Summary
Eleventh Survey of White Collar Crime
The criminal provisions of federal intellectual property laws provide stronger infringement disincentives than do civil liability. Criminal liability attaches for certain willful infringements of patents, copyrights, trademarks, and trade secrets. Federal statutes also proscribe art vandalism, art forgery and other forms of art fraud. Sentencing provisions detail how to determine punishments for actions that violate multiple intellectual property statutes.See the full content of this document
Extract
Intellectual property.
I. INTRODUCTION II. THEFT OF TRADE SECRETS
A. National Stolen Property Act 1. Transported in Interstate Commerce. 2. Goods, Wares or Merchandise 3. Minimum Value of $5,000. 4. Stolen, Converted or Taken by Fraud 5. Knowledge that Items Were Stolen B. Trade Secrets Act C. Mail and Wire Fraud D. Racketeer Influenced and Corrupt Organizations Act E. State Law Provisions III. TRADEMARK COUNTERFEITING IV. COPYRIGHT A. Copyright Act 1. Elements of the Offense 2. Defenses B. National Stolen Property Act C. Mail Fraud and Wire Fraud D. Racketeering Influenced Corrupt Organizations Act V. PATENT A. False Marking B. Counterfeiting or Forging Letters Patent C. National Stolen Property Act VI. ART CRIMES A. Federal Statutes 1. Mail Fraud and Wire Fraud 2. Copyright 3. Federal Trade Commission Enforcement B. State Approaches VII. SENTENCING A. National Stolen Property Act B. Mail and Wire Fraud C. Trade Secrets Act D. Racketeer Influenced and Corrupt Organizations Act E. Trademark Counterfeiting Act and Copyright Act F. False Marking and Counterfeiting or Forging Letters Patent I. INTRODUCTION Owners of intellectual property have great incentives to protect their rights in such property by pursuing civil remedies. Yet the possibility of civil sanctions alone is insufficient to deter violators who would steal a trade secret or infringe on another's trademark, copyright or patent. Indeed, some entrepreneurs view civil damage actions as just another cost of doing business. This void in the enforcement mechanisms of intellectual property rights is filled by various federal and state criminal provisions. These provisions are often general statutes which are interpreted to offer protection to the intellectual property at issue. Other statutes are specifically tailored to the type of intellectual property sought to be protected. These provisions are used with varying frequency to augment deterrence and punish perpetrators. This article examines several areas of intellectual property under which criminal prosecutions are brought: theft of trade secrets; trademark, copyright, and patent infringement; and art crimes. The final section of the article discusses penalties under acts used to prosecute intellectual property crimes. II. THEFT OF TRADE SECRETS A. National Stolen Property Act The National Stolen Property Act ("Act")(1) provides for criminal sanctions for any person who "transports, transmits, or transfers in interstate or foreign commerce any goods, wares, merchandise, securities or money, of the value of $5,000 or more, knowing the same to have been stolen, converted or taken by fraud ..."(2) The federal courts have held that the Act is applicable to the theft of tangible property containing trade secrets under certain circumstances.(3) In order to obtain a conviction under the Act, the government must prove five elements: (1) that the items were transported or transferred in interstate or foreign commerce; (2) that the items are goods, wares or merchandise within the meaning of the statute; (3) that the total value of the items equals or exceeds $5,000; (4) that the items were stolen, converted or taken by fraud; and (5) that the defendant knew the items were stolen.(4) The following paragraphs discuss these elements as applied to the theft of trade secrets.(5) 1. Transported in Interstate Commerce In order to fall within the scope of the Act, allegedly stolen trade secrets must be transported or transferred in interstate or foreign commerce.(6) The prosecution must also prove that the stolen item was physically transported; it is not enough for the prosecution to establish the presence of a stolen tr...See the full content of this document
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