II 

113TH CONGRESS 

1ST SESSION S. 1111 

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

and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 6, 2013 

Mr. JOHNSON of Wisconsin introduced the following bill; which was read twice 

and referred to the Committee on the Judiciary 

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: 

8 (1) The United States faces persistent cyber es9 pionage of intellectual property from foreign govern10 ments that threatens United States economic and 


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1 national security interests, results in an unfair com2 petitive advantage for foreign companies, and is a 

3 major contributor to the loss of manufacturing jobs 

4 in the United States. 

5 (2) Cyber espionage of intellectual property by 

6 foreign actors is one of the most pressing issues fac7 ing innovators and entrepreneurs in the United 

8 States today. 

9 (3) The National Counterintelligence Executive 

10 stated in its October 2011 biennial economic espio11 nage report that ‘‘Chinese actors are the world’s 

12 most active and persistent perpetrators of economic 

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

14 firms and cybersecurity specialists have reported an 

15 onslaught of computer network intrusions that have 

16 originated in China’’. 

17 (4) The National Counterintelligence Executive 

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

19 conducting a range of activities to collect economic 

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

21 (5) The People’s Republic of China, the Rus22 sian Federation, and other countries threaten the 

23 privacy of United States citizens by accessing and 

24 exploiting personally identifiable information 

25 through cyber economic espionage. 


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1 (6) The People’s Republic of China, the Rus2 sian Federation, and other countries responsible for 

3 such cyber economic espionage are members of the 

4 World Trade Organization (WTO) and have agreed 

5 to comply with the global system of rules and obliga6 tions governing the international commerce and 

7 trade among member states. 

8 (7) The United States has recognized the mem9 bership of the People’s Republic of China, the Rus10 sian Federation, and other countries into the WTO 

11 by granting them Permanent Normal Trade Rela12 tions (PNTR) status under United States law. 

13 (8) Cyber economic espionage undermines the 

14 cooperative relationships between the United States 

15 and countries tolerating or encouraging such activi16 ties. 

17 (b) SENSE OF CONGRESS.—It is the sense of Con18 gress that— 

19 (1) cyber economic espionage should be a pri20 ority issue in all economic and diplomatic discussions 

21 with the People’s Republic of China, including dur22 ing all meetings of the U.S.-China Strategic and 

23 Economic Dialogue, and with the Russian Federa24 tion and other countries determined to encourage, 


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1 tolerate, or conduct such cyber economic espionage 

2 at appropriate bilateral meetings; 

3 (2) the United States should intensify diplo4 matic efforts in appropriate international fora such 

5 as the United Nations, the Organisation for Eco6 nomic Cooperation and Development (OECD), and 

7 summits such as the G–8 and G–20 summits, to ad8 dress the harm to the international economic order 

9 by cyber economic espionage; and 

10 (3) the Department of Justice should increase 

11 its efforts to bring economic espionage criminal 

12 cases against offending foreign actors, with penalties 

13 to include both fines and imprisonment, as well as 

14 encourage further cooperation among countries to 

15 address cyber economic espionage through criminal 

16 prosecutions. 

17 SEC. 3. IDENTIFICATION OF PERSONS RESPONSIBLE FOR 

18 CYBER ESPIONAGE OF INTELLECTUAL PROP19 ERTY OF UNITED STATES PERSONS. 

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

21 date of the enactment of this Act, the President shall sub22 mit to the appropriate congressional committees a list of 

23 persons who are officials of a foreign government or per24 sons acting on behalf of a foreign government that the 

25 President determines, based on credible information— 


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1 (1) are responsible for cyber espionage of intel2 lectual property of United States persons; or 

3 (2) acted as an agent of or on behalf of a per4 son in a matter relating to an activity described in 

5 paragraph (1). 

6 (b) UPDATES.—The President shall submit to the ap7 propriate congressional committees an update of the list 

8 required by subsection (a) as new information becomes 

9 available. 

10 (c) FORM.— 

11 (1) IN GENERAL.—The list required by sub12 section (a) shall be submitted in unclassified form. 

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

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

15 be submitted in a classified annex only if the Presi16 dent— 

17 (A) determines that it is vital for the na18 tional security interests of the United States to 

19 do so; 

20 (B) uses the annex in such a manner con21 sistent with congressional intent and the pur22 poses of this Act; and 

23 (C) 15 days prior to submitting the name 

24 in a classified annex, provides to the appro25 priate congressional committees notice of, and a 


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1 justification for, including or continuing to in2 clude each person in the classified annex despite 

3 any publicly available credible information indi4 cating that the person engaged in an activity 

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

6 (a). 

7 (3) PUBLIC AVAILABILITY.—The unclassified 

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

9 made available to the public and published in the 

10 Federal Register. 

11 (d) REMOVAL FROM LIST.—A person may be re12 moved from the list required by subsection (a) if the Presi13 dent determines and reports to the appropriate congres14 sional committees not less than 15 days prior to the re15 moval of the person from the list that credible information 

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

17 which the person was added to the list. 

18 (e) REQUESTS BY CHAIRPERSON AND RANKING

19 MEMBER OF APPROPRIATE CONGRESSIONAL COMMIT20 TEES.— 

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

22 after receiving a written request from the chair23 person and ranking member of one of the appro24 priate congressional committees with respect to 

25 whether a person meets the criteria for being added 


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

2 shall submit a response to the chairperson and rank3 ing member of the committee which made the re4 quest with respect to the status of the person. 

5 (2) FORM.—The President may submit a re6 sponse required by paragraph (1) in classified form 

7 if the President determines that it is necessary for 

8 the national security interests of the United States 

9 to do so. 

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

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

12 been placed on the list at the request of the chair13 person and ranking member of one of the appro14 priate congressional committees, the President shall 

15 provide the chairperson and ranking member with 

16 any information that contributed to the removal de17 cision. The President may submit such information 

18 in classified form if the President determines that 

19 such is necessary for the national security interests 

20 of the United States. 

21 (f) NONAPPLICABILITY OF CONFIDENTIALITY RE22 QUIREMENT WITH RESPECT TO VISA RECORDS.—The 

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

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

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


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1 with respect to confidentiality of records pertaining to the 

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

3 States. 

4 SEC. 4. INADMISSIBILITY OF CERTAIN ALIENS. 

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

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

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

8 list required by section 3(a). 

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

10 State, in consultation with the Secretary of Homeland Se11 curity, shall revoke, in accordance with section 221(i) of 

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

13 the visa or other documentation of any alien who would 

14 be ineligible to receive such a visa or documentation under 

15 subsection (a) of this section. 

16 (c) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

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

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

19 case of an alien if— 

20 (A) the Secretary determines that such a 

21 waiver— 

22 (i) is necessary to permit the United 

23 States to comply with the Agreement be24 tween the United Nations and the United 

25 States of America regarding the HeadVerDate Mar 15 2010 22:56 Jun 08, 2013 Jkt 029200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1111.IS S1111

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1 quarters of the United Nations, signed 

2 June 26, 1947, and entered into force No3 vember 21, 1947, or other applicable inter4 national obligations of the United States; 

5 or 

6 (ii) is in the national security interests 

7 of the United States; and 

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

9 Secretary provides to the appropriate congres10 sional committees notice of, and a justification 

11 for, the waiver. 

12 (2) TIMING FOR CERTAIN WAIVERS.—Notifica13 tion under subparagraph (B) of paragraph (1) shall 

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

15 waiver under such paragraph if the Secretary grants 

16 such waiver in the national security interests of the 

17 United States in accordance with subparagraph 

18 (A)(ii) of such paragraph. 

19 (d) REGULATORY AUTHORITY.—The Secretary of 

20 State shall prescribe such regulations as are necessary to 

21 carry out this section. 

22 SEC. 5. FINANCIAL MEASURES. 

23 (a) FREEZING OF ASSETS.— 

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

25 all powers granted by the International Emergency 


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1 Economic Powers Act (50 U.S.C. 1701 et seq.) (ex2 cept that the requirements of section 202 of such 

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

4 necessary to freeze and prohibit all transactions in 

5 all property and interests in property of a person 

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

7 Act if such property and interests in property are in 

8 the United States, come within the United States, or 

9 are or come within the possession or control of a 

10 United States person. 

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

12 apply to persons included on the classified annex 

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

14 that such an exception is vital for the national secu15 rity interests of the United States. 

16 (b) WAIVER FOR NATIONAL SECURITY INTERESTS.— 

17 The Secretary of the Treasury may waive the application 

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

19 waiver is in the national security interests of the United 

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

21 waiver, the Secretary shall provide to the appropriate con22 gressional committees notice of, and a justification for, the 

23 waiver. 

24 (c) ENFORCEMENT.— 


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1 (1) PENALTIES.—A person that violates, at2 tempts to violate, conspires to violate, or causes a 

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

4 order issued to carry out this section shall be subject 

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

6 of section 206 of the International Emergency Eco7 nomic Powers Act (50 U.S.C. 1705) to the same ex8 tent as a person that commits an unlawful act de9 scribed in subsection (a) of such section. 

10 (2) REQUIREMENTS FOR FINANCIAL INSTITU11 TIONS.—Not later than 120 days after the date of 

12 the enactment of this Act, the Secretary of the 

13 Treasury shall prescribe or amend regulations as 

14 needed to require each financial institution that is a 

15 United States person and has within its possession 

16 or control assets that are property or interests in 

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

18 section 3(a) to certify to the Secretary that, to the 

19 best of the knowledge of the financial institution, the 

20 financial institution has frozen all assets within the 

21 possession or control of the financial institution that 

22 are required to be frozen pursuant to subsection (a). 

23 (d) SPECIALLY DESIGNATED NATIONALS LIST.—The 

24 Secretary of the Treasury shall include on the list of spe25 cially designated nationals and blocked persons mainVerDate Mar 15 2010 22:56 Jun 08, 2013 Jkt 029200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1111.IS S1111

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1 tained by the Office of Foreign Assets Control of the De2 partment of the Treasury each person who is on the list 

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

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

5 Treasury shall issue such regulations, licenses, and orders 

6 as are necessary to carry out this section. 

7 SEC. 6. REPORT TO CONGRESS. 

8 Not later than one year after the date of the enact9 ment of this Act and annually thereafter, the Secretary 

10 of State and the Secretary of the Treasury shall submit 

11 to the appropriate congressional committees a report on— 

12 (1) the actions taken to carry out this Act, in13 cluding— 

14 (A) the number of persons added to or re15 moved from the list required by section 3(a) 

16 during the year preceding the report, the dates 

17 on which such persons have been added or re18 moved, and the reasons for adding or removing 

19 them; and 

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

21 added to that list during that year, the reasons 

22 for not adding more such persons to the list; 

23 and 

24 (2) efforts by the executive branch to encourage 

25 the governments of other countries to impose sancVerDate Mar 15 2010 22:56 Jun 08, 2013 Jkt 029200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1111.IS S1111

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1 tions that are similar to the sanctions imposed under 

2 this Act. 

3 SEC. 7. DEFINITIONS. 

4 In this Act: 

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

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

7 section 101 of the Immigration and Nationality Act 

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

9 (2) APPROPRIATE CONGRESSIONAL COMMIT10 TEES.—The term ‘‘appropriate congressional com11 mittees’’ means— 

12 (A) the Committee on Armed Services, the 

13 Committee on Financial Services, the Com14 mittee on Foreign Affairs, the Committee on 

15 Homeland Security, the Committee on the Judi16 ciary, and the Permanent Select Committee on 

17 Intelligence of the House of Representatives; 

18 and 

19 (B) the Committee on Armed Services, the 

20 Committee on Banking, Housing, and Urban 

21 Affairs, the Committee on Foreign Relations, 

22 the Committee on Homeland Security and Gov23 ernmental Affairs, the Committee on the Judi24 ciary, and the Select Committee on Intelligence 

25 of the Senate. 


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1 (3) FINANCIAL INSTITUTION.—The term ‘‘fi2 nancial institution’’ has the meaning given that term 

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

4 (4) UNITED STATES PERSON.—The term 

5 ‘‘United States person’’ means— 

6 (A) a United States citizen or an alien law7 fully admitted for permanent residence to the 

8 United States; or 

9 (B) an entity organized under the laws of 

10 the United States or of any jurisdiction within 

11 the United States, including a foreign branch of 

12 such an entity. 

Æ 


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