Protect American IPR Act

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. Short title This Act may be cited as the Protect American IPR Act 2. Study and report on violations of United States intellectual property rights in China or by Chinese persons (a) Study The United States Trade Representative, in consultation with the United States International Trade Commission, shall conduct an annual study to determine the estimated annual loss of revenue to holders of United States intellectual property rights as a result of direct or indirect violations of such intellectual property rights in the People’s Republic of China or by any Chinese person, including governmental entities of China, in the preceding calendar year. (b) Report Not later than 120 days after the date of the enactment of this Act, and annually thereafter, the United States Trade Representative shall submit to Congress a report that contains the results of the study conducted pursuant to subsection (a) 3. Imposition of duties on merchandise from China and distribution of proceeds of such duties to holders of certain United States intellectual property rights Notwithstanding any other provision of law, the President, acting through the United States Trade Representative, shall impose duties on merchandise originating from China in an amount equivalent to— (1) the estimated total loss of revenue to holders of United States intellectual property rights as a result of violations of such intellectual property rights in China during the previous calendar year, as determined by the study conducted pursuant to section 2(a) (2) the total amount of any tariffs collected, pursuant to section 301 of the Trade Act of 1974 ( 19 U.S.C. 2411 4. Compensation for losses borne by holders of United States intellectual property rights (a) Establishment of trust fund There is established in the Treasury of the United States a trust fund, to be known as the American IPR Trust Fund Trust Fund subsection (b) subsection (c) (b) Funding The Commissioner of U.S. Customs and Border Patrol shall deposit into the Trust Fund any amounts collected from duties imposed pursuant to section 3 subsection (a) (c) Distribution of Funds (1) In general From amounts in the Trust Fund, the Commissioner of U.S. Customs and Border Patrol shall make payments annually to each person the Commissioner determines, with respect to the preceding calendar year— (A) was— (i) if an individual, a citizen or legal permanent resident of the United States; or (ii) if an entity, organized under the laws of the United States or any subdivision of the United States; (B) held the rights to intellectual property under the laws of the United States; and (C) can establish quantifiable losses resulting from the violation, directly or indirectly, of such rights in China or by any Chinese person, including governmental entities of China, during such year. (2) Maximum payment The Commissioner may not make a payment under this subsection to any person for any year in an amount that is greater than the amount of the loss described in paragraph (1)(C) (d) Consultation The Commissioner shall consult with the United States Trade Representative and the Secretary of Commerce in issuing such regulations as may be necessary to carry out this Act.

Summary: Protect American IPR Act This bill addresses the effects of violations of U.S. intellectual property rights in China or by Chinese persons. The bill directs the U.S. Trade Representative (USTR) to study the losses of revenue to holders of those rights. It directs the USTR to impose duties on merchandise from China in an amount equivalent to the annual loss of revenue to U.S. intellectual property rights holders reduced by the amount of tariffs collected for such violations. Duties collected must be used to compensate U.S. intellectual property rights holders injured by such violations.