SEC. 2. STUDY AND REPORT ON VIOLATIONS OF UNITED 
STATES INTELLECTUAL PROPERTY RIGHTS 
IN CHINA OR BY CHINESE PERSONS. 
(a) STUDY.—The United States Trade Representa-
tive, in consultation with the United States International 
Trade Commission, shall conduct an annual study to de-
termine 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 Con-
gress a report that contains the results of the study con-
ducted pursuant to subsection (a). 
SEC. 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 Rep-
resentative, shall impose duties on merchandise origi-
nating from China in an amount equivalent to— 
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(1) the estimated total loss of revenue to hold-
ers 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 sec-
tion 2(a), reduced by 
(2) the total amount of any tariffs collected, 
pursuant to section 301 of the Trade Act of 1974 
(19 U.S.C. 2411) or any other provision of law au-
thorizing the President to act to safeguard intellec-
tual property rights, with respect to such violations 
in such previous calendar year. 
SEC. 4. COMPENSATION FOR LOSSES BORNE BY HOLDERS 
OF UNITED STATES INTELLECTUAL PROP-
ERTY RIGHTS. 
(a) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust 
fund, to be known as the ‘‘American IPR Trust Fund’’ 
(in this section referred to as the ‘‘Trust Fund’’), con-
sisting of such amounts as may be deposited to the Trust 
Fund pursuant to subsection (b) to be used, in accordance 
with subsection (c), for the purpose of compensating the 
injury to holders of United States intellectual property 
rights resulting from violations of such intellectual prop-
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erty rights in China or by any Chinese person, including 
governmental entities of China. 
(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, which shall remain available until expended for the pur-
pose described in subsection (a). 
(c) DISTRIBUTION OF FUNDS.— 
(1) IN GENERAL.—From amounts in the Trust 
Fund, the Commissioner of U.S. Customs and Bor-
der 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 subdivi-
sion of the United States; 
(B) held the rights to intellectual property 
under the laws of the United States; and 
(C) can establish quantifiable losses result-
ing from the violation, directly or indirectly, of 
such rights in China or by any Chinese person, 
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including governmental entities of China, dur-
ing 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 great-
er than the amount of the loss described in para-
graph (1)(C) established with respect to such person 
in such year. 
(d) CONSULTATION.—The Commissioner shall con-
sult with the United States Trade Representative and the 
Secretary of Commerce in issuing such regulations as may 
be necessary to carry out this Act. 
Æ 
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