[Congressional Record Volume 165, Number 107 (Tuesday, June 25, 2019)]
[Senate]
[Pages S4518-S4519]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 895. Mr. RUBIO submitted an amendment intended to be proposed to 
amendment SA 764 proposed by Mr. Inhofe to the bill S. 1790, to 
authorize appropriations for fiscal year 2020 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle H of title X, add the following:

     SEC. __. COVERED INFRINGEMENT ACTIONS.

       (a) Definitions.--In this section--
       (1) the term ``affected proceeding'' means an action for 
     patent infringement under title 35, United States Code, an 
     investigation under section 337 of the Tariff Act of 1930 (19 
     U.S.C. 1337), or any other administrative or judicial 
     proceeding in which--
       (A) a patent issued by the United States Patent and 
     Trademark Office is a subject of the proceeding; and
       (B) a designated entity--
       (i) is the owner or exclusive licensee of the patent 
     described in subparagraph (A);
       (ii) has a financial interest in the outcome of the 
     proceeding; or
       (iii) has direct or indirect control over the conduct of 
     the litigation of the matter by the holder of the patent 
     described in subparagraph (A);
       (2) the term ``covered regulations'' means the Export 
     Administration Regulations under subchapter C of chapter VII 
     of title 15, Code of Federal Regulations; and
       (3) the term ``designated entity'' means--
       (A) an entity on the entity list maintained by the Bureau 
     of Industry and Security of the Department of Commerce and 
     set forth in Supplement No. 4 to part 744 of title 15, Code 
     of Federal Regulations; or
       (B) any parent, subsidiary, or affiliate of an entity 
     described in subparagraph (A).
       (b) Conduct of Affected Proceedings.--Notwithstanding any 
     other provision of law or regulation, the following 
     requirements shall apply with respect to an affected 
     proceeding:
       (1) The pleadings alleging patent infringement shall, with 
     respect to any patent in which a designated entity has an 
     interest--
       (A) state with particularity the facts and circumstances 
     constituting that infringement, including--
       (i) all patent claims alleged to be infringed; and
       (ii) all products and services alleged to be infringed;
       (B) provide a detailed identification of the specific 
     elements of each patent claim that is found in each product 
     and service identified under subparagraph (A)(ii); and
       (C) state with particularity all damages or other remedies 
     sought in the proceeding.
       (2) Excluding legal counsel for the designated entity, 
     neither the designated entity nor the agents or 
     representatives of the designated entity may obtain through 
     discovery, or by other means, any non-public information of 
     any entity or person related to any technical features or 
     operation of a product or service.
       (3) Upon the filing of the affected proceeding, the 
     designated entity shall provide notice of the proceeding to 
     the Department of Justice and the United States Patent and 
     Trademark Office.
       (4) The United States shall have the unconditional right to 
     intervene as a party in the proceeding under rule 24(a) of 
     the Federal Rules of Civil Procedure.
       (c) Restrictions on Certain Patent Transactions.--
     Notwithstanding any other provision of law or regulation, the 
     following requirements shall apply with respect to the sale 
     or exclusive license of a patent issued by the United States 
     Patent and Trademark Office:
       (1) The sale or license is prohibited if the sale or 
     license is to a designated entity and the entity has not 
     undergone review under section 721 of the Defense Production 
     Act of 1950 (50 U.S.C. 4565).
       (2) The sale or license is prohibited if the sale or 
     license is to or by a designated entity and the manufacture, 
     sale, use, import, or export of a product or service that is 
     subject to the covered regulations would infringe the patent, 
     unless an appropriate license is granted under the covered 
     regulations.

[[Page S4519]]

       (3) With respect to a patent not involving a drug or 
     biological product, the sale or license of the patent to or 
     by a designated entity to any foreign entity or affiliate 
     shall require notification pursuant to rules under subsection 
     (d)(1) and the waiting period described in subsection (b)(1) 
     of section 7A of the Clayton Act (15 U.S.C. 18a), 
     notwithstanding any other provision of that Act.
       (d) List.--The Under Secretary of Commerce for Intellectual 
     Property and Director of the United States Patent and 
     Trademark Office shall maintain a publicly available list of 
     all designated entities.
                                 ______