CONGRESS CRACKS DOWN ON SALE OF FAKE GOODS USED TO FINANCE DEADLY ACTS OF TERRORISM; HOUSE PASSES LEGISLATION TO PROTECT CONSUMERS AGAINST DANGEROUS KNOCK-OFFS

WASHINGTON, June 4 /PRNewswire/ -- Members of the House Judiciary Committee announced today the passage of the Anticounterfeiting Consumer Protection Act of 1995, a measure that cracks down on the pirates who mastermind underground counterfeiting cartels. The Senate unanimously approved companion legislation (S. 1136) on Dec. 13, 1995.

Testimony provided by law enforcement and industry last year shed new light on the shady illegal fake goods industry operating worldwide. Now considered the new face of terrorism and organized crime, trademark counterfeiting and copyright piracy are linked to violent crime in the U.S. Members of the International AntiCounterfeiting Coalition (IACC) who testified before the House and Senate Judiciary Committees said that several high-level players who controlled a New York counterfeiting operation were using some of the money to support terrorist groups such as those who bombed the World Trade Center.

"Trademark counterfeiting robs the U.S. of $200 billion annually. Counterfeiting is a highly profitable tax-free cash business and it's lining the pockets of the same criminals involved in murder, drug trafficking, gun running and extortion," said John Bliss, president of the IACC, a Washington, D.C.-based industry group. "Passage of this legislation sends a very loud message to pirates in the U.S. and abroad, 'Counterfeiters beware!' The IACC fully supports this legislation and applauds Congress for its leadership in creating a significant deterrent."

Incidents of dangerous fake products turning up in the U.S. spiked last year. Authorities found counterfeit baby formula at retail stores in 16 states, bacteria in fake shampoo and faulty knock-off aircraft parts. Combined with strong evidence of organized crime's involvement in similar cases, these events prompted the anticounterfeiting measure sponsored by Rep. Bob Goodlatte (R-Va.). Known as the "Knock out the Knock-offs" bill, the measure will:

     1.   Increase criminal penalties by making trafficking in counterfeit goods or services a RICO offense, providing for increased jail time, criminal fines and asset forfeiture;
     2.   Prohibit the re-exportation of counterfeit merchandise, calling for the seizure and destruction of these goods unless the trademark owner desires an alternative disposition;
     3.   Add teeth to existing statutes by providing for further civil remedies, including civil fines pegged to the value of genuine goods, and statutory awards of up to $1,000,000 per mark; and,
     4.   Allow greater involvement by all federal and local law enforcement in fighting counterfeiting, including enhanced authority to seize counterfeit goods and the tools used to manufacture and distribute these goods, and help those responsible for enforcing the law to get the information needed to act swiftly and effectively.

"Law enforcement and industry have been outgunned, outmanned and outfunded in their fight to protect consumers against counterfeit products," said Bliss. "Congress is responding with a resounding 'NO' -- NO to organized crime syndicates who use product counterfeiting as a means to launder drug money; NO to counterfeiters who jeopardize our health and safety; and, NO to America's trading partners who flood the U.S. with shoddy substandard fakes. This is the most significant update to the federal anticounterfeiting law in over a decade. Thanks to Congress' swift action, the tide will soon turn against pirates."

Comprised of a cross section of U.S. industry -- from auto, apparel, luxury goods, pharmaceuticals, and food, to book publishing, software and entertainment, naming just a few -- the IACC is the largest multinational organization dedicated exclusively to combating product piracy and counterfeiting. The touchstone of the IACC's mission is to combat counterfeiting and piracy by promoting laws, regulations and directives designed to render theft of intellectual property undesirable and unprofitable. Underpinning the IACC's purpose is the belief of its members that acts of counterfeiting and piracy can and do create severe public health risks and safety hazards, as well as economic harm. The IACC both initiates actions and supports government programs that will ultimately result in increased enforcement, lead to the prosecution of intellectual property infringers, and create a strong deterrent to counterfeiters.

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/CONTACT: George Abbott of the International AntiCounterfeiting Coalition, 202-223-5728/

CO: International AntiCounterfeiting Coalition ST: District of Columbia IN: SU: LEG

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