I 

116TH CONGRESS 

1ST SESSION H. R. 902 

To direct the President to impose duties on merchandise from the People’s 

Republic of China to compensate holders of United States intellectual 

property rights for losses resulting from violations of such intellectual 

property rights in China, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 30, 2019 

Mr. KING of Iowa introduced the following bill; which was referred to the 

Committee on Ways and Means 

A BILL 

To direct the President to impose duties on merchandise 

from the People’s Republic of China to compensate holders of United States intellectual property rights for losses 

resulting from violations of such intellectual property 

rights in China, 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 ‘‘Protect American IPR 

5 Act’’. 


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1 SEC. 2. STUDY AND REPORT ON VIOLATIONS OF UNITED 

2 STATES INTELLECTUAL PROPERTY RIGHTS 

3 IN CHINA OR BY CHINESE PERSONS. 

4 (a) STUDY.—The United States Trade Representa5 tive, in consultation with the United States International 

6 Trade Commission, shall conduct an annual study to de7 termine the estimated annual loss of revenue to holders 

8 of United States intellectual property rights as a result 

9 of direct or indirect violations of such intellectual property 

10 rights in the People’s Republic of China or by any Chinese 

11 person, including governmental entities of China, in the 

12 preceding calendar year. 

13 (b) REPORT.—Not later than 120 days after the date 

14 of the enactment of this Act, and annually thereafter, the 

15 United States Trade Representative shall submit to Con16 gress a report that contains the results of the study con17 ducted pursuant to subsection (a). 

18 SEC. 3. IMPOSITION OF DUTIES ON MERCHANDISE FROM 

19 CHINA AND DISTRIBUTION OF PROCEEDS OF 

20 SUCH DUTIES TO HOLDERS OF CERTAIN 

21 UNITED STATES INTELLECTUAL PROPERTY 

22 RIGHTS. 

23 Notwithstanding any other provision of law, the 

24 President, acting through the United States Trade Rep25 resentative, shall impose duties on merchandise origi26 nating from China in an amount equivalent to— 


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1 (1) the estimated total loss of revenue to hold2 ers of United States intellectual property rights as 

3 a result of violations of such intellectual property 

4 rights in China during the previous calendar year, as 

5 determined by the study conducted pursuant to sec6 tion 2(a), reduced by 

7 (2) the total amount of any tariffs collected, 

8 pursuant to section 301 of the Trade Act of 1974 

9 (19 U.S.C. 2411) or any other provision of law au10 thorizing the President to act to safeguard intellec11 tual property rights, with respect to such violations 

12 in such previous calendar year. 

13 SEC. 4. COMPENSATION FOR LOSSES BORNE BY HOLDERS 

14 OF UNITED STATES INTELLECTUAL PROP15 ERTY RIGHTS. 

16 (a) ESTABLISHMENT OF TRUST FUND.—There is es17 tablished in the Treasury of the United States a trust 

18 fund, to be known as the ‘‘American IPR Trust Fund’’ 

19 (in this section referred to as the ‘‘Trust Fund’’), con20 sisting of such amounts as may be deposited to the Trust 

21 Fund pursuant to subsection (b) to be used, in accordance 

22 with subsection (c), for the purpose of compensating the 

23 injury to holders of United States intellectual property 

24 rights resulting from violations of such intellectual propVerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H902.IH H902

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1 erty rights in China or by any Chinese person, including 

2 governmental entities of China. 

3 (b) FUNDING.—The Commissioner of U.S. Customs 

4 and Border Patrol shall deposit into the Trust Fund any 

5 amounts collected from duties imposed pursuant to section 

6 3, which shall remain available until expended for the pur7 pose described in subsection (a). 

8 (c) DISTRIBUTION OF FUNDS.— 

9 (1) IN GENERAL.—From amounts in the Trust 

10 Fund, the Commissioner of U.S. Customs and Bor11 der Patrol shall make payments annually to each 

12 person the Commissioner determines, with respect to 

13 the preceding calendar year— 

14 (A) was— 

15 (i) if an individual, a citizen or legal 

16 permanent resident of the United States; 

17 or 

18 (ii) if an entity, organized under the 

19 laws of the United States or any subdivi20 sion of the United States; 

21 (B) held the rights to intellectual property 

22 under the laws of the United States; and 

23 (C) can establish quantifiable losses result24 ing from the violation, directly or indirectly, of 

25 such rights in China or by any Chinese person, 


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1 including governmental entities of China, dur2 ing such year. 

3 (2) MAXIMUM PAYMENT.—The Commissioner 

4 may not make a payment under this subsection to 

5 any person for any year in an amount that is great6 er than the amount of the loss described in para7 graph (1)(C) established with respect to such person 

8 in such year. 

9 (d) CONSULTATION.—The Commissioner shall con10 sult with the United States Trade Representative and the 

11 Secretary of Commerce in issuing such regulations as may 

12 be necessary to carry out this Act. 

Æ 


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