Government Affairs Update Brand Protection Council April 1, 2010 Catherine Boland Director, Government Relations Motor and Equipment Manufacturers Association

MEMA Washington, D.C. Office Seven person office that develops legislative and regulatory strategies on issues impacting automotive and heavy duty suppliers Resource for OESA, AASA, HDMA members Government Affairs Committee that sets legislative priorities based on input from market segments – Next meeting May 20 in Detroit Annual Legislative Summit – April in Washington, D.C.

Implementing the PRO-IP bill Fiscal Year 2010 Commerce, Justice, State appropriations –Omnibus Appropriations bill included an increase of $8M for new agents to investigate IP in addition to the new agents from the recovery act. –DOJ will be required to provide a report to Congress ensuring that the new agents are solely investigating and supporting prosecution of violations of federal IP law. –Additional $2,000,000 for U.S. Attorneys

Intellectual Property Enforcement Coordinator In December, the Senate confirmed Victoria Espinel’s nomination to be the Intellectual Property Enforcement Coordinator, aka IP Czar Last month, the IPEC sought comments as they begin to establish the Joint Strategic Plan required under PRO-IP MEMA’s comments: –Encouraged IPEC and Administration to S upport the Customs Facilitation and Trade Enforcement Reauthorization Act of 2009 (S. 1631) –Need for resources at appropriate agencies –Need for IPEC to be centralized authority to coordinate IPR Protection activities

Customs Facilitation and Trade Enforcement Reauthorization Senators Max Baucus (D-Mont.) and Chuck Grassley (R-Iowa) introduced S in August 2009 MEMA Washington office participating in Chamber “boiler room” working group on legislation MEMA will remain active with the CACP to ensure that suppliers are protected in bill Finance Committee hearing held on October 16 th

Customs Facilitation and Trade Enforcement Reauthorization –Statutorily establishes CBP and ICE within DHS and requires each agency to prioritize its missions –Strengthens IPR enforcement by establishing, by statute, the National Intellectual Property Rights Coordination Center within ICE to coordinate federal efforts to prevent importation or exportation of goods that violate IPR

Customs Facilitation and Trade Enforcement Reauthorization Specific provisions in S –Strengthens IPR enforcement by strengthening CBP’s targeting efforts to detect goods that violate IPR and requires CBP to dedicate port personnel with a primary responsibility of enforcing IPR –Streamlines CBP recordation of copyrights and includes Sense of Congress that CBP and PTO should create a system where trademarks and copyrights issues by PTO should be recorded at CBP

Anti-Counterfeiting Trade Agreement In 2007, USTR announced that they had begun discussions with our trading partners to negotiate anti- counterfeiting trade agreement Discussions are expected to end this year Discussions include Canada, the European Union (with its 27 Member States), Japan, Korea, Mexico, New Zealand, and Switzerland Discussions are conducted in secret, but summary has been released and can be found here: ns.html ns.html Significant controversy in how it will treat computer trafficking of counterfeit data and how ISPs will be involved

Patent Reform Patent Reform legislation has been introduced in both Houses of Congress Senate Judiciary Committee Chairman Leahy announced a bipartisan agreement in principle last month, which includes changes to the bill that MEMA supports such as changes to the apportionment of damages language from last Congress’s bill. The agreement is much more friendly to patent holders House Judiciary Committee leadership has announced that they oppose the changes the Senate supports

False Marking Legislation Rep. Darrell Issa (R-Calif.) recently introduced legislation to change false marking law to only permit someone who has suffered a “competitive injury as a result of a violation” to file suite in a U.S. District Court Current law allows "any person" to file suit against an alleged false marker and split the monetary penalty with the federal government

Design Patent Legislation Legislation pending before the House Judiciary Committee which adds a “repair clause” to design patent law so that replacement parts manufactured for the purpose of returning an item to its original appearance are not infringing on a design patent holders intellectual property House Judiciary recently held a hearing on legislation which is opposed by OEMs but supported by insurers, consumer federation and others

Discussion For more information contact Catherine Boland Director, Government Relations or