All Agencies, Latest Month All Agencies, Current FY Geographic Distribution
of Convictions for
All Agencies, FY 2014
4 Prosecutions
in April 2014
89 Prosecutions
in Fiscal Year 2014
9 Convictions
in April 2014
116 Convictions
in Fiscal Year 2014

CITE

    18 USC Sec. 2320                                            01/05/2009

EXPCITE

    TITLE 18 - CRIMES AND CRIMINAL PROCEDURE
    PART I - CRIMES
    CHAPTER 113 - STOLEN PROPERTY

HEAD

    Sec. 2320. Trafficking in counterfeit goods or services

STATUTE

      (a) Offense. -
        (1) In general. - Whoever; (!1) intentionally traffics or
      attempts to traffic in goods or services and knowingly uses a
      counterfeit mark on or in connection with such goods or services,
      or intentionally traffics or attempts to traffic in labels,
      patches, stickers, wrappers, badges, emblems, medallions, charms,
      boxes, containers, cans, cases, hangtags, documentation, or
      packaging of any type or nature, knowing that a counterfeit mark
      has been applied thereto, the use of which is likely to cause
      confusion, to cause mistake, or to deceive, shall, if an
      individual, be fined not more than $2,000,000 or imprisoned not
      more than 10 years, or both, and, if a person other than an
      individual, be fined not more than $5,000,000. In the case of an
      offense by a person under this section that occurs after that
      person is convicted of another offense under this section, the
      person convicted, if an individual, shall be fined not more than
      $5,000,000 or imprisoned not more than 20 years, or both, and if
      other than an individual, shall be fined not more than
      $15,000,000.
        (2) Serious bodily harm or death. -
          (A) Serious bodily harm. - If the offender knowingly or
        recklessly causes or attempts to cause serious bodily injury
        from conduct in violation of paragraph (1), the penalty shall
        be a fine under this title or imprisonment for not more than 20
        years, or both.
          (B) Death. - If the offender knowingly or recklessly causes
        or attempts to cause death from conduct in violation of
        paragraph (1), the penalty shall be a fine under this title or
        imprisonment for any term of years or for life, or both.
      (b) Forfeiture and Destruction of Property; Restitution. -
    Forfeiture, destruction, and restitution relating to this section
    shall be subject to section 2323, to the extent provided in that
    section, in addition to any other similar remedies provided by law.
      (c) All defenses, affirmative defenses, and limitations on
    remedies that would be applicable in an action under the Lanham Act
    shall be applicable in a prosecution under this section. In a
    prosecution under this section, the defendant shall have the burden
    of proof, by a preponderance of the evidence, of any such
    affirmative defense.
      (d)(1) During preparation of the presentence report pursuant to
    Rule 32(c) of the Federal Rules of Criminal Procedure, victims of
    the offense shall be permitted to submit, and the probation officer
    shall receive, a victim impact statement that identifies the victim
    of the offense and the extent and scope of the injury and loss
    suffered by the victim, including the estimated economic impact of
    the offense on that victim.
      (2) Persons permitted to submit victim impact statements shall
    include -
        (A) producers and sellers of legitimate goods or services
      affected by conduct involved in the offense;
        (B) holders of intellectual property rights in such goods or
      services; and
        (C) the legal representatives of such producers, sellers, and
      holders.
      (e) For the purposes of this section -
        (1) the term "counterfeit mark" means -
          (A) a spurious mark -
            (i) that is used in connection with trafficking in any
          goods, services, labels, patches, stickers, wrappers, badges,
          emblems, medallions, charms, boxes, containers, cans, cases,
          hangtags, documentation, or packaging of any type or nature;
            (ii) that is identical with, or substantially
          indistinguishable from, a mark registered on the principal
          register in the United States Patent and Trademark Office and
          in use, whether or not the defendant knew such mark was so
          registered;
            (iii) that is applied to or used in connection with the
          goods or services for which the mark is registered with the
          United States Patent and Trademark Office, or is applied to
          or consists of a label, patch, sticker, wrapper, badge,
          emblem, medallion, charm, box, container, can, case, hangtag,
          documentation, or packaging of any type or nature that is
          designed, marketed, or otherwise intended to be used on or in
          connection with the goods or services for which the mark is
          registered in the United States Patent and Trademark Office;
          and
            (iv) the use of which is likely to cause confusion, to
          cause mistake, or to deceive; or
          (B) a spurious designation that is identical with, or
        substantially indistinguishable from, a designation as to which
        the remedies of the Lanham Act are made available by reason of
        section 220506 of title 36;
      but such term does not include any mark or designation used in
      connection with goods or services, or a mark or designation
      applied to labels, patches, stickers, wrappers, badges, emblems,
      medallions, charms, boxes, containers, cans, cases, hangtags,
      documentation, or packaging of any type or nature used in
      connection with such goods or services, of which the manufacturer
      or producer was, at the time of the manufacture or production in
      question, authorized to use the mark or designation for the type
      of goods or services so manufactured or produced, by the holder
      of the right to use such mark or designation.(!2)
        (2) the term "traffic" means to transport, transfer, or
      otherwise dispose of, to another, for purposes of commercial
      advantage or private financial gain, or to make, import, export,
      obtain control of, or possess, with intent to so transport,
      transfer, or otherwise dispose of;
        (3) the term "financial gain" includes the receipt, or expected
      receipt, of anything of value; and
        (4) the term "Lanham Act" means the Act entitled "An Act to
      provide for the registration and protection of trademarks used in
      commerce, to carry out the provisions of certain international
      conventions, and for other purposes", approved July 5, 1946 (15
      U.S.C. 1051 et seq.).
      (f) Nothing in this section shall entitle the United States to
    bring a criminal cause of action under this section for the
    repackaging of genuine goods or services not intended to deceive or
    confuse.
      (g)(1) Beginning with the first year after the date of enactment
    of this subsection, the Attorney General shall include in the
    report of the Attorney General to Congress on the business of the
    Department of Justice prepared pursuant to section 522 of title 28,
    an accounting, on a district by district basis, of the following
    with respect to all actions taken by the Department of Justice that
    involve trafficking in counterfeit labels for phonorecords, copies
    of computer programs or computer program documentation or
    packaging, copies of motion pictures or other audiovisual works (as
    defined in section 2318 of this title), criminal infringement of
    copyrights (as defined in section 2319 of this title), unauthorized
    fixation of and trafficking in sound recordings and music videos of
    live musical performances (as defined in section 2319A of this
    title), or trafficking in goods or services bearing counterfeit
    marks (as defined in section 2320 of this title):
        (A) The number of open investigations.
        (B) The number of cases referred by the United States Customs
      Service.
        (C) The number of cases referred by other agencies or sources.
        (D) The number and outcome, including settlements, sentences,
      recoveries, and penalties, of all prosecutions brought under
      sections 2318, 2319, 2319A, and 2320 of this title.
      (2)(A) The report under paragraph (1), with respect to criminal
    infringement of copyright, shall include the following:
        (i) The number of infringement cases in these categories:
      audiovisual (videos and films); audio (sound recordings);
      literary works (books and musical compositions); computer
      programs; video games; and, others.
        (ii) The number of online infringement cases.
        (iii) The number and dollar amounts of fines assessed in
      specific categories of dollar amounts. These categories shall be:
      no fines ordered; fines under $500; fines from $500 to $1,000;
      fines from $1,000 to $5,000; fines from $5,000 to $10,000; and
      fines over $10,000.
        (iv) The total amount of restitution ordered in all copyright
      infringement cases.
      (B) In this paragraph, the term "online infringement cases" as
    used in paragraph (2) means those cases where the infringer -
        (i) advertised or publicized the infringing work on the
      Internet; or
        (ii) made the infringing work available on the Internet for
      download, reproduction, performance, or distribution by other
      persons.
      (C) The information required under subparagraph (A) shall be
    submitted in the report required in fiscal year 2005 and
    thereafter.
      (h) Transshipment and Exportation. - No goods or services, the
    trafficking in of which is prohibited by this section, shall be
    transshipped through or exported from the United States. Any such
    transshipment or exportation shall be deemed a violation of section
    42 of an Act to provide for the registration of trademarks used in
    commerce, to carry out the provisions of certain international
    conventions, and for other purposes, approved July 5, 1946
    (commonly referred to as the "Trademark Act of 1946" or the "Lanham
    Act").

SOURCE

    (Added Pub. L. 98-473, title II, Sec. 1502(a), Oct. 12, 1984, 98
    Stat. 2178; amended Pub. L. 103-322, title XXXII, Sec. 320104(a),
    title XXXIII, Sec. 330016(1)(U), Sept. 13, 1994, 108 Stat. 2110,
    2148; Pub. L. 104-153, Sec. 5, July 2, 1996, 110 Stat. 1387; Pub.
    L. 105-147, Sec. 2(f), Dec. 16, 1997, 111 Stat. 2679; Pub. L. 105-
    225, Sec. 4(b), Aug. 12, 1998, 112 Stat. 1499; Pub. L. 105-354,
    Sec. 2(c)(1), Nov. 3, 1998, 112 Stat. 3244; Pub. L. 107-140, Sec.
    1, Feb. 8, 2002, 116 Stat. 12; Pub. L. 107-273, div. A, title II,
    Sec. 205(e), Nov. 2, 2002, 116 Stat. 1778; Pub. L. 109-181, Secs.
    1(b), 2(b), Mar. 16, 2006, 120 Stat. 285, 288; Pub. L. 110-403,
    title II, Sec. 205, Oct. 13, 2008, 122 Stat. 4261.)

REFERENCES IN TEXT

      The Lanham Act, referred to in subsecs. (c), (e)(1)(B), (4), and
    (h), also known as the Trademark Act of 1946, is act July 5, 1946,
    ch. 540, 60 Stat. 427, which is classified generally to chapter 22
    (Sec. 1051 et seq.) of Title 15, Commerce and Trade. For complete
    classification of this Act to the Code, see Short Title note set
    out under section 1051 of Title 15 and Tables.
      The Federal Rules of Criminal Procedure, referred to in subsec.
    (d)(1), are set out in the Appendix to this title.
      The date of enactment of this subsection, referred to in subsec.
    (g)(1), is date of enactment of Pub. L. 104-153, which was approved
    July 2, 1996.

CODIFICATION

      Another section 2320 was renumbered section 2321 of this title.

AMENDMENTS

      2008 - Subsec. (a). Pub. L. 110-403, Sec. 205(a)(1), inserted
    subsec. heading, designated existing provisions as par. (1) and
    inserted par. heading, substituted "Whoever;" for "Whoever",
    realigned margin, and added par. (2).
      Subsec. (b). Pub. L. 110-403, Sec. 205(b), amended subsec. (b)
    generally. Prior to amendment, subsec. (b) related to property
    subject to forfeiture, forfeiture procedures, and restitution.
      Subsec. (h). Pub. L. 110-403, Sec. 205(a)(2), added subsec. (h).
      2006 - Subsec. (a). Pub. L. 109-181, Sec. 1(b)(1), inserted ", or
    intentionally traffics or attempts to traffic in labels, patches,
    stickers, wrappers, badges, emblems, medallions, charms, boxes,
    containers, cans, cases, hangtags, documentation, or packaging of
    any type or nature, knowing that a counterfeit mark has been
    applied thereto, the use of which is likely to cause confusion, to
    cause mistake, or to deceive," after "such goods or services".
      Subsec. (b). Pub. L. 109-181, Sec. 1(b)(2), amended subsec. (b)
    generally. Prior to amendment, subsec. (b) read as follows: "Upon a
    determination by a preponderance of the evidence that any articles
    in the possession of a defendant in a prosecution under this
    section bear counterfeit marks, the United States may obtain an
    order for the destruction of such articles."
      Subsec. (e)(1). Pub. L. 109-181, Sec. 1(b)(3)(B), amended
    concluding provisions generally. Prior to amendment, concluding
    provisions read as follows: "but such term does not include any
    mark or designation used in connection with goods or services of
    which the manufacturer or producer was, at the time of the
    manufacture or production in question authorized to use the mark or
    designation for the type of goods or services so manufactured or
    produced, by the holder of the right to use such mark or
    designation;".
      Subsec. (e)(1)(A). Pub. L. 109-181, Sec. 1(b)(3)(A), added
    subpar. (A) and struck out former subpar. (A) which read as
    follows: "a spurious mark -
        "(i) that is used in connection with trafficking in goods or
      services;
        "(ii) that is identical with, or substantially
      indistinguishable from, a mark registered for those goods or
      services on the principal register in the United States Patent
      and Trademark Office and in use, whether or not the defendant
      knew such mark was so registered; and
        "(iii) the use of which is likely to cause confusion, to cause
      mistake, or to deceive; or".
      Subsec. (e)(2). Pub. L. 109-181, Sec. 2(b)(1), added par. (2) and
    struck out former par. (2) which read as follows: "the term
    'traffic' means transport, transfer, or otherwise dispose of, to
    another, as consideration for anything of value, or make or obtain
    control of with intent so to transport, transfer, or dispose of;
    and".
      Subsec. (e)(3), (4). Pub. L. 109-181, Sec. 2(b)(2), (3), added
    par. (3) and redesignated former par. (3) as (4).
      Subsecs. (f), (g). Pub. L. 109-181, Sec. 1(b)(4), added subsec.
    (f) and redesignated former subsec. (f) as (g).
      2002 - Subsec. (e)(1)(B). Pub. L. 107-140 substituted "section
    220506 of title 36" for "section 220706 of title 36".
      Subsec. (f). Pub. L. 107-273, Sec. 205(e), designated existing
    provisions as par. (1), substituted "this title" for "title 18"
    wherever appearing, redesignated former pars. (1) to (4) as
    subpars. (A) to (D), respectively, of par. (1), and added par. (2).
      1998 - Subsec. (e)(1)(B). Pub. L. 105-225, Sec. 4(b)(1), as
    amended by Pub. L. 105-354, Sec. 2(c)(1), substituted "section
    220706 of title 36" for "section 110 of the Olympic Charter Act".
      Subsec. (e)(2). Pub. L. 105-225, Sec. 4(b)(2), as amended by Pub.
    L. 105-354, Sec. 2(c)(1), inserted "and" after semicolon at end.
      Subsec. (e)(3). Pub. L. 105-225, Sec. 4(b)(3), as amended by Pub.
    L. 105-354, Sec. 2(c)(1), substituted a period for "; and" at end.
      Subsec. (e)(4). Pub. L. 105-225, Sec. 4(b)(4), as amended by Pub.
    L. 105-354, Sec. 2(c)(1), struck out par. (4) which read as
    follows: "the term 'Olympic Charter Act' means the Act entitled 'An
    Act to incorporate the United States Olympic Association', approved
    September 21, 1950 (36 U.S.C. 371 et seq.)."
      1997 - Subsecs. (d) to (f). Pub. L. 105-147 added subsec. (d) and
    redesignated former subsecs. (d) and (e) as (e) and (f),
    respectively.
      1996 - Subsec. (e). Pub. L. 104-153 added subsec. (e).
      1994 - Pub. L. 103-322, Sec. 330016(1)(U), which directed the
    amendment of this section by striking "not more than $250,000" and
    inserting "under this title", could not be executed because the
    phrase "not more than $250,000" did not appear in text subsequent
    to amendment of subsec. (a) by Pub. L. 103-322, Sec. 320104(a). See
    below.
      Subsec. (a). Pub. L. 103-322, Sec. 320104(a), in first sentence,
    substituted "$2,000,000 or imprisoned not more than 10 years" for
    "$250,000 or imprisoned not more than five years" and "$5,000,000"
    for "$1,000,000", and in second sentence, substituted "$5,000,000
    or imprisoned not more than 20 years" for "$1,000,000 or imprisoned
    not more than fifteen years" and "$15,000,000" for "$5,000,000".
                     EFFECTIVE DATE OF 1998 AMENDMENT
      Pub. L. 105-354, Sec. 2(c), Nov. 3, 1998, 112 Stat. 3244,
    provided that the amendment made by section 2(c) is effective Aug.
    12, 1998.

TRANSFER OF FUNCTIONS

      For transfer of functions, personnel, assets, and liabilities of
    the United States Customs Service of the Department of the
    Treasury, including functions of the Secretary of the Treasury
    relating thereto, to the Secretary of Homeland Security, and for
    treatment of related references, see sections 203(1), 551(d),
    552(d), and 557 of Title 6, Domestic Security, and the Department
    of Homeland Security Reorganization Plan of November 25, 2002, as
    modified, set out as a note under section 542 of Title 6.

FINDINGS

      Pub. L. 109-181, Sec. 1(a)(2), Mar. 16, 2006, 120 Stat. 285,
    provided that: "The Congress finds that -
        "(A) the United States economy is losing millions of dollars in
      tax revenue and tens of thousands of jobs because of the
      manufacture, distribution, and sale of counterfeit goods;
        "(B) the Bureau of Customs and Border Protection estimates that
      counterfeiting costs the United States $200 billion annually;
        "(C) counterfeit automobile parts, including brake pads, cost
      the auto industry alone billions of dollars in lost sales each
      year;
        "(D) counterfeit products have invaded numerous industries,
      including those producing auto parts, electrical appliances,
      medicines, tools, toys, office equipment, clothing, and many
      other products;
        "(E) ties have been established between counterfeiting and
      terrorist organizations that use the sale of counterfeit goods to
      raise and launder money;
        "(F) ongoing counterfeiting of manufactured goods poses a
      widespread threat to public health and safety; and
        "(G) strong domestic criminal remedies against counterfeiting
      will permit the United States to seek stronger anticounterfeiting
      provisions in bilateral and international agreements with trading
      partners."

FOOTNOTE

    (!1) So in original. The semicolon probably should not appear.
    (!2) So in original. The period probably should be a semicolon.
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