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.

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.