[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.

                          ____________________