Protecting American Intellectual Property Act of 2022
Bill: S.1294 | Sponsor: Sen. Van Hollen, Chris (D-MD)
Policy area: International Affairs

Summary:
Protecting American Intellectual Property Act of 2022
This bill imposes sanctions on certain foreign individuals and entities involved in the theft of trade secrets belonging to a U.S. individual or entity.
The President shall periodically report a list of foreign individuals and entities that have knowingly engaged in, benefited from, or assisted in the significant theft of U.S. trade secrets that materially contributed to a significant threat to U.S. national security, foreign policy, or economic health. The report shall also list foreign individuals who are chief executive officers or board members of any foreign entity engaging in such theft.
The President shall impose (1) property- and visa-blocking sanctions on individuals named in the report; and (2) property- or export-blocking sanctions, including denial of certain financial assistance, on entities named in the report.

[117th Congress Public Law 336]
[From the U.S. Government Publishing Office]



[[Page 136 STAT. 6147]]

Public Law 117-336
117th Congress

                                 An Act


 
To authorize the imposition of sanctions with respect to foreign persons 
that have engaged in significant theft of trade secrets of United States 
  persons, and for other purposes. <<NOTE: Jan. 5, 2023 -  [S. 1294]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Protecting 
American Intellectual Property Act of 2022. President.>> 
SECTION <<NOTE: 50 USC 1701 note.>>  1. SHORT TITLE.

    This Act may be cited as the ``Protecting American Intellectual 
Property Act of 2022''.
SEC. <<NOTE: 50 USC 1709.>> 2. IMPOSITION OF SANCTIONS WITH 
                    RESPECT TO THEFT OF TRADE SECRETS OF UNITED 
                    STATES PERSONS.

    (a) Report Required.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, and not less frequently than annually 
        thereafter, the President shall submit to the appropriate 
        congressional committees a report--
                    (A) <<NOTE: Determination.>> identifying any foreign 
                person the President determines, during the period 
                specified in paragraph (2)--
                          (i) has knowingly engaged in, or benefitted 
                      from, significant theft of trade secrets of United 
                      States persons, if the theft of such trade secrets 
                      occurred on or after such date of enactment and is 
                      reasonably likely to result in, or has materially 
                      contributed to, a significant threat to the 
                      national security, foreign policy, or economic 
                      health or financial stability of the United 
                      States;
                          (ii) has provided significant financial, 
                      material, or technological support for, or goods 
                      or services in support of or to benefit 
                      significantly from, such theft;
                          (iii) is an entity that is owned or controlled 
                      by, or that has acted or purported to act for or 
                      on behalf of, directly or indirectly, any foreign 
                      person identified under clause (i) or (ii); or
                          (iv) is a chief executive officer or member of 
                      the board of directors of any foreign entity 
                      identified under clause (i) or (ii);
                    (B) describing the nature, objective, and outcome of 
                the theft of trade secrets each foreign person described 
                in subparagraph (A)(i) engaged in or benefitted from; 
                and
                    (C) <<NOTE: Assessment.>> assessing whether any 
                chief executive officer or member of the board of 
                directors described in clause (iv) of subparagraph (A) 
                engaged in, or benefitted from, activity described in 
                clause (i) or (ii) of that subparagraph.

[[Page 136 STAT. 6148]]

            (2) Period specified.--The period specified in this 
        paragraph is--
                    (A) in the case of the first report required by 
                paragraph (1), the period beginning on the date of the 
                enactment of this Act and ending on the date on which 
                the report is required to be submitted; and
                    (B) in the case of each subsequent report required 
                by paragraph (1), the one-year period preceding the date 
                on which the report is required to be submitted.
            (3) Form of report.--Each report required by paragraph (1) 
        shall be submitted in unclassified form but may include a 
        classified annex.

    (b) Authority to Impose Sanctions.--
            (1) Sanctions applicable to entities.--In the case of a 
        foreign entity identified under subparagraph (A) of subsection 
        (a)(1) in the most recent report submitted under that 
        subsection, the President shall impose 5 or more of the 
        following:
                    (A) Blocking of property.--The President may, 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.), block and prohibit all 
                transactions in all property and interests in property 
                of the entity if such property and interests in property 
                are in the United States, come within the United States, 
                or are or come within the possession or control of a 
                United States person.
                    (B) Inclusion on entity list.--The President may 
                include the entity on the entity list maintained by the 
                Bureau of Industry and Security of the Department of 
                Commerce and set forth in Supplement No. 4 to part 744 
                of the Export Administration Regulations, for activities 
                contrary to the national security or foreign policy 
                interests of the United States.
                    (C) Export-import bank assistance for exports to 
                sanctioned persons.--The President may direct the 
                Export-Import Bank of the United States not to give 
                approval to the issuance of any guarantee, insurance, 
                extension of credit, or participation in the extension 
                of credit in connection with the export of any goods or 
                services to the entity.
                    (D) Loans from united states financial 
                institutions.-- <<NOTE: Time period.>> The President may 
                prohibit any United States financial institution from 
                making loans or providing credits to the entity totaling 
                more than $10,000,000 in any 12-month period unless the 
                person is engaged in activities to relieve human 
                suffering and the loans or credits are provided for such 
                activities.
                    (E) Loans from international financial 
                institutions.--The President may direct the United 
                States executive director to each international 
                financial institution to use the voice and vote of the 
                United States to oppose any loan from the international 
                financial institution that would benefit the entity.
                    (F) Prohibitions on financial institutions.--The 
                following prohibitions may be imposed against the entity 
                if the entity is a financial institution:

[[Page 136 STAT. 6149]]

                          (i) Prohibition on designation as primary 
                      dealer.--Neither the Board of Governors of the 
                      Federal Reserve System nor the Federal Reserve 
                      Bank of New York may designate, or permit the 
                      continuation of any prior designation of, the 
                      financial institution as a primary dealer in 
                      United States Government debt instruments.
                          (ii) Prohibition on service as a repository of 
                      government funds.--The financial institution may 
                      not serve as agent of the United States Government 
                      or serve as repository for United States 
                      Government funds.
                The imposition of either sanction under clause (i) or 
                (ii) shall be treated as one sanction for purposes of 
                this paragraph, and the imposition of both such 
                sanctions shall be treated as 2 sanctions for purposes 
                of this paragraph.
                    (G) Procurement sanction.--The United States 
                Government may not procure, or enter into any contract 
                for the procurement of, any goods or services from the 
                entity.
                    (H) Foreign exchange.--The President may, pursuant 
                to such regulations as the President may prescribe, 
                prohibit any transactions in foreign exchange that are 
                subject to the jurisdiction of the United States and in 
                which the entity has any interest.
                    (I) Banking transactions.--The President may, 
                pursuant to such regulations as the President may 
                prescribe, prohibit any transfers of credit or payments 
                between financial institutions or by, through, or to any 
                financial institution, to the extent that such transfers 
                or payments are subject to the jurisdiction of the 
                United States and involve any interest of the entity.
                    (J) Ban on investment in equity or debt of 
                sanctioned person.--The President may, pursuant to such 
                regulations or guidelines as the President may 
                prescribe, prohibit any United States person from 
                investing in or purchasing significant amounts of equity 
                or debt instruments of the entity.
                    (K) <<NOTE: Determination.>>  Exclusion of corporate 
                officers.--The President may direct the Secretary of 
                State to deny a visa to, and the Secretary of Homeland 
                Security to exclude from the United States, any alien 
                that the President determines is a corporate officer or 
                principal of, or a shareholder with a controlling 
                interest in, the entity.
                    (L) Sanctions on principal executive officers.--The 
                President may impose on the principal executive officer 
                or officers of the entity, or on individuals performing 
                similar functions and with similar authorities as such 
                officer or officers, any of the sanctions under this 
                paragraph.
            (2) Sanctions applicable to individuals.--In the case of an 
        alien identified under subparagraph (A) of subsection (a)(1) in 
        the most recent report submitted under that subsection, the 
        following shall apply:
                    (A) Blocking of property.--The President shall, 
                pursuant to the International Emergency Economic Powers 
                Act (50 U.S.C. 1701 et seq.), block and prohibit all 
                transactions in all property and interests in property 
                of the

[[Page 136 STAT. 6150]]

                alien if such property and interests in property are in 
                the United States, come within the United States, or are 
                or come within the possession or control of a United 
                States person.
                    (B) Ineligibility for visas, admission, or parole.--
                          (i) Visas, admission, or parole.--An alien 
                      described in subparagraph (A) of subsection (a)(1) 
                      is--
                                    (I) inadmissible to the United 
                                States;
                                    (II) ineligible to receive a visa or 
                                other documentation to enter the United 
                                States; and
                                    (III) otherwise ineligible to be 
                                admitted or paroled into the United 
                                States or to receive any other benefit 
                                under the Immigration and Nationality 
                                Act (8 U.S.C. 1101 et seq.).
                          (ii) Current visas revoked.--
                                    (I) In general.--An alien described 
                                in subparagraph (A) of subsection (a)(1) 
                                is subject to revocation of any visa or 
                                other entry documentation regardless of 
                                when the visa or other entry 
                                documentation is or was issued.
                                    (II) Immediate effect.--A revocation 
                                under subclause (I) shall--
                                            (aa) take effect pursuant to 
                                        section 221(i) of the 
                                        Immigration and Nationality Act 
                                        (8 U.S.C. 1201(i)); and
                                            (bb) cancel any other valid 
                                        visa or entry documentation that 
                                        is in the alien's possession.

    (c) National Interest Waiver.--The President may waive the 
imposition of sanctions under subsection (b) with respect to a person if 
the President--
            (1) <<NOTE: Determination.>>  determines that such a waiver 
        is in the national interests of the United States; and
            (2) <<NOTE: Deadline. Notification.>> not more than 15 days 
        after issuing the waiver, submits to the appropriate 
        congressional committees a notification of the waiver and the 
        reasons for the waiver.

    (d)  Implementation; Penalties.--
            (1) Implementation.--The President may exercise all 
        authorities provided under sections 203 and 205 of the 
        International Emergency Economic Powers Act (50 U.S.C. 1702 and 
        1704) to carry out this section.
            (2) Penalties.--A person that violates, attempts to violate, 
        conspires to violate, or causes a violation of this section or 
        any regulation, license, or order issued to carry out this 
        section shall be subject to the penalties set forth in 
        subsections (b) and (c) of section 206 of the International 
        Emergency Economic Powers Act (50 U.S.C. 1705) to the same 
        extent as a person that commits an unlawful act described in 
        subsection (a) of that section.

    (e) Exceptions.--
            (1) Intelligence activities.--This section shall not apply 
        with respect to activities subject to the reporting requirements 
        under title V of the National Security Act of 1947 (50 U.S.C. 
        3091 et seq.) or any authorized intelligence activities of the 
        United States.
            (2) Law enforcement activities.--Sanctions under this 
        section shall not apply with respect to any authorized law 
        enforcement activities of the United States.

[[Page 136 STAT. 6151]]

            (3) Exception to comply with international agreements.--
        Sanctions under this section shall not apply with respect to the 
        admission of an alien to the United States if such admission is 
        necessary to comply with the obligations of the United States 
        under the Agreement regarding the Headquarters of the United 
        Nations, signed at Lake Success June 26, 1947, and entered into 
        force November 21, 1947, between the United Nations and the 
        United States, or the Convention on Consular Relations, done at 
        Vienna April 24, 1963, and entered into force March 19, 1967, or 
        other international obligations.
            (4) Exception relating to importation of goods.--
                    (A) In general.--The authority or a requirement to 
                impose sanctions under this section shall not include 
                the authority or a requirement to impose sanctions on 
                the importation of goods.
                    (B) Good defined.--In this paragraph, the term 
                ``good'' means any article, natural or manmade 
                substance, material, supply, or manufactured product, 
                including inspection and test equipment, and excluding 
                technical data.

    (f) Sunset.--This section shall terminate on the date that is 7 
years after the date of the enactment of this Act.
    (g) Definitions.--In this section:
            (1) Admission; admitted; alien; lawfully admitted for 
        permanent residence.--The terms ``admission'', ``admitted'', 
        ``alien'', and ``lawfully admitted for permanent residence'' 
        have the meanings given those terms in section 101 of the 
        Immigration and Nationality Act (8 U.S.C. 1101).
            (2) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Banking, Housing, and Urban 
                Affairs and the Committee on Foreign Relations of the 
                Senate; and
                    (B) the Committee on Financial Services and the 
                Committee on Foreign Affairs of the House of 
                Representatives.
            (3) Entity.--The term ``entity'' means a partnership, 
        association, trust, joint venture, corporation, group, subgroup, 
        or other organization.
            (4) Export administration regulations.--The term ``Export 
        Administration Regulations'' has the meaning given that term in 
        section 1742 of the Export Control Reform Act of 2018 (50 U.S.C. 
        4801).
            (5) Foreign entity.--The term ``foreign entity'' means an 
        entity that is not a United States person.
            (6) Foreign person.--The term ``foreign person'' means any 
        person that is not a United States person.
            (7) Knowingly.--The term ``knowingly'', with respect to 
        conduct, a circumstance, or a result, means that a person has 
        actual knowledge, or should have known, of the conduct, the 
        circumstance, or the result.
            (8) Person.--The term ``person'' means an individual or 
        entity.
            (9) Trade secret.--The term ``trade secret'' has the meaning 
        given that term in section 1839 of title 18, United States Code.
            (10) United states person.--The term ``United States 
        person'' means--

[[Page 136 STAT. 6152]]

                    (A) a United States citizen or an alien lawfully 
                admitted for permanent residence to the United States;
                    (B) an entity organized under the laws of the United 
                States or of any jurisdiction within the United States, 
                including a foreign branch of such an entity; or
                    (C) any person in the United States.

    Approved January 5, 2023.

LEGISLATIVE HISTORY--S. 1294:
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CONGRESSIONAL RECORD, Vol. 168 (2022):
            Dec. 20, considered and passed Senate.
            Dec. 22, considered and passed House.

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