Senate bill goes after fake Internet storefronts

Senate bill goes after fake Internet storefronts    Senate legislation introduced Thursday would target enforcement efforts on Web sites that take Internet orders for counterfeit and pirated goods.
   'The Preventing Real Online Threats to Economic Creativity and Theft of Intellectual Property Act of 2011' provides greater rights to government and private companies to take action against U.S. entities that facilitate digital storefronts based abroad that traffic in fake merchandise and sales of legitimate goods skimmed off the production line. The Web sites, which appear normal, tend to attract unsuspecting consumers looking for good deals.
   'With this legislation, we are sending a strong message to those selling or distributing counterfeit goods online that the United States will strongly protect its intellectual property rights. Just because it's on the Internet doesn't mean it's free,' said Sen. Orin Hatch, R-Utah, one of the lead co-sponsors along with Senate Judiciary Committee Chairman Patrick Leahy.

Hatch

   The bill narrows the definition of Web sites infringing on intellectual property rights, offers protection to payment processors, domain name registries and others who voluntary take action to cut off access to Web sites that sell fake pharmaceuticals, and gives law enforcement agencies new tools to attack the worst offenders.

Leahy

   Those new capabilities include authorizing the U.S. attorney general to serve court orders on search engines, payment processors, advertising networks and Internet service providers that indirectly support so-called rogue Web sites. The attorney general and rights holders could also bring actions against online counterfeit stores to eliminate their financial viability, not block access. The bill would also require plaintiffs to attempt to bring legal action against the owner or registrant of the domain name used to access an Internet site dedicated to infringing activities before bringing an action against the domain name itself.
   The rogue Web sites are usually set up by overseas counterfeit manufacturers and are difficult to distinguish from authorized online retailers. Critics note that these Web sites also use sophisticated search engine optimization tools and online ad placement services to make them appear higher in Web search results than legitimate Web sites.
   Industry groups expressed support for the PROTECT IP bill.
   'Footwear, apparel and fashion accessories are some of the most counterfeited goods in the world,' said Kevin M. Burke, American Apparel & Footwear Association president, in a statement. 'As U.S. consumers continue to embrace e-commerce as a key shopping method, rogue Web sites have emerged as a popular way for counterfeiters to get fake goods into the United States.'
   The National Association of Manufacturers said rogue Web sites need to be disrupted to protect manufacturers and their employees from lost sales. An earlier version of the bill proposed last year was also supported by the U.S. Chamber of Commerce, labor unions, the music, movie and television industry, and publishers.
   The AAFA, International Anti-Counterfeit Coalition and the Outdoor Industry Association sent a letter to leaders of the House Judiciary Committee the same day encouraging them to introduce similar legislation.
   'The proliferation of foreign Web sites selling counterfeit goods over the Internet is undermining consumer confidence in U.S. companies and threatening public health and safety,' the letter said. 'While most counterfeit Web sites are located outside the jurisdiction of U.S. courts, their activities are facilitated by third-party service providers such as domain name registrars, Internet service providers, search engines, online ad networks and credit card companies that are based in this country. Regrettably, U.S. trademark holders lack the legal tools they need to hold these 'facilitators' accountable for their activities.' ' Eric Kulisch