WASHINGTON — The White House, the
U.S. Departments of Commerce, Homeland Security and Justice and
U.S. Trade Representative (USTR) Robert Zoellick will carry out a multi-prong
initiative to fight the global trade in pirated and counterfeited goods.
According to the Business Software Alliance (BSA), a major special interest
group representing the software and Internet industry, an estimated 36 percent
of the software installed on computers worldwide last year was pirated, representing a
loss of nearly $29 billion.
Speaking at a media briefing, which included Attorney General John
Ashcroft and Zoellick, Commerce
Secretary Don Evans said the plan “gives American businesses clear steps to
protect themselves from international counterfeiters and encourages
businesses to adopt programs that ensure that their supply chains are free
from fakes.”
Known as the Strategy Targeting Organized Piracy (STOP), the new initiative
includes beefed up programs to block bogus goods at borders, establishing a
hotline to provide U.S. businesses with resources to protect themselves from
piracy and developing a Web-based guide for American businesses to safeguard
their intellectual property.
Evans said the plan also calls for challenging industry leaders to develop
voluntary guidelines or corporate compliance programs to ensure that supply
chains are free of fakes.
“With the spread of the Internet and sophisticated duplication technology,
it’s gotten very easy for would-be pirates and counterfeiters from other
countries to download a corporate identity, or a catalogue, then produce high-quality
forgeries,” Zoellick said. “With the expansion of global supply and
distribution channels, the way is now open for those tapes here and around the
world. This is now real-time theft.”
Late last year, the USTR identified the growth of piracy and trade goods
counterfeiting as a top priority and began working with a number of U.S.
agencies and trading partners to develop a new approach to the problem.
“This problem crosses many different jurisdictions, laws and countries, and
the STOP initiative provides a coordinated and effective answer,” Zoellick
said. “The message to pirates and counterfeiters is simple: we will do
everything we can to make their life miserable. We’ll stop their products at
our border; we will name and shame their company; we’ll ratchet up the
penalties; and we’ll coordinate with our trading partners to prevent
third-country trafficking.”
According to Zoellick, global intellectual property rights theft and trade
in fakes have grown to “unprecedented levels.” From pirated music and movies
to counterfeit brake pads, Zoellick said the illicit trade is not only
growing in the United States but also among other countries in an effort to escape
the reach of U.S. law enforcement officials.
Of particular concern to Zoellick is China, which has emerged as a leading
source of pirated and counterfeit goods. The U.S. has been pressing China to
meet its intellectual property obligations as a member of the World Trade
Organization. Earlier this year, China committed to subject the full array
of piracy and counterfeiting operations to criminal prosecution and to
target production facilities and sales of fakes.
Ashcroft said another important goal of STOP is to close loopholes in the
current law.
“For example, under current law, it is not a violation of intellectual
property law simply to import or export counterfeit goods. Nor is it a
violation of the law for an importer to have a warehouse full of counterfeit
software if there is no evidence of an illegal sale,” Ashcroft said. “We
intend to work closely with Congress to close such loopholes.”
Robert Holleyman, president and CEO of the BSA, rushed to praise the STOP
plan.
“The economic and societal benefits of software
and other U.S. products contribute profoundly to the world economy,” he said in a statement.
“Yet, the software-driven productivity that has the potential to greatly strengthen
national economies, including our own, is only viable if the intellectual
property that serves as its foundation is fully protected and enforced by
international law.”
