[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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