I 

113TH CONGRESS 

1ST SESSION H. R. 2281 

To combat cyber espionage of intellectual property of United States persons, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 6, 2013 

Mr. ROGERS of Michigan (for himself and Mr. RYAN of Ohio) introduced the 

following bill; which was referred to the Committee on Foreign Affairs, 

and in addition to the Committees on the Judiciary and Financial Services, for a period to be subsequently determined by the Speaker, in each 

case for consideration of such provisions as fall within the jurisdiction of 

the committee concerned 

A BILL 

To combat cyber espionage of intellectual property of United 

States persons, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Cyber Economic Espio5 nage Accountability Act’’. 

6 SEC. 2. FINDINGS AND SENSE OF CONGRESS. 

7 (a) FINDINGS.—Congress finds the following: 


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1 (1) The United States faces persistent cyber es2 pionage of intellectual property from foreign govern3 ments that threatens United States economic and 

4 national security interests, results in an unfair com5 petitive advantage for foreign companies, and is a 

6 major contributor to the loss of manufacturing jobs 

7 in the United States. 

8 (2) Cyber espionage of intellectual property by 

9 foreign actors is one of the most pressing issues fac10 ing innovators and entrepreneurs in the United 

11 States today. 

12 (3) The National Counterintelligence Executive 

13 stated in its October 2011 biennial economic espio14 nage report that ‘‘Chinese actors are the world’s 

15 most active and persistent perpetrators of economic 

16 espionage’’ and that ‘‘United States private sector 

17 firms and cybersecurity specialists have reported an 

18 onslaught of computer network intrusions that have 

19 originated in China’’. 

20 (4) The National Counterintelligence Executive 

21 also stated that ‘‘Russia’s intelligence services are 

22 conducting a range of activities to collect economic 

23 information and technology from U.S. targets’’. 

24 (5) The People’s Republic of China, the Rus25 sian Federation, and other countries threaten the 


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1 privacy of United States citizens by accessing and 

2 exploiting personally identifiable information 

3 through cyber economic espionage. 

4 (6) The People’s Republic of China, the Rus5 sian Federation, and other countries responsible for 

6 such cyber economic espionage are members of the 

7 World Trade Organization (WTO) and have agreed 

8 to comply with the global system of rules and obliga9 tions governing the international commerce and 

10 trade among member states. 

11 (7) The United States has recognized the mem12 bership of the People’s Republic of China, the Rus13 sian Federation, and other countries into the WTO 

14 by granting them Permanent Normal Trade Rela15 tions (PNTR) status under United States law. 

16 (8) Cyber economic espionage undermines the 

17 cooperative relationships between the United States 

18 and countries tolerating or encouraging such activi19 ties. 

20 (b) SENSE OF CONGRESS.—It is the sense of Con21 gress that— 

22 (1) cyber economic espionage should be a pri23 ority issue in all economic and diplomatic discussions 

24 with the People’s Republic of China, including dur25 ing all meetings of the U.S.-China Strategic and 


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1 Economic Dialogue, and with the Russian Federa2 tion and other countries determined to encourage, 

3 tolerate, or conduct such cyber economic espionage 

4 at appropriate bilateral meetings; 

5 (2) the United States should intensify diplo6 matic efforts in appropriate international fora such 

7 as the United Nations, the Organisation for Eco8 nomic Cooperation and Development (OECD), and 

9 summits such as the G–8 and G–20 summits, to ad10 dress the harm to the international economic order 

11 by cyber economic espionage; and 

12 (3) the Department of Justice should increase 

13 its efforts to bring economic espionage criminal 

14 cases against offending foreign actors, with penalties 

15 to include both fines and imprisonment, as well as 

16 encourage further cooperation among countries to 

17 address cyber economic espionage through criminal 

18 prosecutions. 

19 SEC. 3. IDENTIFICATION OF PERSONS RESPONSIBLE FOR 

20 CYBER ESPIONAGE OF INTELLECTUAL PROP21 ERTY OF UNITED STATES PERSONS. 

22 (a) IN GENERAL.—Not later than 120 days after the 

23 date of the enactment of this Act, the President shall sub24 mit to the appropriate congressional committees a list of 

25 persons who are officials of a foreign government or perVerDate Mar 15 2010 23:14 Jun 08, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2281.IH H2281

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1 sons acting on behalf of a foreign government that the 

2 President determines, based on credible information— 

3 (1) are responsible for cyber espionage of intel4 lectual property of United States persons; or 

5 (2) acted as an agent of or on behalf of a per6 son in a matter relating to an activity described in 

7 paragraph (1). 

8 (b) UPDATES.—The President shall submit to the ap9 propriate congressional committees an update of the list 

10 required by subsection (a) as new information becomes 

11 available. 

12 (c) FORM.— 

13 (1) IN GENERAL.—The list required by sub14 section (a) shall be submitted in unclassified form. 

15 (2) EXCEPTION.—The name of a person to be 

16 included in the list required by subsection (a) may 

17 be submitted in a classified annex only if the Presi18 dent— 

19 (A) determines that it is vital for the na20 tional security interests of the United States to 

21 do so; 

22 (B) uses the annex in such a manner con23 sistent with congressional intent and the pur24 poses of this Act; and 


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1 (C) 15 days prior to submitting the name 

2 in a classified annex, provides to the appro3 priate congressional committees notice of, and a 

4 justification for, including or continuing to in5 clude each person in the classified annex despite 

6 any publicly available credible information indi7 cating that the person engaged in an activity 

8 described in paragraph (1) or (2) of subsection 

9 (a). 

10 (3) PUBLIC AVAILABILITY.—The unclassified 

11 portion of the list required by subsection (a) shall be 

12 made available to the public and published in the 

13 Federal Register. 

14 (d) REMOVAL FROM LIST.—A person may be re15 moved from the list required by subsection (a) if the Presi16 dent determines and reports to the appropriate congres17 sional committees not less than 15 days prior to the re18 moval of the person from the list that credible information 

19 exists that the person did not engage in the activity for 

20 which the person was added to the list. 

21 (e) REQUESTS BY CHAIRPERSON AND RANKING

22 MEMBER OF APPROPRIATE CONGRESSIONAL COMMIT23 TEES.— 

24 (1) IN GENERAL.—Not later than 120 days 

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1 person and ranking member of one of the appro2 priate congressional committees with respect to 

3 whether a person meets the criteria for being added 

4 to the list required by subsection (a), the President 

5 shall submit a response to the chairperson and rank6 ing member of the committee which made the re7 quest with respect to the status of the person. 

8 (2) FORM.—The President may submit a re9 sponse required by paragraph (1) in classified form 

10 if the President determines that it is necessary for 

11 the national security interests of the United States 

12 to do so. 

13 (3) REMOVAL.—If the President removes from 

14 the list required by subsection (a) a person who has 

15 been placed on the list at the request of the chair16 person and ranking member of one of the appro17 priate congressional committees, the President shall 

18 provide the chairperson and ranking member with 

19 any information that contributed to the removal de20 cision. The President may submit such information 

21 in classified form if the President determines that 

22 such is necessary for the national security interests 

23 of the United States. 

24 (f) NONAPPLICABILITY OF CONFIDENTIALITY RE25 QUIREMENT WITH RESPECT TO VISA RECORDS.—The 


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1 President shall publish the list required by subsection (a) 

2 without regard to the requirements of section 222(f) of 

3 the Immigration and Nationality Act (8 U.S.C. 1202(f)) 

4 with respect to confidentiality of records pertaining to the 

5 issuance or refusal of visas or permits to enter the United 

6 States. 

7 SEC. 4. INADMISSIBILITY OF CERTAIN ALIENS. 

8 (a) INELIGIBILITY FOR VISAS.—An alien is ineligible 

9 to receive a visa to enter the United States and ineligible 

10 to be admitted to the United States if the alien is on the 

11 list required by section 3(a). 

12 (b) CURRENT VISAS REVOKED.—The Secretary of 

13 State, in consultation with the Secretary of Homeland Se14 curity, shall revoke, in accordance with section 221(i) of 

15 the Immigration and Nationality Act (8 U.S.C. 1201(i)), 

16 the visa or other documentation of any alien who would 

17 be ineligible to receive such a visa or documentation under 

18 subsection (a) of this section. 

19 (c) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

20 (1) IN GENERAL.—The Secretary of State may 

21 waive the application of subsection (a) or (b) in the 

22 case of an alien if— 

23 (A) the Secretary determines that such a 

24 waiver— 


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1 (i) is necessary to permit the United 

2 States to comply with the Agreement be3 tween the United Nations and the United 

4 States of America regarding the Head5 quarters of the United Nations, signed 

6 June 26, 1947, and entered into force No7 vember 21, 1947, or other applicable inter8 national obligations of the United States; 

9 or 

10 (ii) is in the national security interests 

11 of the United States; and 

12 (B) prior to granting such a waiver, the 

13 Secretary provides to the appropriate congres14 sional committees notice of, and a justification 

15 for, the waiver. 

16 (2) TIMING FOR CERTAIN WAIVERS.—Notifica17 tion under subparagraph (B) of paragraph (1) shall 

18 be made not later than 15 days prior to granting a 

19 waiver under such paragraph if the Secretary grants 

20 such waiver in the national security interests of the 

21 United States in accordance with subparagraph 

22 (A)(ii) of such paragraph. 

23 (d) REGULATORY AUTHORITY.—The Secretary of 

24 State shall prescribe such regulations as are necessary to 

25 carry out this section. 


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1 SEC. 5. FINANCIAL MEASURES. 

2 (a) FREEZING OF ASSETS.— 

3 (1) IN GENERAL.—The President shall exercise 

4 all powers granted by the International Emergency 

5 Economic Powers Act (50 U.S.C. 1701 et seq.) (ex6 cept that the requirements of section 202 of such 

7 Act (50 U.S.C. 1701) shall not apply) to the extent 

8 necessary to freeze and prohibit all transactions in 

9 all property and interests in property of a person 

10 who is on the list required by section 3(a) of this 

11 Act if such property and interests in property are in 

12 the United States, come within the United States, or 

13 are or come within the possession or control of a 

14 United States person. 

15 (2) EXCEPTION.—Paragraph (1) shall not 

16 apply to persons included on the classified annex 

17 under section 3(c)(2) if the President determines 

18 that such an exception is vital for the national secu19 rity interests of the United States. 

20 (b) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

21 The Secretary of the Treasury may waive the application 

22 of subsection (a) if the Secretary determines that such a 

23 waiver is in the national security interests of the United 

24 States. Not less than 15 days prior to granting such a 

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1 gressional committees notice of, and a justification for, the 

2 waiver. 

3 (c) ENFORCEMENT.— 

4 (1) PENALTIES.—A person that violates, at5 tempts to violate, conspires to violate, or causes a 

6 violation of this section or any regulation, license, or 

7 order issued to carry out this section shall be subject 

8 to the penalties set forth in subsections (b) and (c) 

9 of section 206 of the International Emergency Eco10 nomic Powers Act (50 U.S.C. 1705) to the same ex11 tent as a person that commits an unlawful act de12 scribed in subsection (a) of such section. 

13 (2) REQUIREMENTS FOR FINANCIAL INSTITU14 TIONS.—Not later than 120 days after the date of 

15 the enactment of this Act, the Secretary of the 

16 Treasury shall prescribe or amend regulations as 

17 needed to require each financial institution that is a 

18 United States person and has within its possession 

19 or control assets that are property or interests in 

20 property of a person who is on the list required by 

21 section 3(a) if such property and interests in prop22 erty are in the United States to certify to the Sec23 retary that, to the best of the knowledge of the fi24 nancial institution, the financial institution has fro25 zen all assets within the possession or control of the 


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1 financial institution that are required to be frozen 

2 pursuant to subsection (a). 

3 (d) SPECIALLY DESIGNATED NATIONALS LIST.—The 

4 Secretary of the Treasury shall include on the list of spe5 cially designated nationals and blocked persons main6 tained by the Office of Foreign Assets Control of the De7 partment of the Treasury each person who is on the list 

8 required by section 3(a) of this Act. 

9 (e) REGULATORY AUTHORITY.—The Secretary of the 

10 Treasury shall issue such regulations, licenses, and orders 

11 as are necessary to carry out this section. 

12 SEC. 6. REPORT TO CONGRESS. 

13 Not later than one year after the date of the enact14 ment of this Act and annually thereafter, the Secretary 

15 of State and the Secretary of the Treasury shall submit 

16 to the appropriate congressional committees a report on— 

17 (1) the actions taken to carry out this Act, in18 cluding— 

19 (A) the number of persons added to or re20 moved from the list required by section 3(a) 

21 during the year preceding the report, the dates 

22 on which such persons have been added or re23 moved, and the reasons for adding or removing 

24 them; and 


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1 (B) if few or no such persons have been 

2 added to that list during that year, the reasons 

3 for not adding more such persons to the list; 

4 and 

5 (2) efforts by the executive branch to encourage 

6 the governments of other countries to impose sanc7 tions that are similar to the sanctions imposed under 

8 this Act. 

9 SEC. 7. DEFINITIONS. 

10 In this Act: 

11 (1) ADMITTED; ALIEN.—The terms ‘‘admitted’’ 

12 and ‘‘alien’’ have the meanings given those terms in 

13 section 101 of the Immigration and Nationality Act 

14 (8 U.S.C. 1101). 

15 (2) APPROPRIATE CONGRESSIONAL COMMIT16 TEES.—The term ‘‘appropriate congressional com17 mittees’’ means— 

18 (A) the Committee on Armed Services, the 

19 Committee on Financial Services, the Com20 mittee on Foreign Affairs, the Committee on 

21 Homeland Security, the Committee on the Judi22 ciary, and the Permanent Select Committee on 

23 Intelligence of the House of Representatives; 

24 and 


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1 (B) the Committee on Armed Services, the 

2 Committee on Banking, Housing, and Urban 

3 Affairs, the Committee on Foreign Relations, 

4 the Committee on Homeland Security and Gov5 ernmental Affairs, the Committee on the Judi6 ciary, and the Select Committee on Intelligence 

7 of the Senate. 

8 (3) FINANCIAL INSTITUTION.—The term ‘‘fi9 nancial institution’’ has the meaning given that term 

10 in section 5312 of title 31, United States Code. 

11 (4) UNITED STATES PERSON.—The term 

12 ‘‘United States person’’ means— 

13 (A) a United States citizen or an alien law14 fully admitted for permanent residence to the 

15 United States; or 

16 (B) an entity organized under the laws of 

17 the United States or of any jurisdiction within 

18 the United States, including a foreign branch of 

19 such an entity. 

Æ 


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