Washington – While CCIA applauds the America COMPETES Act for ensuring that the U.S. tech sector can compete with China by investing in AI, quantum computing, and other emerging technology, the proposal includes concerning language regarding unrelated matters like trademark-infringing goods.
The proposal’s attempts to address counterfeits create an untested new IP liability scheme for goods sold online which would be impractical to implement. When the SHOP SAFE Act was considered at a House Judiciary markup, numerous Committee members raised concerns and committed to address them, but the bill text remains unchanged.
Additionally, new changes to customs duties thresholds (referred to as “de minimis”) will do little to address real concerns with shipments from certain non-market countries, while significantly disrupting e-commerce.
The Computer & Communications Industry Association sent a letter to the Hill asking that the SHOP SAFE Act not be added to economically sound legislation that helps the U.S. compete.
The following can be attributed to CCIA President Matt Schruers:
“The addition of these unrelated trademark liability provisions would impose impractical and punitive regulations upon ecommerce merchants and individual sellers using digital channels to succeed, at a time of economic disruption. Rather than pursue a consensus approach to brand protection, the inclusion of these provisions would railroad small American businesses for the benefit of global brands.”