I 

113TH CONGRESS 

2D SESSION H. R. 4763 

To amend the Tariff Act of 1930 with respect to requirements for domestic 

industries, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 29, 2014 

Mr. CA ́RDENAS (for himself and Mr. FARENTHOLD) introduced the following 

bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Tariff Act of 1930 with respect to 

requirements for domestic industries, 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 ‘‘Trade Protection Not 

5 Troll Protection Act’’. 

6 SEC. 2. UNFAIR PRACTICES IN IMPORT TRADE. 

7 (a) IN GENERAL.—Section 337 of the Tariff Act of 

8 1930 (19 U.S.C. 1337) is amended as follows: 

9 (1) Subsection (a) is amended— 

10 (A) in paragraph (3)— 


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1 (i) by striking ‘‘or’’ at the end of sub2 paragraph (B); 

3 (ii) in subparagraph (C), by striking 

4 ‘‘engineering, research and development, or 

5 licensing.’’ and inserting ‘‘engineering and 

6 research and development; or’’; and 

7 (iii) by adding after subparagraph (C) 

8 the following: 

9 ‘‘(D) substantial investment in licensing activi10 ties that leads to the adoption and development of 

11 articles that incorporate the patent, copyright, trade12 mark, mask work, or design.’’; 

13 (B) by redesignating paragraph (4) as 

14 paragraph (5); and 

15 (C) by inserting after paragraph (3) and 

16 following: 

17 ‘‘(4) For purposes of paragraph (3), the complainant 

18 may not rely upon activities by its licensees unless the li19 cense leads to the adoption and development of articles 

20 that incorporate the claimed patent, copyright, trademark, 

21 mask work, or design for sale in the United States.’’. 

22 (2) Subsection (b) is amended by adding at the 

23 end the following: 

24 ‘‘(4)(A) Whenever a complaint relies, in whole 

25 or in part, on activity falling under subparagraph 


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1 (C) or (D) of subsection (a)(3) in order to meet the 

2 legal standard set forth in subsection (a)(3), the 

3 Commission may not initiate an investigation until 

4 the Commission has first conducted a preliminary 

5 investigation of whether it is likely that an industry 

6 in the United States exists or is in the process of 

7 being established within the meaning of subsection 

8 (a)(2). 

9 ‘‘(B) In the preliminary investigation under 

10 subparagraph (A), the complainant’s case shall be 

11 limited to the assertions and evidence set forth in 

12 the complaint, and confidential business information 

13 contained in the complaint that may be disclosed 

14 under protective order, and the Commission shall ac15 cept additional facts, evidence, and argument from 

16 named respondents and the public. 

17 ‘‘(C) The Commission shall render its deter18 mination in the preliminary investigation under this 

19 paragraph not later than 45 days after the filing of 

20 the complaint. If the Commission finds that it is not 

21 likely that an industry in the United States exists or 

22 is in the process of being established, the Commis23 sion may not initiate an investigation of the matter 

24 alleged in the complaint.’’. 

25 (3) Subsection (c) is amended— 


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1 (A) by striking the first sentence and in2 serting the following: ‘‘The Commission shall 

3 determine, with respect to each investigation 

4 conducted by it under this section, whether or 

5 not there is a violation of this section, except 

6 that the Commission— 

7 ‘‘(A) may, by issuing a consent order or on the 

8 basis of an agreement between the private parties to 

9 the investigation, including an agreement to present 

10 the matter for arbitration, terminate any such inves11 tigation, in whole or in part, without making such 

12 a determination; or 

13 ‘‘(B)(i) may determine during the course of the 

14 investigation that the articles under investigation 

15 should not be excluded from entry based upon con16 sideration of the public interest, including the effect 

17 of such exclusion upon the public health and welfare, 

18 competitive conditions in the United States economy, 

19 the production of like or directly competitive articles 

20 in the United States, United States consumers, 

21 whether protected articles in the United States will 

22 be protected by an exclusion order, and whether the 

23 complainant or its licensees can meet market de24 mand for protected articles; and 


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1 ‘‘(ii) upon a finding under clause (i) that the 

2 articles should not be excluded, shall terminate the 

3 investigation, in whole or in part, without making 

4 any further determination.’’; 

5 (B) in the second sentence, by striking 

6 ‘‘Each determination’’ and inserting the fol7 lowing: 

8 ‘‘(2) Each determination’’; and 

9 (C) in the third sentence, by striking ‘‘eq10 uitable defenses’’ and inserting ‘‘equitable de11 fenses, including equitable defenses and prin12 ciples applied to any remedy considered in 

13 United States district courts,’’. 

14 (4) Subsection (d)(1) is amended— 

15 (A) by striking ‘‘considering the effect of 

16 such exclusion upon the public health and wel17 fare,’’ and inserting ‘‘considering equitable de18 fenses and principles and the effect of such ex19 clusion upon the public interest, including the 

20 public health and welfare,’’; and 

21 (B) by striking ‘‘and United States con22 sumers,’’ and inserting ‘‘United States con23 sumers, whether protected articles in the 

24 United States will be protected by an exclusion 

25 order, and whether the complainant or its liVerDate Mar 15 2010 04:23 Jun 04, 2014 Jkt 039200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H4763.IH H4763

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1 censees can meet market demand for protected 

2 articles,’’. 

3 (5) Subsection (e)(1) is amended— 

4 (A) by striking ‘‘considering the effect of 

5 such exclusion upon the public health and wel6 fare,’’ and inserting ‘‘considering equitable de7 fenses and principles and the effect of such ex8 clusion upon the public interest, including the 

9 public health and welfare,’’; and 

10 (B) by striking ‘‘and United States con11 sumers,’’ and inserting ‘‘United States con12 sumers, whether protected articles in the 

13 United States will be protected by an exclusion 

14 order, and whether the complainant or its li15 censees can meet market demand for protected 

16 articles,’’. 

17 (6) Subsection (f)(1) is amended— 

18 (A) by striking ‘‘considering the effect of 

19 such exclusion upon the public health and wel20 fare,’’ and inserting ‘‘considering equitable de21 fenses and principles and the effect of such ex22 clusion upon the public interest, including the 

23 public health and welfare,’’; and 

24 (B) by striking ‘‘and United States con25 sumers,’’ and inserting ‘‘United States conVerDate Mar 15 2010 04:23 Jun 04, 2014 Jkt 039200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H4763.IH H4763

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1 sumers, whether protected articles in the 

2 United States will be protected by an exclusion 

3 order, and whether the complainant or its li4 censees can meet market demand for protected 

5 articles,’’. 

6 (7) Subsection (g)(1) is amended, in the matter 

7 following subparagraph (E)— 

8 (A) by striking ‘‘considering the effect of 

9 such exclusion upon the public health and wel10 fare,’’ and inserting ‘‘considering equitable de11 fenses and principles and the effect of such ex12 clusion upon the public interest, including the 

13 public health and welfare,’’; and 

14 (B) by striking ‘‘and United States con15 sumers,’’ and inserting ‘‘United States con16 sumers, whether protected articles in the 

17 United States will be protected by an exclusion 

18 order, and whether the complainant or its li19 censees can meet market demand for protected 

20 articles,’’. 

21 (b) EFFECTIVE DATE.—The amendments made by 

22 subsection (a) shall apply to complaints filed under section 

23 337 of the Tariff Act of 1930 on or after the date of the 

24 enactment of this Act. 

Æ 


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