[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10218 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 10218
To amend section 337 of the Tariff Act of 1930 to ensure that the
resources of the United States International Trade Commission are
focused on protecting genuine domestic industries, to safeguard the
public health and welfare and the United States economy, and to improve
the transparency of third party litigation funding, and for other
purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
September 1, 2026
Mr. Schweikert (for himself and Mr. Beyer) introduced the following
bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend section 337 of the Tariff Act of 1930 to ensure that the
resources of the United States International Trade Commission are
focused on protecting genuine domestic industries, to safeguard the
public health and welfare and the United States economy, and to improve
the transparency of third party litigation funding, 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 ``Advancing American Innovation Act''.
SEC. 2. PROTECTION OF UNITED STATES INDUSTRY, ECONOMY, AND PUBLIC
HEALTH AND WELFARE IN COMBATING UNFAIR PRACTICES IN
IMPORT TRADE.
(a) Purpose.--The purpose of this section is to ensure that the
resources of the United States International Trade Commission are
focused on protecting genuine domestic industries and to safeguard the
public health and welfare and the United States economy (including
competitive conditions).
(b) Modifications to International Trade Commission Authorities.--
Section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) is amended--
(1) in subsection (a)--
(A) in paragraph (3)--
(i) subparagraph (B), by striking ``; or''
and inserting a semicolon;
(ii) in subparagraph (C), by striking
``engineering, research and development, or
licensing.'' and inserting ``engineering and
research and development; or''; and
(iii) by adding after subparagraph (C) the
following:
``(D) substantial investment in licensing activities that
leads to the adoption and development of articles that
incorporate the patent, copyright, trademark, mask work, or
design.'';
(B) by redesignating paragraph (4) as paragraph
(5); and
(C) by inserting after paragraph (3) the following:
``(4) For purposes of paragraph (3), the complainant may not rely
upon activities by its licensees unless the license leads to the
adoption and development of articles that incorporate the claimed
patent, copyright, trademark, mask work, or design for sale in the
United States.'';
(2) in subsection (b)--
(A) in paragraph (1), by inserting after the first
sentence the following: ``For a complaint under oath, a
person may be relied upon to qualify as an industry
under subsection (a)(2) only if the person joins the
complaint under oath, except that nothing in this
sentence shall be construed to compel such a person to
join the complaint.''; and
(B) by adding at the end the following:
``(4)(A) The Commission shall identify, at the beginning of an
investigation, whether the investigation presents a dispositive issue
appropriate for an expedited fact finding and an abbreviated hearing
limited to that issue, and shall direct the assigned administrative law
judge to issue an initial determination on that issue not later than
100 days after the investigation is instituted.
``(B) Any initial determination by the assigned administrative law
judge under subparagraph (A) shall stay the investigation pending
Commission action.'';
(3) in subsection (c)--
(A) by striking the first sentence and inserting
the following: ``(1) The Commission shall determine,
with respect to each investigation conducted by it
under this section, whether or not there is a violation
of this section, except that the Commission--
``(A) may, by issuing a consent order or on the basis of an
agreement between the private parties to the investigation,
including an agreement to present the matter for arbitration,
terminate any such investigation, in whole or in part, without
making such a determination; or
``(B) may determine during the course of the investigation
that the exclusion of articles under investigation would not be
in the interest of the public, after considering the nature of
the articles concerned and the effect of such exclusion upon
the public health and welfare, the United States economy
(including competitive conditions), the production of like or
directly competitive articles by the complainant and its
licensees, and United States consumers, and terminate any such
investigation, in whole or in part, without making any further
determination.'';
(B) in the second sentence, by striking ``Each
determination'' and inserting the following:
``(2) Each determination'';
(C) by striking ``its findings on the public health
and welfare, competitive conditions in the United
States economy,'' and inserting ``its findings on the
public health and welfare, the United States economy
(including competitive conditions),''; and
(D) by inserting ``by the complainant and its
licensees'' after ``the production of like or directly
competitive articles in the United States'';
(4) in subsection (d)(1), by striking the first sentence
and inserting the following: ``If the Commission determines, as
a result of an investigation under this section, that there is
both (A) a violation of this section and (B) exclusion of the
articles concerned is in the interest of the public, after
considering the nature of the articles concerned and the effect
of such exclusion upon the public health and welfare, the
United States economy (including competitive conditions), the
production of like or directly competitive articles in the
United States by complainant and its licensees, and United
States consumers, then the Commission shall direct that the
articles concerned that are imported by any person violating
the provisions of this section be excluded from entry into the
United States.'';
(5) in subsection (e)(1), by striking the first sentence
and inserting the following: ``If, during the course of an
investigation under this section, the Commission determines
that there is reason to believe that there is a violation of
this section and that exclusion of the articles concerned would
be in the interest of the public, the Commission may direct
that the articles concerned that are imported by any person
with respect to whom there is reason to believe that such
person is violating this section be excluded from entry into
the United States, after considering the nature of the articles
concerned and the effect of such exclusion upon the public
health and welfare, the United States economy (including
competitive conditions), the production of like or directly
competitive articles in the United States by the complainant
and its licensees, and United States consumers.'';
(6) in subsection (f)(1), by striking the first sentence
and inserting the following: ``In addition to, or in lieu of,
taking action under subsection (d) or (e), the Commission may
issue and cause to be served on any person violating this
section, or believed to be violating this section, as the case
may be, an order directing such person to cease and desist from
engaging in the unfair methods or acts involved, after
considering the nature of the articles concerned and the effect
of such order upon the public health and welfare, the United
States economy (including competitive conditions), the
production of like or directly competitive articles in the
United States by the complainant and its licensees, and United
States consumers.''; and
(7) in subsection (g)(1), by amending the matter following
subparagraph (E) to read as follows:
``the Commission shall presume the facts alleged in the complaint to be
true and shall, upon request, issue an exclusion from entry or a cease
and desist order, or both, limited to that person, after considering
the nature of the articles concerned and the effect of such exclusion
or order upon the public health and welfare, the United States economy
(including competitive conditions), the production of like or directly
competitive articles in the United States by the complainant and its
licensees, and United States consumers.''.
(c) Effective Date.--The amendments made by subsection (b) shall
apply to complaints filed under section 337 of the Tariff Act of 1930
on or after the date of the enactment of this Act.
SEC. 3. TRANSPARENCY OF THIRD PARTY LITIGATION FUNDING IN INTERNATIONAL
TRADE COMMISSION PATENT INFRINGEMENT PROCEEDINGS.
(a) In General.--Section 337 of the Tariff Act of 1930 (19 U.S.C.
1337) is amended by adding at the end the following:
``(o) Transparency of Third Party Litigation Funding in Patent
Infringement Proceedings.--
``(1) In general.--A complainant in a proceeding alleging
infringement of a patent under this section shall--
``(A) file with the Commission, and serve on all
other named parties in the proceeding, the identity,
address, and, with respect to a legal entity, the place
of incorporation and principal place of business of any
third party funder with respect to that proceeding; and
``(B) except as otherwise ordered by the
Commission, or stipulated by all named parties, file
with the Commission, and provide to all other named
parties in the proceeding for inspection and copying,
any agreement between the complainant and any third
party funder with respect to that proceeding that--
``(i) establishes a relationship described
in subparagraph (A) or (B) of paragraph (5); or
``(ii) otherwise relates to--
``(I) the proceeding; or
``(II) any patent that the
complainant, in the action, alleges to
be infringed.
``(2) Timing of disclosures.--A complainant that is
required to make the disclosures under paragraph (1) shall make
those disclosures not later than the later of--
``(A) the date that is 10 days after the date on
which a relationship described in subparagraph (A) or
(B) of paragraph (5) is established between the
complainant and the applicable third party funder; or
``(B) the date on which process with respect to the
proceeding is first served.
``(3) Correction of disclosures.--A complainant that
submits the disclosures required under paragraph (1) shall, in
a timely manner, supplement or correct any element of such a
disclosure if the complainant learns that the element is, or
has become, incomplete or incorrect.
``(4) Sanctions.--The Commission in a proceeding described
in paragraph (1) shall impose appropriate sanctions on any
complainant that fails to comply in full with the requirements
of this subsection.
``(5) Third party funder defined.--In this subsection, the
term `third party funder' means, with respect to a proceeding
described in paragraph (1), any individual or entity, other
than the complainant in the proceeding (or the counsel of
record with respect to that complainant)--
``(A) that--
``(i) provides, or agrees to provide,
anything of value to--
``(I) that complainant or the
counsel of record with respect to that
complainant; or
``(II) another individual or entity
that provides, or agrees to provide,
anything of value to that complainant
or the counsel of record with respect
to that complainant; and
``(ii) receives, or has been promised, a
financial interest, the existence or value of
which is contingent upon, or would be
materially affected by, the receipt by that
complainant of a monetary payment or monetary
relief as a result of the proceeding, whether
through settlement, a judgment, or otherwise;
or
``(B) that has an equity stake of not less than 5
percent in an individual or entity described in
subparagraph (A).''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to complaints filed under section 337 of the Tariff Act of 1930
on or after the date of the enactment of this Act.
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