[Congressional Record Volume 168, Number 200 (Thursday, December 22, 2022)]
[House]
[Pages H10022-H10024]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
PROTECTING AMERICAN INTELLECTUAL PROPERTY ACT OF 2022
Mr. MEEKS. Madam Speaker, I move to suspend the rules and pass the
bill (S. 1294) to authorize the imposition of sanctions with respect to
foreign persons that have engaged in significant theft of trade secrets
of United States persons, and for other purposes.
The Clerk read the title of the bill.
The text of the bill is as follows:
S. 1294
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
Intellectual Property Act of 2022''.
SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO THEFT OF
TRADE SECRETS OF UNITED STATES PERSONS.
(a) Report Required.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than
annually thereafter, the President shall submit to the
appropriate congressional committees a report--
(A) identifying any foreign person the President
determines, during the period specified in paragraph (2)--
(i) has knowingly engaged in, or benefitted from,
significant theft of trade secrets of United States persons,
if the theft of such trade secrets occurred on or after such
date of enactment and is reasonably likely to result in, or
has materially contributed to, a significant threat to the
national security, foreign policy, or economic health or
financial stability of the United States;
(ii) has provided significant financial, material, or
technological support for, or goods or services in support of
or to benefit significantly from, such theft;
(iii) is an entity that is owned or controlled by, or that
has acted or purported to act for or on behalf of, directly
or indirectly, any foreign person identified under clause (i)
or (ii); or
(iv) is a chief executive officer or member of the board of
directors of any foreign entity identified under clause (i)
or (ii);
(B) describing the nature, objective, and outcome of the
theft of trade secrets each foreign person described in
subparagraph (A)(i) engaged in or benefitted from; and
(C) assessing whether any chief executive officer or member
of the board of directors described in clause (iv) of
subparagraph (A) engaged in, or benefitted from, activity
described in clause (i) or (ii) of that subparagraph.
(2) Period specified.--The period specified in this
paragraph is--
(A) in the case of the first report required by paragraph
(1), the period beginning on the date of the enactment of
this Act and ending on the date on which the report is
required to be submitted; and
(B) in the case of each subsequent report required by
paragraph (1), the one-year period preceding the date on
which the report is required to be submitted.
(3) Form of report.--Each report required by paragraph (1)
shall be submitted in unclassified form but may include a
classified annex.
(b) Authority to Impose Sanctions.--
(1) Sanctions applicable to entities.--In the case of a
foreign entity identified under subparagraph (A) of
subsection (a)(1) in the most recent report submitted under
that subsection, the President shall impose 5 or more of the
following:
(A) Blocking of property.--The President may, pursuant to
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of the entity if such
property and interests in property are in the United States,
come within the United States, or are or come within the
possession or control of a United States person.
(B) Inclusion on entity list.--The President may include
the 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 the Export
Administration Regulations, for activities contrary to the
national security or foreign policy interests of the United
States.
(C) Export-import bank assistance for exports to sanctioned
persons.--The President may direct the Export-Import Bank of
the United States not to give approval to the issuance of any
guarantee, insurance, extension of credit, or participation
in the extension of credit in connection with the export of
any goods or services to the entity.
(D) Loans from united states financial institutions.--The
President may prohibit any United States financial
institution from making loans or providing credits to the
entity totaling more than $10,000,000 in any 12-month period
unless the person is engaged in activities to relieve human
suffering and the loans or credits are provided for such
activities.
(E) Loans from international financial institutions.--The
President may direct the United States executive director to
each international financial institution to use the voice and
vote of the United States to oppose any loan from the
international financial institution that would benefit the
entity.
(F) Prohibitions on financial institutions.--The following
prohibitions may be imposed against the entity if the entity
is a financial institution:
(i) Prohibition on designation as primary dealer.--Neither
the Board of Governors of the Federal Reserve System nor the
Federal Reserve Bank of New York may designate, or permit the
continuation of any prior designation of, the financial
institution as a primary dealer in United States Government
debt instruments.
(ii) Prohibition on service as a repository of government
funds.--The financial institution may not serve as agent of
the United States Government or serve as repository for
United States Government funds.
The imposition of either sanction under clause (i) or (ii)
shall be treated as one sanction for purposes of this
paragraph, and the imposition of both such sanctions shall be
treated as 2 sanctions for purposes of this paragraph.
(G) Procurement sanction.--The United States Government may
not procure, or enter into any contract for the procurement
of, any goods or services from the entity.
(H) Foreign exchange.--The President may, pursuant to such
regulations as the President may prescribe, prohibit any
transactions in foreign exchange that are subject to the
jurisdiction of the United States and in which the entity has
any interest.
(I) Banking transactions.--The President may, pursuant to
such regulations as the President may prescribe, prohibit any
transfers of credit or payments between financial
institutions or by, through, or to any financial institution,
to the extent that such transfers or payments are subject to
the jurisdiction of the United States and involve any
interest of the entity.
(J) Ban on investment in equity or debt of sanctioned
person.--The President may, pursuant to such regulations or
guidelines as the President may prescribe, prohibit any
United States person from investing in or purchasing
significant amounts of equity or debt instruments of the
entity.
(K) Exclusion of corporate officers.--The President may
direct the Secretary of State to deny a visa to, and the
Secretary of Homeland Security to exclude from the United
States, any alien that the President determines is a
corporate officer or principal of, or a shareholder with a
controlling interest in, the entity.
(L) Sanctions on principal executive officers.--The
President may impose on the principal executive officer or
officers of the entity, or on individuals performing similar
functions and with similar authorities as such officer or
officers, any of the sanctions under this paragraph.
(2) Sanctions applicable to individuals.--In the case of an
alien identified under subparagraph (A) of subsection (a)(1)
in the most recent report submitted under that subsection,
the following shall apply:
(A) Blocking of property.--The President shall, pursuant to
the International Emergency Economic Powers Act (50 U.S.C.
1701 et seq.), block and prohibit all transactions in all
property and interests in property of the alien if such
property and interests in property are in the United States,
come within the United States, or are or come within the
possession or control of a United States person.
(B) Ineligibility for visas, admission, or parole.--
(i) Visas, admission, or parole.--An alien described in
subparagraph (A) of subsection (a)(1) is--
(I) inadmissible to the United States;
(II) ineligible to receive a visa or other documentation to
enter the United States; and
[[Page H10023]]
(III) otherwise ineligible to be admitted or paroled into
the United States or to receive any other benefit under the
Immigration and Nationality Act (8 U.S.C. 1101 et seq.).
(ii) Current visas revoked.--
(I) In general.--An alien described in subparagraph (A) of
subsection (a)(1) is subject to revocation of any visa or
other entry documentation regardless of when the visa or
other entry documentation is or was issued.
(II) Immediate effect.--A revocation under subclause (I)
shall--
(aa) take effect pursuant to section 221(i) of the
Immigration and Nationality Act (8 U.S.C. 1201(i)); and
(bb) cancel any other valid visa or entry documentation
that is in the alien's possession.
(c) National Interest Waiver.--The President may waive the
imposition of sanctions under subsection (b) with respect to
a person if the President--
(1) determines that such a waiver is in the national
interests of the United States; and
(2) not more than 15 days after issuing the waiver, submits
to the appropriate congressional committees a notification of
the waiver and the reasons for the waiver.
(d) Implementation; Penalties.--
(1) Implementation.--The President may exercise all
authorities provided under sections 203 and 205 of the
International Emergency Economic Powers Act (50 U.S.C. 1702
and 1704) to carry out this section.
(2) Penalties.--A person that violates, attempts to
violate, conspires to violate, or causes a violation of this
section or any regulation, license, or order issued to carry
out this section shall be subject to the penalties set forth
in subsections (b) and (c) of section 206 of the
International Emergency Economic Powers Act (50 U.S.C. 1705)
to the same extent as a person that commits an unlawful act
described in subsection (a) of that section.
(e) Exceptions.--
(1) Intelligence activities.--This section shall not apply
with respect to activities subject to the reporting
requirements under title V of the National Security Act of
1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence
activities of the United States.
(2) Law enforcement activities.--Sanctions under this
section shall not apply with respect to any authorized law
enforcement activities of the United States.
(3) Exception to comply with international agreements.--
Sanctions under this section shall not apply with respect to
the admission of an alien to the United States if such
admission is necessary to comply with the obligations of the
United States under the Agreement regarding the Headquarters
of the United Nations, signed at Lake Success June 26, 1947,
and entered into force November 21, 1947, between the United
Nations and the United States, or the Convention on Consular
Relations, done at Vienna April 24, 1963, and entered into
force March 19, 1967, or other international obligations.
(4) Exception relating to importation of goods.--
(A) In general.--The authority or a requirement to impose
sanctions under this section shall not include the authority
or a requirement to impose sanctions on the importation of
goods.
(B) Good defined.--In this paragraph, the term ``good''
means any article, natural or manmade substance, material,
supply, or manufactured product, including inspection and
test equipment, and excluding technical data.
(f) Sunset.--This section shall terminate on the date that
is 7 years after the date of the enactment of this Act.
(g) Definitions.--In this section:
(1) Admission; admitted; alien; lawfully admitted for
permanent residence.--The terms ``admission'', ``admitted'',
``alien'', and ``lawfully admitted for permanent residence''
have the meanings given those terms in section 101 of the
Immigration and Nationality Act (8 U.S.C. 1101).
(2) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Foreign Relations of the Senate; and
(B) the Committee on Financial Services and the Committee
on Foreign Affairs of the House of Representatives.
(3) Entity.--The term ``entity'' means a partnership,
association, trust, joint venture, corporation, group,
subgroup, or other organization.
(4) Export administration regulations.--The term ``Export
Administration Regulations'' has the meaning given that term
in section 1742 of the Export Control Reform Act of 2018 (50
U.S.C. 4801).
(5) Foreign entity.--The term ``foreign entity'' means an
entity that is not a United States person.
(6) Foreign person.--The term ``foreign person'' means any
person that is not a United States person.
(7) Knowingly.--The term ``knowingly'', with respect to
conduct, a circumstance, or a result, means that a person has
actual knowledge, or should have known, of the conduct, the
circumstance, or the result.
(8) Person.--The term ``person'' means an individual or
entity.
(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) a United States citizen or an alien lawfully admitted
for permanent residence to the United States;
(B) an entity organized under the laws of the United States
or of any jurisdiction within the United States, including a
foreign branch of such an entity; or
(C) any person in the United States.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. Meeks) and the gentleman from South Carolina (Mr. Wilson)
each will control 20 minutes.
The Chair recognizes the gentleman from New York.
General Leave
Mr. MEEKS. Madam Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on S. 1294.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from New York?
There was no objection.
Mr. MEEKS. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I rise today in support of S. 1294, the Protecting
American Intellectual Property Act of 2021.
The United States of America has the most innovative people,
researchers, and companies in the world. In the depths of the pandemic,
American government research institutes partnered with private sector
companies to create the world's best vaccines. These miracles of modern
medicine have saved millions of lives here at home and tens of millions
of people around the world. From weapons systems to enterprise software
and semiconductor design to smart phones, America is at the leading
edge of the technological frontier.
Innovation is crucial to our health, our wealth, and our security.
But many of the benefits we reap from research and development go out
the window if thieves can literally steal our intellectual property
without cost or consequence. While trade remedies and criminal statutes
can be applied to intellectual property theft, they have proven
incapable of stemming the flow of digital hacks and in-person espionage
against our Nation. We need a true systemic deterrent, and this
legislation is a crucial part of the solution.
By creating an authorized and codified sanctions regime for
intellectual property violators, we are letting the world know that
would-be hackers, digital pickpockets, and copycats of the world know
that their actions will draw a forceful response from the United States
Government.
The sanctions regime laid out in this bill are modeled off of several
sections of the Countering America's Adversaries Through Sanctions Act.
The bill is very clear: sanctions against IP violators are mandatory
and will be imposed. The bill also provides appropriate flexibility to
the executive branch and allows the President to choose from an array
of travel, procurement, and financial sanctions to impose upon IP-
violating foreign businesses. In other words, the President will have
the flexibility to impose more targeted or even tougher sanctions
depending upon the scale and significance of the IP theft in question.
Madam Speaker, I strongly support this legislation and I strongly ask
all of my colleagues to do the same.
Madam Speaker, I reserve the balance of my time.
Mr. WILSON of South Carolina. Madam Speaker, I yield myself such time
as I may consume.
Madam Speaker, I rise in support of this bill. I appreciate the
bipartisan leadership of Chairman Greg Meeks as we see this
legislation today. America has always been a country on the forefront
of innovation. As a Nation, we imagine the impossible and make it a
reality, as Congressman Meeks has so well pointed out.
As a leader in the development of high-tech innovations, the United
States has built our national strength on our technological prowess.
This includes some of the advanced technology that powers everything
from our advanced aerospace and weapons systems, to our household
appliances, and the GPS system in our cars.
Over the last few decades, we have seen American innovation stolen by
the People's Republic of China, the Chinese Communist Party,
threatening our technological leadership. If China can't buy our
technology, they will steal it.
Just a few weeks ago, a year's-long malicious cyber operation by the
PRC
[[Page H10024]]
was uncovered. It is estimated to have siphoned off trillions of
dollars in intellectual property from around 30 multinational companies
within the manufacturing, energy, and pharmaceutical sectors.
Time and time again, we have seen the PRC do anything to gain a
technological edge. We must recognize the PRC as a strategic
competitor, and we have a right to treat them as such.
While I wholeheartedly support this measure and urge my colleagues to
do the same, we must also examine the Department of Commerce's Bureau
of Industry and Security. We must ensure that the United States has the
necessary export controls in place to prevent the sale of advanced
technology that could be used against us.
We recently witnessed a PRC hypersonic missile test, which circled
the globe and landed with precision. This was only possible through
U.S. technology that was sold to them. This should be a wake-up call to
all Americans.
This is not just an intellectual property issue. It is a national
security issue. That is why this bill is so important. It requires
Congress be provided a list of any individual or firm that has engaged
in, benefited from, or provided support for the theft of U.S. trade
secrets.
If any entity is found to do so, the United States can levy sanctions
against that entity--setting export prohibitions, preventing loans from
U.S. and international financial institutions, and prohibiting banking
transactions.
This legislation would severely penalize those engaged in
intellectual property theft, and more importantly, take proactive steps
to end the rampant theft of American innovation.
Madam Speaker, I urge my colleagues to support this important
national security measure, and I reserve the balance of my time.
Mr. MEEKS. Madam Speaker, I yield myself such time as I may consume.
Madam Speaker, I thank Mr. Wilson for his statement because this is
truly a bipartisan effort trying to make sure that we preserve American
ingenuity and American leadership on intellectual property and not have
it stolen.
Madam Speaker, I was moved last night in this very Chamber by the
statements of President Zelenskyy, which were really inspiring and
important to me. I got tied up, I wanted to talk about this bill. This
bill is important. I also thought it was important that right before,
this we had a conversation about S. 4240, the Justice for Victims of
War Crimes Act. No, it is not completely relevant, but on this it has
some connection.
On February 24 of this year, Russia launched its full-scale invasion
of Ukraine. With each passing day since, the world has witnessed in
horror as Putin's forces brutalize the Ukrainian people.
We have seen Russian forces commit mass murder, target civilian areas
like schools and hospitals, forcibly transferring hundreds of
thousands, including young children to Russia. We have heard so many
testimonials about the atrocities committed against the Ukrainian
people during Russia's occupation.
What has happened in Ukraine shocks the conscience of humanity, and
the images of these atrocities are seared into our collective memory.
Yet, as of right now, if someone guilty of these war crimes were to
come to the United States, we would not have the jurisdiction to bring
them to justice. That important legislation, S. 4240, is saying that we
have got to bring them to justice because, as Dr. King said,
``Injustice anywhere is a threat to justice everywhere.'' So the United
States has to make sure that no one escapes justice simply by coming
through our borders and that anyone guilty of war crimes, regardless of
where they were committed, are held accountable.
Similarly, those that violate our intellectual property rights, they
can't just walk free and think that they can take our ingenuity, our
leadership, our advancement with reference to intellectual property,
and just take it and use it for anything.
It is the same kind of thing with the transfer of weapons or anything
of that nature.
We have got to stand and show that we are serious. We are serious
about those victims of war crimes and we are just as serious about
those individuals who violate our intellectual property rights. We have
got to make sure that they are all held accountable and that they
understand that there will be consequences if, in fact, there are
violations.
Madam Speaker, I reserve the balance of my time.
{time} 1145
Mr. WILSON of South Carolina. I yield myself the balance of my time.
Madam Speaker, this is, again, an indication of bipartisanship. I
appreciate Chairman Greg Meeks and referencing the speech last night,
the historic speech by the President of Ukraine, Volodymyr Zelenskyy.
It was bipartisan.
Initially, the unintended action of war criminal Putin was to unify
Republicans and Democrats in a bipartisan manner due to the depravity
of the invasion and the mass murder being conducted in Ukraine.
But actually, we saw last night, Republicans and Democrats have come
together to respect the resolve and the capabilities of the people of
Ukraine to defend themselves. It is so inspiring and again, unintended.
War criminal Putin has brought Republicans and Democrats together;
has brought NATO together and expanded NATO with Finland and Sweden;
how incredible.
He has achieved, sadly, but it is really good that the European Union
now is actively supporting the people of Ukraine. Then worldwide, it is
not America alone helping the people of Ukraine. We have substantial
efforts by South Korea, by Japan, worldwide, dozens of countries that
are helping.
Again, I appreciate Congressman Meeks raising that because it was a
bipartisan initiative that now we can proceed with this to take action
against the continuous threat of American intellectual property.
According to former Secretary of State Mike Pompeo, the U.S. has
closed the People's Republic of China consulate in Houston because it
was a ``den of spies'' and a ``hub of spying and intellectual property
theft.''
We have seen the PRC steal research from our universities. We can
also, sadly, be sure this is happening all across America as we speak.
This must stop.
We must end the theft and sale of U.S. technology to China to build
their war machine. We must prepare for the next great global power
competition, and that starts by instituting strong export controls and
passing this legislation to stem the tide of American intellectual
property theft.
I support this legislation, and I urge my colleagues to do the same.
Madam Speaker, I yield back the balance of my time.
Mr. MEEKS. Madam Speaker, I yield myself the balance of my time.
The lifeblood of the American economy is innovation, and individuals
and companies that steal our trade secrets and pickpocket our patents
are doing no less than undermining the health of this Nation. It is
time that we impose real costs on intellectual property thieves, and
that is exactly what this bill does.
I, again, thank my friend and colleague, Joe Wilson. I thank
Ranking Member McCaul for working in a bipartisan way on this committee
as we combat some of these ills that are facing our Nation by those who
mean us or democracy no good.
Madam Speaker, I ask all of my colleagues to support this important
legislation. Let's send it to the President's desk and let the world
know we will not tolerate the theft of our intellectual property.
Madam Speaker, I yield back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from New York (Mr. Meeks) that the House suspend the rules
and pass the bill, S. 1294.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill was passed.
A motion to reconsider was laid on the table.
____________________