S 2677: A bill to expand the sharing of information with respect to suspected violations of intellectual property rights in trade.

S 2677 in plain English: This bill expands the authority of U.S. Customs and Border Protection (CBP) to share information about suspected intellectual property violations with trademark and copyright owners and other interested parties. It broadens both who CBP can ask for help when examining potentially infringing imported goods and what information CBP can share, including images of packing materials and shipping containers. It also allows CBP to share nonpublic data obtained from online marketplaces, freight forwarders, and similar entities involved in the importation process.

Stated purpose

This bill aims to expand the ability of U.S. Customs and Border Protection to share information with trademark and copyright owners and other interested parties when imported goods are suspected of violating intellectual property rights.

Key points

• Allows CBP to request assistance from any party with an interest in imported merchandise, not just trademark or copyright owners
• Expands shareable information to include images of packing materials and shipping containers
• Lowers the trigger for requesting assistance from 'suspects' to 'reasonable suspicion' of an intellectual property violation
• Permits CBP to share nonpublic data obtained from online marketplaces, express consignment operators, and freight forwarders

Arguments supporters make

• Counterfeiters use sophisticated packaging and complex shipping networks, so giving brand owners access to more shipping and container information helps identify fakes that would otherwise slip through.
• Lowering the threshold from 'suspects' to 'reasonable suspicion' and expanding who can assist CBP makes enforcement faster and more effective before infringing goods reach store shelves.
• Allowing CBP to share data already collected from online marketplaces and freight forwarders puts existing information to better use without requiring new reporting burdens on those companies.

Arguments opponents make

• Sharing nonpublic business information from marketplaces and freight forwarders with private brand owners raises serious concerns about confidential commercial data being disclosed beyond what is necessary for a government investigation.
• Expanding the pool of parties who can receive sensitive shipment information increases the risk that the data could be misused, leaked, or shared further than Congress intended.
• Broadening CBP's discretion to involve 'any other party with an interest' in merchandise creates vague standards that could be applied inconsistently and may expose importers to scrutiny based on a relatively low bar of reasonable suspicion.

Tradeoffs

Stronger tools for brand owners and CBP to catch counterfeit imports come at the cost of greater exposure of nonpublic shipping and marketplace data belonging to importers and logistics companies, creating a tension between intellectual property enforcement and the privacy of commercial information.

Current status in Congress: Passed Senate.

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