Prepared Remarks of Attorney General

Alberto R. Gonzales to the

U.S. Chamber of Commerce Coalition
Against Counterfeiting and Piracy
Washington, D.C.
May 14, 2007
Good morning. I'm pleased to be here to speak with you again about the importance
of intellectual property issues and what we're doing about them at the Department
of Justice.

Now, I don't have to tell anyone in this audience how important IP protection is to
our economy and to preserving America's competitive position in the global
marketplace. And I hope it is also clear by now that we at the Justice Department
are committed to enforcing the law in this area and to pushing for even stronger
legislation to protect American businesses and their intellectual property.

The President's Strategy Targeting Organized Piracy Initiative is a comprehensive

and coordinated plan for federal agencies to work together to crack down on the
growing trade in counterfeit and pirated goods. The Department's Intellectual
Property Task Force is the cornerstone of our IP efforts. Its work is important to me,
and for that reason I have asked my new chief of staff, Kevin O'Connor to serve as
its chair.

The Task Force’s efforts to improve criminal IP enforcement have led to substantial
increases in federal investigations and prosecutions of IP violations. We are
dedicating more resources than ever before to the protection of U.S. intellectual
property rights, with a special emphasis on prosecuting health and safety cases.

While crimes like IP theft may appear harmless to some, we know that the reality is
much different. Imagine a heart patient undergoing emergency surgery at a hospital
that unknowingly purchased substandard counterfeit surgical equipment or
medications.

These crimes, as we all know, also have a direct impact on our economy, costing
victims millions of dollars and, if left unchecked, diminishing entrepreneurship.

And so last year, the Department committed to increasing the number of IP

prosecutions and improving our international cooperation and outreach efforts. With
the good work and dedicated efforts of U.S. Attorney's Offices and law enforcement
across the country, including our partners in the Department of Homeland Security,
we accomplished those goals.

For example, in 2006, we convicted 57 percent more defendants for criminal

copyright and trademark offenses than in 2005. Of those convictions, the number of
defendants receiving prison terms of more than two years increased even more
sharply – up 130 percent.

Increased enforcement, across the government, and stiffer sentences send an

important message to these counterfeiters and pirates that we take their crimes
seriously, and we will punish their actions.

These are complicated cases, and we need a strong nationwide network to bring
good cases and to win them. We now have 230 federal prosecutors around the
country who have been specially trained to handle IP investigations.

More than ever before, the Department and our partners at all levels of government
are reaching out to industry, especially groups like the Coalition Against
Counterfeiting and Piracy -- because we know that we cannot do it alone.

Earlier this morning Secretary Gutierrez and I sat down with the Chamber's anti-
counterfeiting and piracy leadership council for an informal discussion. Such
meetings are important in keeping us informed about the concerns of intellectual
property owners.

For example, in March, I sat down with a cross-section of top-level anti-piracy

executives to discuss intellectual property rights enforcement. One of the major
concerns highlighted was the importance of international cooperation between
governments. Strong enforcement here in the United States is important, but it is not
enough.

People around the world enjoy the fruits of the hard work of our creative
communities, and modern technology gives IP owners unprecedented opportunities
to distribute their works to a worldwide audience. But the same technology that
allows for legitimate widespread distribution to consumers has also made it
relatively easy and inexpensive to peddle pirated and counterfeit products without
regard to international borders.

And criminal organizations benefiting from IP theft have become more

sophisticated and more organized. They hide in the economic shadows to exploit
any weaknesses in our enforcement efforts, and then use the proceeds of their theft
to finance other criminal enterprises.

In order to further our international work, last year the Department placed the first-
ever IP Law Enforcement Coordinator in Bangkok, Thailand. This summer, we will
be establishing a second coordinator in Eastern Europe in Sophia, Bulgaria.

As part of our efforts to build international cooperation in law enforcement, earlier

this year I also traveled to Brazil, where I met with government officials to talk
about what we can do together to combat IP crime. We've had some important joint
operations with Brazil, and our frank discussions are an important part of setting the
stage for even more cooperation down the road. And next week I will be discussing
ways to improve IP enforcement with my G8 colleagues in Munich.

A few weeks ago we had a milestone case of international cooperation on IP crime

when Hew Raymond Griffiths of Australia pled guilty to conspiracy to commit
criminal copyright infringement. Griffiths was the leader of one of the oldest and
most renowned Internet piracy groups, called DrinkOrDie, and he was the first
person ever to be extradited to the United States for online software piracy.

This criminal ring was estimated to have caused the illegal reproduction and
distribution of more than $50 million worth of pirated software, movies, games and
music. Griffiths boasted that he was beyond the reach of U.S. law enforcement.

It took several years, and a lot of hard work by dedicated professionals, but we
showed that just as the pirates and counterfeiters can operate beyond borders, so can
we.

Finally, in order for us to protect the intellectual property that is so important to our
Nation, and to meet the global challenges of IP crime, our criminal laws must be
kept updated.

Therefore, today I am transmitting to Congress the Intellectual Property Protection

Act of 2007. This legislation would provide stronger penalties for repeat offenders
and increase the maximum penalty for counterfeiting offenses if the defendant
knowingly or recklessly causes serious bodily injury or death.

And the bill would hit the criminals in their wallets by strengthening restitution
provisions, and making sure they forfeit all of their illicit profits as well as any
property used to commit their crimes.

IP theft is not a technicality, and its victims are not just faceless corporations — it is
stealing, and it affects us all. Those who seek to undermine this cornerstone of U.S.
economic competitiveness believe that they are making easy money; that they are
beyond the law. It is our responsibility and commitment to show them that they are
wrong.

Thank you.

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