National Defense Authorization Act for Fiscal Year 2012--Conference Report

Floor Speech

BREAK IN TRANSCRIPT

Mr. WHITEHOUSE. Mr. President, I rise today to highlight important provisions of the National Defense Authorization Act conference report that will counter the serious and growing problem of counterfeit goods entering the military supply chain.

Section 818 of the conference report, which includes these provisions, reflects the leadership of Chairman Levin and Ranking Member McCain of the Senate Armed Services Committee. I applaud their work to keep counterfeit parts out of the military supply chain. As I have said before, our Nation asks a lot of our troops. In return, we must give them the best possible equipment to fulfill their vital missions and come home safely. We must ensure the proper performance of weapon systems, body armor, aircraft parts, and countless other mission-critical products. Section 818 goes a long way toward protecting our troops from the dangers of counterfeit parts and the decreased combat effectiveness they cause.

I am particularly glad that section 818 includes a provision I introduced to increase criminal penalties for trafficking in counterfeit military goods. That provision, introduced as the Combating Military Counterfeits Act of 2011, S. 1228, was reported without objection by the Senate Judiciary Committee. It was cosponsored by Senators GRAHAM, LEAHY, MCCAIN, COONS, Kyl, BLUMENTHAL, HATCH, KLOBUCHAR, and SCHUMER. I was very grateful that Chairman LEVIN and Ranking Member MCCAIN included it in their anticounterfeiting amendment to the NDAA, and I greatly appreciate their leadership in ensuring that the provision remained in the conference report. I would also particularly like to thank Chairman LAMAR SMITH of the House Judiciary Committee, who introduced comparable language in the House. It was a pleasure working with him on the language included in section 818(h). I am very grateful that he was able to clear the provision on the House side, thereby enabling its inclusion in the conference report.

Prosecutors will be able to employ section 818(h) to deter criminals from trafficking in military counterfeits. This will help protect our national security and the safety of our troops. The U.S. Sentencing Commission also has a role to play. It should update relevant sentencing guidelines to ensure that they reflect the seriousness of these reprehensible crimes. I would particularly note that the Obama administration has called for an increase of the minimum base offense level for trafficking in counterfeit military goods to 14. I trust that the Sentencing Commission will give this recommendation substantial weight when it reconsiders the guidelines in light of the changes section 818(h) makes to the Criminal Code. As the administration has explained, a minimum offense level of 14 for trafficking in counterfeit military products would mean that a first-time offender with no criminal history would face at least a 10- to 16-month guideline range without any other aggravated conduct, after taking into account a reduction for acceptance of responsibility. Such penalties should be the bare minimum for offenses that put our troops' safety at risk.

I also would like to highlight a second provision within section 818 of the conference report. Our colleagues on the Finance and Judiciary Committees have been working diligently to clarify that Customs and Border Protection agents can share sufficient information with trademark holders to ensure that counterfeit products are stopped at the border. Chairman Leahy, for example, amended his PROTECT IP Act to that end. Section 818(g) includes comparable language, and I applaud the conferees for recognizing the importance of this provision. It reaffirms the executive branch's authority to share necessary information with rights holders without fear of violating the Trade Secrets Act. It thereby will enable Customs and Border Protection to fulfill its responsibility to stop military counterfeits at the border. Under this provision, they will be able to share the same photographs and samples they currently share but with the serial numbers and other identifying information shown, not redacted. This simple change in practice should be implemented immediately, without the delay of unnecessary regulatory processes. Now is the time to protect our troops from the risk of dangerous counterfeit military parts entering our fighter jets, weapons, ships, and countless other mission-critical products.

I am glad to have the opportunity to vote in favor of these important provisions. I look forward to the future reduction in the number of dangerous counterfeit military products that are currently putting our troops' safety at risk and reducing combat effectiveness.

BREAK IN TRANSCRIPT

Source