Trade Protection Not Troll Protection Act

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Trade Protection Not Troll 
Protection Act''.

SEC. 2. UNFAIR PRACTICES IN IMPORT TRADE.

    (a) In General.--Section 337 of the Tariff Act of 1930 (19 U.S.C. 
1337) is amended as follows:
            (1) Subsection (a) is amended--
                    (A) in paragraph (3)--
                            (i) by striking ``or'' at the end of 
                        subparagraph (B);
                            (ii) in subparagraph (C), by striking 
                        ``engineering, research and development, or 
                        licensing.'' and inserting ``engineering and 
                        research and development; or''; and
                            (iii) by adding after subparagraph (C) the 
                        following:
            ``(D) substantial investment in licensing activities that 
        leads to the adoption and development of articles that 
        incorporate the patent, copyright, trademark, mask work, or 
        design.'';
                    (B) by redesignating paragraph (4) as paragraph 
                (5); and
                    (C) by inserting after paragraph (3) and following:
    ``(4) For purposes of paragraph (3), the complainant may not rely 
upon activities by its licensees unless the license leads to the 
adoption and development of articles that incorporate the claimed 
patent, copyright, trademark, mask work, or design for sale in the 
United States.''.
            (2) Subsection (b) is amended by adding at the end the 
        following:
            ``(4)(A) Whenever a complaint relies, in whole or in part, 
        on activity falling under subparagraph (C) or (D) of subsection 
        (a)(3) in order to meet the legal standard set forth in 
        subsection (a)(3), the Commission may not initiate an 
        investigation until the Commission has first conducted a 
        preliminary investigation of whether it is likely that an 
        industry in the United States exists or is in the process of 
        being established within the meaning of subsection (a)(2).
            ``(B) In the preliminary investigation under subparagraph 
        (A), the complainant's case shall be limited to the assertions 
        and evidence set forth in the complaint, and confidential 
        business information contained in the complaint that may be 
        disclosed under protective order, and the Commission shall 
        accept additional facts, evidence, and argument from named 
        respondents and the public.
            ``(C) The Commission shall render its determination in the 
        preliminary investigation under this paragraph not later than 
        45 days after the filing of the complaint. If the Commission 
        finds that it is not likely that an industry in the United 
        States exists or is in the process of being established, the 
        Commission may not initiate an investigation of the matter 
        alleged in the complaint.''.
            (3) Subsection (c) is amended--
                    (A) by striking the first sentence and inserting 
                the following: ``The Commission shall determine, with 
                respect to each investigation conducted by it under 
                this section, whether or not there is a violation of 
                this section, except that the Commission--
            ``(A) may, by issuing a consent order or on the basis of an 
        agreement between the private parties to the investigation, 
        including an agreement to present the matter for arbitration, 
        terminate any such investigation, in whole or in part, without 
        making such a determination; or
            ``(B)(i) may determine during the course of the 
        investigation that the articles under investigation should not 
        be excluded from entry based upon consideration of the public 
        interest, including the effect of such exclusion upon the 
        public health and welfare, competitive conditions in the United 
        States economy, the production of like or directly competitive 
        articles in the United States, United States consumers, whether 
        protected articles in the United States will be protected by an 
        exclusion order, and whether the complainant or its licensees 
        can meet market demand for protected articles; and
            ``(ii) upon a finding under clause (i) that the articles 
        should not be excluded, shall terminate the investigation, in 
        whole or in part, without making any further determination.'';
                    (B) in the second sentence, by striking ``Each 
                determination'' and inserting the following:
            ``(2) Each determination''; and
                    (C) in the third sentence, by striking ``equitable 
                defenses'' and inserting ``equitable defenses, 
                including equitable defenses and principles applied to 
                any remedy considered in United States district 
                courts,''.
            (4) Subsection (d)(1) is amended--
                    (A) by striking ``considering the effect of such 
                exclusion upon the public health and welfare,'' and 
                inserting ``considering equitable defenses and 
                principles and the effect of such exclusion upon the 
                public interest, including the public health and 
                welfare,''; and
                    (B) by striking ``and United States consumers,'' 
                and inserting ``United States consumers, whether 
                protected articles in the United States will be 
                protected by an exclusion order, and whether the 
                complainant or its licensees can meet market demand for 
                protected articles,''.
            (5) Subsection (e)(1) is amended--
                    (A) by striking ``considering the effect of such 
                exclusion upon the public health and welfare,'' and 
                inserting ``considering equitable defenses and 
                principles and the effect of such exclusion upon the 
                public interest, including the public health and 
                welfare,''; and
                    (B) by striking ``and United States consumers,'' 
                and inserting ``United States consumers, whether 
                protected articles in the United States will be 
                protected by an exclusion order, and whether the 
                complainant or its licensees can meet market demand for 
                protected articles,''.
            (6) Subsection (f)(1) is amended--
                    (A) by striking ``considering the effect of such 
                exclusion upon the public health and welfare,'' and 
                inserting ``considering equitable defenses and 
                principles and the effect of such exclusion upon the 
                public interest, including the public health and 
                welfare,''; and
                    (B) by striking ``and United States consumers,'' 
                and inserting ``United States consumers, whether 
                protected articles in the United States will be 
                protected by an exclusion order, and whether the 
                complainant or its licensees can meet market demand for 
                protected articles,''.
            (7) Subsection (g)(1) is amended, in the matter following 
        subparagraph (E)--
                    (A) by striking ``considering the effect of such 
                exclusion upon the public health and welfare,'' and 
                inserting ``considering equitable defenses and 
                principles and the effect of such exclusion upon the 
                public interest, including the public health and 
                welfare,''; and
                    (B) by striking ``and United States consumers,'' 
                and inserting ``United States consumers, whether 
                protected articles in the United States will be 
                protected by an exclusion order, and whether the 
                complainant or its licensees can meet market demand for 
                protected articles,''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to complaints filed under section 337 of the Tariff Act of 1930 
on or after the date of the enactment of this Act.

Summary: Trade Protection Not Troll Protection Act - Amends the Tariff Act of 1930 to revise certain legal standards used to consider whether a domestic industry exists or is in the process of being established with respect to foreign countries that unlawfully import articles into the United States in violation of U.S. infringement laws. Considers an industry to exist if there is in the United States substantial investment in licensing activities that leads to the adoption and development of articles that incorporate the patent, copyright, trademark, mask work, or design of protected articles. Prohibits a complainant alleging a violation from relying upon activities by its licensees unless the license leads to such adoption and development. Prescribes requirements with respect to U.S. International Trade Commission investigations of alleged violations.