PREPARED STATEMENT OF ROBERT GEHRKE, EXECUTIVE DIRECTOR, TRAINING MEDIA ASSOCIATION AND JOHN M. EVANS, PRESIDENT, INDUSTRIAL TRAINING SYSTEMS CORP.

MR. CHAIRMAN, MEMBERS OF THE SUBCOMMITTEE:

MY NAME IS ROBERT GEHRKE. I AM THE EXECUTIVE DIRECTOR OF THE TRAINING MEDIA ASSOCIATION. A GROUP

OF MORE THAN 60 COMPANIES THAT PRODUCE, MARKET AND

DISTRIBUTE TRAINING AND EDUCATIONAL MATERIALS,

PRIMARILY ON VIDEOTAPE.

JOINING ME THIS MORNING IS ONE OF OUR MEMBERS, JOHN M. EVANS, PRESIDENT OF INDUSTRIAL TRAINING SYSTEMS CORPORATION.

WE BELIEVE PASSAGE OF HR 671 WOULD BE THE MOST IMPORTANT STEP CONGRESS COULD TAKE THIS YEAR TO

PROMOTE INVESTMENT AND INNOVATION BY AMERICA'S SMALL

BUSINESSES AND INDIVIDUALS WHO CREATE COPYRIGHTED

WE ARE JOINED IN SUPPORT OF H.R. 671 BY THE

COALITION FOR COPYRIGHT ENTREPRENEURS, AN AD HOC

GROUP OF OVER A DOZEN ORGANIZATIONS REPRESENTING A

BROAD ARRAY OF SMALL BUSINESS AND INDIVIDUAL

CREATORS, INCLUDING AUTHORS, PHOTOGRAPHERS,

ILLUSTRATORS, FILM AND DOCUMENTARY MAKERS, GRAPHIC

ARTISTS, ENGINEERS, NEWSLETTER AND COMIC BOOK PUBLISHERS, AND MANY OTHERS. WITH YOUR PERMISSION,

WE WISH TO SUBMIT AN UPDATED LIST OF SUPPORTERS FOR

THE RECORD.

MR. CHAIRMAN, SMALL BUSINESS AND INDIVIDUAL

COPYRIGHT OWNERS MAKE A SPECIAL CONTRIBUTION TO THE

U.S. ECONOMY BY HELPING TO MEET THE DOMESTIC AND

GLOBAL DEMAND FOR PRODUCTS OF THE AMERICAN MIND.

GROSS ANNUAL SALES OF ABOUT $1.6 MILLION, AND HAS 15

FULL-TIME EMPLOYEES.

OUR TRAINING TAPES ARE VERY EXPENSIVE TO

PRODUCE, AND CARRY A HIGH RISK. WE HAVE A HIGHLY THEREFORE, A COPY OF ONE OF OUR

SPECIALIZED MARKET.

TAPES MAY HAVE A RETAIL PRICE OF $300 TO $500 OR

MORE. EACH COPY THAT WE LICENSE MAY, IN TURN, BE

USED TO TRAIN DOZENS, EVEN THOUSANDS, OF EMPLOYEES,

VERY COST-EFFECTIVELY.

UNFORTUNATELY, WE FACE RAMPANT INFRINGEMENT

PROBLEMS. A STUDY WE HAVE SUBMITTED TO YOU SHOWS

BUT ALL OUR EFFORTS HAVE BARELY MADE A DENT.

THAT'S WHY WE BELIEVE THE LAW MUST BE STRENGTHENED

TO PROVIDE AN ADDITIONAL DETERRENT

PARTICULARLY

WHERE THE VICTIM OF THE INFRINGEMENT IS A "LITTLE

GUY" FROM WHOM THE TYPICAL INFRINGER, NORMALLY A

MUCH LARGER ORGANIZATION, MAY BELIEVE HE HAS NOTHING

TO FEAR. H.R. 671 WOULD PROVIDE A DETERRENT AGAINST

INFRINGEMENT, AND AN ASSURANCE THAT PLAINTIFFS WITH

MERITORIOUS CLAIMS CAN EFFECTIVELY PROTECT THEIR

RIGHTS.

MR. CHAIRMAN, I WOULD LIKE TO TURN NOW TO JOHN EVANS TO COMPLETE OUR PRESENTATION.