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U.S. House Passes Anticounterfeiting Bill

The U.S. House of Representatives recently passed The Stop Counterfeiting in Manufactured Goods Act (H.R. 32), which would increase the penalties for criminals who distribute counterfeit products by closing existing loopholes in federal law and granting trademark owners similar remedies already provided to copyright and trade secret owners.

It's estimated that counterfeiting results in the loss of $200 billion to $250 billion in U.S. sales annually. In fact, counterfeiting in the automotive parts and components industry costs an estimated $2 billion in lost sales and 200,000 fewer jobs.

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H.R. 32 would also add mandatory destruction provisions to the trademark law to help put the criminals out of business and clarify that it's illegal to sell counterfeit versions of the trademarks themselves on labels, patches and medallions, to be used by others who affix them to counterfeit automotive products.

The Automotive Aftermarket Industry Association (AAIA) commended the House for passing H.R. 32.

"Counterfeiting poses a significant threat to the economy of the United States and the automotive aftermarket industry, as well as undermining the welfare, security and safety of our citizens," said Kathleen Schmatz, AAIA president and CEO. "We salute Congressman Joe Knollenberg (R-MI), the bill's sponsor, for his tireless efforts to move this important legislation through the House of Representatives."

Automotive Industry

U.S. House Passes Anticounterfeiting Bill

Motor, Jul 2005 by Nash, Tom

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