(3) REGULATIONS.—The Commission may pro-
mulgate regulations under section 553 of title 5, 
United States Code, to carry out this section. 
(e) CRIMINAL OFFENSE.— 
(1) CORPORATE OFFENSE.—Whoever, being a 
software marketplace operator or developer of cov-
ered foreign software, knowingly violates subsection 
(a) shall be fined $50,000 for each violation. 
(2) INDIVIDUAL OFFENSE.—Whoever, being an 
officer of a software marketplace operator or devel-
oper of covered foreign software, causes a violation 
of subsection (a) with the intent to conceal the coun-
try in which software is developed, shall be fined 
under title 18, United States Code, imprisoned not 
more than 2 years, or both. 
(3) APPLICATION.—This subsection shall apply 
with respect to conduct occurring during the period 
beginning on the date of enactment of this Act and 
ending on the date on which this section ceases to 
have any force or effect under subsection (g). 
(f) REPORT TO CONGRESS.—Not later than 8 years 
after the date of the enactment of this Act, the Commis-
sion, in consultation with the Attorney General, shall sub-
mit to Congress a report on the implementation and en-
forcement of this section. 
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(g) SUNSET.—This section shall cease to have any 
force or effect on the date that is 10 years after the date 
of the enactment of this Act. 
(h) DEFINITIONS.—In this section: 
(1) COMMISSION.—The term ‘‘Commission’’ 
means the Federal Trade Commission. 
(2) COVERED COUNTRY.— 
(A) IN
GENERAL.—The term ‘‘covered 
country’’ means— 
(i) China, Russia, North Korea, Iran, 
Syria, and Cuba; 
(ii) any other country the government 
of which the Secretary of State determines 
has repeatedly provided support for inter-
national terrorism pursuant to— 
(I) section 1754(c)(1)(A) of the 
Export Control Reform Act of 2018 
(50 U.S.C. 4318(c)(1)(A)); 
(II) section 620A of the Foreign 
Assistance Act of 1961 (22 U.S.C. 
2371); 
(III) section 40 of the Arms Ex-
port Control Act (22 U.S.C. 2780); or 
(IV) any other provision of law; 
and 
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(iii) subject to subparagraph (B), any 
other country designated by the Attorney 
General or the Commission based on ex-
pert knowledge of the sources of dangerous 
software. 
(B) PROCESS.— 
(i) DESIGNATION.—Upon designating 
a country under subparagraph (A)(iii), the 
Attorney General or the Commission (in 
this clause referred to as the ‘‘notifying 
party’’) shall transmit a notification of the 
designation to the Commission or the At-
torney General, as the case may be (in this 
clause referred to as the ‘‘notified party’’). 
Such designation shall become effective on 
the day that is 30 days after the date on 
which such notification is transmitted, un-
less, before such day, the notified party 
transmits to the notifying party and the 
Secretary of State an objection. The Sec-
retary shall, not later than 30 days after 
the date on which the Secretary receives 
such objection, determine whether to des-
ignate such country under such subpara-
graph. 
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(ii) REVOCATION OF DESIGNATION.— 
(I) JOINT ACTION REQUIRED.— 
Except as provided in subclause (II), 
the designation of a country under 
subparagraph (A)(iii) may only be re-
voked by the Attorney General and 
the Commission, acting jointly. 
(II) DISPUTE
RESOLUTION.—In 
the case of a dispute between the At-
torney General and the Commission 
regarding whether to revoke the des-
ignation of a country under subpara-
graph (A)(iii), the Attorney General 
or the Commission may transmit to 
the Secretary of State a notification 
of such dispute. The Secretary shall, 
not later than 30 days after the date 
on which the Secretary receives such 
notification, determine whether to re-
voke such designation. 
(3) COVERED FOREIGN SOFTWARE.—The term 
‘‘covered foreign software’’ means software that is 
developed by— 
(A) a person (other than an individual)— 
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(i) who is organized under the laws of 
a covered country; or 
(ii) whose principal operations are 
conducted in a covered country; or 
(B) a person (other than an individual) 
that is, directly or indirectly, controlled by a 
person described in subparagraph (A). 
(4) MOBILE APPLICATION.—The term ‘‘mobile 
application’’ means a software program that runs on 
the operating system of a smartphone, tablet com-
puter, or similar mobile electronic device. 
(5) SOFTWARE.—The term ‘‘software’’ means 
any computer software program, including a mobile 
application. 
(6) SOFTWARE
MARKETPLACE
OPERATOR.— 
The term ‘‘software marketplace operator’’ means a 
person who, for a commercial purpose, operates an 
online store or marketplace through which software 
is made available for download by consumers. 
Æ 
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