[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 884 Introduced in Senate (IS)]

113th CONGRESS
  1st Session
                                 S. 884

  To require the Director of National Intelligence to develop a watch 
  list and a priority watch list of foreign countries that engage in 
 economic or industrial espionage in cyberspace with respect to United 
    States trade secrets or proprietary information, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 7, 2013

 Mr. Levin (for himself, Mr. McCain, Mr. Coburn, and Mr. Rockefeller) 
introduced the following bill; which was read twice and referred to the 
                          Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To require the Director of National Intelligence to develop a watch 
  list and a priority watch list of foreign countries that engage in 
 economic or industrial espionage in cyberspace with respect to United 
    States trade secrets or proprietary information, 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 ``Deter Cyber Theft Act''.

SEC. 2. ACTIONS TO ADDRESS FOREIGN ECONOMIC OR INDUSTRIAL ESPIONAGE IN 
              CYBERSPACE.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and annually thereafter, the 
        Director of National Intelligence shall submit to the 
        appropriate congressional committees a report on foreign 
        economic and industrial espionage in cyberspace during the 12-
        month period preceding the submission of the report that--
                    (A) identifies--
                            (i) foreign countries that engage in 
                        economic or industrial espionage in cyberspace 
                        with respect to trade secrets or proprietary 
                        information owned by United States persons;
                            (ii) foreign countries identified under 
                        clause (i) that the Director determines engage 
                        in the most egregious economic or industrial 
                        espionage in cyberspace with respect to such 
                        trade secrets or proprietary information (in 
                        this section referred to as ``priority foreign 
                        countries'');
                            (iii) technologies or proprietary 
                        information developed by United States persons 
                        that--
                                    (I) are targeted for economic or 
                                industrial espionage in cyberspace; and
                                    (II) to the extent practicable, 
                                have been appropriated through such 
                                espionage;
                            (iv) articles manufactured or otherwise 
                        produced using technologies or proprietary 
                        information described in clause (iii)(II);
                            (v) services provided using such 
                        technologies or proprietary information; and
                            (vi) foreign entities, including entities 
                        owned or controlled by the government of a 
                        foreign country, that request, engage in, 
                        support, facilitate, or benefit from the 
                        appropriation through economic or industrial 
                        espionage in cyberspace of technologies or 
                        proprietary information developed by United 
                        States persons;
                    (B) describes the economic or industrial espionage 
                engaged in by the foreign countries identified under 
                clauses (i) and (ii) of subparagraph (A); and
                    (C) describes--
                            (i) actions taken by the Director and other 
                        Federal agencies to decrease the prevalence of 
                        economic or industrial espionage in cyberspace; 
                        and
                            (ii) the progress made in decreasing the 
                        prevalence of such espionage.
            (2) Determination of foreign countries engaging in economic 
        or industrial espionage in cyberspace.--For purposes of clauses 
        (i) and (ii) of paragraph (1)(A), the Director shall identify a 
        foreign country as a foreign country that engages in economic 
        or industrial espionage in cyberspace with respect to trade 
        secrets or proprietary information owned by United States 
        persons if the government of the foreign country--
                    (A) engages in economic or industrial espionage in 
                cyberspace with respect to trade secrets or proprietary 
                information owned by United States persons; or
                    (B) facilitates, supports, fails to prosecute, or 
                otherwise permits such espionage by--
                            (i) individuals who are citizens or 
                        residents of the foreign country; or
                            (ii) entities that are organized under the 
                        laws of the foreign country or are otherwise 
                        subject to the jurisdiction of the government 
                        of the foreign country.
            (3) Prioritization of collection and analysis of 
        information.--The President shall direct the Director to make 
        it a priority for the intelligence community to collect and 
        analyze information in order to identify articles described in 
        clause (iv) of paragraph (1)(A), services described in clause 
        (v) of that paragraph, and entities described in clause (vi) of 
        that paragraph.
            (4) Form of report.--Each report required by paragraph (1) 
        shall be submitted in unclassified form but may contain a 
        classified annex.
    (b) Action by President.--
            (1) In general.--Not later than 120 days after each report 
        required by subsection (a)(1) is submitted, the President shall 
        direct U.S. Customs and Border Protection to exclude from entry 
        into the United States an article described in paragraph (2) if 
        the President determines the exclusion of the article is 
        warranted--
                    (A) for the enforcement of intellectual property 
                rights; or
                    (B) to protect the integrity of the Department of 
                Defense supply chain.
            (2) Article described.--An article described in this 
        paragraph is an article--
                    (A) identified under subsection (a)(1)(A)(iv);
                    (B) produced or exported by an entity that--
                            (i) is owned or controlled by the 
                        government of a priority foreign country; and
                            (ii) produces or exports articles that are 
                        the same as or similar to articles manufactured 
                        or otherwise produced using technologies or 
                        proprietary information identified under 
                        subsection (a)(1)(A)(iii); or
                    (C) produced or exported by an entity identified 
                under subsection (a)(1)(A)(vi).
    (c) Consistency With International Agreements.--This section shall 
be applied in a manner that is consistent with the obligations of the 
United States under international agreements.
    (d) Definitions.--In this section:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Armed Services, the Committee 
                on Homeland Security and Governmental Affairs, the 
                Committee on Finance, the Committee on Foreign 
                Relations, and the Select Committee on Intelligence of 
                the Senate; and
                    (B) the Committee on Armed Services, the Committee 
                on Homeland Security, the Committee on Foreign Affairs, 
                the Committee on Ways and Means, and the Permanent 
                Select Committee on Intelligence of the House of 
                Representatives.
            (2) Cyberspace.--The term ``cyberspace''--
                    (A) means the interdependent network of information 
                technology infrastructures; and
                    (B) includes the Internet, telecommunications 
                networks, computer systems, and embedded processors and 
                controllers.
            (3) Economic or industrial espionage.--The term ``economic 
        or industrial espionage'' means--
                    (A) stealing a trade secret or proprietary 
                information or appropriating, taking, carrying away, or 
                concealing, or by fraud, artifice, or deception 
                obtaining, a trade secret or proprietary information 
                without the authorization of the owner of the trade 
                secret or proprietary information;
                    (B) copying, duplicating, downloading, uploading, 
                destroying, transmitting, delivering, sending, 
                communicating, or conveying a trade secret or 
                proprietary information without the authorization of 
                the owner of the trade secret or proprietary 
                information; or
                    (C) knowingly receiving, buying, or possessing a 
                trade secret or proprietary information that has been 
                stolen or appropriated, obtained, or converted without 
                the authorization of the owner of the trade secret or 
                proprietary information.
            (4) Intelligence community.--The term ``intelligence 
        community'' has the meaning given that term in section 3(4) of 
        the National Security Act of 1947 (50 U.S.C. 401a(4)).
            (5) Own.--The term ``own'', with respect to a trade secret 
        or proprietary information, means to hold rightful legal or 
        equitable title to, or license in, the trade secret or 
        proprietary information.
            (6) Person.--The term ``person'' means an individual or 
        entity.
            (7) Proprietary information.--The term ``proprietary 
        information'' means competitive bid preparations, negotiating 
        strategies, executive emails, internal financial data, 
        strategic business plans, technical designs, manufacturing 
        processes, source code, data derived from research and 
        development investments, and other commercially valuable 
        information that a person has developed or obtained if--
                    (A) the person has taken reasonable measures to 
                keep the information confidential; and
                    (B) the information is not generally known or 
                readily ascertainable through proper means by the 
                public.
            (8) Technology.--The term ``technology'' has the meaning 
        given that term in section 16 of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2415) (as in effect pursuant to the 
        International Emergency Economic Powers Act (50 U.S.C. 1701 et 
        seq.)).
            (9) Trade secret.--The term ``trade secret'' has the 
        meaning given that term in section 1839 of title 18, United 
        States Code.
            (10) United states person.--The term ``United States 
        person'' means--
                    (A) an individual who is a citizen of the United 
                States or an alien lawfully admitted for permanent 
                residence to the United States; or
                    (B) an entity organized under the laws of the 
                United States or any jurisdiction within the United 
                States.
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