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<P><B>NEW VESSEL HULL DESIGN PROTECTION ACT </B></P>

<P><B>Public Law No. 105-304 (October 28, 1998)</B></P>

<P><B>Introductory Report and Legislative History Resources</B></P>

<P><B>William T. Fryer, III </B></P>

<P><B>Decenber 23, 1998</B></P>

<P>Many design owners have asked for immediate protection at the time of
introducing a product. The semi-conductor chip industry received a special
law with this protection (Semi-Conductor Chip Act of 1984, 17 U.S.C. &sect;&sect;
901-914). Now boat manufacturers have a new law, the Vessel Hull Design
Protection Act [link to the current law - ENR text], to provide market
entry protection. As further background, the Vessel Hull legislation was
part (Title VI) of a larger bill, Digital Millennium Copyright Act, that
implementated important Copyright Treaties (H.R. 2281, 105th Cong., 2d
Sess.). </P>

<P>The new Vessel Hull Design Protection Act was based, essentially, on
the general design bill that was considered by Congress several times without
enactment, most recently in 1991 (H.R. 1790, 102d Cong., 2d Sess.). The
general design protection bill provided protection against copying for
a wide group of products, with some exclusions to minimize controversy.
Several safeguard provisions limited who would be an infringer and prevented
litigation abuse. Registration was required after one year from the time
of market entry, to continue protection for the full term of 10 years.
Only a relatively minimum level of novelty was required.</P>

<P>In summary, the Vessel Hull law will provide protection for hull shape
and decks from the time of market entry. The new law will exclude protection
of features that are dictated solely by function, while allowing for protection
of variations that do not serve to give a functional competitive advantage.
The Copyright Office will administer the law. Registration will be required
under the new law within two years of the time a product enters the market,
or by registration before market entry. </P>

<P>The new legislation was signed by the President on October 28, 1998,
and became effective on that date. Boat hulls and decks are now protected
from copying upon market entry or by registration. The Vessel Hull law
will sunset in two years, giving Congress an opportunity to reconsider
whether to continue the protection. After the first year and before the
end of the two year period the Copyright Office and the Patent and Trademark
Office are required to prepare a joint report evaluating the impact of
the legislation. This compromise was necessary, in part, due to the fact
that the Senate did not hold hearings on the bill and the House conference
delegation wanted the legislation enacted. </P>

<P>There are many details to the Vessel Hull legislation that cannot be
addressed in this brief report. Reference is made to the testimony at a
October 23, 1998, hearing held on H. R. 2652, 105th Cong., 1st Sess, before
the House Judiciary, Subcommittee on Courts and Intellectual Property,
by Professor Fryer and representatives of the boat manufacturing industry
<B>(see legislative history resource list below).</B></P>

<P>The Vessel Hull legislation will create an exciting two years for design
protection review. It is the opportunity needed to evaluate the effectiveness
of market entry design protection using a relative simple registration
system, and to evaluate similar protection that is now present in a growing
number of countries. At the same time, the opportunity is presented to
determine what other important product industrial designs need this market
entry protection.</P>

<P>Copyright &copy; 1998, 1999</P>

<P>---------------------------------------------------------------------------------------------------------------------</P>

<P><B>Legislative History Resources for the Vessel Hull Design Protection
Act</B></P>

<P><B><I><A HREF="hr2692ih.htm">H. R. 2696 (105th Cong., 1st Sess.) (text
Code IH)</A></I> </B>- Original Legislation in the House, filed on October
23, 1997. </P>

<P><A HREF="http://www.house.gov/judiciary/41110.htm"><B>House Hearing
on H. R. 2696</B>, October 23, 1997</A> </P>

<P><B>Panel I</B></P>

<P><A HREF="http://www.house.gov/judiciary/41112.htm">Marybeth Peters</A>
- Register of U. S. Copyright Office </P>

<P>William T. Fryer, III - Professor University of Baltimore School of
Law - <A HREF="http://www.house.gov/judiciary/41113.htm">House web site
-</A> <A HREF="http://www.house.gov/judiciary/41114.htm">http://www.house.gov/judiciary/41114.htm</A>
</P>

<P><B>Panel II</B></P>

<P><A HREF="http://www.house.gov/judiciary/41114.htm">Mick Blackistone</A>,
Vice President Government Relations, National Marine Manufacturers Association
(NMMA)</P>

<P><A HREF="http://www.house.gov/judiciary/41115.htm">Don Cramer, </A>Corporate
Counsel, Bayliner Marine Corporation</P>

<P><A HREF="http://www.house.gov/judiciary/41115.htm">J. J. Marie,</A>
President, Zodiak of North America, Inc.</P>

<P><B><A HREF="hr2692rf.htm">H. R. 2696, Amended, passed by the House (text
code RFS).</A></B></P>

<P><B><A HREF="hr2281cr.htm">House/Senate Conference Report 105-796 on
H. R. 2281 (105th Cong., 2d Sess., October 8, 1998),</A> </B>incorporating
text of H. R. 2696 as Title VI, Congressional Record October 2, 1998. </P>

<P><B><A HREF="hr2281en.htm">H. R. 2281 (text code ENR)</A></B> - Bill
sent to the President and signed; legislation effective October 28, 1998.</P>

<P>END OF DOCUMENT</P>

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<P><FONT SIZE=+1>&copy; COPYRIGHT 1999, W. T. Fryer, III, All rights reserved
(See <A HREF="ws2tc1.htm"><FONT COLOR="#0000FF">CONDITIONS</FONT> </A>on
use of web site for exception). </FONT></P>

<P>This page was last updated on January 5, 1999.</P>

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