The Auto Channel
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The Largest Independent Automotive Research Resource
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WASHINGTON--March 7, 2006--SEMA, the Specialty Equipment Market Association, commended Congress for taking an important step in the global battle against counterfeiting. Today the U.S. House of Representatives completed action on the "Stop Counterfeiting in Manufactured Goods Act" (H.R. 32), which will provide additional domestic and international means to destroy counterfeit products. The Senate passed the bill last month and it now goes to President Bush to be signed into law.

"Protecting the intellectual property of our members is a primary and ongoing concern for SEMA," said Chris Kersting, President and CEO of SEMA. "This legislation closes loopholes that have allowed counterfeiters to market their fake goods."

SEMA had made passage of the bill a legislative priority. Sponsored by Rep. Joe Knollenberg (R-MI), the legislation will strengthen U.S. trademark law by making mandatory the seizure and destruction of counterfeit goods, as well as the equipment, tooling, packaging and machinery used to produce the phony goods. It would also clarify that it is illegal for counterfeiters to sell counterfeit versions of the trademarks themselves on labels, patches and medallions, for use by others who affix them to counterfeit products.

The legislation will also give the U.S. Trade Representative authority to require that these tough protections be included in free trade agreements. Additionally, the bill expands the definition of "trafficking" to penalize a transfer of counterfeit goods even if the transfer occurs without an exchange of value.

"SEMA members make huge investments in the American workplace when they create, produce and market their products," said Kersting. "Bogus copies quickly exploit that expenditure."

In addition to the safety issues associated with counterfeit products, counterfeit automobile parts may cost the auto parts industry $12 billion annually. It's estimated that if these losses were eliminated, and those sales were brought into legitimate companies, the automotive industry could hire 200,000 additional workers.

SEMA is a member of the Coalition Against Counterfeiting and Piracy (CACP), an industry-wide effort led by the U.S. Chamber of Commerce, the National Association of Manufacturers and a number of other trade associations and companies. Passage of H.R. 32 was a top priority for the CACP.

SEMA represents the $32 billion specialty automotive industry. Founded in 1963, the trade association has approximately 6,500 member companies. It is the authoritative source of research data, trends and market growth information for automakers and the specialty auto products industry. The industry provides appearance, performance, comfort, convenience and technology products for passenger cars, minivans, trucks, SUVs, crossovers and recreational vehicles. For more information, contact SEMA at 1575 S. Valley Vista Dr., Diamond Bar, CA, 91765-3914; call 909/396-0289; or visit www.sema.org or www.enjoythedrive.com.