The message coming from a recent U.S. Congressional hearing on intellectual property was loud and clear: "think twice before buying that knock-off purse or a fake CD." The hearing was called amid concerns about intellectual property (IP) crimes, examining the question of whether the monies gained from counterfeited goods are being used to fund terrorist groups.

At a packed Capital Hill hearing on July 16, U.S. Representative Henry Hyde, Chairman of the House International Relations Committee, warned, "everyone loves to make a deal, or get a bargain, but these days, the buyer really should beware...the counterfeit item you purchase from a street vendor or on the Internet may be helping to finance terrorism."

While the economic drain in terms of lost wages, jobs and taxes caused by IP crimes is well known, the potential damage to national security is largely undocumented. But Congress, with this hearing, is promising to look further at the links between counterfeiting and terrorism.

Also testifying at the hearing was Ronald Noble, Secretary General of International Criminal Police Organization (Interpol), who explained that IP crime is difficult to stop because it is a low priority for law enforcement (particularly when compared to drug-trafficking and counter-terrorism investigations). Additionally, he noted that law enforcement agencies lack expertise in recognizing and investigating counterfeit and pirated goods and the low penalties for IP violators don't deter those from getting involved in the lucrative business.

PBN's Senior Vice President Tom Thomson represents the Coalition for Intellectual Property Rights (CIPR) on the Interpol Intellectual Property Crime Action Group, which has been formed to improve its capabilities in the interdiction of international IP crime. The advisory group consists of representatives from associations, national law enforcement authorities and international inter-governmental organizations, which met in D.C. in mid-July to continue its work in conjunction with the Congressional hearing.

"The hearing was a wake up call to the American buying public about counterfeit goods," explains Tom. "Thanks to the work by CIPR, the Interpol Advisory Group and a wide variety of other organizations, policymakers and law enforcement officials are becoming more focused on the seriousness of IP crimes, particularly its links to criminal elements and even terrorist groups."

For more information, including viewing Congressional testimony and a webcast of the July 16 hearing, go to the House of Representatives Committee on International Relations website hearing schedule page at http://wwwa.house.gov/international_relations/fullhear.htm

Coalition for Intellectual Property Rights: http://www.cipr.org

Interpol Intellectual Property Crime Action Group (IIPCAG): http://www.interpol.int/Public/FinancialCrime/IntellectualProperty/Publications/iipcag.pdf

Interpol Secretary General Ron Noble Testimony at July 16 Congressional Hearing: http://www.interpol.int/Public/ICPO/speeches/SG20030716.asp