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WASHINGTON—Sen. John Cornyn (R-Texas), a member of the Judiciary Committee, and Sen. Patrick Leahy (D-Vt.), ranking member of the Judiciary Committee, on Friday introduced bipartisan legislation to combat the trafficking of all counterfeit goods. The Protecting American Goods and Services Act (PAGS Act), S.1095, will provide law enforcement officials with additional tools to curb the flow of illegal goods. Trafficked at record-high levels in the United States and globally, the illegal goods cost economies millions of dollars. Cornyn called the legislation necessary because “those who traffic in counterfeit goods put Americans in danger and undermine the health of our nation’s economy.” The FBI estimates that counterfeit goods cost U.S. businesses up to $250 billion annually – resulting in more than 750,000 lost jobs, according to U.S. Customs. Furthermore, the International Chamber of Commerce reports that approximately five to seven percent of worldwide trade is conducted with counterfeit goods and services. “Existing law must be modified to give law enforcement personnel the ability to better combat the disastrous effects of the trafficking of counterfeit goods and services,” Cornyn said. “This bill is critical for protecting American businesses, as well as for ensuring the safety of consumers around the globe.” Sen. Leahy said: “By tying off these loopholes and strengthening our counterfeiting laws, we will be drawing a sharper bead on these criminals, while doing a better job of protecting our innovators.” The Cornyn-Leahy Protecting American Goods and Services Act is designed to fill certain gaps in current counterfeiting law. The bill will:

• Make it specifically illegal to import or export unauthorized copies of copyrighted works or counterfeit goods; 
• Make it illegal to possess counterfeit goods with the intention of selling them; and 
• Specify clearly that it is illegal to give away counterfeit goods in exchange for some future benefit – in effect, the “bartering” of counterfeit goods in such a way that avoids criminality.

“This legislation will protect property rights, protect consumer safety, preserve American jobs, and bolster the American economy by cracking down on the trade of illegal counterfeit goods and services,” Cornyn said. “Texas is particularly harmed by counterfeiting – costing my home state tens of thousands of jobs and hundreds of millions of dollars. This legislation will greatly curb this scourge on the economy.” Sen. Cornyn is a member of the Judiciary Committee’s Intellectual Property subcommittee and the Congressional International Anti-Piracy Caucus.