Updated: October 12, 2004

U.S. Task Force Urges Tough Policies on Piracy, Counterfeiting

Report recommends global effort to protect intellectual property

Washington -- A U.S. Department of Justice (DOJ) task force is recommending a more aggressive strategy to combat piracy, counterfeiting and other violations of intellectual property rights (IPR) both domestically and overseas.

In a report released October 12 in Los Angeles by Attorney General John Ashcroft, the task force calls for greater global cooperation against IPR crimes and stationing FBI (Federal Bureau of Investigation) agents and federal prosecutors at U.S. embassies in Hong Kong and Budapest to coordinate IPR enforcement in Asia and Eastern Europe.

Those regions are of "particular importance" because of the increasing amount of counterfeiting in Asia and Eastern Europe, the task force said.

The task force also urges DOJ to:

-- Enhance IPR training programs for foreign law enforcement officials
-- Emphasize IPR enforcement during discussions with other governments
-- Ensure that IPR crimes are included in all extradition treaties
-- Direct prosecutors and agents to increase the use of alternative channels of communication, such as "law enforcement-to-law enforcement" contacts

The 96-page report was made available to reporters in Washington and concludes the task force's seven-month examination of IPR enforcement strategies in the United States and worldwide.

"The increasing value of intellectual property, coupled with the ease and low cost of copyright infringement, has significantly increased the destructive consequences of intellectual property theft," the Justice Department said in a news release accompanying the report.

The task force cited International Intellectual Property Alliance (IIPA) research showing that in 2002 intellectual property industries made up approximately 6 percent of the U.S. gross domestic product (GDP), employed more than five million people, and contributed $626 billion to the national economy.

The report emphasized that IPR crimes threaten consumers as well as business, citing World Health Organization (WHO) estimates that counterfeits account for 8-10 percent of pharmaceuticals worldwide. It also cited reports that counterfeit batteries for cellular telephones had caused fires and injuries.

Much of the task force report dealt with domestic IPR crimes, calling for more aggressive prosecutions of IPR crimes and broader powers for officials who investigate and enforce the various laws already in place.

The task force said Congress should make it a federal crime to share large amounts of copyrighted works on computer networks and should criminalize the possession of counterfeit goods with the intention of selling or trafficking them.

All of the task force recommendations are contained in the report, which is available at: http://www.usdoj.gov/criminal/cybercrime/IPTaskForceReport.pdf

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