I 

118TH CONGRESS 

2D SESSION H. R. 8924 

To require the Secretary of Commerce to identify and report on foreign 

adversary entities using intellectual property related to emerging technology without a license, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 2, 2024 

Mrs. KIM of California (for herself and Mr. MOOLENAAR) introduced the 

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

A BILL 

To require the Secretary of Commerce to identify and report 

on foreign adversary entities using intellectual property 

related to emerging technology without a license, 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 ‘‘Protecting American 

5 Innovation and Development Act of 2024’’ or the ‘‘PAID 

6 Act of 2024’’. 


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1 SEC. 2. STATEMENT OF POLICY. 

2 Section 1752(2) of the Export Control Reform Act 

3 of 2018 (50 U.S.C. 4811(2)) is amended by inserting after 

4 subparagraph (G) the following: 

5 ‘‘(H) To ensure the continued strength 

6 and leadership of the United States in the re7 search and development of critical and emerg8 ing technologies.’’. 

9 SEC. 3. PUBLIC TRANSPARENCY REGARDING FOREIGN AD10 VERSARY ENTITIES USING INTELLECTUAL 

11 PROPERTY RELATED TO CRITICAL OR 

12 EMERGING TECHNOLOGY WITHOUT A LI13 CENSE. 

14 (a) IN GENERAL.—Part I of the Export Control Re15 form Act of 2018 (50 U.S.C. 4811 et seq.) is amended 

16 by inserting after section 1758 the following: 

17 ‘‘SEC. 1758A. PUBLIC TRANSPARENCY REGARDING FOR18 EIGN ADVERSARY ENTITIES USING INTEL19 LECTUAL PROPERTY RELATED TO CRITICAL 

20 OR EMERGING TECHNOLOGY WITHOUT A LI21 CENSE. 

22 ‘‘(a) IDENTIFICATION.— 

23 ‘‘(1) IN GENERAL.—The Secretary shall publish 

24 in the Federal Register a notice that identifies a for25 eign adversary entity if a majority of the members 

26 of the End-User Review Committee determines that 


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1 the foreign adversary entity is using a patented in2 vention or covered trade secret without a license, in3 cluding if a majority of the members of the Com4 mittee determines that the foreign adversary enti5 ty— 

6 ‘‘(A) is manufacturing or selling a product 

7 that incorporates a patented invention or cov8 ered trade secret without a license; 

9 ‘‘(B) acquired a patented invention or cov10 ered trade secret through improper means, in11 cluding— 

12 ‘‘(i) theft; 

13 ‘‘(ii) bribery; 

14 ‘‘(iii) misrepresentation; 

15 ‘‘(iv) breach of, or an inducement of a 

16 breach of, a duty to maintain secrecy; or 

17 ‘‘(v) espionage; or 

18 ‘‘(C) disclosed a patented invention or cov19 ered trade secret without express or implied 

20 consent. 

21 ‘‘(2) IDENTIFICATION BY PETITION.— 

22 ‘‘(A) IN GENERAL.—A United States per23 son may submit a petition to the End-User Re24 view Committee requesting the Committee to 

25 make a determination in accordance with the 


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1 requirements of paragraph (1) for purposes of 

2 the Secretary publishing in the Federal Reg3 ister a notice that identifies a foreign adversary 

4 entity in accordance with the requirements of 

5 paragraph (1) if the United States person— 

6 ‘‘(i) has reason to believe that a for7 eign entity is using a patented invention or 

8 covered trade secret without a license; and 

9 ‘‘(ii) is the owner of that patented in10 vention or covered trade secret. 

11 ‘‘(B) DEADLINE.—After the End-User Re12 view Committee receives a petition submitted 

13 under subparagraph (A), the Committee shall 

14 make a determination with respect to the peti15 tion in accordance with the requirements of 

16 paragraph (1) not later than 90 days after the 

17 date on which the Committee receives the peti18 tion. 

19 ‘‘(3) REMOVAL.— 

20 ‘‘(A) IN GENERAL.—The Secretary shall 

21 publish in the Federal Register a subsequent 

22 notice with respect to a foreign adversary entity 

23 identified in the Federal Register under the 

24 process described in this section if the Sec25 retary, in consultation with the other members 


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1 of the End-User Review Committee, determines 

2 that there is prima facie evidence that the for3 eign adversary entity— 

4 ‘‘(i) is no longer using a patented in5 vention or covered trade secret without a 

6 license; or 

7 ‘‘(ii) is using a patented invention or 

8 covered trade secret without a license, 

9 but— 

10 ‘‘(I) has entered into an agree11 ment for such use with the owner of 

12 the patented invention or covered 

13 trade secret; or 

14 ‘‘(II) has entered into binding ar15 bitration with the owner of the pat16 ented invention or covered trade se17 cret to set the terms for such use. 

18 ‘‘(B) REMOVAL BY PETITION.—If a foreign 

19 adversary entity identified in the Federal Reg20 ister under the process described in this section 

21 for using a patented invention or covered trade 

22 secret without a license, or the owner of the 

23 patented invention or covered trade secret, be24 lieves that the foreign adversary entity meets 

25 the conditions described in clause (i) or (ii) of 


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1 subparagraph (A), the foreign adversary entity 

2 or the owner of the patented invention or cov3 ered secret may petition the Secretary to have 

4 the Secretary publish in the Federal Register a 

5 subsequent notice with respect to the foreign 

6 adversary entity. 

7 ‘‘(b) REPORT REQUIRED.—Upon request from any of 

8 the appropriate congressional committees, the Secretary 

9 shall submit to the appropriate congressional committees 

10 a report that includes a list of all foreign adversary enti11 ties identified in the Federal Register under the process 

12 described in this section, including a written explanation 

13 of the reasons therefor. 

14 ‘‘(c) DEFINITION OF CRITICAL OR EMERGING TECH15 NOLOGY.—In this section, the term ‘critical or emerging 

16 technology’ includes any technology defined by the Under 

17 Secretary of Defense for Research and Engineering as a 

18 ‘critical technology area’ as soon as practicable on or after 

19 the date of the enactment of this section. 

20 ‘‘(d) OTHER DEFINITIONS.—In this section: 

21 ‘‘(1) APPROPRIATE CONGRESSIONAL COMMIT22 TEES.—The term ‘appropriate congressional com23 mittees’ means— 

24 ‘‘(A) the Committee on Banking, Housing, 

25 and Urban Affairs of the Senate; and 


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1 ‘‘(B) the Committee on Foreign Affairs 

2 and the Select Committee on the Strategic 

3 Competition Between the United States and the 

4 Chinese Communist Party of the House of Rep5 resentatives. 

6 ‘‘(2) END-USER REVIEW COMMITTEE.—The 

7 term ‘End-User Review Committee’ means the End8 User Review Committee described in Supplement 

9 No. 9 to part 748(1) of the Export Administration 

10 Regulations, or any successor regulation, as making 

11 decisions related to export controls. 

12 ‘‘(3) FOREIGN ADVERSARY.—The term ‘foreign 

13 adversary’ means— 

14 ‘‘(A) the People’s Republic of China (in15 cluding the Special Administrative Regions of 

16 China, including Hong Kong and Macau); 

17 ‘‘(B) the Russian Federation; 

18 ‘‘(C) the Republic of Cuba; 

19 ‘‘(D) the Democratic People’s Republic of 

20 Korea; 

21 ‘‘(E) the Islamic Republic of Iran; and 

22 ‘‘(F) the Venezuelan regime under the 

23 leadership of Nicolas Maduro. 

24 ‘‘(4) FOREIGN ADVERSARY ENTITY.—The term 

25 ‘foreign adversary entity’— 


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1 ‘‘(A) means— 

2 ‘‘(i) an individual who is a citizen or 

3 national (as defined in section 101(a) of 

4 the Immigration and Nationality Act (8 

5 U.S.C. 1101(a))) of a foreign adversary; 

6 ‘‘(ii) an entity that is headquartered 

7 in, or organized under the laws of, or has 

8 its principal place of business in a foreign 

9 adversary; 

10 ‘‘(iii) an entity subject to the control 

11 (as that term is defined in section 800.208 

12 of subpart B of chapter VIII of title 31, 

13 Code of Federal Regulations, or any suc14 cessor regulations) of any entity or com15 bination of entities described in clause (i) 

16 or (ii); or 

17 ‘‘(iv) any successor, subsidiary, or af18 filiate of any entity described in clause (i), 

19 (ii), or (iii); but 

20 ‘‘(B) does not include any entity with re21 spect to which— 

22 ‘‘(i) a majority of the equity interest 

23 in the entity is owned by nationals of the 

24 United States and nationals of such coun25 tries (other than a foreign adversary) as 


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1 are identified for purposes of this subpara2 graph pursuant to regulations prescribed 

3 by the Secretary; or 

4 ‘‘(ii) its ultimate parent entity is an 

5 entity organized under the laws of, and 

6 headquartered in, the United States or its 

7 States, territories, or subdivisions. 

8 ‘‘(5) OWNER OF THE PATENTED INVENTION OR

9 COVERED TRADE SECRET.—The term ‘owner of the 

10 patented invention or covered trade secret’ means— 

11 ‘‘(A) in the case of a patented invention, 

12 the person or entity in whom or in which right13 ful legal or equitable title to, or license in, the 

14 applicable patent is reposed; and 

15 ‘‘(B) in the case of a covered trade secret, 

16 the person or entity in whom or in which right17 ful legal or equitable title to, or license in, the 

18 applicable trade secret is reposed. 

19 ‘‘(6) PATENTED INVENTION.—The term ‘pat20 ented invention’ means an invention— 

21 ‘‘(A) related to critical or emerging tech22 nology; and 

23 ‘‘(B) protected by a patent— 

24 ‘‘(i) issued under title 35, United 

25 States Code; and 


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1 ‘‘(ii) with respect to which the rightful 

2 legal or equitable title to, or license in such 

3 patent is reposed in a United States per4 son. 

5 ‘‘(7) COVERED TRADE SECRET.—The term ‘cov6 ered trade secret’ means a trade secret (as such 

7 term is defined in section 1839 of title 18, United 

8 States Code)— 

9 ‘‘(A) related to critical or emerging tech10 nology; and 

11 ‘‘(B) with respect to which the rightful 

12 legal or equitable title to, or license in, the 

13 trade secret is reposed in a United States per14 son.’’. 

15 (b) CLERICAL AMENDMENT.—The table of contents 

16 in section 2(b) of the John S. McCain National Defense 

17 Authorization Act for Fiscal Year 2019 and the table of 

18 contents at the beginning of title XVII of division A of 

19 such Act are each amended by inserting after the item 

20 relating to section 1758 the following new item: 

‘‘Sec. 1758A. Public transparency regarding foreign adversary entities using intellectual property related to critical or emerging technology 

without a license.’’. 

Æ 


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