eorts to cover countereit pharmaceuticals and electronic components shippedthrough the express carrier and international mail environments.

Federal agencies will continue to look or opportunities to urther eective enorcement through the

G-8, APEC, and other intergovernmental orums.


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15 Promote Enorcement o US Intellectual Property Rights through Trade Policy Tools

The U.S. Government leverages a range o trade policy tools to promote strong intellectual property

rights protection and enorcement, including the annual Special 0 review o intellectual property

protection and market access practices in oreign countries, trade agreements, and high-level bilateral

engagement.


USTR conducted annual Special 0 reviews, most recently in May 0, examining intellectual

property protection and enorcement in 95 trading partnersresulting in the listing o 4

trading partners as Watch List, Priority Watch List, or Section 06 Monitoring status. The 0

Special 0 Report praised positive steps by eleven countries to address issues cited in previous

reports; o these, one was removed rom the Watch List and two others were downgraded rom

the Priority Watch List to the Watch List. Ukraine was designated as a Priority Foreign Country.

USTR also reports on best practices by trading partners in the area o intellectual property

enorcement in a special section o the annual Special 0 Report.

Several trading partners, including Russia, are working with the United States to develop or

implement action plans designed to positively impact uture Special 0 reviews.

In February 0, USTR issued the irst standalone Notorious Market List drawing special

attention to particular online and physical oreign markets that deal with inringing products.

In November 0, USTR released the results o its second review, and on December , 0,

USTR released the results o its third review, listing over 0 Internet and physical markets that

deal in inringing goods and services, acilitating and sustaining global piracy and countereiting.

Following their inclusion on the Notorious Markets List, several markets have taken action to

address the widespread availability o pirated or countereit goods. For example, Chinese search

engine Baidu reached an agreement with global record companies, Russias Savelovskiy Marketadopted and implemented an action plan, and Chinese online shopping platorm Taobao and

search engine Sogou have both made notable eorts to work with copyright and trademark

owners to address the availability o inringing goods and content on their sites.

The Anti-Countereiting Trade Agreement (ACTA) was signed on October , 0, by the United

States and seven other countries.

On October , 0, President Obama signed legislation approving and implementing or

the United States ree trade agreements (FTAs) with Colombia, Panama, and South Korea; each

contained strong provisions on IPR enorcement. USTR subsequently worked with these partners

to bring all three agreements into orce in 0. USTR, working with other Federal agencies, is negotiating a Trans-Pacic Partnership (TPP) trade

agreement with Australia, Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand,

Peru, Singapore, and Vietnam, which includes proposals or state-o-the-art provisions on civil,

criminal, and border enorcement similar to the recent FTAs noted above. USTR is also seeking

possible enhancements in certain areas, such as: provisions related to trade secret thet; provi-

sions calling or enhanced penalties or countereiting oenses that threaten health and saety;


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and a commitment by parties to seek to achieve an appropriate balance in their copyright

systems in providing copyright exceptions and limitations or purposes such as criticism, com-

ment, news reporting, teaching, scholarship, and research.

On February 8, 0, President Obama signed Executive Order 60 creating the Interagency

Trade Enorcement Center (ITEC) to investigate oreign trade barriers or unair trading practicesthat harm the competitiveness o U.S. industries and cost American jobs. The ITEC will be ocus-

ing its eorts in several areas, including on oreign barriers and practices that interere with the

protection and enorcement o intellectual property rights.

During the May 0 U.S.-China Strategic and Economic Dialogue (S&ED), co-led by DOS and

Treasury, China committed to creating an environment that would result in the increase in the

sales o legitimate IP-intensive products and services within its borders, and agreed to intensiy

enorcement against trade secrets misappropriation. China also committed to continue promot-

ing the use o legal sotware by Chinese enterprises, and to treat intellectual property owned

or develop

Documents

2013 Us Ipec Joint Strategic Plan