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supplier issues

Brand Protection/Anti-Counterfeiting

Description: The manufacture and trafficking of counterfeit products has been identified by the supplier industry as a serious problem. A wide range of products is being counterfeited, including many safety-related parts such as brakes and brake pads, brake fluid, tires, structural parts and automotive lighting. In 2004, MEMA created the Brand Protection Council to organize industry action against the problem. MEMA also established a China Aftermarket Forum and European Aftermarket Forum to organize member response within those regions. MEMA has been working with the National Highway Traffic Safety Administration (NHTSA) to address the sale of non-compliant products at industry trade shows and work to identify commonalities between brand protection and non-compliant product issues.

Status:  In 2007, Senators Evan Bayh (D-Ind.) and George Voinovich (R-Ohio) introduced S. 522, the Intellectual Property Rights Enforcement Act.  Major provisions of the legislation intend to:

• Improve coordination and control among federal agencies to identify, track, arrest and prosecute intellectual property (IP) criminals through establishment of an Intellectual Property Rights Enforcement Network (IPEN) among federal agencies. 
• Establish an international task force made up of like-minded countries to track and identify intellectual property criminals.  The task force would be modeled on a similar international team that fights money laundering and other black-market crimes.
• Create a formal strategic plan by the IPEN and an annual reporting process to Congress. 

A House companion bill, H.R. 3578, was introduced by Representative Brad Sherman (D-Calif.) on September 18, 2007.  In December 2007, Representative John Conyers (D-Mich.) introduced comprehensive intellectual property rights legislation, H.R. 4279, the Prioritizing Resources and Organization for Intellectual Property (PRO IP) Act of 2007.  Provisions of this bill include: 

• Strengthening civil and criminal laws relating to copyright and trademark infringement.
• Improving federal coordination to enhance nationwide and international coordination of intellectual property enforcement efforts.
• Increasing staff in the U.S. Patent and Trademark Office and U.S. Department of Justice dedicated to intellectual property rights (IPR) enforcement. 

Impact on Industry: According to private sector estimates, automotive suppliers lose an estimated $12 billion in sales annually. The Federal Bureau of Investigation estimates that counterfeit goods cost U.S. businesses up to $250 billion annually.

2008 Anticipated Action: The Brand Protection Council and MEMA will continue to lobby Congress for stronger laws and more federal resources for protecting intellectual property domestically and abroad.   MEMA will also continue to work independently with its members and in coalition with other industry groups for increased federal law enforcement focused on improving border inspections, providing IP violator information to industry, and raising standards of IP protection at trade shows and in other areas.

MEMA Staff Contact:                       
Catherine Boland
Director, Government Relations
Phone: 202-312-9241
Email:cboland@mema.org