PROHIBITION AGAINST TRAFFICKING IN COUNTERFEIT COMPONENTS.

SEC. 102. PROHIBITION AGAINST TRAFFICKING IN COUNTERFEIT COMPONENTS.(a) In General.—Section 2318 of title 18, United States Code, is amended—(1) by striking the section heading and inserting the following:“§ 2318. Trafficking in counterfeit labels, illicit labels, or counterfeit documentation or packaging” ;(2) by striking subsection (a) and inserting the following:“(a) Whoever, in any of the circumstances described in subsection (c), knowingly traffics in—“(1) a counterfeit label or illicit label affixed to, enclosing, or accompanying, or designed to be affixed to, enclose, or accompany—“(A) a phonorecord;“(B) a copy of a computer program;“(C) a copy of a motion picture or other audiovisual work;“(D) a copy of a literary work;“(E) a copy of a pictorial, graphic, or sculptural work;“(F) a work of visual art; or“(G) documentation or packaging; or“(2) counterfeit documentation or packaging,shall be fined under this title or imprisoned for not more than 5 years, or both.”;(3) in subsection (b)—118 STAT. 3913(A) in paragraph (2), by striking “and” after the semicolon;(B) in paragraph (3)—(i) by striking “and ‘audiovisual work’ have” and inserting the following: “ ‘audiovisual work’, ‘literary work’, ‘pictorial, graphic, or sculptural work’, ‘sound recording’, ‘work of visual art’, and ‘copyright owner’ have”; and(ii) by striking the period at the end and inserting a semicolon; and(C) by adding at the end the following:“(4) the term ‘illicit label’ means a genuine certificate, licensing document, registration card, or similar labeling component—“(A) that is used by the copyright owner to verify that a phonorecord, a copy of a computer program, a copy of a motion picture or other audiovisual work, a copy of a literary work, a copy of a pictorial, graphic, or sculptural work, a work of visual art, or documentation or packaging is not counterfeit or infringing of any copyright; and“(B) that is, without the authorization of the copyright owner—“(i) distributed or intended for distribution not in connection with the copy, phonorecord, or work of visual art to which such labeling component was intended to be affixed by the respective copyright owner; or“(ii) in connection with a genuine certificate or licensing document, knowingly falsified in order to designate a higher number of licensed users or copies than authorized by the copyright owner, unless that certificate or document is used by the copyright owner solely for the purpose of monitoring or tracking the copyright owner’s distribution channel and not for the purpose of verifying that a copy or phonorecord is noninfringing;“(5) the term ‘documentation or packaging’ means documentation or packaging, in physical form, for a phonorecord, copy of a computer program, copy of a motion picture or other audiovisual work, copy of a literary work, copy of a pictorial, graphic, or sculptural work, or work of visual art; and“(6) the term ‘counterfeit documentation or packaging’ means documentation or packaging that appears to be genuine, but is not.”;(4) in subsection (c)—(A) by striking paragraph (3) and inserting the following:“(3) the counterfeit label or illicit label is affixed to, encloses, or accompanies, or is designed to be affixed to, enclose, or accompany—“(A) a phonorecord of a copyrighted sound recording or copyrighted musical work;“(B) a copy of a copyrighted computer program;“(C) a copy of a copyrighted motion picture or other audiovisual work;“(D) a copy of a literary work;“(E) a copy of a pictorial, graphic, or sculptural work;118 STAT. 3914“(F) a work of visual art; or“(G) copyrighted documentation or packaging; or”; and(B) in paragraph (4), by striking “for a computer program”; and(5) in subsection (d)—(A) by inserting “or illicit labels” after “counterfeit labels” each place it appears; and(B) by inserting before the period at the end the following: “, and of any equipment, device, or material used to manufacture, reproduce, or assemble the counterfeit labels or illicit labels”.(b) Civil Remedies.—Section 2318 of title 18, United States Code, is further amended by adding at the end the following:“(f) Civil Remedies.—“(1) In general.—Any copyright owner who is injured, or is threatened with injury, by a violation of subsection (a) may bring a civil action in an appropriate United States district court.“(2) Discretion of court.—In any action brought under paragraph (1), the court—“(A) may grant 1 or more temporary or permanent injunctions on such terms as the court determines to be reasonable to prevent or restrain a violation of subsection (a);“(B) at any time while the action is pending, may order the impounding, on such terms as the court determines to be reasonable, of any article that is in the custody or control of the alleged violator and that the court has reasonable cause to believe was involved in a violation of subsection (a); and“(C) may award to the injured party—“(i) reasonable attorney fees and costs; and“(ii)(I) actual damages and any additional profits of the violator, as provided in paragraph (3); or“(II) statutory damages, as provided in paragraph (4).“(3) Actual damages and profits.—“(A) In general.—The injured party is entitled to recover—“(i) the actual damages suffered by the injured party as a result of a violation of subsection (a), as provided in subparagraph (B) of this paragraph; and“(ii) any profits of the violator that are attributable to a violation of subsection (a) and are not taken into account in computing the actual damages.“(B) Calculation of damages.—The court shall calculate actual damages by multiplying—“(i) the value of the phonorecords, copies, or works of visual art which are, or are intended to be, affixed with, enclosed in, or accompanied by any counterfeit labels, illicit labels, or counterfeit documentation or packaging, by“(ii) the number of phonorecords, copies, or works of visual art which are, or are intended to be, affixed with, enclosed in, or accompanied by any counterfeit labels, illicit labels, or counterfeit documentation or packaging.118 STAT. 3915“(C) Definition.—For purposes of this paragraph, the ‘value’ of a phonorecord, copy, or work of visual art is—“(i) in the case of a copyrighted sound recording or copyrighted musical work, the retail value of an authorized phonorecord of that sound recording or musical work;“(ii) in the case of a copyrighted computer program, the retail value of an authorized copy of that computer program;“(iii) in the case of a copyrighted motion picture or other audiovisual work, the retail value of an authorized copy of that motion picture or audiovisual work;“(iv) in the case of a copyrighted literary work, the retail value of an authorized copy of that literary work;“(v) in the case of a pictorial, graphic, or sculptural work, the retail value of an authorized copy of that work; and“(vi) in the case of a work of visual art, the retail value of that work.“(4) Statutory damages.—The injured party may elect, at any time before final judgment is rendered, to recover, instead of actual damages and profits, an award of statutory damages for each violation of subsection (a) in a sum of not less than $2,500 or more than $25,000, as the court considers appropriate.“(5) Subsequent violation.—The court may increase an award of damages under this subsection by 3 times the amount that would otherwise be awarded, as the court considers appropriate, if the court finds that a person has subsequently violated subsection (a) within 3 years after a final judgment was entered against that person for a violation of that subsection.“(6) Limitation on actions.—A civil action may not be commenced under section unless it is commenced within 3 years after the date on which the claimant discovers the violation of subsection (a).”.(c) Conforming Amendment.—The item relating to section 2318 in the table of sections for chapter 113 of title 18, United States Code, is amended to read as follows: “2318. Trafficking in counterfeit labels, illicit labels, or counterfeit documentation or packaging.”.