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EXECUTIVE SUMMARY Services, the Department of Agriculture, the Office of Management and Budget, the Office of the U.S. Trade Representative, and the Copyright Office. * In preparing this Joint Strategic Plan, the Office of the Intellectual Property Enforcement Coordinator and the members of the U.S. Interagency Strategy Planning Committees on IP Enforcement drew on their respective experience on IP enforcement. The U.S. Interagency Strategic Planning Committees on IP Enforcement are comprised of, and supported by, experts in intellectual property laws and enforcement matters, including the Federal Bureau of Investigation (FBI) and the Computer Crime and Intellectual Property Section (CCIPS) of the Department of Justice; Customs and Border Protection (CBP); Homeland Security Investigations (HSI) within Immigration and Customs Enforcement (ICE); the Office of International IP Enforcement of the Department of State, and the U.S. Patent and Trademark Office (USPTO), among other offices and agencies. The Office of the Intellectual Property Enforcement Coordinator and the interagency committees have also developed the Joint Strategic Plan by receiving input, as appropriate, from a wide variety of stakeholders across the Federal Government, along with input received from state and local governments; industry; nongovernmental organizations; educational institutions; trade organizations; public interest groups; and others. For example, the Office of the Intellectual Property Enforcement Coordinator and members of the U.S. Interagency Strategic Planning Committees on IP Enforcement have consulted with U.S. officials at various U.S. embassies, consulates, and posts around the world who may have extensive experience with intellectual property matters, or are active in supporting contacts with U.S. industries, or maintain regular dialogues with foreign government officials at key ministries and agencies. Such U.S. officials include, for example, Heads of Mission (e.g., Ambassadors and Chargés d’Affaires) and other senior Foreign Service Officers, as well as the agency representatives at post (e.g., Intellectual Property Law Enforcement Coordinators (IPLECs); Intellectual Property Attachés; CBP Attachés; and ICE/HSI Attachés). * For full membership of the U.S. Interagency Strategy Planning Committees on IP Enforcement, see page [4]. † See, e.g., PRO-IP Act §§ 303(a)(1), (4)-(7) and (f), as examples of statutorily mandated international considerations and engagement. ‡ See PRO-IP Act § 303(a)(7)(C) & 303 (c)(2). § Public comments and submissions in response to the Federal Register Notice are accessible at https://www.regulations.gov/ document?D=OMB-2015-0003-0001. Pursuant to Section 303 of the PRO-IP Act, the Office of the Intellectual Property Enforcement Coordinator, as well as members of the U.S. Interagency Strategic Planning Committees on IP Enforcement, also consulted and engaged with foreign governments, international organizations, and law enforcement bodies the world over to understand, for example, the global dimensions around the “financing, production, trafficking or sale of counterfeit and infringing goods,” and the opportunities to enhance the effectiveness of intellectual property enforcement in a global market. † The Joint Strategic Plan has also been developed by consulting with “companies, industry associations, labor unions, and other interested groups” and “private sector experts in intellectual property enforcement,” as set forth in the PRO-IP Act. ‡ The consultation included formal comments submitted to the Office of the Intellectual Property Enforcement Coordinator in response to its notice in the Federal Register on September 1, 2015, that informed the Federal Government’s intellectual property enforcement strategy. § Lastly, the U.S. Interagency Strategic Planning Committees on IP Enforcement relied on domestic and international reports and studies and congressional testimony and consultations with Members of Congress and their staff during the preparation of this Joint Strategic Plan on Intellectual Property Enforcement. 8
THE ORGANIZATION OF THE STRATEGIC PLAN The Strategic Plan is organized and divided into four main sections. SECTION 1 provides an overview of how intellectual property serves as a material force behind U.S. economic growth, high-paying jobs, economic competitiveness, and creative expression. It also describes in detail the nature and scope of the IP enforcement-related challenges faced by IP-intensive industries and law enforcement communities. The overall dimensions and scale of intellectual property infringement appear to be on the rise, with the global estimate of international trade in counterfeit and pirated hard goods, for example, reported to now be up to 2.5 percent of world trade or more than $400 billion. For further context and understanding, this section provides illustrative examples to show how business models that rely on unlawful IP infringement operate to target, misappropriate, and exploit IP assets belonging to others. Lastly, this section also includes a meaningful examination of the often overlooked attendant harms that flow from the misappropriation and unlawful infringement of intellectual property. In doing so, Section I outlines how unlawful activities threaten to undermine the rule of law and fair competition in world markets, and how illicit trade in counterfeit and pirated goods, for example, compromises the integrity of domestic and global supply chains, threatens public health and safety, and undermines a number of additional important national interests. SECTION 2 focuses on illicit IP-based activity in the online (digital) environment. From the operation of stand-alone illicit websites, to unlawful activity on online platforms and services by illicit actors, this section explores opportunities to support and develop enhanced mechanisms to curb a wide-range of illicit online IP-based activity. It includes an examination of a “follow-the-money” approach to disrupt illicit financing (via payment processors and advertising networks). This section also discusses practices and policies aimed at curbing abusive activities that focus on legitimate e-commerce platforms, social media channels, and the search environment. SECTION 3 focuses on strategies designed to facilitate secure and lawful trade domestically and abroad. Each year, more than 11 million maritime containers arrive at U.S. seaports. At the Nation’s land borders, another 10 million shipments arrive by truck, and 3 million arrive by rail. An additional quarter billion cargo, postal, and express consignment packages arrive by air. This section of the Strategic Plan outlines mechanisms to enhance the Nation’s ability to stem illicit trade in the form of counterfeit and pirated products by improving identification and interdiction mechanisms, enhancing the operational efficiency of customs authorities, and securing institutional commitments to explore new ways of carrying out day-to-day business. The section advocates the promotion of collaborative efforts among domestic and international stakeholders to maintain pace with the evolution of deceptive tactics used by illicit actors to exploit shipping channels and economically significant trading zones. SECTION 4 examines broader IP enforcement strategies that bridge both online and trade-based threats, focusing on overarching governmental frameworks and policies that are critical to supporting robust intellectual property enforcement efforts in a rapidly changing environment. As the threats to effective IP enforcement continue to evolve and migrate across borders, opportunities exist to support modern administrative frameworks, such as a “whole of government” model and a “specialized office” approach to IP enforcement, to provide a more effective and agile response to IP-based illicit activity. This section further outlines enhancements to strategic international engagements, including, for example, supporting the capabilities of other governments to engage in effective IP enforcement. This section of the Strategic Plan also highlights the role of effective trade policy and enhanced transparency and predictability in global markets. EXECUTIVE SUMMARY 9
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ACKNOWLEDGEMENTS With thanks to, an
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