RESEARCH TRIANGLE PARK, NC — Yesterday, Rep. Joe Knollenberg (R-Mich.) introduced the “Stop Counterfeiting in Manufactured Goods Act,” H.R. 32 into the 109th Congress. The legislation is intended to strengthen the U.S. criminal statute against production and trafficking in counterfeited goods.
H.R. 32, would strengthen the existing law by closing loopholes that can allow counterfeiters to avoid prosecution, maintain control of assets for criminal enterprises and unjustly profit from their illegal activities. This legislation would grant trademark owners remedies similar to those already provided to copyright and trade secret owners.
This is great news for the automotive supplier industry, providing the industry an important tool in fighting product counterfeiting, according to the Motor & Equipment Manufacturers Association (MEMA). The American automotive parts and components industry looses an estimated $12 billion in sales on a global basis to counterfeiting.
“Product counterfeiting is a crime that steals jobs in our industry. Penetration of counterfeit automotive products is also a risk to public safety, at home and abroad,” said Paul Foley, vice president of MEMA and lead executive of the association’s anti-counterfeiting efforts. “We strongly support Congressman Knollenberg’s efforts to attack this problem by closing loopholes in our laws. The automotive parts and components industry, as well as many other American manufacturers will work vigorously to pass this bill,” Foley said.
Foley noted that MEMA and its market segment associations representing the automotive aftermarket, heavy duty and original equipment suppliers have been actively seeking such legislative remedies to counterfeiting.
“MEMA has been lobbying for stronger criminal laws against counterfeiting, improved communication between industry and federal law enforcement agencies, greater government pressure on trading partners to meet international standards of intellectual property protection and fair treatment for U.S. companies bringing complaints against intellectual property violations against their products in foreign markets,” he said. “In the aftermarket, OE or heavy duty markets, product counterfeiting means lost sales, lost jobs, safety risks and loss of brand integrity.”
In 2004, MEMA created the Brand Protection Council to organize an industry-wide effort to address global product counterfeiting through sharing best practices, evaluating new technologies, improved communication with federal law enforcement officials lobbying for stronger laws.
Acts of counterfeiting result in significant economic harm in the form of lost profits, diminished reputation among consumers and decreased tax revenue to a wide range of industries, including automotive parts manufacturers. The FBI estimates that counterfeiting costs U.S. businesses $200 billion to $250 billion annually and is increasing rapidly. New York City estimates that in 2003 alone, the theft of intellectual property cost the city over $1 billion in lost tax revenue.
For more information, visit: www.mema.org
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