Zippo Manufacturing Co. is one step closer to stopping the
foreign counterfeiting of the windproof pocket lighter -ðan
activity that has cost the company million of dollars and,
consequently, has cost local residents their jobs.

U.S. Rep. John E. Peterson, R-Pa., joined his House colleagues
Tuesday afternoon in lauding the passage of the Stop Counterfeiting
in Manufactured Goods Act of 2006.

According to a press release from Peterson, the bill – meant to
strengthen and standardize the nation’s anti-counterfeiting laws
and protect manufacturers, suppliers, and consumers from goods that
are fraudulently produced, marketed and disseminated – is of
special interest to corporate entities like Zippo that suffer at
the hand of counterfeiters.

“Counterfeiting is a crime that not only robs our economy of
literally billions of dollars and thousands of jobs each year, but
it also puts the health and well-being of American consumers at
risk,” Peterson said in the release. “This bill sends an
unambiguous message to counterfeiters, both current and
prospective, that this country is serious about prosecuting those
who make a living out of defrauding American consumers and
businesses.”

Greg Booth, Zippo’s president and chief executive officer,
joined Peterson in applauding the bill’s passage.

“We are thrilled and encouraged by the action taken by the U.S.
House of Representatives and with the leadership of Congressman
Peterson in taking this very aggressive and very necessary step to
stop the manufacturing and sale of counterfeit goods here in the
Commonwealth,” Booth said. “The sale of Zippo counterfeits over the
years has cost our company tens of millions of dollars and a
countless number of jobs. The action taken by Congress will help
return the lost jobs and lost revenues to their rightful owners –
the citizens of Pennsylvania and brand owners like Zippo here in
the U.S.”

Currently, convicted counterfeiters face the possibility of
having their fraudulent products destroyed, but the equipment used
to produce the fake products is essentially safe, according to the
release. This legislation changes that, ensuring that “any article
that bears or consists of a counterfeit mark – and any property
derived from that mark – is forfeited immediately along with any
equipment or capital investment used in its creation,” the release
said.

Also, the bill directs the court to order a person convicted of
such an offense to pay restitution to the owner of the mark and any
other victim. Jail time is also a possibility, depending on the
scope and severity of the fraud.

“Most of the fraudulent products in circulation today around
America come from other countries,” Peterson said. “How can we
demand that other countries take real steps to combat their own
counterfeiting problems if we haven’t taken those steps ourselves?
By passing this bill and improving our own law, Congress will
empower our trade negotiators to press for stronger
anti-counterfeiting measures around the world.”

Booth told The Era Tuesday night that Peterson came to Zippo’s
aid regarding the foreign production of counterfeit Zippo lighters
more than a year ago when Bill Lash, then the assistant secretary
of commerce, was traveling in Russia and bought what he thought was
a Zippo lighter.

“He thought it was genuine,” Booth recalled. “When he realized
it was counterfeit, he called and asked if we were having problems
(with counterfeiting).”

When Zippo officials told Lash the counterfeiting was indeed
affecting the company financially, he asked to come to Bradford to
discuss the issue with the company heads before making a trip to
China to “confront the Chinese government,” Booth said.

Peterson accompanied Lash during that trip to Bradford and
showed a real interest in solving the counterfeiting problem, Booth
said.

“He (Peterson) was instrumental in helping us and Lash,” he
added. “He has played a proactive role though the whole process and
served as a guide through the political maze in Washington. He
helped us find out what we could do as company and as a
country.”

While Booth acknowledged the problem won’t be solved overnight,
he feels counterfeiting activity has probably slowed recently.

“It’s just so big and out of control,” Booth said. “It will be a
while before we see anything of any consequence.”

Booth said executives noticed counterfeiting – specifically the
production of counterfeit Zippo lighters in China – in the early
1990s. It began to make a difference in the business, he said, by
the mid-1990s.

The bill passed the Senate last month and will now be sent to
the President Bush for his signature.