On July 2, 1996, President Clinton signed into law the Anti-Counterfeiting Consumer Protection Act of 1996 (the "Act"). Prompted by the increased involvement of organized crime in counterfeiting activities, as well as the adverse effects of counterfeiting upon intellectual property owners, consumers and the United States economy, the Act seeks to curtail further the counterfeiting of merchandise.

The Act amends the Racketeer Influenced and Corrupt Organizations Act (RICO) to include criminal infringement of a copyright, trafficking in goods or services bearing counterfeit marks and trafficking in counterfeit labels for phonorecords, computer programs, computer program documentation or packaging and copies of motion pictures or other audiovisual works. It also permits law enforcement officials to seize, not only the counterfeit goods, but also the property, equipment and storage facilities associated with the criminal enterprise. Law enforcement officers may also now seize vehicles used to transport counterfeit merchandise, as they currently do with respect to counterfeit currency and securities.

The Act also amends the Lanham Act. Previously, ex parte seizures of counterfeit goods could only be carried out by federal law enforcement officials. State and local law officials may now also seize counterfeit goods. As with the Copyright Act, plaintiffs in counterfeit trademark cases may now elect, at any time prior to entry of final judgment, statutory damages in lieu of actual damages and profits. Thus, a court may award to a prevailing plaintiff between $500 and $100,000 "per counterfeit trademark for each type of goods or services sold." Moreover, in cases where the court finds that the use of the counterfeit mark is willful, a court can award up to $1,000,000 "per counterfeit trademark per type of goods or services sold."

Lastly, the Act expands the authority of Customs officials in a variety of ways to combat counterfeiting activities. Thus, the United States Customs Service may impose civil fines on any person who directs, assists financially or otherwise aids or abets the importation of counterfeit goods. (The civil fine for a first offense may be no more than the value of the merchandise, according to the manufacturer's suggested retail price, had the goods been genuine. The civil fine may be no more than double for the second and each subsequent offense). Furthermore, Customs is now required to destroy all merchandise, bearing a counterfeit trademark, which it seizes, unless the trademark owner consents to some other disposition and the merchandise is not a health or safety threat. The Act also extends Customs Service disclosure requirements to shipments by aircraft, and requires Customs to issue regulations so that importers must disclose the identity of any trademarks appearing on imported goods.