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U.S. DOJ Copyright Infringement, Trademark Counterfeiting, and Trade Secret Theft

Criminal Division Laws, Disclaimers and Criminal Consequences

U.S. Department of Justice | Computer Crime and Intellectual Property Section | October 2018

Table of Contents

What Are Copyrights, Trademarks, and Trade Secrets?    3
How Can Intellectual Property Be Stolen?    3
When Is an Intellectual Property Violation a Federal Crime?    4
Why Should You Report Intellectual Property Crime?    6
What Should You Do If You Are Victimized?    8
Where Do I Report an Intellectual Property Crime?    10
Federal Investigative Contacts    10
State and Local Investigative Contacts    12
Prosecution Contacts    13
How Can You Assist Law Enforcement?    14
Checklist for Reporting an Intellectual Property Crime    15
Criminal Copyright and Trademark Infringement    16
Trade Secret Offenses    20
Additional Resources    26

What Are Copyrights, Trademarks, and Trade Secrets?

The United States has created enforceable rights in “intangibles” that are known as intellectual property, including copyrights, trademarks, and trade secrets. Copyright law provides federal protection against infringement of certain exclusive rights, such as reproduction and distribution, of “original works of authorship,” including computer software, literary works, musical works, and motion pictures. 17 U.S.C. §§ 102(a), 106. The use of a commercial brand to identify a product is protected by trademark law, which prohibits the unauthorized use of “any word, name, symbol, or device” used by a person “to identify and distinguish his or her goods, including a unique product, from those manufactured or sold by others and to indicate the source of the goods.” 15
U.S.C. § 1127. Finally, trade secret law prohibits the unauthorized disclosure of any confidential and proprietary information, such as a formula, device, or compilation of information but only when that information possesses an independent economic value because it is secret and the owner has taken reasonable measures to keep it secret. 18 U.S.C. §§ 1831, 1832. For more information on these rights and how they are criminally enforced, see Prosecuting Intellectual Property Crimes (4th ed. 2013), U.S. Department of Justice, Computer Crime and Intellectual Property Section (www.justice.gov/criminal- ccips/ccips-documents-and-reports).

How Can Intellectual Property Be Stolen?

Intellectual property can be stolen (i.e., infringed or misappropriated) in many ways. For example, copyrighted works, such as movies, music, books, software or games, may be illegally infringed by reproducing or distributing unauthorized copies of such works either online or by manufacturing and distributing infringing CDs or DVDs containing the unauthorized content. A trademark or service mark may be infringed by offering goods, services, labels or other packaging containing a counterfeit mark. A trade secret can be surreptitiously misappropriated from its owner either by a company insider or by someone outside a company and used to benefit the thief, a competitor, or other third party.

When Is an IP Violation a Federal Crime?

Although individuals or companies can pursue civil remedies to address violations of their intellectual property rights, criminal sanctions are often warranted to ensure sufficient punishment and deterrence of wrongful activity. Congress has continually expanded and strengthened criminal laws for violations of intellectual property rights to protect innovation, to keep pace with evolving technology and, significantly, to ensure that egregious or persistent intellectual property violations do not merely become a standard cost of doing business for defendants. In most instances, the statutes of limitations for intellectual property crime is five years, but may be extended in some circumstances, such as an ongoing or continuing crime. Among the most significant criminal provisions are the following:

    • Counterfeit Trademarks: The Trademark Counterfeiting Act, 18 U.S.C. § 2320(b)(1)(A), provides penalties of up to ten years’ imprisonment and a $2 million fine for a defendant who intentionally “traffics in goods or services and knowingly uses a counterfeit mark on or in connection with such goods or services,” or intentionally “traffics in labels, . . . documentation, or packaging . . . knowing that a counterfeit mark has been applied thereto.” Section 2320(b)(3) provides penalties of up to twenty years’ imprisonment and a $5 million fine for a defendant who intentionally traffics in counterfeit drugs or certain counterfeit military goods or services.

    • Counterfeit Labeling: The counterfeit labeling provisions of 18 U.S.C. § 2318 prohibit trafficking in counterfeit labels designed to be affixed to movies, music, software, and literary, pictorial, graphic, or sculptural works and works of visual art as well as trafficking in counterfeit documentation or packaging for such works. Violations are punishable by up to five years’ imprisonment and a
$250,000 fine.

    • Criminal Copyright Infringement: Copyright infringement is a felony punishable by up to three years’ imprisonment and a $250,000 fine under 17 U.S.C. § 506(a) and 18 U.S.C. § 2319 where a defendant willfully reproduces or distributes at least ten copies of one or more copyrighted works with a total retail value of more than $2,500 within a 180-day period. The maximum penalty rises to five years’ imprisonment if the defendant also acted “for purposes of commercial advantage or private financial gain.” Misdemeanor copyright infringement occurs where the value exceeds $1,000 or where the defendant willfully violated any of the exclusive rights “for purposes of commercial advantage or private financial gain.”

    • Pre-Release Criminal Copyright Infringement: Pre-release piracy, i.e., willful infringement “by the distribution of a work being prepared for commercial distribution, by making it available on a computer network accessible to members of the public, if such person knew or should have known that the work was intended for commercial distribution,” is a felony punishable by up to three years’ imprisonment and a $250,000 fine under 17 U.S.C. § 506(a)(1)(C) and 18
U.S.C. § 2319(d). The maximum penalty rises to five years’ imprisonment if the defendant also acted “for purposes of commercial advantage or private financial gain.”

    • Theft of Trade Secrets: The Economic Espionage Act contains two separate provisions that criminalize the theft of trade secrets. The first provision, 18 U.S.C.
§ 1831, prohibits the theft of trade secrets for the benefit of a foreign government, instrumentality, or agent, and is punishable by up to 15 years’ imprisonment and a $5,000,000 fine. The second, 18 U.S.C. § 1832, prohibits the commercial theft of trade secrets to benefit someone other than the owner, and is punishable by up to ten years’ imprisonment and a $250,000 fine. The penalties are higher for defendants who are companies. The statute broadly defines the term “trade secret” to include all types of information that the owner has taken reasonable measures to keep secret and that itself has independent economic value. 18 U.S.C. § 1839(3). Federal law also provides special protections to victims in trade secret cases to ensure that the confidentiality of trade secret information is preserved during the course of criminal proceedings. Specifically, the statute expressly states that courts “shall enter such orders and take such action as may be necessary and appropriate to preserve the confidentiality of trade secrets, consistent with the requirements of the Federal Rules of Criminal and Civil Procedure, the Federal Rules of Evidence, and all other applicable laws.” 18 U.S.C. § 1835(a); see also Levine & Flowers, How Prosecutors Protect Trade Secrets, 38 Am. J. Trial Advoc. 461 (2014-2015).

    • Camcording: The Family Entertainment and Copyright Act criminalizes the use of camcorders and similar devices to record movies playing in public theaters. “Camcording” is a felony punishable by up to three years imprisonment’ and a
$250,000 fine under 18 U.S.C. §2319B(a) where a defendant “knowingly uses or attempts to use an audiovisual recording device to transmit or make a copy of a motion picture. . . in a motion picture exhibition facility.”

    • Additional Charges: Where appropriate, prosecutors may respond to intellectual property crime with additional charges, such as Wire Fraud (18 U.S.C.
§ 1343), Mail Fraud (18 U.S.C. § 1341), Computer Fraud and Abuse Act (18 U.S.C.
§ 1030), and Smuggling (18 U.S.C. § 545).

Why Should You Report Intellectual Property Crime?

Intellectual property is an increasingly important part of the United States economy, representing its fastest growing sector, contributing billions of dollars to America’s gross domestic product, and employing over 45 million Americans, according to the Global Intellectual Property Center. See www.theglobalipcenter.com. As the nation continues to shift from an industrial economy to an information-based economy, the assets of the country are increasingly based in intellectual property. In addition, intellectual property crime in the United States and abroad not only threatens our nation’s economic well-being, it can also place at risk the public health and safety of our citizens and our national security.

In recognition of this trend, the Department of Justice is waging an aggressive campaign against intellectual property crime in all its forms. For more information on the Department’s efforts, see the Department’s Annual PRO IP Act Reports. See www.justice.gov/criminal/cybercrime/documents.html.

Effective prosecution of intellectual property crime, however, also requires substantial assistance from its victims. Because the victims of intellectual property crime are often in the best position to detect a theft, law enforcement authorities cannot act in many cases unless the crimes are reported in the first place. Once these crimes are reported, federal law enforcement authorities need to quickly identify the facts that establish jurisdiction for the potential intellectual property offenses, such as federal copyright and trademark registration information, as well as facts concerning the extent of a victim’s potential loss, the nature of the theft, and possible suspects. In a digital world where evidence can disappear at the click of a mouse or the tap of a smartphone, federal law enforcement has the ability to quickly preserve digital evidence in more than 80 countries. Federal law enforcement also has the ability to deter foreign IP criminals by extraditing them to the U.S. for prosecution, assisting in a foreign prosecution, or by supporting the imposition of diplomatic responses, such as sanctions or blacklisting.

Accordingly, the Department of Justice has created this guide for victims to facilitate the flow of critical information from victims of intellectual property crimes to law enforcement authorities. The Department of Justice’s goal is to make it as easy as possible to report incidents of intellectual property crime to law enforcement authorities, including whom to contact and what to tell them.

What Should You Do If You Are Victimized?

Victims of intellectual property crime, such as copyright infringement, trademark counterfeiting, and theft of trade secrets, often conduct internal investigations before referring matters to law enforcement. These investigations can encompass a variety of steps, including interviewing witnesses, acquiring samples of the counterfeit goods, conducting surveillance of suspects, and examining computers and other evidence.
Victims can maximize the benefit of these independent investigative activities as follows:

    • Document All Investigative Steps: To avoid duplication of effort and retracing of steps, internal investigations should seek to create a record of all investigative steps that can later be presented to law enforcement, if necessary, including the names, titles and contact information of persons with knowledge of each step. If a victim company observes counterfeit goods for sale online and makes a purchase, for example, investigators should record the domain name, URL, and IP address of the website, the date and time of the purchase, the method of payment, and the date and manner of delivery of the goods. Any subsequent examination or testing of the goods should then be recorded in a document that identifies the telltale characteristics of theft or specific indicators of counterfeiting, such as lack of a security seal, poor quality, failure to meet specifications, packaging, or the like.

Similarly, in the case of a suspected theft of trade secrets, any internal investigation or surveillance of the suspect, or a competitor believed to be using the stolen information, should be recorded. Records of any interviews with suspects or witnesses should be made by tape or in writing. The pertinent confidentiality agreements, security policies, and access logs should also be gathered and maintained to facilitate review and reduce the risk of deletion or destruction.

    • Preserve the Evidence: Any physical, documentary, or digital evidence acquired in the course of an internal investigation should be preserved for later use in a legal proceeding. In the online theft example identified above, victims should print out or obtain a digital copy of the offending website, preserve any e-mails or texts related to the counterfeit item(s), and safely store any infringing goods and their packaging, which may contain details of their origin. Additionally, print out and preserve any documentation of the course of dealing with the offending seller, including (but not limited to) any sales agreements or contracts, communications about the purchase, or other such documentation. If the computer of an employee suspected of stealing trade secrets has been seized, any forensic analysis should be performed on a copy of the data, or “digital image,” to refute claims that the evidence has been altered or corrupted.

    • Contact Law Enforcement Right Away: Victims can maximize their legal remedies for intellectual property crime by making contact with law enforcement soon after its detection. Early referral to law enforcement is the best way to ensure that evidence of an intellectual property crime is properly secured and that all investigative avenues are fully explored, such as the execution of search warrants and possible undercover law enforcement activities. Communication with law enforcement authorities at the onset of suspected violations also allows a victim to coordinate administrative or civil proceedings with possible criminal enforcement. Use the reporting checklists set forth later in this guide to organize the information you gather and provide the necessary information to your law enforcement contact.

Where Do I Report an Intellectual Property Crime?

Although there are a variety of ways to report an intellectual property crime to law enforcement, the following list identifies the most common and efficient investigative and prosecutorial contacts.
Federal Investigative Contacts

    • National Intellectual Property Rights Coordination Center (“IPR Center”). The IPR Center is an interagency task force led by U.S. Immigration and Customs Enforcement, Homeland Security Investigations (“ICE-HSI”). The IPR Center is a collaborative effort by over 19 U.S. government investigative and regulatory agency partners, including the Federal Bureau of Investigation (“FBI”), as well as representatives from Interpol, Europol, Canada and Mexico, that work together to combat intellectual property crime. IPR Center partners work together to investigate and deconflict case leads, interdict counterfeit and pirated goods at the borders, and provide extensive training and outreach. The IPR Center also works closely with the Department of Justice
through the Criminal Division’s Computer Crime and Intellectual Property Section. The IPR Center encourages victims to visit its website at www.IPRCenter.gov to obtain more information about the IPR Center and to report violations of intellectual property rights online or by emailing IPRCenter@dhs.gov. You can also report IP crime by clicking on The IRP Center’s “Report IP Theft” button.

    • Federal Bureau of Investigation (“FBI”). The FBI’s Criminal Investigative Division’s Intellectual Property Rights Unit (“IPRU”) oversees its national intellectual property rights program, which includes dedicated FBI Special Agents responsible for investigating (i) thefts of trade secrets, (ii) manufacturing and trafficking in counterfeit goods, and (iii) IPR infringement, which causes significant economic impact. The IPRU is headquartered at the IPR Center, and the FBI Special Agents dedicated to investigating IP crime are located in field offices throughout the country. The IPRU’s agents work closely with all FBI field offices to combat IP crime. The FBI’s IPRU encourages victims to report intellectual property crimes through the IPR Center or to any of the FBI’s 56 field offices and 63 international legal attaches. Rights holders are also encouraged to develop a relationship with an FBI agent in a local field office before an incident occurs. A list of the FBI field offices is available online at www.fbi.gov/contact- us/field/field-offices.

    • Internet Crime Complaint Center (“IC3”). IC3 is a partnership between the FBI, the National White Collar Crime Center, and the Department of Justice’s Bureau of Justice Assistance. IC3 receives, develops, and refers criminal complaints involving a range of cybercrimes including intellectual property crime occurring online. IC3 encourages victims to report complaints involving cybercrime though its website at www.ic3.gov.

    • U.S. Food and Drug Administration—Office of Criminal Investigations (“OCI”). OCI protects the public health and furthers the FDA mission by investigating suspected criminal violations of the Federal Food, Drug, and Cosmetic Act (“FDCA”) and other related laws. Among other things, OCI investigates breaches in the legitimate medical supply chain by individuals and organizations dealing in unapproved, counterfeit, and substandard medical products. Those who work in the pharmaceutical industry should be aware that the Drug Supply Chain Security Act (“DSCSA”) requires certain trading partners (manufacturers, repackagers, wholesale distributors, and dispensers), to notify FDA and all appropriate immediate trading partners not later than 24 hours after making the determination that a product is illegitimate. Manufacturers are additionally required to notify FDA and appropriate immediate trading partners not later than 24 hours after the manufacturer determines or is notified by FDA or a trading partner that there is a high risk that a product is illegitimate. The DSCSA also requires that manufacturers, repackagers, wholesale distributors, and dispensers consult with FDA before terminating the notification about an illegitimate product.

State and Local Investigative Contacts

Federal, state, and local law enforcement agencies and prosecutors all over the country have formed task forces or other working groups to combat computer and intellectual property crime and to promote information sharing between all levels of law enforcement and industry. A state or local task force may be an appropriate contact for cases that do not meet federal criminal thresholds. Examples of these task forces include:

    • DOJ-Funded Intellectual Property Enforcement Task Forces. Since the inception of the program in FY2009, OJP has awarded more than $26 million in grants to support state and local law enforcement agencies, training and technical assistance providers, and an IP public education campaign. Of this total amount of funding, state and local law enforcement agencies have received more than
$19 million. More information on the grant program is available online at www.bja.gov/ProgramDetails.aspx?Program_ID=64. To determine whether a task force has been funded in a particular area, see the following link to past grant recipients: www.bja.gov/funding.aspx#3.

    • InfraGard. The FBI has founded more than 80 chapters of InfraGard – a government and private sector alliance developed to promote the protection of critical information systems – around the country. See www.infragard.net for more information about InfraGard generally and to find your local chapter.

    • Electronic Crimes Task Forces. The United States Secret Service (‘USSS”) has created Electronic Crimes Task Forces in 40 cities. More information on the USSS and the Electronic Crimes Task Force program can be found at www.secretservice.gov/investigation/.

Prosecution Contacts

Because of the often complex nature of intellectual property crime and the rapid response required by law enforcement, early engagement of prosecutors often can be helpful. Victims can contact Department of Justice prosecutors in the following ways:

    • Computer Hacking and Intellectual Property (“CHIP”) Coordinators. Each of the 93 U.S. Attorneys’ Offices throughout the country has at least one Assistant U.S. Attorney who serves as a CHIP coordinator. There are also many districts that have two or more CHIP prosecutors. In total, the Department of Justice has a network of over 270 federal prosecutors who specialize in prosecuting high tech crimes, including intellectual property crimes. The core responsibilities of CHIP prosecutors include (1) prosecuting computer crime and intellectual property offenses; (2) serving as the district’s legal counsel on matters relating to those offenses and the collection of electronic or digital evidence; (3) training prosecutors and law enforcement personnel in the region; and (4) conducting public and industry outreach and awareness activities. Victims can contact CHIP prosecutors in their district by calling the local U.S. Attorney’s Office and asking for the CHIP prosecutor. A list of U.S. Attorneys’ Offices is available online at www.justice.gov/usao/us-attorneys-listing.

    • Computer Crime and Intellectual Property Section (“CCIPS”). CCIPS is a section within the Department of Justice’s Criminal Division. CCIPS has a core team of expert IP prosecutors who prosecute IP crimes and help coordinate multi-district and international IP cases. In addition to prosecution, CCIPS attorneys assist in developing and implementing the Department’s overall criminal enforcement strategy to combat intellectual property crime, provide domestic and international training on investigating and prosecuting intellectual property cases, and conduct industry outreach. CCIPS also houses the National CHIP Coordinator to help manage the CHIP Network. In these efforts, CCIPS works closely with the IPTF, U.S. Attorneys’ Offices, CHIP coordinators, the IPR Center, and the FBI, among other agencies. More information about CCIPS is available online at www.cybercrime.gov and at (202) 514-1026.

    • Intellectual Property Law Enforcement Coordinators (“IPLECs”). The Department of Justice’s IPLEC program places experienced prosecutors in high- impact regions to enhance individual countries’ capacities to investigate and prosecute IP crimes and to develop regional networks to more effectively deter and detect IP crimes. The Department of Justice currently has regional IPLECs in Romania, Hong Kong, Thailand, Nigeria, and Brazil. More information about the IPLEC program is available at www.justice.gov/criminal-ccips/overseas-work.

How Can You Assist Law Enforcement?
Prosecutions of intellectual property crime often depend on cooperation between victims and law enforcement. Indeed, without information sharing from intellectual property rights holders, prosecutors can neither discern the trends that suggest the most effective overall enforcement strategies, nor meet the burden of proving an intellectual property offense in a specific case. In addition to the checklist of information that would be helpful to include when reporting a violation, the following seeks to provide guidance concerning the types of ongoing assistance that may be offered by victims of intellectual property crime to law enforcement authorities.

    • Identify Stolen Intellectual Property: Just as in cases involving traditional theft, such as a burglary or shoplifting, victims of intellectual property crime may – and often must – assist law enforcement in the identification of stolen property. Thus, law enforcement may call upon a victim representative or expert to examine items obtained during an investigation to determine their origin or authenticity. In a copyright infringement or counterfeit trademark investigation, for example, an author or software company may be called upon to analyze CDs, DVDs, or other media that appear to be counterfeit, while a victim representative in a theft of trade secret case may be asked to review internal documents or computer source code, as well as public materials such as patents and scientific publications. Prosecutors may later seek fact and/or expert testimony from the victims at trial.

In certain investigations, law enforcement agents also may request a victim’s presence during the execution of a search warrant to help the agents identify specific items to be seized. In those circumstances, the victim’s activities will be strictly limited to those directed by supervising law enforcement agents.

    • Share the Results of Internal Investigations or Civil Lawsuits: As with any suspected crime, victims may provide law enforcement with information gathered as a result of internal investigations into instances of intellectual property theft. In addition, unless a court has ordered otherwise, victims may generally provide law enforcement with any evidence or materials developed in civil intellectual property enforcement actions, including court pleadings, deposition testimony, documents, and written discovery responses.

    • Contributions of Funds, Property, or Services: Donating funds, property, or services to federal law enforcement authorities can raise potential legal and ethical issues that must be addressed on a case-by-case basis. In general, federal law places limitations on contributions to law enforcement authorities.

Checklist for Reporting an Intellectual Property Crime

This checklist serves as a guide for the type of information that would be helpful for a victim or a victim’s authorized representative to include when reporting an intellectual property violation to law enforcement. The checklist contains two sections: one intended for use in criminal copyright and trademark cases, and the other intended for use in criminal trade secret cases. We encourage victims to report suspected crimes to law enforcement as soon as possible, with as much of the below information as time and circumstances allow. Victims typically do not have a complete picture of the criminal conduct and related facts and circumstances when the crime is first discovered. Law enforcement agents conduct investigations to find the truth and have investigative tools that are unavailable to private citizens and businesses. Please note that a victim’s written statements—even emails to law enforcement agents—may be discoverable in subsequent litigation.

Prosecutors and/or investigators may also use the checklist as a framework to gather information from victims. They can be adapted for use in other intellectual property offenses as well. Reviewing the checklist before an incident occurs may also help rights holders identify what type of information they should be generating on an ongoing basis to help protect their rights.

Criminal Copyright and Trademark Infringement

    • Background / Contact Information
    • Description of the Intellectual Property (IP)
    • Description of the Suspected IP Crime
    • Origin and Entry (If Applicable)
    • Possible Suspects
    • Internet Involvement
    • Civil Enforcement Proceedings

Criminal Trade Secret Offenses

    • Note on Confidentiality
    • Background / Contact Information
    • Description of the Trade Secret
    • Measures Taken to Protect the Physical Trade Secret Location
    • Confidentiality and Non-Disclosure Agreements
    • Electronically-Stored Trade Secrets
    • Document Controls
    • Employee Controls
    • Description of the Trade Secret’s Misappropriation
    • Civil Enforcement Proceedings

Criminal Copyright and Trademark Infringement
    1. Background and Contact Information

        ◦ Victim’s Name:
        ◦ Primary Address:
        ◦ Nature of Business:
        ◦ Primary Contact:
        ◦ Work Phone:
        ◦ Mobile Phone:
        ◦ E-mail:
        ◦ Fax:
        ◦ In addition to primary contact listed above, please be prepared to provide the names, titles and contact information of all people with knowledge of information requested below.

    2. Description of the Intellectual Property

        ◦ Describe the copyrighted material or trademark/service mark/certification mark (e.g., title of copyrighted work, identity of logo), including any factors that make its infringement especially problematic (e.g., threats to public health and safety, pre-release piracy).

        ◦ Is the work or mark registered with the U.S. Copyright Office or on the principal register of the U.S. Patent and Trademark Office?1      YES     NO

If yes, please provide the following:

            ▪ Registration Date:
            ▪ Registration Number:

If no, state if and when you intend to register:

        ◦ Do you have a certified copy of the certificate of registration?      YES     NO

1 Registered trademarks can be found through the U.S. Patent & Trademark Office’s searchable database at: tess2.uspto.gov

        ◦ Is the work or mark recorded with U.S. Customs and Border Protection (CBP)?2
     YES     NO

If yes, please provide the following:

            ▪ Recordation Date:
            ▪ Recordation Number:

        ◦ What is the approximate retail value of the infringed work, good, or service?

        ◦ Has the work or mark been the subject of a previous civil or criminal enforcement action? If so, please provide a general description as well as the case name, case number, and name of court.

    3. Description of the Intellectual Property Crime

        ◦ Describe how the theft or counterfeiting was discovered.

        ◦ Do you have any examination reports of the infringing or counterfeit goods?
    YES     NO

If yes, please provide those reports to law enforcement. Please also provide a photograph or sample of the goods, if possible.

        ◦ Describe the type of infringement (e.g., manufacture, reproduction, import, export, distribution).

        ◦ Describe the scope of the infringing operation, including the following information:

            ▪ Estimated quantity of illegal distribution:
            ▪ Estimated value of illegal distribution:
            ▪ Estimated time period of illegal distribution:
            ▪ Is the illegal distribution national or international? Which states and/or countries?

2 IP rights holders can apply online at apps.cbp.gov/e-recordations/ to record their trademarks and copyrights with CBP to protect against the importation of infringing products.

        ◦ Identify where the infringement or counterfeiting occurred, and describe the location.

    4. Origin and Entry (If Applicable)

        ◦ Identify the country of origin of the infringing item.

        ◦ Identify the date, location, and mode of entry into the United States.

        ◦ Identify the names of shippers and Harmonized Tariff Schedule designation and provide any other applicable shipping or customs information.

    5. Possible Suspects

        ◦ Identify the name(s) or location(s) of all possible suspects, including the following information:

            ▪ Name:
            ▪ Phone number:
            ▪ E-mail address:
            ▪ Physical address:
            ▪ Current employer, if known:
            ▪ Any other identifiers:
            ▪ Reason for suspicion:

    6. Internet Involvement

        ◦ If the distribution of infringing or counterfeit goods involves the Internet, identify the following:

            ▪ How the Internet is involved (e.g., websites, FTP, mail, chat rooms):
            ▪ Relevant Internet address, including any affiliate websites (domain name, URL, IP address, e-mail):
            ▪ Login or password for website:
            ▪ Operators of website, if known:
                • Location of the servers and website host:
                • Country where domain name is registered:

            ▪ Has the rights holder sent a cease and desist notice to the website?
    YES     NO

If yes, please provide the following:

                • Date of notice:
                • Do you have a copy of the notice?      YES     NO

        ◦ If you have conducted an internal investigation into the theft or counterfeiting activities, please describe any evidence acquired and submit, if possible, any investigative reports.

    7. Civil Enforcement Proceedings

        ◦ Have you ever received counterfeit goods from the target listed above?
    YES     NO

        ◦ If yes, did you place the target on notice that the goods received were counterfeit?

        ◦ Has a civil enforcement action been filed against the suspects identified above?
    YES     NO

If yes, identify the following:

            ▪ Name of court and case number:
            ▪ Date of filing:
            ▪ Names of attorneys:
            ▪ Status of case:

If no, please state whether a civil action contemplated, what type and when.

        ◦ Have you contacted any other government agencies about this incident?

If yes, identify the agency contacted.

        ◦ Please provide any information concerning the suspected crime not described above that you believe might assist law enforcement.

Trade Secret Offenses

    1. Background and Contact Information

        ◦ Victim’s Name:
        ◦ Primary Address:
        ◦ Nature of Business:
        ◦ Primary Contact:
        ◦ Work Phone:
        ◦ Mobile Phone:
        ◦ E-mail:
        ◦ Fax:

        ◦ In addition to primary contact listed above, please be prepared to provide the names, titles and contact information of all people with knowledge of information requested below.

    2. Description of the Trade Secret

        ◦ Generally describe the trade secret (e.g., source code, formula, technology, process, device), and explain how that information differs from that disclosed within any issued patents and/or published patent applications.

        ◦ Provide an estimated value of the trade secret using one or more of the methods listed below:

Estimated Value Of Losses Aggregated Cost Methods
Cost to develop the trade secret

Acquisition cost (include date / source of acquisition)

Fair market value if sold / licensed

    3. Measures Taken to Protect the Physical Trade Secret Location

        ◦ Describe the company’s general security practices concerning entry to and moving within its premises, such as fencing the perimeter of the premises, visitor control systems, using alarming or self-locking doors or security personnel.

        ◦ Describe any security measures the company has employed to prevent unauthorized viewing or access to the trade secret, such as locked storage facilities or “Authorized Personnel Only” signs at access points.

        ◦ Describe any protocol the company employs to keep track of employees accessing trade secret material such as sign in/out procedures for access to and return of trade secret materials.

        ◦ Are employees required to wear identification badges?     YES      NO

        ◦ Does the company have a written security policy?     YES     NO

If yes, please provide the following information:

            ▪ Does the security policy address in any way protocols on handling confidential or proprietary information?     YES     NO

            ▪ How are employees advised of the security policy?

            ▪ Are employees required to sign a written acknowledgment of the security policy?     YES     NO

        ◦ How many employees have access to the trade secret?

        ◦ Was access to the trade secret limited to a “need to know” basis?     YES     NO

If yes, describe how “need to know” was maintained in any ways not identified elsewhere (e.g., closed meetings, splitting tasks between employees and/or vendors to restrict knowledge):

    4. Confidentiality and Non-Disclosure Agreements

        ◦ Does the company enter into confidentiality and non-disclosure agreements with employees and third parties concerning the trade secret?     YES     NO

        ◦ Has the company established and distributed written confidentiality policies to all employees?     YES     NO

        ◦ Does the company have a policy for advising company employees regarding the company’s trade secrets?     YES     NO

    5. Electronically-Stored Trade Secrets

        ◦ If the trade secret is computer source code or other electronically-stored information, how is access regulated (e.g., are employees given unique user names, passwords, and electronic storage space, and was the information encrypted)?

        ◦ If the company stores the trade secret on a computer network, is the network protected by a firewall?     YES     NO

        ◦ Is remote access permitted into the computer network?     YES     NO

If yes, is a virtual private network utilized?     YES     NO

        ◦ Is the trade secret maintained on a separate computer server?     YES     NO

        ◦ Does the company prohibit employees from using unauthorized computer programs or unapproved peripherals, such as high capacity portable storage devices?     YES     NO

        ◦ Does the company maintain electronic access records such as computer logs?
    YES     NO

    6. Document Controls

        ◦ If the trade secret consists of documents, were they clearly marked “CONFIDENTIAL” or “PROPRIETARY”?     YES     NO

        ◦ Describe the document control procedures employed by the company, such as limiting access and sign in/out policies.

        ◦ Was there a written policy concerning document control procedures?
    YES     NO

If yes, how were employees advised of it?

    7. Employee Controls

        ◦ Are new employees subject to a background investigation?
    YES     NO

        ◦ Does the company conduct regular training for employees concerning steps to safeguard trade secrets?    YES     NO

        ◦ Does the company hold “exit interviews” to remind departing employees of their obligation not to disclose trade secrets?
    YES     NO

    8. Description of the Misappropriation of the Trade Secret

        ◦ Identify the name(s) or location(s) of all possible suspects, including the following information:

            ▪ Name:
            ▪ Phone number:
            ▪ E-mail address:
            ▪ Physical address:
            ▪ Current employer, if known:
            ▪ Any other identifiers:
            ▪ Reason for suspicion:

        ◦ Describe how the misappropriation of the trade secret was discovered.

        ◦ Describe the type(s) of misappropriation (e.g., stealing, copying, drawing, photographing, downloading, uploading, altering, destroying, transmitting, receiving).

        ◦ If known, was the trade secret stolen to benefit a third party, such as a competitor or another business?     YES     NO

If yes, identify that business and its location.

        ◦ Do you have any information that the trade secret was stolen to benefit a foreign government or instrumentality of a foreign government?     YES     NO

If yes, identify the foreign government or instrumentality and describe that information.

        ◦ If the suspect is a current or former employee, describe all confidentiality and non-disclosure agreements in effect.

        ◦ Identify any physical locations associated with the misappropriated trade secret, such as where it may be currently stored or used.

        ◦ If you have conducted an internal investigation into the misappropriation, please describe any evidence acquired and provide any investigative reports that you can.

    9. Civil Enforcement Proceedings

        ◦ Has a civil enforcement action been filed against the suspects identified above?
    YES     NO

If yes, please provide the following information:

            ▪ Name of court and case number:
            ▪ Date of filing:
            ▪ Names of attorneys:
            ▪ Status of case:

If no, please state whether a civil action contemplated, what type and when.

        ◦ Have you contacted any other government agencies about this incident?

If yes, identify the agency contacted.

        ◦ Please provide any information concerning the suspected crime not described above that you believe might assist law enforcement.

Additional Resources

        ◦ CCIPS Website: www.cybercrime.gov

        ◦ CCIPS Main Number: (202) 514-1026
        ◦ Prosecuting Intellectual Property Crimes Manual (available online at www.justice.gov/criminal/cybercrime/docs/prosecuting_ip_crimes_manual_201 3.pdf)

        ◦ Prosecuting Computer Crimes Manual (available online at www.justice.gov/criminal/cybercrime/docs/ccmanual.pdf)

        ◦ Levine & Flowers, How Prosecutors Protect Trade Secrets, 38 Am. J. Trial Advoc. 461 (2014-2015) (available online at www.justice.gov/criminal- ccips/file/640271/download)

        ◦ Best Practices for Victim Response and Reporting of Cyber Incidents (available online at www.justice.gov/criminal-ccips/file/1096971/download)

        ◦ Arranging a Speaker from CCIPS (available online at www.justice.gov/criminal- ccips/arranging-speakers)

Download A Copy And Be Sure To Search Any Applicable New Laws, Regulations, Data Policies or Amendments.  Speak with an in house council for further assistance.