Protect American IPR Act
Bill: H.R.6128 | Sponsor: Rep. Gohmert, Louie (R-TX)
Policy area: Foreign Trade and International Finance

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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protect American IPR Act''.

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 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).

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 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), 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 authorizing the President to act to 
        safeguard intellectual property rights, with respect to such 
        violations in such previous calendar year.

SEC. 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'' (in this section referred to as the ``Trust 
Fund''), consisting 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 property 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 purpose described in 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) established with respect to such person in 
        such year.
    (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.
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