Prosecuting Intellectual Property Crimes - U.S. …

1 H. Marshall JarrettDirector, EOUSAC ameron G. ChandlerDirector, OLEOLEL itigationSeriesEd HagenAssistant Director,OLEA ndrea SharrinDeputy Chief forIntellectual Property CCIPSC riminal DivisionProsecuting Intellectual Property CrimesFourth EditionPublished byOffice of Legal EducationExecutive Office forUnited States AttorneysThe contents of this book provide internal suggestions to Department of Justice attorneys. Nothing in it is intended to create any substantive or procedural rights, privileges, or benefits enforceable in any administrative, civil, or criminal matter by any prospective or actual witnesses or parties.

2 See United States v. Caceres, 440 741 (1979).iiiTable of ContentsPreface and Acknowledgements ..xiI. Intellectual Property An Introduction ..1A. Why Is Intellectual Property Enforcement Important? ..1B. What Is Intellectual Property ? ..61. Copyright ..62. Trademarks and Service Marks ..63. Patents ..74. Trade Secrets ..8II. Criminal Copyright Infringement 17 506 and 18 2319 ..9A. Overview ..101. What Copyright Law Protects ..102. Legal Basis for Copyright and Related Laws ..113. Relevance of Civil Cases to Criminal Prosecutions ..114. Federal Preemption.

3 125. When Copyright Protection Begins and Ends ..136. The Rights Protected by Copyright ..147. When Infringement Is Criminal ..15B. Elements ..161. Existence of a Copyright ..182. The Defendant Acted Willfully ..263. Infringement of the Copyright ..334. Additional Element for Enhanced Sentence: Purpose of Commercial Advantage or Private Financial Gain ..555. Misdemeanor Copyright Infringement ..59C. Defenses ..601. Statute of Limitations: 5 years ..602. Jurisdiction ..613. Venue ..634. The First Sale Doctrine 17 109 ..635. Fair Use ..696. Archival Exception for Computer Software 17 117.

4 74ivD. Emerging and Special Issues ..761. Internet Streaming ..762. Cyberlockers and Linking Sites ..78E. Penalties ..801. Statutory Penalties ..802. Sentencing Guidelines ..80F. Other Charges to Consider ..81 III. Trafficking In Counterfeit Trademarks, Service Marks, and Certification Marks 18 2320 ..89A. Overview ..892. Why Criminal Law Protects Trademarks, Service Marks, and Certification Marks ..92B. Elements ..941. The trademark Counterfeiting crime in General ..942. Relevance of Civil trademark Law in Criminal Counterfeiting Cases ..963. Intentionally Trafficked in Goods or Services (or Labels, Documentation, or Packaging for Goods or Services).

5 974. The Defendant Used a Counterfeit Mark : Definition of a Counterfeit Mark ..1045. The Defendant Used the Counterfeit Mark Knowingly ..1216. Trafficking in Counterfeit Military Goods or Services ..1267. Trafficking in Counterfeit Drugs ..1288. Venue ..129C. Defenses ..1301. Authorized-Use Defense: Overrun Goods ..1302. Authorized-Use Defense: Gray Market Goods ..1333. Repackaging Genuine Goods ..1344. Lanham Act Defenses ..1375. Statute of Limitations ..1386. Vagueness Challenges ..139D. Special Issues ..1401. High-Quality and Low-Quality Counterfeits ..1402. Counterfeit Goods with Genuine Trademarks.

6 1413. Selling Fakes While Admitting That They Are Selling Another s Trademarked Goods As One s Own (Reverse Passing-Off) ..1415. Mark-Holder s Failure to Use Symbol ..1426. Storage Costs and Destruction ..1427. Units of Prosecution ..1438. Olympic Symbols ..145E. Penalties ..1461. Fines and Restitution ..1463. Forfeiture ..1494. Sentencing Guidelines ..149F. Other Charges to Consider ..151IV. Theft of Commercial Trade Secrets 18 1831-1839 ..155A. The Economic Espionage Act of 1996, 18 1831-1839 ..1571. Overview ..1572. Relevance of Civil Cases ..1613.

7 Elements Common to 18 1831, 1832 ..1624. Additional 18 1831 Element: Intent to Benefit a Foreign Government, Foreign Instrumentality, or Foreign Agent ..1825. Additional 18 1832 Elements ..1856. Attempts and Conspiracies, Including the Impossibility Defense ..189C. Defenses ..1911. Common Defenses ..1912. Parallel Development ..1983. Reverse Legal Impossibility ..2005. Advice of Counsel ..2006. Claim of Right Public Domain and Proprietary Rights ..2017. The First Amendment ..2028. Void-for-Vagueness ..203D. Preserving Confidentiality and the Use of Protective Orders.

8 2051. Overview ..2052. Interlocutory Appeals ..2073. Types of Protective Orders ..210vi4. Return of Trade Secrets Upon Conclusion of the Case ..214E. Special Issues ..2141. Civil Injunctive Relief for the United States ..2142. Parallel Proceedings ..2153. Significance of Electronic Evidence in Trade Secret and Economic Espionage Act Cases ..2194. Extraterritoriality ..2215. Department of Justice Oversight ..221F. Penalties ..2221. Statutory Penalties ..2222. Sentencing Guidelines ..224G. Other Charges to Consider ..224V. Digital Millennium Copyright Act 17 1201-1205 ..233A.

9 DMCA s Background and Purpose ..2332. Key Concepts: Access Controls vs. Copy Controls, Circumvention vs. Trafficking ..2343. Differences Between the DMCA and Traditional Copyright Law ..2384. Other DMCA Sections That Do Not Concern Prosecutors ..240B. Elements of the Anti-Circumvention and Anti-Trafficking Provisions ..2411. Circumventing Access Controls 17 1201(a)(1) and 1204 ..2412. Trafficking in Access Control Circumvention Tools and Services 17 1201(a)(2) and 1204 ..2533. Trafficking in Tools, Devices, and Services to Circumvent Copy Controls 17 1201(b)(1) and 1204.

10 2584. Alternate 1201(b) Action Trafficking in Certain Analog Videocassette Recorders and Camcorders ..2625. Falsifying, Altering, or Removing Copyright Management Information 17 1202 ..262C. Defenses ..2631. Statute of Limitations ..2632. Librarian of Congress Regulations ..2633. Certain Nonprofit Entities ..2644. Information Security Exemption ..264vii5. Reverse Engineering and Interoperability of Computer Programs ..2646. Encryption Research ..2677. Restricting Minors Access to the Internet ..2698. Protection of Personally Identifying Security Testing ..27010. Constitutionality of the DMCA.