Support of Federal Efforts to Address Rogue Internet Sites that Sell Counterfeit Products and Facilitate Digital Theft Exposed

Support of Federal Efforts to Address Rogue Internet Sites that Sell Counterfeit Products and Facilitate Digital Theft was considered by ALEC's International Relations Task Force at the Annual Meeting on August 4, 2011. This bill was part of the ALEC task force agenda between 2010 and 2012, but due to incomplete information, it is not known if the bill passed in a vote by legislators and lobbyists at ALEC task force meetings, if ALEC sought to distance itself from the bill as the public increased scrutiny of its pay-to-play activities, or if key operative language from the bill has been introduced by an ALEC legislator in a state legislature in the ensuing period or became binding law.

ALEC Draft Bill Text

WHEREAS, industries that create intellectual property are the backbone of the economic competitiveness of the United States and represent the only economic sector in which the United States has a trade surplus with every nation in the world; and

WHEREAS, the United States and all countries share the challenge of combating counterfeiting and piracy of intellectual property, including illicit trade in pharmaceutical drugs, cutting edge technologies, film, music, books, and inventions that affect the quality of life; and

WHEREAS, the counterfeiting and piracy have a significant impact on economies around the world, translate into lost jobs, lost earnings, and lost tax revenues, and threaten public health and safety; and

WHEREAS, the sale of counterfeit products over rogue Internet sites – such as fake pharmaceuticals, medical devices, auto and electrical parts, and many others – not only poses a severe risk to consumer health and safety but also undermines sectors of our national and state economies that have historically provided secure, high-paying jobs; and

WHEREAS, increasingly, consumers are lured to sophisticated and well-designed websites that appear legitimate but are in fact devoted almost exclusively to offering or linking to unauthorized downloads or streaming of copyrighted material – including the latest movie and music hits – or to trafficking in counterfeit products, from pharmaceuticals to luxury goods; and

WHEREAS, rogue websites that offer counterfeit and pirated goods attract millions of visitors, have accumulated billions of dollars of revenues and also threaten legitimate online commerce channels; and

WHEREAS, many rogue websites that offer counterfeit and pirated goods are hosted overseas, which makes it difficult for intellectual property rights holders and U.S. law enforcement to take effective action against them.

NOW, THEREFORE LET IT BE RESOLVED, that the American Legislative Exchange Council recognizes the ever-increasing importance of intellectual property and the new challenges and serious threats to its protection, which affect prospects for future growth of the United States economy; and

BE IT FURTHER RESOLVED, that the American Legislative Exchange Council supports robust and ongoing efforts to protect the health and well-being of citizens in the United States from illegal counterfeiting and piracy; and

BE IT FURTHER RESOLVED, that the American Legislative Exchange Council supports efforts by the U.S. Congress to enact The PROTECT IP Act (Prevent Online Threats to Economic Creativity and Theft of Intellectual Property, and for other purposes – Act) or similar companion legislation, which will help the Justice Department to combat rogue websites that traffic in pirated music, movies and counterfeit goods and make it more difficult for rogue websites to operate; and

BE IT FURTHER RESOLVED, that this resolution be forwarded to members of Congress, the Administration, and the relevant federal agencies to support this critical federal legislation addressing enforcement of intellectual property rights.