FEDERAL PROSECUTION OF
VIOLATIONS OF INTELLECTUAL
PROPERTY RIGHTS

(COPYRIGHTS, TRADEMARKS AND TRADE SECRETS)

TABLE OF CONTENTS

PREFACE   i
INTRODUCTION   i
I. THE PROTECTION OF INTELLECTUAL PROPERTY -- AN OVERVIEW   1
A. INTRODUCTION
  1
B. COPYRIGHTS, TRADEMARKS, TRADE SECRETS, AND PATENTS
  1
    1. Copyrights
  1
    2. Trademarks
  2
    3. Trade Secrets
  2
    4. Patents
  3
II. THE PROTECTION OF COPYRIGHTS   5
A. INTELLECTUAL PROPERTY ENTITLED TO COPYRIGHT
    PROTECTION
  5
    1. Historical Grounds for Copyright Protection
  5
    2. Requirements for Copyright Protection
  7
        a. Originality
  7
        b. Fixed medium of expression
  8
        c. Registration and notice
  9
    3. Nature of the Rights Protected by Copyrights
  10
    4. Limitations on Exclusive Rights
  11
    5. Computer software
  12
III. CRIMINAL REMEDIES FOR COPYRIGHT VIOLATIONS   17
A. CRIMINAL COPYRIGHT INFRINGEMENT: 17 U.S.C. § 506(a) AND
    18 U.S.C § 2319
  17
    1. The Elements of Criminal Copyright Infringement
  18
        a. Existence of a valid copyright
  19
        b. Infringement
  19
        c. Willfulness
  23
        d. Commercial advantage or private financial gain
  24
            (1) Discrete monetary transactions
  25
            (2) Bartering
  26
        e. The first sale doctrine in criminal cases
  27
            (1) Proving absence of first sale
  29
    2. Drafting the Indictment
  31
        a. 10 or More Copies
  31
        b. Retail Value
  33
        c. Equitable charging considerations
  33
    3. Other Possible Charges: Money Laundering and RICO
  35
    4. Juvenile Prosecutions
  36
    5. Penalties for Criminal Copyright Infringement
  37
        a. Statutory penalties
  37
        b. Sentencing guidelines
  37
        c. Other possible enhancements
  39
B. TRAFFICKING IN SOUND RECORDINGS OF LIVE MUSICAL
    PERFORMANCES: 18 U.S.C. § 2319A
  40
C. OTHER TITLE 17 CRIMINAL PROVISIONS PROTECTING
    COPYRIGHTS
  41
    1. Protection of Copyright Notices, 17 U.S.C. §§ 506(c) and (d)
  41
    2. False Representations in Copyright Applications, 17 U.S.C. § 506(e)
  42
D. OTHER TITLE 18 OFFENSES
  42
    1. Trafficking in Counterfeit Labels, 18 U.S.C. § 2318
  42
    2. Interstate Transportation of Stolen Property, 18 U.S.C. § 2314
  44
    3. Mail and Wire Fraud, 18 U.S.C. §§ 1341 and 1343
  45
    4. Smuggling, 18 U.S.C. § 545
  47
E. STATUTE OF LIMITATIONS
  47
F. FORFEITURE
  47
    1. Criminal Forfeiture
  48
    2. Civil Forfeiture
  48
G. REPORTING REQUIREMENTS
  49
H. ALTERNATIVE STATE REMEDIES
  50
IV. PROTECTION OF TRADEMARKS   51
A. INTELLECTUAL PROPERTY ENTITLED TO TRADEMARK
    PROTECTION
  51
    1. Constitutional Limits on Trademark Protection
  51
    2. Nature of the Rights Protected by Trademarks
  52
    3. Statutory Limits on Trademark Protection
  52
        a. Distinctiveness
  53
        b. Use in commerce
  54
    4. Limitations on Exclusive Rights
  55
B. THE CRIMINAL LAW
  55
    1. Overview of Statute
  55
    2. Elements
  56
        a. Trafficking in goods or services
  56
        b. Trafficking was intentional
  56
        c. The defendant used a "counterfeit mark"
  57
        d. The defendant knew that the mark was counterfeit
  58
    3. Defenses
  59
        a. Lanham Act defenses
  59
        b. Overrun or "grey market goods"
  59
    4. Charging Decisions
  60
        a. Intent of statute
  60
        b. Money laundering/RICO
  61
        c. Equitable charging considerations
  61
            (1) Extent of civil recovery
  62
            (2) Violation of existing civil order--contempt
  62
        d. Monetary damages
  62
        e. Units of prosecution
  63
        f. Juvenile prosecutions
  63
C. PENALTIES
  64
    1. Statutory
  64
    2. Sentencing Guidelines
  64
    3. Forfeiture
  66
        a. Criminal
  66
        b. Civil
  66
D. CONTRASTING THE TRADEMARK AND THE COPYRIGHT ACT
  67
E. CHARGING BOTH CRIMINAL COPYRIGHT AND TRADEMARK
    VIOLATIONS
  68
V. PROSECUTION OF THEFT OF TRADE SECRETS   70
A. INTRODUCTION
  70
B. THE ECONOMIC ESPIONAGE ACT OF 1996
  71
    1. Overview of the Statute
  71
    2. Elements common to §§ 1831 and 1832
  72
        a. Misappropriation
  73
        b. Knowledge
  73
        c. Trade secret
  74
    3. Additional § 1831 Element
  77
        a. Intent to benefit a foreign government
  77
    4. Additional section 1832 elements
  79
        a. Economic benefit to a third party
  79
        b. Intent to injure the owner of the trade secret
  79
        c. Interstate or foreign commerce
  79
    5. Defenses
  80
        a. Parallel development
  80
        b. Reverse engineering
  80
        c. General knowledge
  81
        d. The First Amendment
  82
    6. Criminal Forfeiture
  82
    7. Civil Proceedings
  83
    8. Confidentiality
  83
    9. Extraterritoriality
  84
    10. Statutory Penalties
  84
    11. Department of Justice Oversight
  85
C. OTHER POSSIBLE CHARGES
  85
    1. Introduction
  85
    2. 18 U.S.C. § 2314
  86
        a. Elements
  86
            (1) Transportation in interstate commerce
  87
            (2) Goods, wares and merchandise
  87
            (3) Goods must have a value of $5,000 or more
  89
            (4) Stolen, converted or taken by fraud
  90
        b. Venue
  90
    3. 18 U.S.C. § 2315
  91
    4. 18 U.S.C. §§ 1341 and 1343
  91
    5. 18 U.S.C. § 1905
  93
    6. 18 U.S.C. § 1030
  94
    7. State Law
  94
VI. APPENDICES   A-1
Appendix A: List of Contact Persons
  A-1
Appendix B: Sample Indictment - 18 U.S.C. § 2319 (Misdemeanor)
  B-1
Appendix C: Sample Indictment - 18 U.S.C. § 2319 (Felony)
  C-1
Appendix D: Sample Indictment - 18 U.S.C. § 2320
  D-1
Appendix E: Sample Indictment - 18 U.S.C. § 1831
  E-1
Appendix F: Sample Indictment - 18 U.S.C. § 1832
  F-1
Appendix G: Search Warrant Affidavit (Electronic Environment)
  G-1
Appendix H: Sample Language for Jury Instructions - 18 U.S.C. § 2319
  H-1
Appendix I: Sample Language for Jury Instructions - 18 U.S.C. § 2320
  I-1
Appendix J: Sample Language for Jury Instructions - 18 U.S.C. § 1831
  J-1
Appendix K: Sample Language for Jury Instructions - 18 U.S.C. § 1832
  K-1
Appendix L: List of States with "True Name and Address" Satutes
  L-1
Appendix M: State Criminal Trade Secret Statutes
  M-1
Appendix N: Legislative History - Copyright Felony Act
  N-1
Appendix O: Legislative History - Economic Espionage Act of 1996
  O-1
Appendix P: Table of Authorities
  P-1
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Updated page Sept 2 , 1997
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