How Counterfeiting Causes Job Loss, Crime, and Health Risks

How Counterfeiting Causes Job Loss, Crime, and Health Risks


Denise O’Donnell:
Good afternoon. I am Denise O’Donnell, and as
the Director of the Department of Justice’s Bureau
of Justice Assistance, it is my pleasure to
welcome you here today to celebrate the launch of
the intellectual property theft public education campaign. I would like to extend a sincere
thank you to all of you who represent our partners at the
federal, state and local levels, as well as in the industry,
nonprofit and media sectors. This campaign would not
have happened without your collaboration and we are very
excited to unveil it today. At the federal level, we are
collaborating in unprecedented ways to confront intellectual
property theft and to put the administration’s
strategy into action. This coordinated approach
is evidenced by the panel of distinguished speakers
joining me here today on the stage this afternoon. U.S. Attorney General
Eric H. Holder, Jr.; U.S. Intellectual Property
Enforcement Coordinator, Victoria A. Espinel; Acting
Deputy Secretary of Commerce and Undersecretary for Economic
Affairs, Rebecca M. Blank; Director of Immigration
and Customs Enforcement, John Morton; and National Crime
Prevention Council President and CEO, Ann Harkins. When we talk about
intellectual property theft, many people do not know what
that term actually means or why intellectual property theft is
so important or intellectual property is so important
to the economic and public health of this nation. We want to change that. The public education campaign we
are unveiling for the first time today was born from an urgent
need to raise awareness of the true harm caused by theft
of intellectual property. One important way of combating
intellectual property theft is through enhanced enforcement. The Bureau Of Justice Assistance
launched the intellectual property enforcement grant
program in 2009 to address intellectual property theft
through increased prosecution, prevention, training and
technical assistance. Since 2009, BJA has awarded
nearly $11 million to support intellectual property
enforcement efforts and to establish intellectual
property task forces throughout the country. These funds have led to a
dramatic increase in enforcement activity around intellectual
property crimes. For example, in the first
year of the grant program, the Los Angeles police
department experienced a nearly 200% increase in
intellectual property theft arrests over the prior year. However, law enforcement cannot
solve this problem without the public’s help and support. The campaign we will release
today is another crucial piece of this strategy. This campaign would not have
been successful without the contributions of so many
of you in this room. I want to particularly recognize
Senator Sheldon Whitehouse, who will be joining us soon,
Representative Adam Schiff, and Representative John
Conyers for their support. I would also like to recognize
Assistant Attorney General Laurie Robinson and Criminal
Division Chief Andrea Sharrin for their leadership
in this area. Our first speaker today has been
a vigilant advocate throughout his career for the protection of
American intellectual property and the millions of jobs
and lives that depend on it. Attorney General Eric Holder was
sworn to his post on February 2nd, 2009, by Vice President
— Vice President Biden. Throughout his tenure at
the Department of Justice, both as Deputy Attorney General
under President Clinton, and now as Attorney General
under President Obama, he has unequivocally supported
intellectual property rights enforcement as a
department priority, culminating in his formation
of the DOJ task force on intellectual property
in February 2010. Attorney General holder’s
emphasis on the importance of effective partnerships on this
and other criminal justice issues enabled BJA to seek input
and guidance from all corners of government and industry
on the content of this educational campaign. It is my pleasure to introduce
Attorney General Eric Holder. (applause) Attorney General Eric Holder:
Good afternoon. And thank you, Denise, for
your kind words and for your outstanding leadership of the
Bureau of Justice Assistance and for your commitment and your
front line efforts to protect the rights, safety and best
interests of American consumers, innovators and
entrepreneurs, as well. Now, this is critical and
increasingly complex work. And it has become a priority,
not only for the United States Department of Justice, but
for our colleagues across the administration, our law
enforcement and industry partners, and of course for
President Obama himself. His commitment to preventing
and to combating intellectual property theft is clear, and it
is perhaps most evidenced in his support for the ground breaking
work being done by the White House intellectual property
enforcement coordinator, my friend, Victoria
Espinel and her team. So it’s fitting, I think, that
we’ve gathered here at the White House to launch a new cutting
edge campaign to raise awareness about the threat and
the impact of IP crimes. And I want to thank Victoria,
as well as ICE Director John Morton, Acting Deputy Secretary
of Commerce Rebecca blank and Ann Harkins, an old friend and
the President and CEO of the National Crime Prevention
Council for lending their voices and their expertise to this
important publication — public education effort, and for
helping to bring so many essential partners
into this work. I am pleased to see that several
of these key partners are here with us today, including
my colleagues; Tony West, Assistant Attorney General
for the Civil Division, and Laurie Robinson the
Assistant Attorney General for the Office of Justice Programs. And I’m proud to stand with you
all as we begin a new chapter in our nation’s fight against
intellectual property crimes. Now, as our country continues
to recover from once in a generation economic challenges,
the need to safeguard intellectual property rights
and to protect Americans from IP crimes has really
never been more urgent. But in many ways, this work has
never also been more difficult. Recent technological advances,
particularly in methods of manufacturing and contribution,
have created new opportunities for businesses of all sizes
to innovate and to grow. But these quantum leaps
have also created new vulnerabilities, which
tech savvy criminals are eager to exploit. As a result, we are seeing
alarming rises in IP crimes, illegal activities that cannot
only devastate individual lives and legitimate businesses, but
undermine our nation’s financial stability and prosperity. Now, make no mistake. IP crimes are anything
but victimless. For far too long, the
sale of counterfeit, defective and dangerous
goods has been perceived as business as usual. But these and other IP
crimes can destroy jobs, suppress innovation, and
ultimately jeopardize the health and the
safety of consumers. In some cases, these activities
are used to fund dangerous and even violent criminal
enterprises and organized crime networks. And they present a significant
and growing threat to our nation’s economic and
national security. But we are fighting back
in bold, comprehensive, and collaborative ways. In fact, just yesterday on
what’s known as cyber Monday, and which is billed as the
busiest online shopping day of the year, leaders from the
Justice Department, the FBI, ICE and our U.S.
attorney community, announced the results
of our latest effort to disrupt the online
sale of counterfeit goods. As part of a long-running law
enforcement operation known as in our sights, we seized 150
domain names of websites engaged in the illegal sale and
contribution of counterfeit goods and copyrighted works. To date, our joint enforcement
activities have shut down 350 websites and our vigilance in
stopping the illegal sale of these goods will continue. Through these and
many other efforts, it’s been an honor to build
on the work that I was able to begin more than a decade
ago, when in 1999, during my tenure as
Deputy Attorney General, I helped to launch the
department’s first intellectual property initiative. Over the last 12 years, this
effort has evolved into what is now a very wide ranging IP
criminal enforcement program. And today, thanks to the
hard work of key leaders, investigators and law
enforcement officials at every level, including many of
the people in this room, I am pleased to report that
this work has never been more aggressive, more strategic,
or more effective. We have devoted more resources
than ever before to identifying and defeating IP criminals. We are seeking new ways to share
information and to leverage expertise with a variety of
private sector partners as well at government and law
enforcement officials across the country. And we’re using every tool and
resource at our disposal to help secure our nation’s economic
well-being and to protect the safety and interests
of American consumers. Now, under the Obama
Administration, these efforts have led to a
number of significant steps forward, from the development
and implementation of the government wide joint strategic
plan that was released last summer, to the formation of a
Justice Department task force on Intellectual Property, which is
being led by the Deputy Attorney General Jim Cole, to important
international partnerships and joint initiatives that have
helped us to train or to educate more than 2,500 foreign
judges, prosecutors, investigators and other
officials from more than 30 countries on IP protection. Along with the strategies put in
place by the department within the civil division’s consumer
protection branch and the criminal division’s computer
crime and intellectual property section, and with the success
of our on going law enforcement actions, I believe that we are
heading in the right direction. But our efforts at the federal
level are only part of the answer and frankly,
just a small part. The work that state and local
law enforcement agencies do to uncover and to address IP crimes
is essential and ultimately the responsibility for protecting
citizens and consumers rests largely with them. Of course, the Justice
Department will continue to make every possible
effort to support their work. The fact is, as Denise just
mentioned over the last two years, our office of justice
programs has awarded nearly $11 million to help states and local
jurisdictions fight intellectual property theft and to provide
training to investigators, prosecutors, as
well as advocates. Now, despite these critical
investments it’s clear that government won’t be able to win
this fight and to keep pace with today’s criminals alone. Our efforts will always depend
not only on law enforcement activity and industry
partnerships, but also on robust public
engagement and the vigilance of the American people. And that’s what this new
campaign is all about. Now, in just a few moments,
we’ll be unveiling a series of television, radio and Internet
messages designed to help get the word out about the dangers
of buying counterfeit goods and the seriousness of
intellectual property theft. And these public service
announcements will raise awareness about the ways in
which members of the public can help us more effectively
prevent and combat these crimes, protect potential individuals
and bring criminals to justice. And with holiday shopping
season now upon us, this information could hardly
be hitting air waves at a more appropriate time. So I’d like to take this
opportunity to remind consumers to exercise caution when looking
for bargains and discounts on the Internet and
to put it simply, if a deal seems too good
to be true, it probably is. Fortunately, we can all
be part of the solution. Anyone who suspects an IP
crime can visit CyberCrime.gov, FBI.gov, or IPRcenter.gov to
report suspected offenses. The public’s proactive attention
to these issues can help us to disrupt the sale
of illegal goods, to prosecute the individuals,
gangs and international criminal organizations that profit
from these activities, and to stop those who would
exploit the ingenuity of others for monetary gain. Of course, despite
our best efforts, I realize that the progress that
we seek will not be easy and that we may not be able to
achieve the necessary results as quickly as we might like. But if we keep working together
in partnership with industry leaders, law
enforcement officials, IP crime victims and
members of the public, and if we continue to shine
a light on the threat and the impact of intellectual
property theft, I have full confidence in our
ability to bring those who violate intellectual property
laws to justice and to protect the rights and best interests
of the citizens that we are all privileged to serve. So once again, I’d like to
thank today’s speakers and their colleagues for the critical work
that they are leading and for the opportunity to join
them here this afternoon. Thank you. (applause) Denise O’Donnell:
Thank you very much. Appreciate it. Victoria Espinel was nominated
by President Obama to be the first U.S. intellectual property
enforcement coordinator and confirmed by the Senate
in December 2009. As she is a former professor
of intellectual property and international trade law at
George Mason University, it is no surprise that she is
a fervent believer in providing education on this
important issue. She has advised numerous
House and Senate committees on intellectual property issues and
was the first Assistant United States Trade Representative
for Intellectual Property and Innovation at the
Office of the U.S. Trade Representative. She has been a constant
collaborator and supporter of the Intellectual Property Theft
Public Education Campaign. Miss Espinel? (applause) Victoria Espinel:
Thank you, Denise.
Welcome to everyone. It’s a great pleasure to be here
today for the launch of this public awareness campaign. I want to thank Attorney General
Holder for his partnership and his leadership in combating
intellectual property crime and ensuring that it will
never be and is no longer business as usual. The Department of Justice works
closely with the Department of Homeland Security and ICE and
I want to acknowledge Director John Morton for his strong
commitment to enforcement of intellectual property including
the excellent work that is done at the IPR center. I also want to thank Acting
Deputy Secretary Rebecca Blank for the work that Commerce
does every day to support Intellectual Property,
and of course, Ann Harkins for putting together
this wonderful campaign. I am so pleased that Senator
Whitehouse and Representatives Conyers and Schiff were able to
be here today and I commend you for the leadership and the
dedication that you have shown to intellectual
property enforcement. The protection of U.S.
intellectual property rights is a truly
bipartisan issue, and I look forward to continuing
to work with you to strengthen protection of U.S.
Intellectual Property Rights. As the Intellectual Property
Enforcement coordinator, it is my job to make sure
intellectual property laws are working properly and
that they’re enforced. Counterfeit medicines,
electronics, software, content, consumer products, they hurt our
businesses, hurt our workers, hurt our economy. They pose a serious risk
to health and safety. And intellectual property crime
is used as a source of revenue by criminals who seek to do
harm through organized crime and terrorist activities that
are paid for by the sale of counterfeit and pirated goods. Recent cases have underscored
the dangers that counterfeits pose to the public and this
administration is committed to aggressively combating them. In June, a defendant was
sentenced to 87 months in prison for trafficking in fake weight
loss drugs that caused a stroke. In April, a Chinese national was
sentenced to 33 months in prison for selling counterfeit pills
that contained a substance used to make sheetrock. And in October, many different
parts of the U.S. government, including ICE, the
Department of Defense, including the Naval Criminal
Investigative Services, the Department of
Transportation, U.S. Post Office, Customs and
the U.S. Attorney’s Office right here in D.C., worked
together and won a victory against criminals
attempting to sell dangerous fake electronics
to our military. Last month, in this case, Ms.
McCloskey was successfully prosecuted and sentenced for
her role in a scheme involving nearly $15 million worth of
counterfeit integrated circuits that were sold to the U.S. Navy and to defense contractors. These are devices that control
the flow of electricity to computer parts
and vital systems. In July, as part of the
administrations transnational organized crime strategy,
President Obama issued an executive order that designated
the Camorra crime family, which is based in Italy, as
a transnational organized crime organization. The Camorra operates a prolific
criminal enterprise that earns more than 10% of its $25 billion
annual profits through the sale of counterfeit and pirated
items such as luxury clothing, power tools, CDs,
DVDs and software. We are a
knowledge-based economy. To grow our economy, to support
jobs in our communities, to find solutions to our
challenges and to protect our consumers, we must have
intellectual property laws that work well and are
effectively enforced. As President Obama has said,
we are going to aggressively protect our
intellectual property. Our single greatest asset is the
innovation and the ingenuity and creativity of the
American people. It is essential to our
prosperity and will only become more so in the future. My job is much easier because
of the unwavering support of President Obama and
Vice President Biden on intellectual property. This administration strongly
believes in the importance of fighting to protect intellectual
property because President Obama knows that winning that fight
means winning the future by guarding the innovation that
drives our nation’s economy. And indeed, intellectual
property is not only an engine of economic growth and of
jobs; it is what we as a country do best. Now more than ever, as we work
to rebuild our economy and increase exports,
it is critical. It goes right to the heart of
what this country needs now, good jobs for hard
working Americans, and the ability to
build for our future. We have to protect what we
create and we cannot let others unfairly take and profit
from our innovation and our creativities or we put
our existing jobs and our competitive future at risk. Our intellectual property
enforcement strategy must support our artists
and our innovators. It must increase our global
competitiveness and it must help to create jobs. Since I started this job, my
office has conducted in depth review of our laws and
our policies and issued an administration strategy
to strengthen intellectual property enforcement. Based upon that review, we
formulated core operating principles through which
the U.S. government can more effectively increase
the enforcement of intellectual property. These principles include
overall efficiency. In other words, to work
efficiently within the government to maximize
our resources, in particular our law
enforcement resources and increase our
enforcement activities, legislative reform to ensure
that our laws are up to date and that they are effective to
combat the ever-evolving tactics of counterfeits and pirates,
law enforcement to increase law enforcement investigation
and prosecution of offenders, voluntary initiatives to engage
the private sector and create voluntary solutions and
best practices to reduce infringement, and public
awareness to inform the public about the impact that
intellectual property crime has on our economy and the health
and safety of our consumers. It is extremely important that
we make sure the public is aware of the negative effect that
intellectual property crime has on our economy, on job
creation, and the dangers that counterfeits pose to health
and safety of consumers. That is why we are here today. And, again, I want to thank
Attorney General Holder, Acting Deputy Secretary Blank,
Director Morton and Senator Whitehouse and Representative
Conyers and Schiff for their unwavering support. Thank you for coming and I hope
you enjoy today’s presentation. (applause) Denise O’Donnell:
Rebecca Blank is the Acting
Deputy Secretary of Commerce, a role she was first
appointed in November 2010. From August 2011
through October 2011, Dr. Blank served as the
Acting Secretary of Commerce. Now, as Acting Deputy Secretary,
she is focused on matters of management and policy for
the department’s 12 bureaus, functioning as Commerce’s
Chief Operating Officer. Dr. Blank has held many
prestigious positions in government and academia,
including as Dean of the Gerald R. Ford, School of
Public Policy at the University of Michigan and a member of
President Clinton’s Council of Economic Advisors. Her career tells the story of
her commitment to the continued economic prosperity of the
American people in which intellectual property
plays such a key role. Acting Deputy Secretary Blank. (applause) Dr. Rebecca Blank:
Thank you very much,
Denise, and thank you, Attorney General Holder,
for inviting me to be part of this event. And I do want to thank Ann
Harkins and the National Crime Prevention Council for
their leadership on this critical issue. I spend a lot of time talking
to businesses, small businesses, large businesses, businesses
in all sorts of industries. And when I ask them what their
challenges are out there in the marketplace, again and again
they come back to the issue of intellectual property theft. As you’ve heard today,
counterfeit goods can not only cause harm to the
safety of our families, but they also cause
harm to our economy and to American businesses. That’s because the
success of the U.S. economy relies heavily
on intellectual property. Virtually every industry
either produces IP or uses IP. IP theft costs domestic
industries an estimated 200 to $250 billion a year. This robs American workers of
hundreds of thousands of jobs. It’s not a secret that in order
to retain our role as one of the strongest and most successful
economies in the global marketplace, American businesses
must constantly innovate. Our businesses grow and thrive
when they’re able over time to produce new products
or better products, when they figure out a way to
produce the same good at a lower cost or in a more
sustainable way. And the only way to assure that
businesses have the incentives and the motivation for this
type of ongoing innovation is by protecting their ideas and
their intellectual property. We’re here today to talk about
educating consumers and my message to consumers is simple. Only when American ideas
and American inventions are protected so that innovators can
receive the rewards from their creativity, then can American
businesses prosper and the American economy
continue to grow. It’s also important to remember
that protecting intellectual property has a
multiplier effect, helping create jobs not only in
the original firm that owns the IP, but with all the firms
that buy or sell from that company as well. For instance, it’s not just
about protecting the copyrights held by writers and publishers;
it’s also about the Internet Company that sells
legitimate copyrighted books. It’s not just about the new
applications patented by a software company. It’s also about the computer
manufacturer that uses inputs made by semiconductor firms to
make the hardware that’s needed to run the applications made
by that software company. All of this is about
generating and preserving jobs for American business. But to be honest, we’ve never
really had a good idea of how many jobs in America depend
on intellectual property. So I’m going to give you a
preview of coming attractions. In the next coming weeks,
the economics and statistics administration and the U.S.
patent and trademark office and the Department of Commerce
are going to be releasing a new report, the first of its kind,
that identifies the industries and the businesses that rely
heavily on IP to be successful and that benefit the
most from patents, trademarks and copyrights. That report is going to show
that these industries support tens of millions of jobs and
contribute several trillion dollars to our gross
domestic product. And, I should note, because it’s
a government report and it’s in the public domain, it will not
be copyrighted so you guys can use it in any way that you want. (laughter) My bottom line this morning
is that counterfeit goods are bad business. They hurt our economy and they
reduce the jobs available to American workers. Protecting our intellectual
property is a crucial part of strengthening and growing
the American economy. Thank you. (applause) Denise O’Donnell:
Thank you, Dr. Blank. John Morton was unanimously
confirmed as the Director of Immigration and Customs
Enforcement by the U.S. Senate on May 12th, 2009. Prior to his appointment
by the President, Mr. Morton spent 15 years at
the Department of Justice as an Assistant United
States Attorney, counsel to the Deputy
Attorney General, and Acting Deputy Assistant
Attorney General of the Criminal Division. During his tenure at ICE,
Mr. Morton has strengthened ICE’s investigative efforts
with particular emphasis on intellectual
property enforcement. His agency has been a true
partner and contributor to the Department of Justice’s
efforts to confront intellectual property crime. Director Morton. (applause) Director John Morton:
Thank you. (applause) Well, thank you very much. Thank you all for coming. Why are we here today, besides
the possibility of hearing Victoria and the
Attorney General speak? Well, we’re here because one
of the very first powers of government we recognized in our
constitution nearly 224 years ago was, and I quote, to promote
the progress of science and useful arts by securing for
limited times to authors and inventors the exclusive right
to their respective writings and discoveries. Not a statute or constitution. These were rights worthy of
constitutional protection then and they remain rights worthy
of government protection today. A great country, such as
ours, ultimately thrives on innovation, on dynamic industry,
and on technological leaps. And if criminals can steal and
divert the progress of science, and the useful arts with ease,
that innovation, that industry, those technological leaps that
we depend on so dearly as a nation are lost. Fortunately, there is a vibrant
coalition of government actors focused on intellectual
property enforcement, and I am very happy to say that
our collective efforts are at an all time high. Ice, the agency I lead
is one of those actors. Most of them are in this room
surrounding me right now. We at ICE are the federal
investigator of intellectual property crimes and we are
the home of the National Intellectual Property
Rights Center. The IPR Center has truly become
a national coordination center. We have over 19 members, 16 of
them federal law enforcement agencies and the other three
are foreign governments. We have Canada, we have Mexico,
and we have a collection of governments in the
form of Interpol. This past year, ICE
initiated over 1200 criminal investigations; the
highest number in our history as an agency. In working with good friends at
the Department of Justice we set enforcement records for arrest,
for crimes and for convictions. For the first time, I think we
can say that there is a very, very, good prospect of
serious criminal enforcement. If you violate the intellectual
property, enforcement laws, ensure criminals from
going to jail for intellectual property theft. And I’m very, very, confident
you will see similar levels of enforcement from both ICE and
from the Department of Justice this coming year. Theft it is, as the
Attorney General noted. And we just concluded our
8th round of domain seizures yesterday, under
operation in our sites, and these are targeting internet
sites engaged in counterfeiting a content theft. ICE began these seizures in June
of 2010 with our first round with nine sites. And yesterday, the Attorney
General and I announced the seizure of 150 domain needs,
109 by ICE and 41 by the FBI. And these sites are literally
defrauding consumers, pretending to be authorized
online retailers of genuine goods, but there’s nothing
genuine about them. One of my favorites was one
seized last year on Cyber money — was RealTimberland.com. There was nothing real and
nothing Timberland about that site for the goods
that were being sold. They were all being manufactured
in China and sent here, pretending to be the real thing. These online websites are
simply criminal traps, selling counterfeit
goods to the unwary, everything from golf clubs
to exercise equipment. We had P90X equipment that was
counterfeit this last round; boots, sunglasses, professional
sports jersey — sports jerseys. Of course, we are here today
because, as you all know, and I know enforcement is
only part of the solution, it’s a very important part, but
it’s only part of the solution. Public outreach and
awareness is critical. We have to change the public
perception of intellectual property and intellectual
property enforcement if we are going to make a
profound difference. And there are extremely exciting
possibilities on the horizon. In fact the horizon is right
behind me and you are going to see several of them
in just a few minutes. I’m very, very excited about it,
because what we are trying to do is blend enforcement. In public outreach and give
you a sense of why I think the future is actually quite bright
on this score and why the glass is half full and not half empty. As I said, we are on our 8th
round of seizing internet domain names from engaged in
counterfeiting and online content theft. As most of the people
know in this room, one of the things that we did
was to start to put banners up on the websites that we
forfeited through our activity with the Department of Justice. At last count, 77 million people
have gone to see that banner, that 77 — that is such a
greater volume than the sites we are generating when they are
counterfeiting sites that it’s not funny. And we’ve had this odd
phenomenon where the sites once seized by the
government have a much, much, higher rate of traffic than when
they were counterfeiting in the pirate sites. And as sadly as you all know,
that’s saying something, because the traffic was
considerable when they were engaged in criminal prosecution. And we’ve gone the next step of
now just going to see a static banner; you go and see a
public service announcement. The very first one we worked out
with the entertainment industry, a very well done clip by NBC,
three minutes that brings home a very dramatic terms, about what
intellectual property violations really mean to people who
are working in that industry. And, what you’re going to see
today is the next much more sophisticated evolution
of that basic concept. And I’m really excited about the
prospects for all of us as we try to make this country
the best place it can be or innovation and for
technological advance. We wouldn’t be here today if
we didn’t have an assembly of leaders at the very front. And I want to recognize
them personally. I’ve been in this business
for quite some time. And there’s never been a better
alignment of the stars from an enforcement prospective from
the public policy perspective. The attorney general has been
very much at the forefront of these activities. He was that way when
he was my boss as the Deputy Attorney General. He thought he got rid of me
then and here I popped up all these years later. Victoria’s office and
her work personally have just been tremendous. And I thank her for
all of the efforts. And a big thank you to
the people in this room. I see so many faces that are —
at all of the conferences and various meetings that we
have there are elements of an announcement like this that
are preaching to the converted. And there is preaching to the
convert and I recognize that so many of the people in this
room have done tremendous, tremendous work to
advance the cause. We wouldn’t be here; we wouldn’t
be able to be successful if it weren’t for our partnerships
with the industry with our partnerships with law
enforcement officials with people like Ann. So, big thank you to all for
to all of you for your work in being here and
supporting this cause. It’s an important,
it’s a worthy cause. It’s in our constitution. Thank you. (applause) Denise O’Donnell:
And last, but
certainly not least, Ann Harkins is the president
and CEO of the National Crime Prevention Council which
conducts public education training and
technical assistance, help people keep
themselves, their families, and their communities
safe from crime. In 2010, BJA partnered with NCPC
to produce the public education campaign we are launching today. Ann Harkins was a natural
collaborator in this endeavor due to her extensive
partnerships with both government and corporate
entities which she acquired throughout her work as Deputy
Secretary or Deputy Sergeant at Arms at the U.S. Chief of Staff
for Attorney General Janet Reno, at the U.S. Department of
Justice and chief counsel to the Senate Judiciary
Subcommittee on Technology and the Law. I am very pleased to
introduce Ann Harkins. (applause) Ann Harkins:
Thank you, Denise. Hello, everyone. All of us at the National Crime
Prevention council are proud and honored to be here today at the
White House to launch a fabulous body of creative work. As Denise said, our mission
at NCPC is to be the nation’s leader in helping
people keep themselves, their families and their
communities safe from crime. We are the home of
McGruff the crime dog, our own very valuable piece
of intellectual property. This campaign is the product of
the partnership between NCPC, the Department of Justice
working closely with the White House, other federal
agricultures, state and local law enforcement
and the private sector. We would not be here today
without the leadership and participation of
everyone on the stage. Thank you all. And thank you Senator
Sheldon Whitehouse, Congressman John Conyers and
Congressman Adam Schiff for being with us today. All of these dedicated public
servants have worked to combat IP theft throughout their
very impressive careers. I would also like to recognize
and thank everyone in the public education an outreach working
group of DOJ’s IP task force. Special thanks to co chairs,
Laurie Robinson who leads OJP with her deft hand and Andrea
Sharrin from CCIPS in the Criminal Division. There are many other
people to thank; members of our media campaign
advisory team, everyone at BJA, especially Pam Cammarata and
Kate McNamee at America’s IP industries who contribute so
much to our economy and our quality of life. We are very grateful that Bob
Schultz and his staff at The CauseWay Agency devoted their
amazing skills and talents to this project. Thank you, Bob and Triwi. And thank you Chris Moessner of
Moessner and Associates for your fine organization on the
focus groups and online survey research. I am proud to say this with two
members of our NCPC Board here, David Dean our Chair, and
Bob Diegelman our Vice Chair. David is here with the
delegation from the North Texas Crime Commission and has brought
with him some state and local law enforcement officials; Susan
Reed from Bexar County, the DA, Harold Column, a business
man from Dallas Steve Adams, Riverside, California,
City Councilman and Vickers Cunningham, former
district judge in Dallas. All of this project is dependent
on us working together with folks at every level
of government all across the country. And there is no one to whom
we owe more gratitude for this outstanding project than the
National Crime Prevention Council’s terrific staff. And I must make a special call
out to Michelle Boykins who’s done a terrific job. We at NCPC do our homework. And the first step is research. On this project the research
helped us find out what our target audience,
adults, ages 18 to 30, already knew and thought
about intellectual property. Not enough. And what messages and messengers
will resonate with different segments of that audience. The research tells us
that theft of intellectual property is widespread. The public thinks the
crime is victimless. The lore of the bargain
overcomes the moral compass almost every time. And there is a marked lack of
public awareness of the dangers and effects of IP theft. People do not realize or
appreciate that some products they consume every day can
be dangerous counterfeits, posing threats to others’
health and safety. That individual working people
lose their jobs as a result of IP theft. And the gangs and organized
international crime enterprises are often profiting
from IP theft. Fortunately, the research also
tells us that we have a window of opportunity to teach the
public about IP theft and to reduce demand. People liken IP theft to robbery
or shoplifting which they know is wrong. They say they are not hearing
enough information about intellectual property theft that
would help them deter or change their behaviors. And large majority believe they
need more information but do not know where to get it. We are here to change that. Hats off to the wisdom of the
Justice Department; they saw, as Director Morton said, that
to get people to change their attitudes about intellectual
property and deter those bargain hunting behaviors, we need to
address the demand side of the equation through
public awareness. Our research also shows us
that the messages have to be personally relevant, firmly
based in fact and descriptive of the potential health and safety
economic and moral consequences to the buyer’s and other people. Our goal with this campaign
it to advance to a point where people understand the
consequences of intellectual property theft. Reconsider their behavior and
appreciate that just because a product may be
cheap or even free, it may not be a bargain at all. As we share the work, let
me point out that in today’s information age we must
communicate our messages through a variety of media. Thus, educated by our research
we have developed a product for radio, television, print, social
media, the web, and malls. We want to speak to the
public everywhere they are. We also learn that McGruff
continues to be a strong messenger, especially on
intellectual property related health and safety issues. Finally, we concluded that we
needed to develop and invoke a clear public call to action,
because the public wants to know more. We sound that call throughout
the various messages and media. Our call to action
is counterfeits hurt; you have the power to stop them. This work speaks for itself. So, let’s get to it. The first piece that I want to
share with you is Premonition. We see that the every day. Apparently, harmless act of
buying a counterfeit DVD or other items from a street vendor
can help fuel child labor, gangs and result in innocent
working people losing their jobs, let’s take a look. (playing video commercial) Shopper:
Are these real? Street Vendor:
The Best quality. Shopper:
You mean they are fake? Street Vendor:
Only a few dollars. Speaker:
Only a few dollars. Speaker:
Only a few dollars. Child:
Only a few dollars. Speaker:
Only a few dollars. Narrator:
It’s not only a few dollars. Counterfeit goods take away jobs
and many are tied to violence and crimes, including child
labor, drugs and gangs. You have the power to stop it. Know the real cost,
don’t buy counterfeits. (applause) Ann Harkins:
For this ad, we have to say
a special thank you and are delighted to say a special
thank you to MTV networks. Allison Williamson is here
representing Chris Earnst, Audrey Singer, Matt Harren and
Patrick O’Sullivan, great job. The next is a radio public
service ad from Attorney General Eric Holder
called, You Can Help. In it the Attorney General
speaks to Americans about how street gangs and organized
criminal enterprising are profiting from selling a range
of counterfeit products to fund drug trafficking and
other criminal activities. You Can Help. (playing radio ad) Attorney General Holder:
This is Attorney
General Eric Holder. We are working hard to protect
our communities by reducing gang violence and organized crime,
and there is an important and simple way that you can help. Some street gangs and organized
crime groups are selling counterfeit products
such as fake watches, DVD’s and purses as an
easy way to make money. And they use that money
to fund other crimes, like trafficking
and drugs, and guns. When you buy knockoffs
on the street or online, although it may not be obvious,
you could be supporting gangs, putting money into their pockets
and helping them to engage in other illegal activities that
put our communities at risk. We are asking all Americans,
please, don’t buy fakes. Narrator:
The next time you think about
buying counterfeit products consider the source. Remember, counterfeits hurt, but
you have the power to stop them. To learn more go to
www.NCPC.org/GetReal. That’s NCPC.org/GetReal. A message from the National
Crime Prevention Council and the Bureau of
Justice Assistance, U.S. Department of Justice. Ann Harkins:
Thank you. (applause) Thank you, Attorney
General Holder, for adding your credible
voice and important message to this effort. The next radio ad
called, Everyday People, makes the same point but
with a different messenger. In this spot we hear from a
former gang member who turned his life around and
is now a pastor. He knows firsthand how gangs use
profits from selling counterfeit DVD’s or other IP products
as a funding source for their other activities. (playing radio ad) Former Gang Leader:
Being a gang leader
landed me in prison. But back in the day you and me
probably did business together. How? If you ever bought any
counterfeit merchandise on the street — you know, a
fake purse, bootleg DVD, a pair of sunglasses, there’s
a good chance you were putting money straight into my pocket. Because, most times, it’s gangs
who were illegally supplied knockoffs to street vendors. Those kinds of products come
from gangs in their overseas connections and are bought by
everyday people just like you. So if you keep buying fakes,
these gangs are going to keep on making easy money. Money they use for
other activities. In other words, they are getting
a lot of bang for their buck. (gun shot) Narrator:
The next time you think about
buying counterfeit products consider the source. To learn more, go to
www.NCPC.org/GetReal. Remember, counterfeits hurt, but
you have the power to stop them. A message from the National
Crime Prevention Council and the Bureau of
Justice Assistance, U.S. Department of Justice. (applause) Ann Harkins:
One of the most frightening
aspects of intellectual property theft is the danger that
counterfeit products can pose to the health and safety of
individuals and the public. Nowhere is this danger more
troubling than when it involves otherwise legitimate looking
drugs and pharmaceuticals, made of ingredients, such as
ground up bricks and floor wax. We hear from a concerned
couple in this radio ad, Dangerous Fakes, as they
discuss the possibility of winding up in the emergency
room if they are not careful about what drugs and
medicines they buy and where they buy them. (playing radio ad) Husband:
My wife and I are spending
more time on our computer. It’s changing the way we live. Wife:
Mostly for the better. Husband:
Like paying our bills. Wife:
Or researching vacation spots. Husband:
But there can be a downside. Wife:
Right. Like fake drugs being
sold over the internet. Husband:
Because they look real and
they seem like a great bargain. Wife:
And you can’t always
tell what’s a fake. Husband:
Well, we learned the hard way. Wife:
At the emergency room. Narrator:
Thousands of people are scammed
into buying counterfeit drugs every day. Thinking they are
getting a deal. And rather than contain
the active ingredient, they may contain dangerous
elements, like antifreeze, sawdust, or floor wax. Resulting in potentially
serious health risks. So never buy prescription or
over the counter drugs online from unknown or unlicensed
sources as they are often dangerous fakes. Counterfeits hurt, but you
have the power to stop them. To learn more, go to
www.NCPC.org/GetReal. Brought to you by the National
Crime Prevention Council and the Bureau of
Justice Assistance, U.S. Department of Justice. Ann Harkins:
Thanks. (applause) The ad on the screen behind me
called Fakes and the ad on the stage to my right
called, Last Pill, educate the public
to these dangers. Serious public health and safety
dangers are posed by a wide range of other
counterfeit products. These include electrical
products, extension cords, holiday lights, batteries. Products we ingest,
like toothpaste, and even baby formula. Auto products we
rely on every day, computer components
and even parts used in military equipment. The print ad to my left on
the stage called, Burned, advised consumers to be careful
to buy legitimate products or they may face serious risk,
such as fire in their homes. IP theft has serious
effects on jobs, companies and the whole economy. This next radio ad is
called bargain hunters. In it, a woman convinces her
sister that is so-called bargain is always what it appears to be. (playing radio ad) Kelly:
My sister Katie
and I love to shop. Katie:
Well, mostly window shop. Kelly:
She means we are thorough. Katie:
She means we are
bargain hunters. Kelly:
Exactly. Katie:
But my sister Kelly showed me
an article that made me change a really bad habit. Kelly:
Just wanting us to
do what is right. Katie:
You see, at one time, I just
couldn’t stay away from those bargain knockoffs, the handbags,
and scarves sold on the street. Kelly:
Uh… counterfeit merchandise. Katie:
Ooh. You make it
sound so illegal. Kelly:
Well, it is stealing. Katie:
Ouch! I wouldn’t steal. I didn’t realize that this sort
of stealing can lead to more Americans losing their jobs. Kelly:
So no more buying fakes
and knockoffs, right? Katie:
Right. Just honest
bargain hunting. Kelly:
Now you’re talking. Narrator:
Remember, counterfeits hurt, but
you have the power to stop them. To learn more go to
www.NCPC.org/GetReal. That’s NCPC.org/GetReal. Brought to you by the National
Crime Prevention Council the Bureau of Justice Assistance,
U.S. Department of Justice. Ann Harkins:
Thank you. (applause) The print ad on the screen
behind me called Sneakers, again taps into the idea that
the so-called bargain is really a form of theft. It sends the message that the
steal you think you are getting from buying cheap counterfeit
products is just that. Stealing. The last print ad to the lower
left of the stage shows a seemingly stylish young woman
wearing a variety of cheaply purchased counterfeit goods. It seeks to deter people
from buying and wearing these products. Rather than looking fashionable,
she looks like a thief and a phony, or as the ad
called her, a fashionista. We need to raise awareness about
how personal behavior hurts real individual people,
struggling young artists, behind the scenes
blue collar workers, and others in the
entertainment industry. This radio spot
called, Worth Buying, explains why we should pay for
the quality products we enjoy. (playing radio ad) Speaker:
In the past when a musician or
band recorded this song it was worth owning,
people would buy it. And that inspired artists
to create more music. It was a rewarding time for
both artists and listener. Today, many music lovers
refuse to pay anything to own a new song. Why pay for music when it can be
downloaded illegally for free? When you download music
illegally you’re stealing, and it’s not a victimless crime. You’re denying payments for work
that rightfully belongs to the artist, so please, don’t
download music, movies or software illegally. Do what’s right. Pay for them. Get them legally and support
aspiring artists who are busy creating your next
favorite song. Narrator:
Illegal downloads hurt. But you have the
power to stop them. To learn more, go to
www.NCPC.org/GetReal. That’s NCPC.org/GetReal. Brought to you by the National
Crime Prevention Council and the Bureau of Justice Assistance,
U.S. Department of Justice. Ann Harkins:
Thanks. (applause) On the screen behind me is a
print ad called, Jobs Piracy, featuring a real person. Beverly is an electrician who
was laid off from her job on a TV show because the production
company was suffering large losses from theft of its
intellectual property. She was unemployed for
nearly two years before landing another job. We’ve all seen it in the
subway and metro systems all over the world. The struggling, young musician,
playing a guitar and singing with the case open for tips. But I don’t think we’ve ever
seen it quite the way the story is told in our final ad. It makes the point
creatively and compellingly, that intellectual
property theft, illegally downloading music
or software, for example, is stealing from people
trying to make a living. It hurts people like this very
real young woman playing and singing in the subway. (playing video commercial) (guitar strumming) Addie Brownlee (singing):
♪♪ I’ve got good Sea Legs from a year ♪♪ ♪♪ of trying to find my footing. ♪♪ (guitar strumming) ♪♪ And I’m missing my home ♪♪ ♪♪ even more than I should. ♪♪ (guitar strumming) ♪♪ You’re as nice an idea ♪♪ ♪♪ as the ocean is blue, ♪♪ ♪♪ especially if you were true. ♪♪ (guitar strumming) ♪♪ So much destruction in your wake. ♪♪ ♪♪ I woke and watched you dreaming. ♪♪ (guitar strumming) ♪♪ So there are no mistakes ♪♪ and only variations on a theme. ♪♪ (guitar strumming) ♪♪ You can hide a child ♪♪ ♪♪ in the body of a man, ♪♪ ♪♪ and you can take more ♪♪ ♪♪ than you think you can. ♪♪ (guitar strumming) ♪♪ Forget all of the lessons we learned, ♪♪ ♪♪ you should have been good to me. ♪♪ (guitar strumming) ♪♪ Forget all of the lessons we learned, ♪♪ ♪♪ you should have been true. ♪♪ (guitar strumming) ♪♪ Forget all the lessons we learned, ♪♪ ♪♪ but lessons we learned, we learned. ♪♪ (guitar strumming) ♪♪ You could have been good to me. ♪♪ (guitar strumming) Narrator:
Music is Addie’s life. She, and artists like her,
deserve a chance to make a living from it. When you download music
illegally you’re stealing from musicians, song writers
and people like Addie, who were denied payment for
work that is rightfully theirs. Do what’s right. Don’t download illegal copies
of music, movies or software. Get it legally. Illegal downloads are
not victimless crimes. You have the power to stop them. (applause) Ann Harkins:
Wasn’t that terrific? And Addie Brownlee, the
singer/guitarist/songwriter is here with us today. Addie, please stand up. And thank you. (applause) Thank you again to everyone who
worked on this campaign and to all of you for coming today. Let me make a final plea to have
you help us get the word out. Counterfeits hurt. You have the power to stop them. Thank you. (applause) Denise O’Donnell:
Thank you. (applause) An educated well-informed
American public is our most powerful weapon in preventing
and reducing intellectual property crime. The campaign we have released
today will provide our fellow citizens with the knowledge and
resources they need to recognize its dangers and take positive
steps to protect American innovation, public
health, and safety. I offer my sincere thanks to our
distinguished speakers for their support of these efforts, and
to all of you for joining us to celebrate this launch. Thank you. (applause)

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