Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Mr. HATCH. Mr. President, I wish to express my support for the Innovative Design Protection and Piracy Prevention Act. For years I have been supportive of moving this legislation forward. It not only underscores the importance of the fashion design industry to our economy but will ensure that new and innovative fashion designs are afforded proper copyright protection.

Throughout my service in the Senate, I have worked on a whole host of intellectual property-related initiatives. There is no doubt that legislating in this area is difficult. It is necessary, however, to maintain our position at the forefront of the world's economy and to continue our country's leadership in global innovation.

Make no mistake about it: piracy and counterfeiting are the new face of economic crime around the world, far exceeding traditional property crimes. These crimes are the very antitheses of creativity--crippling growth and stifling innovation in their wake.

Last Congress I worked closely with my Senate Judiciary Committee colleagues and others in passing the PRO-IP Act, which was signed into law by President George W. Bush on October 13, 2008. There is no doubt the PRO-IP bill will ensure that resources are available to enforce intellectual property laws and coordinate the government's intellectual property policies.

Yet there are no laws prohibiting design piracy.

Currently, original designs are copied and the apparel is manufactured in countries with cheap labor, typically in mainland China, Hong Kong, Pakistan, and Singapore. The garments are then shipped into the U.S. to directly compete with the garments of the original designer, sometimes before the originals have even hit the market. As a result, the U.S. apparel industry continues to lose billions of dollars to counterfeiting each year.

We must ensure that all property rights, including fashion designs, are protected both here and abroad. Counterfeiting and piracy sap our country's economic strength. Plain and simple, when a company loses revenues to piracy or counterfeited goods, it does not have those resources to reinvest into making more of its goods. And that means lost jobs. This domino effect ensnares all within its reach.

These crimes not only affect the individual company, but they also adversely affect the companies that would have contributed to or benefitted from the unmade goods. Suppliers of raw materials and components as well as shippers, distributors, and retailers, all take the hit.

In my home State of Utah, I am mindful of the designers who make a meaningful contribution to the fashion industry. Utah designers like Nappi, Modurrn, and CherellaUSA are committed to quality and original clothing lines. These designers, and many more across the Nation, must know that after spending their time and money in developing new and unique fashion designs, their works are protected from infringers. They should be able to secure and enforce adequate copyright protections for their hard work.

The Innovative Design Protection and Piracy Prevention Act represents a true compromise. The proposed legislation is the product of an intensive year of negotiations with interested stakeholders. Among other things, the compromise language provides protection to truly unique fashion designs. In order to be considered an infringing design, a plaintiff must demonstrate that a design copy is ``substantially identical.''

I am pleased with the progress that has already been made on the bill and look forward to working with my colleagues on further refinements as it moves through the legislative process.

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