‘‘(6) the term ‘critical infrastructure’ has the 
meaning given that term in section 2339D(c); 
‘‘(7) the term ‘drug counterfeiting’ means any 
act prohibited by section 301(i) of the Federal Food 
Drug, and Cosmetic Act (21 U.S.C. 331(i)); 
‘‘(8) the term ‘final dosage form’ has the mean-
ing given that term in section 735(4) of the Federal 
Food, Drug, and Cosmetic Act (21 U.S.C. 379g(4)); 
‘‘(9) the term ‘falsely identified as meeting mili-
tary standards’ relating to a good or service means 
there is a material misrepresentation that the good 
or service meets a standard, requirement, or speci-
fication issued by the Department of Defense, an 
Armed Force, or a reserve component; 
‘‘(10) the term ‘use in a military or national se-
curity application’ means the use of a good or serv-
ice, independently, in conjunction with, or as a com-
ponent of another good or service— 
‘‘(A) during the performance of the official 
duties of the Armed Forces of the United 
States or the reserve components of the Armed 
Forces; or 
‘‘(B) by the United States to perform or 
directly support— 
‘‘(i) combat operations; or 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00065
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
‘‘(ii) critical national defense or na-
tional security functions; and 
‘‘(11) the term ‘use in a law enforcement or 
critical infrastructure application’ means the use of 
a good or service, independently, in conjunction 
with, or as a component of, another good or service 
by a person who is directly engaged in— 
‘‘(A) Federal, State, or local law enforce-
ment; or 
‘‘(B) an official function pertaining to crit-
ical infrastructure.’’. 
SEC. 203. PROTECTING U.S. BUSINESSES FROM FOREIGN 
AND ECONOMIC ESPIONAGE. 
(a) FOR OFFENSES COMMITTED BY INDIVIDUALS.— 
Section 1831(a) of title 18, United States Code, is amend-
ed, in the matter after paragraph (5)— 
(1) by striking ‘‘15 years’’ and inserting ‘‘20 
years’’; and 
(2) by striking ‘‘not more than $500,000’’ and 
inserting ‘‘not less than $1,000,000 and not more 
than $5,000,000’’. 
(b) FOR OFFENSES COMMITTED
BY ORGANIZA-
TIONS.—Section 1831(b) of such title is amended by strik-
ing ‘‘$10,000,000’’ and inserting ‘‘not more than the 
greater of $10,000,000 or 3 times the value of the stolen 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00066
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
trade secret to the organization (including expenses for re-
search and design or other costs of reproducing the trade 
secret that the organization has thereby avoided)’’. 
SEC. 204. AMENDMENTS TO SENTENCING GUIDELINES. 
Not later than 180 days after the date of the enact-
ment of this Act, pursuant to its authority under section 
994(p) of title 28, United States Code, the United States 
Sentencing Commission shall— 
(1) review, and if appropriate, amend Federal 
Sentencing Guidelines and policy statements applica-
ble to persons convicted of— 
(A) intellectual property offenses; 
(B) an offense under section 2320(a) of 
title 18, United States Code; or 
(C) an offense under section 1831 of title 
18, United States Code; 
(2) in carrying out such review, consider 
amending such Guidelines and policy statements 
to— 
(A) apply an appropriate offense level en-
hancement for intellectual property offenses 
committed in connection with an organized 
criminal enterprise; 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00067
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
(B) apply an appropriate offense level en-
hancement to the simple misappropriation of a 
trade secret; 
(C) apply an additional appropriate offense 
level enhancement if the defendant transmits or 
attempts to transmit the stolen trade secret 
outside of the United States and an additional 
appropriate enhancement if the defendant in-
stead commits economic espionage; 
(D) provide that when a defendant trans-
mits trade secrets outside of the United States 
or commits economic espionage, that the de-
fendant should face a minimum offense level; 
(E) provide for an offense level enhance-
ment for Guidelines relating to the theft of 
trade secrets and economic espionage, including 
trade secrets transferred or attempted to be 
transferred outside of the United States; 
(F) apply an appropriate offense level en-
hancement and minimum offense level for of-
fenses under section 2320(a) of title 18, United 
States Code, that involve a product intended for 
use in a military or national security applica-
tion, or a law enforcement or critical infrastruc-
ture application; 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00068
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
(G) ensure that the Guidelines and policy 
statements (including section 2B5.3 of the Fed-
eral Sentencing Guidelines (and any successor 
thereto)) reflect— 
(i) the serious nature of the offenses 
described in section 2320(a) of title 18, 
United States Code; 
(ii) the need for an effective deterrent 
and appropriate punishment to prevent of-
fenses under section 2320(a) of title 18, 
United States Code; and 
(iii) the effectiveness of incarceration 
in furthering the objectives described in 
clauses (i) and (ii); and 
(H) ensure reasonable consistency with 
other relevant directives and Guidelines and 
Federal statutes; 
(3) submit to Congress a report detailing the 
Commission’s actions with respect to each potential 
amendment described in paragraph (2); 
(4) make such conforming amendments to the 
Federal Sentencing Guidelines as the Commission 
determines necessary to achieve consistency with 
other Guideline provisions and applicable law; and 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00069
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
(5) promulgate the Guidelines, policy state-
ments, or amendments provided for in this section 
as soon as practicable in accordance with the proce-
dure set forth in section 21(a) of the Sentencing Act 
of 1987 (28 U.S.C. 994 note), as though the author-
ity under that Act had not expired. 
SEC. 205. DEFENDING INTELLECTUAL PROPERTY RIGHTS 
ABROAD. 
(a) RESOURCES TO PROTECT INTELLECTUAL PROP-
ERTY RIGHTS.— 
(1) POLICY.—The Secretary of State and the 
Secretary of Commerce, in consultation with the 
Register of Copyrights, shall ensure that the protec-
tion in foreign countries of the intellectual property 
rights of United States persons is a significant com-
ponent of United States foreign and commercial pol-
icy in general, and in relations with individual coun-
tries in particular. 
(2) DEDICATION
OF
RESOURCES.—The Sec-
retary of State and the Secretary of Commerce, in 
consultation with the Register of Copyrights, and 
the heads of other appropriate departments and 
agencies, shall ensure that adequate resources are 
available at the United States embassy or diplomatic 
mission (as the case may be) in any country that is 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00070
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
identified under section 182(a)(1) of the Trade Act 
of 1974 (19 U.S.C. 2242(a)(1)) to ensure— 
(A) aggressive support for enforcement ac-
tion against violations of the intellectual prop-
erty rights of United States persons in such 
country; 
(B) cooperation with and support for the 
host government’s efforts to conform its appli-
cable laws, regulations, practices, and processes 
to enable the host government to honor its 
international and bilateral obligations with re-
spect to the protection of intellectual property 
rights; 
(C) consistency with the policy and coun-
try-specific priorities set forth in the most re-
cent report of USTR under such section 
182(a)(1); and 
(D) support for holders of United States 
intellectual property rights and industries whose 
access to foreign markets is improperly re-
stricted by intellectual property related issues. 
(b) NEW APPOINTMENTS.— 
(1) APPOINTMENTS
AND
ADMINISTRATION.— 
The Secretary of State and the Secretary of Com-
merce, in consultation with the Register of Copy-
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00071
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
rights, shall appoint at least one intellectual prop-
erty attache´ to be assigned to the United States em-
bassy or diplomatic mission (as the case may be) in 
a country in each geographic region covered by a re-
gional bureau of the Department of State. The Di-
rector of the Patent and Trademark Office shall 
maintain authority over hiring, personnel ratings, 
and objectives for the attache´s, in consultation with 
the Secretary of State. Depending on experience and 
expertise, intellectual property attache´s shall be des-
ignated as the diplomatic rank in-mission of First 
Secretary or Counselor. 
(2) REGIONS
DEFINED.—The geographic re-
gions referred to in paragraph (1) are the following: 
(A) Africa. 
(B) Europe and Eurasia. 
(C) East Asia and the Pacific. 
(D) The Near East. 
(E) South and Central Asia and the Pa-
cific. 
(F) The Western Hemisphere. 
(3) DUTIES.—The intellectual property attache´s 
appointed under this subsection shall focus primarily 
on intellectual property matters, including the devel-
opment, protection, and enforcement of applicable 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00072
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
law. Each intellectual property attache´ shall work, in 
accordance with guidance from the Director, and in 
coordination with appropriate staff at the Depart-
ments of Commerce and State and the Copyright 
Office, to advance the policy goals and priorities of 
the United States Government. Those policy goals 
and priorities shall be consistent with USTR’s re-
ports under section 182(a)(1) of the Trade Act of 
1974. The intellectual property attache´s shall work 
with United States holders of intellectual property 
rights and industry to address intellectual property 
rights violations in the countries where the attache´s 
are assigned. 
(c) PRIORITY ASSIGNMENTS.— 
(1) IN GENERAL.—Subject to paragraph (2), in 
designating the United States embassies or diplo-
matic missions where attache´s will be assigned under 
subsection (b), the Secretary of State and the Sec-
retary of Commerce shall give priority to countries 
where the activities of an attache´ are likely to 
achieve the greatest potential benefit in reducing in-
tellectual property infringement in the United States 
market, to advance the intellectual property rights of 
United States persons and their licensees, and to ad-
vance the interests of United States persons who 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00073
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
may otherwise be harmed by violations of intellectual 
property rights in those countries. 
(2) ASSIGNMENTS TO PRIORITY COUNTRIES.— 
In carrying out paragraph (1), the Secretary of 
State and the Secretary of Commerce shall consider 
assigning intellectual property attache´s— 
(A) to the countries that have been identi-
fied under section 182(a)(1) of the Trade Act 
of 1974 (19 U.S.C. 2242(a)(1)); and 
(B) to countries of critical economic impor-
tance to the advancement of United States in-
tellectual property rights and interests. 
(d) TRAINING.—The Secretary of State and the Sec-
retary of Commerce shall ensure that each intellectual 
property attache´ appointed under subsection (b) is fully 
trained for the responsibilities of the position before as-
suming duties at the United States embassy or diplomatic 
mission to which the attache´ is assigned. 
(e) COORDINATION.—The activities of intellectual 
property attache´s under this section shall be determined 
in consultation with the Intellectual Property Enforcement 
Coordinator. The Director shall assist in coordinating the 
policy priorities and activities of the intellectual property 
attache´s and oversee administrative and personnel mat-
ters. 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00074
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
(f) TRAINING AND TECHNICAL ASSISTANCE.— 
(1) CONSISTENCY.—Using existing resources, 
all training and technical assistance provided by in-
tellectual property attache´s appointed under sub-
section (b), or under other authority, relating to in-
tellectual property enforcement and protection 
abroad shall be designed to be consistent with the 
policy and country-specific priorities set forth in the 
most recent report of USTR under section 182(a) of 
the Trade Act of 1974. 
(2) ROLE OF IPEC.—Such training and tech-
nical assistance programs shall be carried out in 
consultation with the Intellectual Property Enforce-
ment Coordinator. The Director shall assist in co-
ordinating the training and technical assistance pro-
grams conducted by intellectual property attache´s. 
(g) ACTIVITIES IN OTHER COUNTRIES.—In the case 
of countries that are not identified under section 
182(a)(1) of the Trade Act of 1974, the activities of Fed-
eral departments and agencies with respect to intellectual 
property rights in those countries, intellectual property 
programs and outreach of the United States Government 
in those countries, and training and technical assistance 
programs of the United States Government relating to in-
tellectual property in those countries may be conducted 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00075
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
to the extent they are consistent with compelling commer-
cial or foreign policy interests of the United States. 
(h) REPORTS TO CONGRESS.—The Intellectual Prop-
erty Enforcement Coordinator shall include in the annual 
report submitted under section 314 of the Prioritizing Re-
sources and Organization for Intellectual Property Act of 
2008 (15 U.S.C. 8114) on the activities of the advisory 
committee established under section 301 of that Act (15 
U.S.C. 8111) information on the appointment, designation 
for assignment, and activities of all intellectual property 
attache´s of any Federal department or agency who are 
serving abroad. 
(i) DEFINITIONS.—In this section: 
(1) DIRECTOR.—The terms ‘‘Director of the 
Patent and Trademark Office’’ and ‘‘Director’’ mean 
the Under Secretary for Intellectual Property and 
Director of the Untied States Patent and Trade-
mark Office. 
(2) 
INTELLECTUAL
PROPERTY
ENFORCE-
MENT.—The term ‘‘intellectual property enforce-
ment’’ has the meaning given that term in section 
302 of the Prioritizing Resources and Organization 
for Intellectual Property Act of 2008 (15 U.S.C. 
8112). 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00076
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
(3) INTELLECTUAL
PROPERTY
ENFORCEMENT 
COORDINATOR.—The term ‘‘Intellectual Property 
Enforcement Coordinator’’ means the Intellectual 
Property Enforcement Coordinator appointed under 
section 301 of the Prioritizing Resources and Orga-
nization for Intellectual Property Act of 2008 (15 
U.S.C. 8111). 
(4) INTELLECTUAL
PROPERTY
RIGHTS.—The 
term ‘‘intellectual property rights’’ means the rights 
of holders of copyrights, patents, trademarks, other 
forms of intellectual property, and trade secrets. 
(5) USTR.—The term ‘‘USTR’’ means the 
United States Trade Representative. 
(6) 
UNITED
STATES
PERSON.—The 
term 
‘‘United States person’’ means— 
(A) any United States resident or national; 
(B) any corporation, partnership, other 
business entity, or other organization, that is 
organized under the laws of the United States; 
and 
(C) any foreign subsidiary or affiliate (in-
cluding any permanent foreign establishment) 
of any corporation, partnership, business entity, 
or organization described in subparagraph (B), 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00077
Fmt 6652
Sfmt 6201
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS
that is controlled in fact by such corporation, 
partnership, business entity, or organization. 
(j) AUTHORIZATION OF APPROPRIATIONS.—The Sec-
retary of State and the Secretary of Commerce shall pro-
vide for the training and support of the intellectual prop-
erty attache´s appointed under subsection (b) using exist-
ing resources. 
Æ 
VerDate Mar 15 2010 
21:23 Oct 27, 2011
Jkt 019200
PO 00000
Frm 00078
Fmt 6652
Sfmt 6301
E:\BILLS\H3261.IH
H3261
srobinson on DSK4SPTVN1PROD with BILLS