A bill to expand the sharing of information with respect to suspected violations of intellectual property rights in trade.
- Bill Number
- S. 2677
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-08-01: Read twice and referred to the Committee on Finance.
- Last Updated
- 2026-04-24T16:10:56Z
AI-Generated Summary
Purpose
This bill, S. 2677, aims to broaden the ability of U.S. Customs and Border Protection (CBP) to share information about goods suspected of violating intellectual property rights (such as trademarks or copyrights) during import into the United States. It focuses on improving enforcement against counterfeit or pirated products in international trade by allowing more detailed and targeted information sharing.
Key Provisions
- Threshold for Action: CBP must have a "reasonable suspicion" (a belief based on evidence) of intellectual property violations before sharing information, replacing the previous lower "suspects" standard.
- Expanded Information Sharing on Goods: CBP can disclose details about suspect merchandise, including its packaging, packing materials, and shipping containers.
- Nonpublic Data from Third Parties: CBP may share nonpublic information generated by entities involved in sales or imports, such as online marketplaces (e.g., e-commerce sites), express couriers (e.g., international shipping services), freight forwarders (companies handling cargo logistics), or other facilitators of U.S. imports.
- Recipients of Shared Information: In addition to rights holders (e.g., brand owners), CBP can share with "any other party with an interest in the merchandise," as decided by the CBP Commissioner. This includes details obtained through partnerships with these third-party entities.
Significant Changes to Existing Law
The bill amends Section 628A of the Tariff Act of 1930, which previously allowed limited sharing of information on suspected intellectual property violations:
- It raises the bar for initiating information sharing from mere suspicion to "reasonable suspicion," potentially reducing frivolous actions.
- It explicitly includes packing materials and shipping containers in descriptions of suspect goods, providing more comprehensive details.
- It introduces new authority to share nonpublic data from online platforms and logistics providers, which was not previously specified.
- It expands recipients beyond rights holders and federal agencies to include other interested parties, at the Commissioner's discretion, broadening collaboration in enforcement.
Potential Impacts
- On Government Agencies: CBP gains tools for more effective targeting of counterfeit imports, potentially streamlining investigations and reducing the influx of infringing goods at borders. This could increase workload for data management but improve inter-agency and private-sector coordination.
- On Citizens and Businesses: U.S. consumers may benefit from fewer counterfeit products in the market, protecting against unsafe or low-quality fakes. Domestic businesses, especially brand owners, could see stronger enforcement of their rights, aiding fair competition.
- On International Relations: By facilitating data from foreign online sellers and shippers, it may pressure international partners to combat intellectual property theft, potentially leading to more bilateral trade agreements or disputes over data privacy.
Main Stakeholders Affected
- Intellectual Property Rights Holders: Brand owners and creators who report violations and receive shared information to pursue legal action.
- Online Marketplaces and Logistics Providers: E-commerce platforms, shipping companies, and freight forwarders, who must provide data to CBP and may receive shared details.
- Importers and Exporters: Businesses involved in international trade, facing stricter scrutiny and potential delays for suspect shipments.
- U.S. Government: Primarily CBP and the Department of Homeland Security, with involvement from the Committee on Finance for oversight.
- Consumers: Indirectly affected through reduced availability of counterfeit goods.
Notable Legal, Constitutional, or Political Implications
- Legal: Enhances enforcement under trade laws without creating new penalties, but the "reasonable suspicion" standard aligns with Fourth Amendment protections against unreasonable searches, balancing enforcement with privacy. Sharing nonpublic data raises potential privacy concerns under laws like the Privacy Act, though limited to trade enforcement.
- Constitutional: No direct challenges, but expanded data sharing could invite scrutiny over due process if it leads to seizures without adequate evidence.
- Political: Bipartisan sponsorship (from both parties) signals broad support for protecting U.S. innovation and trade interests. It may influence ongoing debates on e-commerce regulation and U.S.-China trade tensions, where counterfeiting is a key issue, without altering broader tariff policies.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Sen. Hassan, Margaret Wood [D-NH]
Recent Actions
- 2025-08-01: Read twice and referred to the Committee on Finance.
- 2025-08-01: Introduced in Senate
Bill Versions
- To expand the sharing of information with respect to suspected violations of intellectual property rights in trade. — issued 2025-08-01 — PDF (3 pages)