[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8924 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8924
To require the Secretary of Commerce to identify and report on foreign
adversary entities using intellectual property related to emerging
technology without a license, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 2, 2024
Mrs. Kim of California (for herself and Mr. Moolenaar) introduced the
following bill; which was referred to the Committee on Foreign Affairs
_______________________________________________________________________
A BILL
To require the Secretary of Commerce to identify and report on foreign
adversary entities using intellectual property related to emerging
technology without a license, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting American Innovation and
Development Act of 2024'' or the ``PAID Act of 2024''.
SEC. 2. STATEMENT OF POLICY.
Section 1752(2) of the Export Control Reform Act of 2018 (50 U.S.C.
4811(2)) is amended by inserting after subparagraph (G) the following:
``(H) To ensure the continued strength and
leadership of the United States in the research and
development of critical and emerging technologies.''.
SEC. 3. PUBLIC TRANSPARENCY REGARDING FOREIGN ADVERSARY ENTITIES USING
INTELLECTUAL PROPERTY RELATED TO CRITICAL OR EMERGING
TECHNOLOGY WITHOUT A LICENSE.
(a) In General.--Part I of the Export Control Reform Act of 2018
(50 U.S.C. 4811 et seq.) is amended by inserting after section 1758 the
following:
``SEC. 1758A. PUBLIC TRANSPARENCY REGARDING FOREIGN ADVERSARY ENTITIES
USING INTELLECTUAL PROPERTY RELATED TO CRITICAL OR
EMERGING TECHNOLOGY WITHOUT A LICENSE.
``(a) Identification.--
``(1) In general.--The Secretary shall publish in the
Federal Register a notice that identifies a foreign adversary
entity if a majority of the members of the End-User Review
Committee determines that the foreign adversary entity is using
a patented invention or covered trade secret without a license,
including if a majority of the members of the Committee
determines that the foreign adversary entity--
``(A) is manufacturing or selling a product that
incorporates a patented invention or covered trade
secret without a license;
``(B) acquired a patented invention or covered
trade secret through improper means, including--
``(i) theft;
``(ii) bribery;
``(iii) misrepresentation;
``(iv) breach of, or an inducement of a
breach of, a duty to maintain secrecy; or
``(v) espionage; or
``(C) disclosed a patented invention or covered
trade secret without express or implied consent.
``(2) Identification by petition.--
``(A) In general.--A United States person may
submit a petition to the End-User Review Committee
requesting the Committee to make a determination in
accordance with the requirements of paragraph (1) for
purposes of the Secretary publishing in the Federal
Register a notice that identifies a foreign adversary
entity in accordance with the requirements of paragraph
(1) if the United States person--
``(i) has reason to believe that a foreign
entity is using a patented invention or covered
trade secret without a license; and
``(ii) is the owner of that patented
invention or covered trade secret.
``(B) Deadline.--After the End-User Review
Committee receives a petition submitted under
subparagraph (A), the Committee shall make a
determination with respect to the petition in
accordance with the requirements of paragraph (1) not
later than 90 days after the date on which the
Committee receives the petition.
``(3) Removal.--
``(A) In general.--The Secretary shall publish in
the Federal Register a subsequent notice with respect
to a foreign adversary entity identified in the Federal
Register under the process described in this section if
the Secretary, in consultation with the other members
of the End-User Review Committee, determines that there
is prima facie evidence that the foreign adversary
entity--
``(i) is no longer using a patented
invention or covered trade secret without a
license; or
``(ii) is using a patented invention or
covered trade secret without a license, but--
``(I) has entered into an agreement
for such use with the owner of the
patented invention or covered trade
secret; or
``(II) has entered into binding
arbitration with the owner of the
patented invention or covered trade
secret to set the terms for such use.
``(B) Removal by petition.--If a foreign adversary
entity identified in the Federal Register under the
process described in this section for using a patented
invention or covered trade secret without a license, or
the owner of the patented invention or covered trade
secret, believes that the foreign adversary entity
meets the conditions described in clause (i) or (ii) of
subparagraph (A), the foreign adversary entity or the
owner of the patented invention or covered secret may
petition the Secretary to have the Secretary publish in
the Federal Register a subsequent notice with respect
to the foreign adversary entity.
``(b) Report Required.--Upon request from any of the appropriate
congressional committees, the Secretary shall submit to the appropriate
congressional committees a report that includes a list of all foreign
adversary entities identified in the Federal Register under the process
described in this section, including a written explanation of the
reasons therefor.
``(c) Definition of Critical or Emerging Technology.--In this
section, the term `critical or emerging technology' includes any
technology defined by the Under Secretary of Defense for Research and
Engineering as a `critical technology area' as soon as practicable on
or after the date of the enactment of this section.
``(d) Other Definitions.--In this section:
``(1) Appropriate congressional committees.--The term
`appropriate congressional committees' means--
``(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
``(B) the Committee on Foreign Affairs and the
Select Committee on the Strategic Competition Between
the United States and the Chinese Communist Party of
the House of Representatives.
``(2) End-user review committee.--The term `End-User Review
Committee' means the End-User Review Committee described in
Supplement No. 9 to part 748(1) of the Export Administration
Regulations, or any successor regulation, as making decisions
related to export controls.
``(3) Foreign adversary.--The term `foreign adversary'
means--
``(A) the People's Republic of China (including the
Special Administrative Regions of China, including Hong
Kong and Macau);
``(B) the Russian Federation;
``(C) the Republic of Cuba;
``(D) the Democratic People's Republic of Korea;
``(E) the Islamic Republic of Iran; and
``(F) the Venezuelan regime under the leadership of
Nicolas Maduro.
``(4) Foreign adversary entity.--The term `foreign
adversary entity'--
``(A) means--
``(i) an individual who is a citizen or
national (as defined in section 101(a) of the
Immigration and Nationality Act (8 U.S.C.
1101(a))) of a foreign adversary;
``(ii) an entity that is headquartered in,
or organized under the laws of, or has its
principal place of business in a foreign
adversary;
``(iii) an entity subject to the control
(as that term is defined in section 800.208 of
subpart B of chapter VIII of title 31, Code of
Federal Regulations, or any successor
regulations) of any entity or combination of
entities described in clause (i) or (ii); or
``(iv) any successor, subsidiary, or
affiliate of any entity described in clause
(i), (ii), or (iii); but
``(B) does not include any entity with respect to
which--
``(i) a majority of the equity interest in
the entity is owned by nationals of the United
States and nationals of such countries (other
than a foreign adversary) as are identified for
purposes of this subparagraph pursuant to
regulations prescribed by the Secretary; or
``(ii) its ultimate parent entity is an
entity organized under the laws of, and
headquartered in, the United States or its
States, territories, or subdivisions.
``(5) Owner of the patented invention or covered trade
secret.--The term `owner of the patented invention or covered
trade secret' means--
``(A) in the case of a patented invention, the
person or entity in whom or in which rightful legal or
equitable title to, or license in, the applicable
patent is reposed; and
``(B) in the case of a covered trade secret, the
person or entity in whom or in which rightful legal or
equitable title to, or license in, the applicable trade
secret is reposed.
``(6) Patented invention.--The term `patented invention'
means an invention--
``(A) related to critical or emerging technology;
and
``(B) protected by a patent--
``(i) issued under title 35, United States
Code; and
``(ii) with respect to which the rightful
legal or equitable title to, or license in such
patent is reposed in a United States person.
``(7) Covered trade secret.--The term `covered trade
secret' means a trade secret (as such term is defined in
section 1839 of title 18, United States Code)--
``(A) related to critical or emerging technology;
and
``(B) with respect to which the rightful legal or
equitable title to, or license in, the trade secret is
reposed in a United States person.''.
(b) Clerical Amendment.--The table of contents in section 2(b) of
the John S. McCain National Defense Authorization Act for Fiscal Year
2019 and the table of contents at the beginning of title XVII of
division A of such Act are each amended by inserting after the item
relating to section 1758 the following new item:
``Sec. 1758A. Public transparency regarding foreign adversary entities
using intellectual property related to
critical or emerging technology without a
license.''.
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