II 

116TH CONGRESS 

1ST SESSION S. 1092 

To impose sanctions with respect to the theft of United States intellectual 

property by Chinese persons, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

APRIL 9, 2019 

Mr. CRUZ introduced the following bill; which was read twice and referred to 

the Committee on Foreign Relations 

A BILL 

To impose sanctions with respect to the theft of United 

States intellectual property by Chinese 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 ‘‘Sanction Entities in 

5 China for Undermining Rules, Exploiting Intellectual 

6 Property Act of 2019’’ or the ‘‘SECURE IP Act of 2019’’. 


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1 SEC. 2. IMPOSITION OF SANCTIONS WITH RESPECT TO CHI2 NESE PERSONS THAT ARE INVOLVED IN THE 

3 THEFT OF UNITED STATES INTELLECTUAL 

4 PROPERTY. 

5 (a) IDENTIFICATION REQUIRED.— 

6 (1) IN GENERAL.—Not later than 90 days after 

7 the date of the enactment of this Act, and every 180 

8 days thereafter, the President shall— 

9 (A) identify Chinese persons that the 

10 President determines to, on or after such date 

11 of enactment— 

12 (i) be responsible for or complicit in, 

13 or to have engaged in, the misappropria14 tion, receipt, or use of intellectual property 

15 stolen from United States persons if that 

16 misappropriation, receipt, or use is reason17 ably likely to result in, or has materially 

18 contributed to, a significant threat to the 

19 national security, foreign policy, or econ20 omy of the United States; 

21 (ii) have materially assisted, spon22 sored, or provided financial, material, or 

23 technological support for, or goods or serv24 ices to or in support of— 

25 (I) any activity described in 

26 clause (i); or 


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1 (II) any person the property and 

2 interests in property of which are 

3 blocked pursuant to subsection (b)(1); 

4 (iii) be owned or controlled by, or to 

5 have acted or purported to act for or on 

6 behalf of, directly or indirectly, any person 

7 the property and interests in property of 

8 which are blocked pursuant to subsection 

9 (b)(1); 

10 (iv) have attempted to engage in any 

11 of the activity described in clause (i), (ii), 

12 or (iii); or 

13 (v) be a corporate officer of, or a prin14 cipal shareholder with controlling interests 

15 in, an entity described in any of clauses (i) 

16 through (iv); and 

17 (B) submit to the appropriate congres18 sional committees a list of such persons. 

19 (2) FORM.—The list required by paragraph 

20 (1)(B) shall be submitted to the appropriate con21 gressional committees in unclassified form and pub22 lished in the Federal Register. 

23 (3) PUBLIC INPUT.— 


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1 (A) IN GENERAL.—In identifying persons 

2 under paragraph (1)(A), the President shall so3 licit and consider public input, as appropriate. 

4 (B) PROCESS.—Not later than 30 days 

5 after the date of the enactment of this Act, the 

6 President shall— 

7 (i) establish a process for soliciting 

8 and considering public input under sub9 paragraph (A) in a manner that protects 

10 the confidentiality of persons providing 

11 that input; 

12 (ii) publish guidelines for providing 

13 input pursuant to that process on a pub14 licly available internet website in an easily 

15 searchable format; and 

16 (iii) submit to the appropriate con17 gressional committees a report on that 

18 process. 

19 (b) IMPOSITION OF SANCTIONS.—The President shall 

20 impose the following sanctions with respect to each person 

21 on the list required by subsection (a)(1)(B): 

22 (1) BLOCKING OF PROPERTY.—The President 

23 shall block and prohibit, in accordance with the 

24 International Emergency Economic Powers Act (50 

25 U.S.C. 1701 et seq.), all transactions in all property 


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1 and interests in property of the person if such prop2 erty and interests in property are in the United 

3 States, come within the United States, or are or 

4 come within the possession or control of a United 

5 States person. 

6 (2) EXCLUSION FROM UNITED STATES.—In the 

7 case of an alien, the Secretary of State shall deny 

8 a visa to, and the Secretary of Homeland Security 

9 shall exclude from the United States, the alien. 

10 (c) EXCEPTIONS.— 

11 (1) INTELLIGENCE ACTIVITIES.—This section 

12 shall not apply with respect to activities subject to 

13 the reporting requirements under title V of the Na14 tional Security Act of 1947 (50 U.S.C. 3091 et seq.) 

15 or any authorized intelligence activities of the United 

16 States. 

17 (2) COMPLIANCE WITH UNITED NATIONS HEAD18 QUARTERS AGREEMENT.—Subsection (b)(2) shall 

19 not apply with respect to the admission of an alien 

20 to the United States if such admission is necessary 

21 to comply with United States obligations under the 

22 Agreement between the United Nations and the 

23 United States of America regarding the Head24 quarters of the United Nations, signed at Lake Suc25 cess June 26, 1947, and entered into force NovemVerDate Sep 11 2014 19:35 Apr 16, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1092.IS S1092

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1 ber 21, 1947, under the Convention on Consular Re2 lations, done at Vienna April 24, 1963, and entered 

3 into force March 19, 1967, or under other inter4 national agreements. 

5 (d) IMPLEMENTATION; PENALTIES.— 

6 (1) IMPLEMENTATION.—The President may ex7 ercise all authorities provided under sections 203 

8 and 205 of the International Emergency Economic 

9 Powers Act (50 U.S.C. 1702 and 1704) to carry out 

10 this section. 

11 (2) PENALTIES.—A person that violates, at12 tempts to violate, conspires to violate, or causes a 

13 violation of subsection (b)(1) or any regulation, li14 cense, or order issued to carry out that subsection 

15 shall be subject to the penalties set forth in sub16 sections (b) and (c) of section 206 of the Inter17 national Emergency Economic Powers Act (50 

18 U.S.C. 1705) to the same extent as a person that 

19 commits an unlawful act described in subsection (a) 

20 of that section. 

21 (e) TERMINATION OF SANCTIONS.—The President 

22 may remove a Chinese person from the list required by 

23 subsection (a)(1)(B), and terminate the application of 

24 sanctions under subsection (b) with respect to the person, 


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1 if the President determines and reports to the appropriate 

2 congressional committees that the person— 

3 (1) has not, during the 2-year period preceding 

4 the date of the determination, engaged in any activ5 ity described in subsection (a)(1)(A); and 

6 (2) has provided assurances that the person will 

7 not engage in any such activity in the future. 

8 (f) REPORT REQUIRED.— 

9 (1) IN GENERAL.—With the third consecutive 

10 list required by subsection (a)(1)(B) that includes a 

11 Chinese person, the President shall submit to the 

12 appropriate congressional committees a report that 

13 includes a description of— 

14 (A) the activity described in subsection 

15 (a)(1)(A) in which the person engaged; 

16 (B) how the intellectual property involved 

17 in the activity was misappropriated or used; 

18 (C) how the use of that intellectual prop19 erty affected the United States person from 

20 which the intellectual property was stolen; and 

21 (D) the significant threat to the national 

22 security, foreign policy, or economy of the 

23 United States the misappropriation, receipt, or 

24 use of the intellectual property is reasonably 


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1 likely to result in or has materially contributed 

2 to. 

3 (2) FORM OF REPORT.—The report required by 

4 paragraph (1) shall be submitted in unclassified 

5 form but may include a classified annex. 

6 (g) DEFINITIONS.—In this section: 

7 (1) ADMISSION; ALIEN.—The terms ‘‘admis8 sion’’ and ‘‘alien’’ have the meanings given those 

9 terms in section 101 of the Immigration and Nation10 ality Act (8 U.S.C. 1101). 

11 (2) APPROPRIATE CONGRESSIONAL COMMIT12 TEES.—The term ‘‘appropriate congressional com13 mittees’’ means— 

14 (A) the Committee on Banking, Housing, 

15 and Urban Affairs, the Committee on Foreign 

16 Relations, and the Committee on Finance of the 

17 Senate; and 

18 (B) the Committee on Foreign Affairs, the 

19 Committee on Financial Services, and the Com20 mittee on Ways and Means of the House of 

21 Representatives. 

22 (3) CHINESE PERSON.—The term ‘‘Chinese 

23 person’’ means— 

24 (A) an individual who is a citizen or na25 tional of the People’s Republic of China; or 


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1 (B) an entity organized under the laws of 

2 the People’s Republic of China or otherwise 

3 subject to the jurisdiction of the Government of 

4 the People’s Republic of China. 

5 (4) INTELLECTUAL PROPERTY.—The term ‘‘in6 tellectual property’’ means— 

7 (A) any work protected by a copyright 

8 under title 17, United States Code; 

9 (B) any property protected by a patent 

10 granted by the United States Patent and 

11 Trademark Office under title 35, United States 

12 Code; 

13 (C) any word, name, symbol, or device, or 

14 any combination thereof, that is registered as a 

15 trademark with the United States Patent and 

16 Trademark Office under the Act entitled ‘‘An 

17 Act to provide for the registration and protec18 tion of trademarks used in commerce, to carry 

19 out the provisions of certain international con20 ventions, and for other purposes’’, approved 

21 July 5, 1946 (commonly known as the 

22 ‘‘Lanham Act’’ or the ‘‘Trademark Act of 

23 1946’’) (15 U.S.C. 1051 et seq.); 

24 (D) a trade secret (as defined in section 

25 1839 of title 18, United States Code); or 


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1 (E) any other form of intellectual property. 

2 (5) UNITED STATES PERSON.—The term 

3 ‘‘United States person’’ means— 

4 (A) a United States citizen or an alien law5 fully admitted for permanent residence to the 

6 United States; or 

7 (B) an entity organized under the laws of 

8 the United States or of any jurisdiction within 

9 the United States, including a foreign branch of 

10 such an entity. 

Æ 


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