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S 2502 IS

 

S 2502 IS

105th CONGRESS

2d Session

S. 2502

To amend title 17, United States Code, to provide for protection of certain

original designs.

IN THE SENATE OF THE UNITED STATES

September 21, 1998

Mr. BREAUX (for himself, Mr. MACK, and Mr. FAIRCLOTH) introduced the following

bill; which was read twice and referred to the Committee on the Judiciary

 

 

A BILL

To amend title 17, United States Code, to provide for protection of certain

original designs.

Be it enacted by the Senate and House of Representatives of the United

States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be referred to as the `Vessel Hull Design Protection Act'.

SEC. 2. PROTECTION OF CERTAIN ORIGINAL DESIGNS.

Title 17, United States Code, is amended by adding at the end the following

new chapter:

`CHAPTER 12--PROTECTION OF ORIGINAL DESIGNS

`Sec.

`1201. Designs protected.

`1202. Designs not subject to protection.

`1203. Revisions, adaptations, and rearrangements.

`1204. Commencement of protection.

`1205. Term of protection.

`1206. Design notice.

`1207. Effect of omission of notice.

`1208. Exclusive rights.

`1209. Infringement.

`1210. Application for registration.

`1211. Benefit of earlier filing date in foreign country.

`1212. Oaths and acknowledgments.

`1213. Examination of application and issue or refusal of registration.

`1214. Certification of registration.

`1215. Publication of announcements and indexes.

`1216. Fees.

`1217. Regulations.

`1218. Copies of records.

`1219. Correction of errors in certificates.

`1220. Ownership and transfer.

`1221. Remedy for infringement.

`1222. Injunctions.

`1223. Recovery for infringement.

`1224. Power of court over registration.

`1225. Liability for action on registration fraudulently obtained.

`1226. Penalty for false marking.

`1227. Penalty for false representation.

`1228. Enforcement by Treasury and Postal Service .

`1229. Relation to design patent law.

`1230. Common law and other rights unaffected.

`1231. Administrator; Office of the Administrator.

`1232. No retroactive effect.

`Sec. 1201. Designs protected

`(a) DESIGNS PROTECTED-

`(1) IN GENERAL- The designer or other owner of an original design of a

useful article which makes the article attractive or distinctive in

appearance to the purchasing or using public may secure the protection

provided by this chapter upon complying with and subject to this

chapter.

`(2) VESSEL HULLS- The design of a vessel hull, including a plug or

mold, is subject to protection under this chapter, notwithstanding

section 1202(4).

`(b) DEFINITIONS- For the purpose of this chapter, the following terms have

the following meanings:

`(1) A design is `original' if it is the result of the designer's

creative endeavor that provides a distinguishable variation over prior

work pertaining to similar articles which is more than merely trivial

and has not been copied from another source.

`(2) A `useful article' is a vessel hull, including a plug or mold,

which in normal use has an intrinsic utilitarian function that is not

merely to portray the appearance of the article or to convey

information. An article which normally is part of a useful article shall

be deemed to be a useful article.

`(3) A `vessel' is a craft, especially one larger than a rowboat,

designed to navigate on water, but does not include any such craft that

exceeds 200 feet in length.

`(4) A `hull' is the frame or body of a vessel, including the deck of a

vessel, exclusive of masts, sails, yards, and rigging.

`(5) A `plug' means a device or model used to make a mold for the

purpose of exact duplication, regardless of whether the device or model

has an intrinsic utilitarian function that is not only to portray the

appearance of the product or to convey information.

`(6) A `mold' means a matrix or form in which a substance for material

is used, regardless of whether the matrix or form has an intrinsic

utilitarian function that is not only to portray the appearance of the

product or to convey information.

`Sec. 1202. Designs not subject to protection

`Protection under this chapter shall not be available for a design that is--

`(1) not original;

`(2) staple or commonplace, such as a standard geometric figure, a

familiar symbol, an emblem, or a motif, or another shape, pattern, or

configuration which has become standard, common, prevalent, or ordinary;

`(3) different from a design excluded by paragraph (2) only in

insignificant details or in elements which are variants commonly used in

the relevant trades;

`(4) dictated solely by a utilitarian function of the article that

embodies it; or

`(5) embodied in a useful article that was made public by the designer

or owner in the United States

or a foreign country more than 1 year before the date of the application for

registration under this chapter.

`Sec. 1203. Revisions, adaptations, and rearrangements

`Protection for a design under this chapter shall be available

notwithstanding the employment in the design of subject matter excluded from

protection under section 1202 if the design is a substantial revision,

adaptation, or rearrangement of such subject matter. Such protection shall

be independent of any subsisting protection in subject matter employed in

the design, and shall not be construed as securing any right to subject

matter excluded from protection under this chapter or as extending any

subsisting protection under this chapter.

`Sec. 1204. Commencement of protection

`The protection provided for a design under this chapter shall commence upon

the earlier of the date of publication of the registration under section

1213(a) or the date the design is first made public as defined by section

1210(b).

`Sec. 1205. Term of protection

`(a) IN GENERAL- Subject to subsection (b), the protection provided under

this chapter for a design shall continue for a term of 10 years beginning on

the date of the commencement of protection under section 1204.

`(b) EXPIRATION- All terms of protection provided in this section shall run

to the end of the calendar year in which they would otherwise expire.

`(c) TERMINATION OF RIGHTS- Upon expiration or termination of protection in

a particular design under this chapter, all rights under this chapter in the

design shall terminate, regardless of the number of different articles in

which the design may have been used during the term of its protection.

`Sec. 1206. Design notice

`(a) CONTENTS OF DESIGN NOTICE- (1) Whenever any design for which protection

is sought under this chapter is made public under section 1210(b), the owner

of the design shall, subject to the provisions of section 1207, mark it or

have it marked legibly with a design notice consisting of--

`(A) the words `Protected Design', the abbreviation `Prot'd Des.', or

the letter `D' with a circle, or the symbol *D*;

`(B) the year of the date on which protection for the design commenced;

and

`(C) the name of the owner, an abbreviation by which the name can be

recognized, or a generally accepted alternative designation of the

owner.

Any distinctive identification of the owner may be used for purposes of

subparagraph (C) if it has been recorded by the Administrator before the

design marked with such identification is registered.

`(2) After registration, the registration number may be used instead of the

elements specified in subparagraphs (B) and (C) of paragraph (1).

`(b) LOCATION OF NOTICE- The design notice shall be so located and applied

as to give reasonable notice of design protection while the useful article

embodying the design is passing through its normal channels of commerce.

`(c) SUBSEQUENT REMOVAL OF NOTICE- When the owner of a design has complied

with the provisions of this section, protection under this chapter shall not

be affected by the removal, destruction, or obliteration by others of the

design notice on an article.

`Sec. 1207. Effect of omission of notice

`(a) ACTIONS WITH NOTICE- Except as provided in subsection (b), the omission

of the notice prescribed in section 1206 shall not cause loss of the

protection under this chapter or prevent recovery for infringement under

this chapter against any person who, after receiving written notice of the

design protection, begins an undertaking leading to infringement under this

chapter.

`(b) ACTIONS WITHOUT NOTICE- The omission of the notice prescribed in

section 1206 shall prevent any recovery under section 1223 against a person

who began an undertaking leading to infringement under this chapter before

receiving written notice of the design protection. No injunction shall be

issued under this chapter with respect to such undertaking unless the owner

of the design reimburses that person for any reasonable expenditure or

contractual obligation in connection with such undertaking that was incurred

before receiving written notice of the design protection, as the court in

its discretion directs. The burden of providing written notice of design

protection shall be on the owner of the design.

`Sec. 1208. Exclusive rights

`The owner of a design protected under this chapter has the exclusive right

to--

`(1) make, have made, or import, for sale or for use in trade, any

useful article embodying that design; and

`(2) sell or distribute for sale or for use in trade any useful article

embodying that design.

`Sec. 1209. Infringement

`(a) ACTS OF INFRINGEMENT- Except as provided in subsection (b), it shall be

infringement of the exclusive rights in a design protected under this

chapter for any

person, without the consent of the owner of the design, within the United States

and during the term of such protection, to--

`(1) make, have made, or import, for sale or for use in trade, any

infringing article as defined in subsection (e); or

`(2) sell or distribute for sale or for use in trade any such infringing

article.

`(b) ACTS OF SELLERS AND DISTRIBUTORS- A seller or distributor of an

infringing article who did not make or import the article shall be deemed to

have infringed on a design protected under this chapter only if that

person--

`(1) induced or acted in collusion with a manufacturer to make, or an

importer to import such article, except that merely purchasing or giving

an order to purchase such article in the ordinary course of business

shall not of itself constitute such inducement or collusion; or

`(2) refused or failed, upon the request of the owner of the design, to

make a prompt and full disclosure of that person's source of such

article, and that person orders or reorders such article after receiving

notice by registered or certified mail of the protection subsisting in

the design.

`(c) ACTS WITHOUT KNOWLEDGE- It shall not be infringement under this section

to make, have made, import, sell, or distribute, any article embodying a

design which was created without knowledge that a design was protected under

this chapter and was copied from such protected design.

`(d) ACTS IN ORDINARY COURSE OF BUSINESS- A person who incorporates into

that person's product of manufacture an infringing article acquired from

others in the ordinary course of business, or who, without knowledge of the

protected design embodied in an infringing article, makes or processes the

infringing article for the account of another person in the ordinary course

of business, shall not be deemed to have infringed the rights in that design

under this chapter except under a condition contained in paragraph (1) or

(2) of subsection (b). Accepting an order or reorder from the source of the

infringing article shall be deemed ordering or reordering within the meaning

of subsection (b)(2).

`(e) INFRINGING ARTICLE DEFINED- As used in this section, an `infringing

article' is any article the design of which has been copied from a design

protected under this chapter, without the consent of the owner of the

protected design. An infringing article is not an illustration or picture of

a protected design in an advertisement, book, periodical, newspaper,

photograph, broadcast, motion picture, or similar medium. A design shall not

be deemed to have been copied from a protected design if it is original and

not substantially similar in appearance to a protected design.

`(f) ESTABLISHING ORIGINALITY- The party to any action or proceeding under

this chapter who alleges rights under this chapter in a design shall have

the burden of establishing the design's originality whenever the opposing

party introduces an earlier work which is identical to such design, or so

similar as to make prima facie showing that such design was copied from such

work.

`(g) REPRODUCTION FOR TEACHING OR ANALYSIS- It is not an infringement of the

exclusive rights of a design owner for a person to reproduce the design in a

useful article or in any other form solely for the purpose of teaching,

analyzing, or evaluating the appearance, concepts, or techniques embodied in

the design, or the function of the useful article embodying the design.

`Sec. 1210. Application for registration

`(a) TIME LIMIT FOR APPLICATION FOR REGISTRATION- Protection under this

chapter shall be lost if application for registration of the design is not

made within two years after the date on which the design is first made

public.

`(b) WHEN DESIGN IS MADE PUBLIC- A design is made public when an existing

useful article embodying the design is anywhere publicly exhibited, publicly

distributed, or offered for sale or sold to the public by the owner of the

design or with the owner's consent.

`(c) APPLICATION BY OWNER OF DESIGN- Application for registration may be

made by the owner of the design.

`(d) CONTENTS OF APPLICATION- The application for registration shall be made

to the Administrator and shall state--

`(1) the name and address of the designer or designers of the design;

`(2) the name and address of the owner if different from the designer;

`(3) the specific name of the useful article embodying the design;

`(4) the date, if any, that the design was first made public, if such

date was earlier than the date of the application;

`(5) affirmation that the design has been fixed in a useful article; and

`(6) such other information as may be required by the Administrator.

The application for registration may include a description setting forth the

salient features of the design, but the absence of such a description shall

not prevent registration under this chapter.

`(e) SWORN STATEMENT- The application for registration shall be accompanied

by a statement under oath by the applicant or the applicant's duly

authorized agent or representative, setting forth, to the best of the

applicant's knowledge and belief--

`(1) that the design is original and was created by the designer or

designers named in the application;

`(2) that the design has not previously been registered on behalf of the

applicant or the applicant's predecessor in title; and

`(3) that the applicant is the person entitled to protection and to

registration under this chapter.

If the design has been made public with the design notice prescribed in

section 1206, the statement shall also describe the exact form and position

of the design notice.

`(f) EFFECT OF ERRORS- (1) Error in any statement or assertion as to the

utility of the useful article named in the application under this section,

the design of which is sought to be registered, shall not affect the

protection secured under this chapter.

`(2) Errors in omitting a joint designer or in naming an alleged joint

designer shall not affect the validity of the registration, or the actual

ownership or the protection of the design, unless it is shown that the error

occurred with deceptive intent.

`(g) DESIGN MADE IN SCOPE OF EMPLOYMENT- In a case in which the design was

made within the regular scope of the designer's employment and individual

authorship of the design is difficult or impossible to ascribe and the

application so states, the name and address of the employer for whom the

design was made may be stated instead of that of the individual designer.

`(h) PICTORIAL REPRESENTATION OF DESIGN- The application for registration

shall be accompanied by two copies of a drawing or other pictorial

representation of the useful article embodying the design, having one or

more views, adequate to show the design, in a form and style suitable for

reproduction, which shall be deemed a part of the application.

`(i) DESIGN IN MORE THAN ONE USEFUL ARTICLE- If the distinguishing elements

of a design are in substantially the same form in different useful articles,

the design shall be protected as to all such useful articles when protected

as to one of them, but not more than one registration shall be required for

the design.

`(j) APPLICATION FOR MORE THAN ONE DESIGN- More than one design may be

included in the same application under such conditions as may be prescribed

by the Administrator. For each design included in an application the fee

prescribed for a single design shall be paid.

`Sec. 1211. Benefit of earlier filing date in foreign country

`An application for registration of a design filed in the United States by

any person who has, or whose legal representative or predecessor or

successor in title has, previously filed an application for registration of

the same design in a foreign country which extends to designs of owners who

are citizens of the United States, or to applications filed under this

chapter, similar protection to that provided under this chapter shall have

that same effect as if filed in the United States on the date on which the

application was first filed in such foreign country, if the application in

the United States is filed within 6 months after the earliest date on which

any such foreign application was filed.

`Sec. 1212. Oaths and acknowledgments

`(a) IN GENERAL- Oaths and acknowledgments required by this chapter--

`(1) may be made--

`(A) before any person in the United States authorized by law to

administer oaths; or

`(B) when made in a foreign country, before any diplomatic or

consular officer of the United States authorized to administer

oaths, or before any official authorized to administer oaths in the

foreign country concerned, whose authority shall be proved by a

certificate of a diplomatic or consular officer of the United

States; and

`(2) shall be valid if they comply with the laws of the State or country

where made.

`(b) WRITTEN DECLARATION IN LIEU OF OATH- (1) The Administrator may by rule

prescribe that any document which is to be filed under this chapter in the

Office of the Administrator and which is required by any law, rule, or other

regulation to be under oath, may be subscribed to by a written declaration

in such form as the Administrator may prescribe, and such declaration shall

be in lieu of the oath otherwise required.

`(2) Whenever a written declaration under paragraph (1) is used, the

document containing the declaration shall state that willful false

statements are punishable by fine or imprisonment, or both, pursuant to

section 1001 of title 18, and may jeopardize the validity of the application

or document or a registration resulting therefrom.

`Sec. 1213. Examination of application and issue or refusal of registration

`(a) DETERMINATION OF REGISTRABILITY OF DESIGN; REGISTRATION- Upon the

filing of an application for registration in proper form under section 1210,

and upon payment of the fee prescribed under section 1216, the Administrator

shall determine whether or not the application relates to a design which on

its face appears to be subject to protection under this chapter, and, if so,

the Register shall register the design. Registration under this subsection

shall be announced by publication. The date of registration shall be the

date of publication.

`(b) REFUSAL TO REGISTER; RECONSIDERATION- If, in the judgment of the

Administrator, the application for registration relates to a design which on

its face is not subject to protection under this chapter, the Administrator

shall send to the applicant a notice of refusal to register and the grounds

for the refusal. Within 3 months after the date on which the notice of

refusal is sent, the applicant may, by written request, seek reconsideration

of the application. After consideration of such a request, the Administrator

shall either register the design or send to the applicant a notice of final

refusal to register.

`(c) APPLICATION TO CANCEL REGISTRATION- Any person who believes he or she

is or will be damaged by a registration under this chapter may, upon payment

of the prescribed fee, apply to the Administrator at any time to cancel the

registration on the ground that the design is not subject to protection

under this chapter, stating the reasons for the request. Upon receipt of an

application for cancellation, the Administrator shall send to the owner of

the design, as shown in the records of the Office of the Administrator, a

notice of the application, and the owner shall have a period of 3 months

after the date on which such notice is mailed in which to present arguments

to the Administrator for support of the validity of the registration. The

Administrator shall also have the authority to establish, by regulation,

conditions under which the opposing parties may appear and be heard in

support of their arguments. If, after the periods provided for the

presentation of arguments have expired, the Administrator determines that

the applicant for cancellation has established that the design is not

subject to protection under this chapter, the Administrator shall order the

registration stricken from the record. Cancellation under this subsection

shall be announced by publication, and notice of the Administrator's final

determination with respect to any application for cancellation shall be sent

to the applicant and to the owner of record.

`Sec. 1214. Certification of registration

`Certificates of registration shall be issued in the name of the United

States under the seal of the Office of the Administrator and shall be

recorded in the official records of the Office. The certificate shall state

the name of the useful article, the date of filing of the application, the

date of registration, and the date the design was made public, if earlier

than the date of filing of the application, and shall contain a reproduction

of the drawing or other pictorial representation of the design. If a

description of the salient features of the design appears in the

application, the description shall also appear in the certificate. A

certificate of registration shall be admitted in any court as prima facie

evidence of the facts stated in the certificate.

`Sec. 1215. Publication of announcements and indexes

`(a) PUBLICATIONS OF THE ADMINISTRATOR- The Administrator shall publish

lists and indexes of registered designs and cancellations of designs and may

also publish the drawings or other pictorial representations of registered

designs for sale or other distribution.

`(b) FILE OF REPRESENTATIVES OF REGISTERED DESIGNS- The Administrator shall

establish and maintain a file of the drawings or other pictorial

representations of registered designs. The file shall be available for use

by the public under such conditions as the Administrator may prescribe.

`Sec. 1216. Fees

`The Administrator shall by regulation set reasonable fees for the filing of

applications to register designs under this chapter and for other services

relating to the administration of this chapter, taking into consideration

the cost of providing these services and the benefit of a public record.

`Sec. 1217. Regulations

`The Administrator may establish regulations for the administration of this

chapter.

`Sec. 1218. Copies of records

`Upon payment of the prescribed fee, any person may obtain a certified copy

of any official record of the Office of the Administrator that relates to

this chapter. That copy shall be admissible in evidence with the same effect

as the original.

`Sec. 1219. Correction of errors in certificates

`The Administrator may, by a certificate of correction under seal, correct

any error in a registration incurred through the fault of the Office, or,

upon payment of the required fee, any error of a clerical or typographical

nature occurring in good faith but not through the fault of the Office. Such

registration, together with the certificate, shall thereafter have the same

effect as if it had been originally issued in such corrected form.

`Sec. 1220. Ownership and transfer

`(a) PROPERTY RIGHT IN DESIGN- The property right in a design subject to

protection under this chapter shall vest in the designer, the legal

representatives of a deceased designer or of one under legal incapacity, the

employer for whom the designer created the design in the case of a design

made within the regular scope of the designer's employment, or a person to

whom the rights of the designer or of such employer have been transferred.

The person in whom the property right is vested shall be considered the

owner of the design.

`(b) TRANSFER OF PROPERTY RIGHT- The property right in a registered design,

or a design for which an application for registration has been or may be

filed, may be assigned, granted, conveyed, or mortgaged by an instrument in

writing, signed by the owner, or may be bequeathed by will.

`(c) OATH OR ACKNOWLEDGMENT OF TRANSFER- An oath or acknowledgment under

section 1212 shall be prima facie evidence of the execution of an

assignment, grant, conveyance, or mortgage under subsection (b).

`(d) RECORDATION OF TRANSFER- An assignment, grant, conveyance, or mortgage

under subsection (b) shall be void as against any subsequent purchaser or

mortgagee for a valuable consideration, unless it is recorded in the Office

of the Administrator within 3 months after its date of execution or before

the date of such subsequent purchase or mortgage.

`Sec. 1221. Remedy for infringement

`(a) IN GENERAL- The owner of a design is entitled, after issuance of a

certificate of registration of the design under this chapter, to institute

an action for any infringement of the design.

`(b) REVIEW OF REFUSAL TO REGISTER- (1) Subject to paragraph (2), the owner

of a design may seek judicial review of a final refusal of the Administrator

to register the design under this chapter by bringing a civil action, and

may in the same action, if the court adjudges the design subject to

protection under this chapter, enforce the rights in that design under this

chapter.

`(2) The owner of a design may seek judicial review under this section if--

`(A) the owner has previously duly filed and prosecuted to final refusal

an application in proper form for registration of the design;

`(B) the owner causes a copy of the complaint in the action to be

delivered to the Administrator within 10 days after the commencement of

the action; and

`(C) the defendant has committed acts in respect to the design which

would constitute infringement with respect to a design protected under

this chapter.

`(c) ADMINISTRATOR AS PARTY TO ACTION- The Administrator may, at the

Administrator's option, become a party to the action with respect to the

issue of registrability of the design claim by entering an appearance within

60 days after being served with the complaint, but the failure of the

Administrator to become a party shall not deprive the court of jurisdiction

to determine that issue.

`(d) USE OF ARBITRATION TO RESOLVE DISPUTE- The parties to an infringement

dispute under this chapter, within such time as may be specified by the

Administrator by regulation, may determine the dispute, or any aspect of the

dispute, by arbitration. Arbitration shall be governed by title 9. The

parties shall give notice of any arbitration award to the Administrator, and

such award shall, as between the parties to the arbitration, be dispositive

of the issues to which it relates. The arbitration award shall be

unenforceable until such notice is given. Nothing in this subsection shall

preclude the Administrator from determining whether a design is subject to

registration in a cancellation proceeding under section 1213(c).

Sec. 1222. Injunctions

`(a) IN GENERAL- A court having jurisdiction over actions under this chapter

may grant injunctions in accordance with the principles of equity to prevent

infringement of a design under this chapter, including, in its discretion,

prompt relief by temporary restraining orders and preliminary injunctions.

`(b) DAMAGES FOR INJUNCTIVE RELIEF WRONGFULLY OBTAINED- A seller or

distributor who suffers damage by reason of injunctive relief wrongfully

obtained under this section has a cause of action against the applicant for

such injunctive relief and may recover such relief as may be appropriate,

including damages for lost profits, cost of materials, loss of good will,

and punitive damages in instances where the injunctive relief was sought in

bad faith, and, unless the court finds extenuating circumstances, reasonable

attorney's fees.

`Sec. 1223. Recovery for infringement

`(a) DAMAGES- Upon a finding for the claimant in an action for infringement

under this chapter, the court shall award the claimant damages adequate to

compensate for the infringement. In addition, the court may increase the

damages to such amount, not exceeding $50,000 or $1 per copy, whichever is

greater, as the court determines to be just. The damages awarded shall

constitute compensation and not a penalty. The court may receive expert

testimony as an aid to the determination of damages.

`(b) INFRINGER'S PROFITS- As an alternative to the remedies provided in

subsection (a), the court may award the claimant the infringer's profits

resulting from the sale of the copies if the court finds that the

infringer's sales are reasonably related to the use of the claimant's

design. In such a case, the claimant shall be required to prove only the

amount of the infringer's sales and the infringer shall be required to prove

its expenses against such sales.

`(c) STATUTE OF LIMITATIONS- No recovery under subsection (a) or (b) shall

be had for any infringement committed more than 3 years before the date on

which the complaint is filed.

`(d) ATTORNEY'S FEES- In an action for infringement under this chapter, the

court may award reasonable attorney's fees to the prevailing party.

`(e) DISPOSITION OF INFRINGING AND OTHER ARTICLES- The court may order that

all infringing articles, and any plates, molds, patterns, models, or other

means specifically adapted for making the articles, be delivered up for

destruction or other disposition as the court may direct.

`Sec. 1224. Power of court over registration

`In any action involving the protection of a design under this chapter, the

court, when appropriate, may order registration of a design under this

chapter or the cancellation of such a registration. Any such order shall be

certified by the court to the Administrator, who shall make an appropriate

entry upon the record.

`Sec. 1225. Liability for action on registration fraudulently obtained

`Any person who brings an action for infringement knowing that registration

of the design was obtained by a false or fraudulent representation

materially affecting the rights under this chapter, shall be liable in the

sum of $10,000, or such part of that amount as the court may determine. That

amount shall be to compensate the defendant and shall be charged against the

plaintiff and paid to the defendant, in addition to such costs and

attorney's fees of the defendant as may be assessed by the court.

`Sec. 1226. Penalty for false marking

`(a) IN GENERAL- Whoever, for the purpose of deceiving the public, marks

upon, applies to, or uses in advertising in connection with an article made,

used, distributed, or sold, a design which is not protected under this

chapter, a design notice specified in section 1206, or any other words or

symbols importing that the design is protected under this chapter, knowing

that the design is not so protected, shall pay a civil fine of not more than

$500 for each such offense.

`(b) SUIT BY PRIVATE PERSONS- Any person may sue for the penalty established

by subsection (a), in which event one-half of the penalty shall be awarded

to the person suing and the remainder shall be awarded to the United States.

`Sec. 1227. Penalty for false representation

`Whoever knowingly makes a false representation materially affecting the

rights obtainable under this chapter for the purpose of obtaining

registration of a design under this chapter shall pay a penalty of not less

than $500 and not more than $1,000, and any rights or privileges that

individual may have in the design under this chapter shall be forfeited.

`Sec. 1228. Enforcement by Treasury and Postal Service

`(a) REGULATIONS- The Secretary of the Treasury and the United States Postal

Service shall separately or jointly issue regulations for the enforcement of

the rights set forth in section 1208 with respect to importation. Such

regulations may require, as a condition for the exclusion of articles from

the United States, that the person seeking exclusion take any one or more of

the following actions:

`(1) Obtain a court order enjoining, or an order of the International

Trade Commission under section 337 of the Tariff Act of 1930 excluding,

importation of the articles.

`(2) Furnish proof that the design involved is protected under this

chapter and that the importation of the articles would infringe the

rights in the design under this chapter.

`(3) Post a surety bond for any injury that may result if the detention

or exclusion of the articles proves to be unjustified.

`(b) SEIZURE AND FORFEITURE- Articles imported in violation of the rights

set forth in section 1208 are subject to seizure and forfeiture in the same

manner as property imported in violation of the customs laws. Any such

forfeited articles shall be destroyed as directed by the Secretary of the

Treasury or the court, as the case may be, except that the articles may be

returned to the country of export whenever it is shown to the satisfaction

of the Secretary of the Treasury that the importer had no reasonable grounds

for believing that his or her acts constituted a violation of the law.

`Sec. 1229. Relation to design patent law

`The issuance of a design patent under title 35 for an original design for

an article of manufacture shall terminate any protection of the original

design under this chapter.

`Sec. 1230. Common law and other rights unaffected

`Nothing in this chapter shall annul or limit--

`(1) common law or other rights or remedies, if any, available to or

held by any person with respect to a design which has not been

registered under this chapter; or

`(2) any right under the trademark laws or any right protected against

unfair competition.

`Sec. 1231. Administrator; Office of the Administrator

`In this chapter, the `Administrator' is the Register of Copyrights, and the

`Office of the Administrator' and the `Office' refer to the Copyright Office

of the Library of Congress.

`Sec. 1232. No retroactive effect

`Protection under this chapter shall not be available for any design that

has been made public under section 1210(b) before the effective date of this

chapter.'.

SEC. 3. CONFORMING AMENDMENTS.

(a) TABLE OF CHAPTERS- The table of chapters for title 17, United States

Code, is amended by adding at the end the following:

1201'.

(b) JURISDICTION OF DISTRICT COURTS OVER DESIGN ACTIONS- (1) Section 1338(c)

of title 28, United States Code, is amended by inserting `, and to exclusive

rights in designs under chapter 12 of title 17,' after `title 17'.

(2)(A) The section heading for section 1338 of title 28, United States Code,

is amended by inserting `designs,' after `mask works,'.

(B) The item relating to section 1338 in the table of sections at the

beginning of chapter 85 of title 28, United States Code, is amended by

inserting `designs,' after `mask works,'.

(c) PLACE FOR BRINGING DESIGN ACTIONS- Section 1400(a) of title 28, United

States Code, is amended by inserting `or designs' after `mask works'.

(d) ACTIONS AGAINST THE UNITED STATES- Section 1498(e) of title 28, United

States Code, is amended by inserting `, and to exclusive rights in designs

under chapter 12 of title 17,' after `title 17'.

SEC. 4. EFFECTIVE DATE.

The amendments made by sections 2 and 3 shall take effect one year after the

date of the enactment of this Act.

END