<p>

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated Text<br />

	&nbsp;&nbsp; Prepared for Public Release<br />

	Anti-Counterfeiting Trade Agreement<br />

	&nbsp; PUBLIC Predecisional/Deliberative Draft:<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; April 2010<br />

	&nbsp;This draft text does not identify participants&rsquo;<br />

	positions in respect of square bracketed options.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHAPTER ONE<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; INITIAL PROVISIONS AND DEFINITIONS<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [ 1 : Section A: Initial Provisions<br />

	ARTICLE 1.1: RELATION TO OTHER AGREEMENTS<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Agreement shall derogate from any international obligation of a<br />

	Party with respect to any other Party under existing agreements to which both Parties<br />

	are party.<br />

	ARTICLE 1.2: NATURE AND SCOPE OF OBLIGATIONS 2<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Members shall give effect to the provisions of this Agreement. A Party may<br />

	implement in its domestic law more extensive protection and enforcement of intellectual<br />

	property rights than is required by this Agreement, provided that such protection and<br />

	enforcement does not contravene the provisions of this Agreement. Members shall be<br />

	free to determine the appropriate method of implementing the provisions of this<br />

	Agreement within their own legal system and practice.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Nothing in this Agreement creates any obligation with respect to the distribution<br />

	of resources as between enforcement of intellectual property rights and enforcement of<br />

	law in general.<br />

	ARTICLE 1.3: RELATION TO STANDARDS CONCERNING AVAILABILITY AND SCOPE OF<br />

	INTELLECTUAL PROPERTY RIGHTS<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement shall be without prejudice to provisions governing the<br />

	availability, acquisition, scope, and maintenance of intellectual property rights<br />

	contained in a Party&rsquo;s law.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is understood that this Agreement does not create any obligation on a Party to<br />

	apply measures where a right in intellectual property is not protected under the laws and<br />

	regulations of that Party.<br />

	ARTICLE 1.4:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; PRIVACY AND DISCLOSURE OF INFORMATION<br />

	[A suitable provision needs to be drafted that would ensure nothing in the Agreement<br />

	detracts from national legislation regarding protection of personal privacy. In the same<br />

	1<br />

	&nbsp; This Section A has been proposed as an initial discussion draft, to receive detailed reactions at the next<br />

	Round.<br />

	2<br />

	&nbsp; Negotiator&rsquo;s Note: Provisions on transitional arrangements (i.e., entry into force) and application to<br />

	prior acts will be included in Chapter 6.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3<br />

	way, a suitable provision needs to be drafted regarding disclosure of commercial<br />

	information]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Section B 3 : General Definitions<br />

	ARTICLE 1.X: DEFINITIONS<br />

	For purposes of this Agreement, unless otherwise specified:<br />

	days means calendar days;<br />

	intellectual property refers to all categories of intellectual property that are the subject<br />

	of Sections 1 through 7 of Part II of the Agreement on Trade-Related Aspects of<br />

	Intellectual Property Rights.<br />

	Council means the ACTA Oversight Council established under Chapter Five;<br />

	measure includes any law, regulation, procedure, requirement, or practice;<br />

	person means either a natural person or a juridical person;<br />

	right holder includes a federation or an association having the legal standing and<br />

	authority to assert rights in intellectual property, and also includes a person that<br />

	exclusively has any one or more of the intellectual property rights encompassed in a<br />

	given intellectual property;<br />

	territory means customs territory of a Party and all free trade zones of that Party;<br />

	TRIPS Agreement means the Agreement on Trade-Related Aspects of Intellectual<br />

	Property Rights, contained in Annex 1C to the WTO Agreement; 4<br />

	WTO means the World Trade Organization; and<br />

	WTO Agreement means the Marrakesh Agreement Establishing the World Trade<br />

	Organization, done on April 15, 1994.<br />

	3<br />

	&nbsp; Section B of the Initial Provisions is still to be discussed.<br />

	4<br />

	&nbsp;&nbsp; For greater certainty, &ldquo;TRIPS Agreement&rdquo; includes any waiver in force between the Parties of any<br />

	provision of the TRIPS Agreement granted by WTO Members in accordance with the WTO Agreement.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; CHAPTER TWO<br />

	&nbsp;&nbsp;&nbsp; LEGAL FRAMEWORK FOR ENFORCEMENT OF INTELLECTUAL PROPERTY RIGHTS<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [General Obligations 5<br />

	ARTICLE 2.X: GENERAL OBLIGATIONS WITH RESPECT TO ENFORCEMENT<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Procedures adopted, maintained, or applied to implement this Chapter shall be<br />

	fair and equitable. They shall not be unnecessarily complicated or costly, or entail<br />

	unreasonable time-limits or unwarranted delays.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In respect of civil remedies and criminal penalties for enforcement of intellectual<br />

	property rights, each Party shall take into account the need for proportionality between<br />

	the seriousness of the infringement and the remedies or penalties ordered.<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Those measures, procedures and remedies&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; shall&nbsp;&nbsp; also&nbsp;&nbsp;&nbsp;&nbsp; be&nbsp;&nbsp;&nbsp; [effective,<br />

	proportionate][ fair and equitable] and [deterrent]] 6 ]<br />

	4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Provision on limitations on remedies available against use by governments as<br />

	well as exemptions of public authorities and official from liability to be inserted here at<br />

	a later date.]<br />

	5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Define scope of the intellectual property rights covered in the Agreement]] [The<br />

	scope of intellectual property rights will be defined at the start of each chapter.]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 1: Civil Enforcement<br />

	ARTICLE 2.1: AVAILABILITY OF CIVIL PROCEDURES<br />

	&nbsp;In the context of this section, e] [E]ach Party shall make available to right holders [civil<br />

	judicial] [or administrative] procedures concerning the enforcement of any [intellectual<br />

	property right] [copyrights and related rights and trademarks].<br />

	ARTICLE 2.X: INJUNCTIONS<br />

	[1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ]In civil judicial proceedings concerning the enforcement of [copyright or<br />

	related rights and trademarks] [intellectual property rights], each Party shall provide that<br />

	its judicial authorities shall have the authority [subject to any statutory limitations under<br />

	its domestic law] to issue [against the infringer an injunction aimed at prohibiting the<br />

	continuation of the] [an order to a party to desist from an] infringement, including an<br />

	order to prevent infringing goods from entering into the channels of commerce [and to<br />

	5<br />

	&nbsp; This General Obligations Section has been proposed as an initial discussion draft, to receive detailed<br />

	reactions at the next Round.<br />

	6<br />

	&nbsp; [Move (with adjustments) Art. 2.1.2 to General Obligations.]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5<br />

	prevent their exportation]. 7<br />

	[2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Parties [may] shall also ensure that right holders are in a position to apply<br />

	for an injunction against [infringing] intermediaries whose services are used by a<br />

	third party to infringe an intellectual property right. 8 ] 9<br />

	ARTICLE 2.2: DAMAGES<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that:<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in civil judicial proceedings, its judicial authorities shall have the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; authority to order the infringer [who knowingly or with reasonable<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; grounds to know, engaged in [infringing activity] of [copyright or related<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; rights and trademarks] [intellectual property rights] to pay the right<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; holder<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; damages adequate to compensate for the injury the right holder<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; has suffered as a result of the infringement; or<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp; [at least in the case of copyright or related rights infringement<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; and trademark counterfeiting,] [in the case of IPR infringements]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the profits of the infringer that are attributable to the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; infringement, [which may be presumed to be the amount of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; damages] [and that are not taken into account in computing the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; amount of damages] [referred to in clause (i)] 10<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [which may be presumed to be the amount of damages referred to<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in clause (i)]; and<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in determining the amount of damages for [copyright or related rights<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; infringement and trademark counterfeiting] [infringement of intellectual<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; property rights], its judicial authorities shall consider, inter alia, any<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; legitimate measure of value submitted by the right holder, which may<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; include the lost profits, the value of the infringed good or service,<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; measured by the market price, the suggested retail price, or [the profits of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the infringer that are attributable to the infringement].<br />

	[7 A Party may comply with its obligation relating to exportation of infringing goods through its<br />

	provisions concerning distribution [or transfer].]<br />

	[8 The conditions and procedures relating to such injunction will be left to each Party&rsquo;s legal system.]<br />

	9<br />

	&nbsp; At least one delegation opposes paragraph 2 and is considering its placement<br />

	10<br />

	&nbsp;&nbsp; At least one delegation proposes to delete (ii) as originally proposed and move (ii) into paragraph<br />

	2.2.1(b).<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6<br />

	[2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; At least with respect to works, phonograms, and performances protected by<br />

	copyright or related rights, and in [cases of trademark counterfeiting], in civil judicial<br />

	proceedings, [As an alternative to paragraph 1,] each Party [shall][may] establish or<br />

	maintain a system that provides:<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; pre-established damages;<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; presumptions for determining the amount of damages 11 sufficient to<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; compensate the right holder for the harm caused by the infringement. 12 [;<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp; additional damages]]<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where the infringer did not knowingly, or with reasonable grounds to know,<br />

	engage in infringing activity, each Party may [lay down that] [establish] [may authorize<br />

	its] the judicial authorities may [to] order the recovery of profits or the payment of<br />

	damages, which may be pre-established.]<br />

	[4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Where a Party provides one of the options described in paragraph 2(a) or 2(b),<br />

	that Party shall ensure that a right holder has the right to choose that option [ 13 ] as an<br />

	alternative to the remedies referred to in paragraph 1.]<br />

	Option 1<br />

	[5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that its judicial authorities, except in exceptional<br />

	circumstances, shall have the authority to order, at the conclusion of civil judicial<br />

	proceedings [[at least in cases] concerning copyright or related rights infringement,<br />

	[patent infringement,] or trademark infringement] that the prevailing party be awarded<br />

	payment by the losing party of [ [reasonable and proportionate] legal] court costs or<br />

	fees. [Each Party shall also provide that its judicial authorities, [except in exceptional<br />

	circumstances], [in proceedings concerning copyright or related rights infringement or<br />

	willful trademark counterfeiting,] shall have the authority to order, [in appropriate<br />

	cases], that the prevailing party be awarded payment by the losing party of reasonable<br />

	attorney&rsquo;s fees [, and other expenses as provided for under that Party&rsquo;s domestic<br />

	&nbsp;11<br />

	&nbsp;&nbsp;&nbsp; Such measures may include the presumption that the amount of damages is (i) the quantity of the<br />

	goods infringing the right holder&rsquo;s intellectual property right and actually assigned to third persons,<br />

	multiplied by the amount of profit per unit of goods which would have been sold by the right holder if<br />

	there had not been the act of infringement or (ii) a reasonable royalty [ or (iii) a lump sum on the basis of<br />

	elements such as at least the amount of royalties or fees which would have been due if the infringer had<br />

	requested authorization to use the intellectual property right in question].<br />

	[12 No Party is required to apply paragraph 2 to actions for infringement against a Party or a third party<br />

	acting with the authorization or consent of the Party.]<br />

	[13 No Party is required to provide the right holders with more than one of the options referred to in<br />

	paragraph 2.]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7<br />

	law]. 14 ]<br />

	Option 2<br />

	[5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that its judicial authorities, [in appropriate cases], shall<br />

	have the authority to order, at the conclusion of civil judicial proceedings [[at least in<br />

	cases] concerning copyright or related rights infringement, [patent infringement,] or<br />

	trademark counterfeiting] that the prevailing party be awarded payment by the losing<br />

	party of court costs or fees and reasonable [and proportionate] attorney&rsquo;s fees [, and any<br />

	other expenses as provided for under that Party&rsquo;s domestic law]. 15 ]<br />

	ARTICLE 2.3: OTHER REMEDIES<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to goods that have been found to be [pirated or counterfeited]<br />

	[infringing an intellectual property right], each Party shall provide that in civil judicial<br />

	proceedings, at the right holder&rsquo;s request, its judicial authorities shall have the authority<br />

	to order that such goods be [recalled, definitively removed from the channel of<br />

	commerce, or] destroyed, except in exceptional circumstances, without compensation of<br />

	any sort.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall further provide that its judicial authorities shall have the<br />

	authority to order that materials and implements the predominant use of which has been<br />

	in the manufacture or creation of [infringing] [pirated or counterfeit] goods be, without<br />

	undue delay and without compensation of any sort, destroyed or disposed of outside the<br />

	channels of commerce in such a manner as to minimize the risks of further<br />

	infringements.<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The judicial authorities shall order that those remedies be carried out at the<br />

	expense of the infringer, unless particular reasons are invoked for not doing so.]<br />

	[4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [In ordering those remedies, the judicial authorities][Each Party shall further<br />

	provide that its judicial authority in ordering these remedies] shall take into account the<br />

	need for proportionality between the seriousness of the infringement and the remedies<br />

	ordered as well as the interest of third parties.] 16<br />

	ARTICLE 2.4: INFORMATION RELATED TO INFRINGEMENT<br />

	[Without prejudice to other statutory provisions which, in particular, govern the<br />

	protection of confidentiality of information sources or the processing of personal<br />

	[14 For greater certainty, the term &ldquo;reasonable attorney&rsquo;s fees&rdquo; is not intended to require a higher amount<br />

	than the amount of &ldquo;appropriate attorney&rsquo;s fees&rdquo; under the TRIPS Article 45.2.]<br />

	[15 For greater certainty, the term &ldquo;reasonable attorney&rsquo;s fees&rdquo; is not intended to require a higher amount<br />

	than the amount of &ldquo;appropriate attorney&rsquo;s fees&rdquo; under the TRIPS Article 45.2.]<br />

	16<br />

	&nbsp;&nbsp; This provision is to be reflected in the General Obligations Section.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8<br />

	data,] 17 Each Party shall provide that in civil judicial proceedings concerning the<br />

	enforcement of [intellectual property rights][copyright or related rights and trademarks],<br />

	its judicial authorities shall have the authority upon a justified request of the right<br />

	holder, to order the [alleged] infringer [including an alleged infringer] to provide, [for<br />

	the purpose of collecting evidence] any [relevant] information [information on the<br />

	origin and distribution network of the infringing goods or services][in the form as<br />

	prescribed in its applicable laws and regulations] that the infringer possesses or controls,<br />

	[where appropriate,] to the right holder or to the judicial authorities. Such information<br />

	may include information regarding any person or persons involved in any aspect of the<br />

	infringement and regarding the means of production or distribution channel of such<br />

	goods or services, including the identification of third persons involved in the<br />

	production and distribution of the infringing goods or services or in their channels of<br />

	distribution. [For greater clarity, this provision does not apply to the extent that it would<br />

	conflict with common law or statutory privileges, such as legal professional privilege.] ]<br />

	ARTICLE 2.5: PROVISIONAL MEASURES<br />

	[X.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that its judicial authorities shall have the authority, at<br />

	the request of the applicant, to issue an interlocutory injunction intended to prevent any<br />

	imminent infringement of an intellectual property right [copyright or related rights or<br />

	trademark]. An interlocutory injunction may also be issued, under the same conditions,<br />

	against an [infringing] intermediary whose services are being used by a third party to<br />

	infringe an intellectual property right. Each Party shall also provide that provisional<br />

	measures may be issued, even before the commencement of proceedings on the merits,<br />

	to preserve relevant evidence in respect of the alleged infringement. Such measures may<br />

	include inter alia the detailed description, the taking of samples or the physical seizure<br />

	of documents or of the infringing goods.]<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall [provide][ensure] that its judicial authorities [shall ]act<br />

	[expeditiously][ on requests] for provisional measures inaudita altera parte, and shall<br />

	endeavor to make a decision[ on such requests] without undue delay, except in<br />

	exceptional cases.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [In civil judicial proceedings concerning copyright or related rights infringement<br />

	and trademark counterfeiting 18 ], each Party shall provide that its judicial authorities<br />

	shall have the authority to order the seizure or other taking into custody of suspected<br />

	infringing goods, materials, and implements relevant to the act of infringement [and, at<br />

	least for trademark counterfeiting, documentary evidence relevant to the infringement].<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that its [judicial][competent] authorities have the<br />

	authority to require the plaintiff, with respect to provisional measures, to provide any<br />

	reasonably available evidence in order to satisfy themselves with a sufficient degree of<br />

	17<br />

	&nbsp;&nbsp; [Negotiators Note: Study moving this clause to General Provisions section]<br />

	18<br />

	&nbsp;&nbsp; At least one delegation raises issue of scope of this provision.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9<br />

	certainty that the plaintiff&rsquo;s right is being infringed or that such infringement is<br />

	imminent, and to order the plaintiff to provide a reasonable security or equivalent<br />

	assurance [set at a level sufficient] to protect the defendant [, ensuring compensation for<br />

	any prejudice suffered when the measure is revoked or lapses due to any reason, ]and to<br />

	prevent abuse. [Such security or equivalent assurance shall not unreasonably deter<br />

	recourse to such procedures].<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 2: Border Measures 19 [ 20 ] [ 21 ]<br />

	[ARTICLE 2.X: SCOPE OF THE BORDER MEASURES<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This section sets out the conditions for action by the competent authorities when<br />

	goods are suspected of infringing intellectual property rights, within the meaning of this<br />

	agreement, when they are imported, exported, in-transit or in other situations where the<br />

	goods are under customs supervision.<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For the purposes of this section, &ldquo;goods infringing an intellectual property right&rdquo;<br />

	means goods infringing any of the intellectual property rights covered by TRIPS 22 .<br />

	However, Parties may decide to exclude from the scope of this section, certain rights<br />

	other than trade marks, copyrights and GIs when [not protected exclusively by<br />

	copyright and trade mark systems and] [protected by [non-product- or sector-specific]<br />

	[registration] sui generis systems.]<br />

	3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Parties shall provide for the provisions related to border measures to be applied<br />

	[at least ]in cases of trade mark counterfeiting and copyright piracy. [Parties may<br />

	provide for such provisions to be applied in other cases of infringement of intellectual<br />

	property rights.]]<br />

	19<br />

	&nbsp;&nbsp; Where a Party has dismantled substantially all controls over movement of goods across its border with<br />

	another Party with which it forms part of a customs union, it shall not be required to apply the provisions<br />

	of this Section at that border.<br />

	[20 Each Party shall implement the obligations in respect of importation and exportation set out in this<br />

	Section so as to be applied to shipments of goods consigned to {a local party/a party in the territory} but<br />

	destined for outside the territory of the Party].<br />

	21<br />

	&nbsp;&nbsp; No Party shall be obliged to apply this section to any goods that do not infringe an intellectual property<br />

	right held within the territory of that Party]. [Negotiator&rsquo;s note: Study moving to General Provisions<br />

	section.]<br />

	[22 The provisions of this section shall also apply to confusingly similar trademark goods [ , which means<br />

	any goods, including packaging, bearing without authorization a trademark that is similar to the<br />

	trademark validly registered in respect of such or similar goods where there exists a likelihood of<br />

	confusion on the part of the public between the trademark borne and the trademark validly registered, and<br />

	that thereby infringes the rights of the owner of the trademark in question under the law of the country in<br />

	which the procedures set out in this Section are invoked.]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10<br />

	ARTICLE 2.X: DE MINIMIS PROVISION<br />

	Parties may exclude from the application of this Section small quantities of goods of a<br />

	non-commercial nature contained in travelers&rsquo; personal luggage [or sent in small<br />

	consignments.]<br />

	ARTICLE 2.X: PROVISION OF INFORMATION FROM THE RIGHT HOLDER<br />

	Each Party shall permit the competent authorities to request a right holder to supply<br />

	relevant information to assist the competent authorities in taking border measures<br />

	provided for under this Section. Each Party may also allow a right holder to supply<br />

	relevant information to the competent authorities.<br />

	ARTICLE 2.6: APPLICATION BY RIGHT HOLDER<br />

	Option 1<br />

	1. Each Party shall provide procedures for import [and in-transit23 ] shipments and [may]<br />

	[shall] provide procedures for export shipments, by which right holders may request the<br />

	competent authorities to suspend release 24 of suspected counterfeit trademark goods 25<br />

	and suspected pirated copyright goods 26 [goods suspected of infringing an intellectual<br />

	property right]into free circulation.<br />

	23<br />

	&nbsp;&nbsp; For the purposes of this Section, in-transit goods means goods under &ldquo;Customs transit&rdquo; and under<br />

	&ldquo;transhipment&rdquo;. &ldquo;Customs transit&rdquo; means the Customs procedure under which goods are transported<br />

	under Customs control from one Customs office to another. &ldquo;Transhipment&rdquo; means the Customs<br />

	procedure under which goods are transferred under Customs control from the importing means of<br />

	transport to the exporting means of transport within the area of one Customs office which is the office of<br />

	both importation and exportation.]<br />

	[24For the purpose of this Section, where the competent authorities suspend the release of suspected<br />

	counterfeit trademark or pirated copyright goods, the authorities shall not permit the goods to be released<br />

	into free circulation, exported, or subject to other customs procedures, except in exceptional<br />

	circumstances.]<br />

	25<br />

	&nbsp;&nbsp;&nbsp; For purposes of this Section, counterfeit trademark goods means any goods, including packaging,<br />

	bearing without authorization a trademark that is identical to the trademark validly registered in respect of<br />

	such goods, or that cannot be distinguished in its essential aspects from such a trademark, and that thereby<br />

	infringes the rights of the owner of the trademark in question under the law of the country in which the<br />

	procedures set out in this Section are invoked.<br />

	[It is to be understood that there shall be no obligation to apply such procedures to imports of goods put<br />

	on the market in another country by or with the consent of the right holder.]<br />

	26<br />

	&nbsp;&nbsp;&nbsp; For purposes of this Section, pirated copyright goods means any goods that are copies made without<br />

	the consent of the right holder or person duly authorized by the right holder in the country of production<br />

	and that are made directly or indirectly from an article where the making of that copy would have<br />

	constituted an infringement of a copyright or a related right under the law of the country in which the<br />

	procedures set out in this Section are invoked.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 11<br />

	Option 2<br />

	[1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide procedures by which right holders may request the<br />

	competent authorities to suspend the release of goods suspected of infringing<br />

	intellectual property rights.]<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The competent authorities shall require a right holder requesting the procedures<br />

	described in paragraph 1 to provide adequate evidence to satisfy themselves that, under<br />

	the laws of the Party providing the procedures, there is prima facie an infringement of<br />

	the right holder&#39;s intellectual property right and to supply sufficient information that<br />

	may reasonably be expected to be within the right holder&rsquo;s knowledge to make the<br />

	suspected infringing goods reasonably recognizable by the competent authorities. The<br />

	requirement to provide sufficient information shall not unreasonably deter recourse to<br />

	the procedures described in paragraph 1.<br />

	3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide for applications to suspend the release of suspected<br />

	infringing goods that apply to all goods 27 under customs control in its territory and<br />

	remain applicable to multiple [or in the alternative specified] shipments. Each Party<br />

	may provide that, at the request of the right holder, the application to suspend the<br />

	release of goods may apply to selected points of entry and exit under customs control.<br />

	These applications for suspension shall remain applicable for a period of not less than<br />

	[one year][or sixty days] from the date of application, or the period of protection of the<br />

	relevant intellectual property rights under the laws of the Party providing border<br />

	measures under this Section, whichever is shorter. Each Party may permit a right holder<br />

	to specify that an application to suspend remain applicable for a period of less than [one<br />

	year][or sixty days].<br />

	4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The competent authorities shall inform the applicant within a reasonable period<br />

	whether they have accepted the application. Where the competent authorities have<br />

	accepted the application, they shall also make known to the applicant the period of<br />

	validity of the application.<br />

	5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party may provide, where the applicant has abused the process, or where<br />

	there is due cause, that an application may be denied, suspended, or voided.<br />

	ARTICLE 2.7: EX-OFFICIO ACTION<br />

	Option 1<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party [may] [shall] provide that its customs authorities may act upon their<br />

	own initiative, to suspend the release of suspected counterfeit trademark goods or<br />

	suspected pirated copyright goods with respect to imported, [exported] [, or in-transit]<br />

	goods including suspected counterfeit trademark goods or suspected pirated copyright<br />

	goods admitted to, withdrawn from, or located in free trade zones [goods suspected of<br />

	infringing an intellectual property right]. [Each Party [may][shall endeavor to] provide<br />

	27<br />

	&nbsp;&nbsp; Whether this applies to imports, exports and/or in transit goods depends on paragraph 1.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 12<br />

	its customs authorities the same authority as the foregoing provision of this Article in<br />

	respect of [exported and] in-transit goods that are [suspected counterfeit trademark<br />

	goods or suspected pirated copyright goods.]<br />

	Option 2<br />

	[1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that its competent authorities may act upon their own<br />

	initiative, to suspend the release of goods suspected of infringing an intellectual<br />

	property right.]<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [Each Party may also provide that its customs authorities may act, upon their<br />

	own initiative, to suspend the release of goods suspected of infringing other intellectual<br />

	property rights [, not covered by this section].]<br />

	ARTICLE 2.X:<br />

	[As an alternative to procedures in Article 2.6.1 and 2.7.1 relating to export or in-transit<br />

	shipments, each Party shall provide that where shipments are exported from that Party,<br />

	or shipments are in-transit through that Party, it shall cooperate to provide all available<br />

	information to the destination Party, upon request of the destination Party, to enable<br />

	effective enforcement against shipments of infringing 28 goods.]<br />

	ARTICLE 2.9: SECURITY OR EQUIVALENT ASSURANCE<br />

	Each Party shall provide that its competent authorities shall have the authority to require<br />

	a right holder requesting procedures described under Article 2.6 to provide a reasonable<br />

	security or equivalent assurance sufficient to protect the defendant and the competent<br />

	authorities and to prevent abuse. Each Party shall provide that such security or<br />

	equivalent assurance shall not unreasonably deter recourse to these procedures. Each<br />

	Party may provide that such security may be in the form of a bond conditioned to hold<br />

	the defendant harmless from any loss or damage resulting from any suspension of the<br />

	release of the goods in the event the competent authorities determine that the good [is<br />

	not a counterfeit trademark good or a pirated copyright good] [does not infringe<br />

	intellectual property rights covered by this section]. Only in exceptional circumstances<br />

	[or pursuant to a judicial order] may a Party permit a defendant to post a bond or other<br />

	security to obtain possession of suspected counterfeit trademark goods or suspected<br />

	pirated copyright goods.<br />

	ARTICLE 2.10: DETERMINATION AS TO INFRINGEMENT<br />

	Each Party shall adopt or maintain a procedure by which competent authorities may<br />

	determine, within a reasonable period of time after the initiation of the procedures<br />

	described under Article 2.X or 2.X, whether the suspected infringing goods infringe an<br />

	intellectual property right 29 .<br />

	28<br />

	&nbsp;&nbsp; Subject to scope.<br />

	29<br />

	&nbsp;&nbsp; Subject to scope.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 13<br />

	&nbsp;ARTICLE 2.11: REMEDIES<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide its competent authorities with the authority to order the<br />

	destruction of goods following a determination under Article 2.10 that the goods are<br />

	infringing 30 . [In cases where such goods are not destroyed, each Party shall ensure such<br />

	goods are disposed of outside the channels of commerce in such a manner as to avoid<br />

	any harm to the right holder.] [or that they be disposed of outside the channels of<br />

	commerce in such a way as to preclude injury to the right holder, except in exceptional<br />

	circumstances.]<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In regard to counterfeit trademark goods, the simple removal of the trademark<br />

	unlawfully affixed shall not be sufficient, other than in exceptional cases, to permit the<br />

	release of goods into the channels of commerce.<br />

	3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party may provide its competent authorities with the authority to impose<br />

	administrative penalties following a determination under Article 2.10 that the goods are<br />

	infringing.<br />

	ARTICLE 2.12: FEES 31<br />

	1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide that any application fee, storage fee, or destruction fee<br />

	to be assessed by competent authorities in connection with procedures described in this<br />

	Section shall not be used to unreasonably deter recourse to these procedures.<br />

	ARTICLE 2.13: DISCLOSURE OF INFORMATION<br />

	Without prejudice to a Party&rsquo;s laws pertaining to the privacy or confidentiality of<br />

	information:<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party may authorize its competent authorities to provide right<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; holders with information about specific shipments of goods, including<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the description and quantity, to assist in the detection of infringing<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods;<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party may authorize its competent authorities to provide right<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; holders with information about goods including, but not limited to, the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; description and quantity of the goods and the name and address of the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; consignor, importer, exporter or consignee, and, if known, the country of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; origin and name and address of the manufacturer of the goods to assist in<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the determination under Article 2.10 of whether goods infringe rights<br />

	30<br />

	&nbsp;&nbsp; Subject to scope.<br />

	31<br />

	&nbsp;&nbsp; At least one delegation may come back with a possible additional paragraph for Article 2,12, depending<br />

	upon the progress of discussion in the Civil Enforcement Section.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 14<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; covered by this Section;<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless a Party has granted authority under subparagraph (b), at least in<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the case of imported goods, where competent authorities have seized or,<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in the alternative, made a determination under Article 2.10 that goods<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; infringe rights covered by the section, each Party shall authorize its<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; competent authorities to provide right holders within 30 days 32 of seizure<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; or determination, with information about goods including, but not limited<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to, the description and quantity of the goods and the name and address of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the consignor, importer, exporter, or consignee, and, if known, the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; country of origin and name and address of the manufacturer of the<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; goods. 33<br />

	[Article 2.X: LIABILITY OF THE COMPETENT AUTHORITIES<br />

	[1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; With respect to the border measures covered by this Section, each Party shall<br />

	provide measures concerning the liability of competent authorities in the execution of<br />

	their duties.]<br />

	Option 1<br />

	2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The acceptance of an application on its own shall not entitle the right-holder<br />

	to compensation in the event that goods infringing an intellectual property right<br />

	[copyright, related rights and trademarks]are not detected by [competent authorities]a<br />

	customs office and are released or no action is taken to detain them.<br />

	Option 2<br />

	[2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party may limit remedies sought by a right holder or other persons<br />

	against a Party&rsquo;s competent authorities as a result of mere acceptance of an<br />

	application under Article 2.[6], where the competent authorities release, or fail to<br />

	detect, detain, or take action against or in connection with, goods that may infringe<br />

	[IPR] covered by this Section.]<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The competent authorities shall not be liable towards the persons involved in<br />

	the situations referred to in Article 2.6 for damages suffered by them as a result of the<br />

	authority&rsquo;s intervention, except where provided for by the law of the Party in which<br />

	the application is made or in which the loss or damage is incurred.]]<br />

	32<br />

	&nbsp;&nbsp; For purposes of the Article, &ldquo;days&rdquo; shall mean &ldquo;business days&rdquo;.<br />

	33<br />

	&nbsp;&nbsp; Subject to agreement by at least one delegation.<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 15<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section 3: Criminal Enforcement 34<br />

	ARTICLE 2.14: CRIMINAL OFFENSES<br />

	1. 35&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide for criminal procedures and penalties to be applied at<br />

	least in cases of willful trademark counterfeiting or copyright or related rights piracy on<br />

	a commercial scale. 36 Willful copyright or related rights piracy on a commercial scale<br />

	includes:<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; [(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; significant willful copyright or related rights infringements that have no<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; direct or indirect motivation of financial gain; and<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; willful copyright or related rights infringements for purposes of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; commercial advantage or financial gain. 37 ]<br />

	[2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide for criminal procedures and penalties to be applied in<br />

	cases of [willful], [unauthorized] [importation] and [or] [domestic] [trafficking]<br />

	[conducted] [use in the course of trade] [on a commercial scale] of labels [or<br />

	packaging],<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; to which a mark has been applied [without consent of the right holder]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which is identical to or cannot be distinguished [in its essential aspects]<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; from a trademark registered in [its territory] [the Party in respect of<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; certain goods or services], and<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which are intended to be used [by the importer or user or, by a third party<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; with the knowledge of the importer or user, for willful trademark<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; counterfeiting] [on [either] the goods or [in relation to] services [for<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; which is registered] [which are identical to goods or services for which<br />

	&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; the trademark is registered.]<br />

	[3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Party shall provide for criminal procedures and penalties to be applied [in<br />

	34<br />

	&nbsp;&nbsp; Negotiator&rsquo;s Note: Definitions of &ldquo;counterfeit trademark goods&rdquo; and &ldquo;pirated copyright goods&rdquo;<br />

	provided for in footnotes 12 and 13 of Section 2 (Border Measures) should be used as context for this<br />

	Section.<br />

	35<br />

	&nbsp;&nbsp; This provision is under internal examination by at least one delegation. Subparagraphs (a) and (b) are<br />

	still under examination by at least one delegation. At least one is still considering paragraphs 1 and 2.<br />

	36<br />