Title: Protecting American Intellectual Property Act of 2022
Policy area: International Affairs

Summary:
Protecting American Intellectual Property Act of 2021
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 persons who are chief executive officers and 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.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 1294 Introduced in Senate (IS)]

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117th CONGRESS
  1st Session
                                S. 1294

   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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 21, 2021

  Mr. Van Hollen (for himself and Mr. Sasse) introduced the following 
 bill; which was read twice and referred to the Committee on Banking, 
                       Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   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.

    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 ``Protecting American Intellectual 
Property Act of 2021''.

SEC. 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) 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--
                                    (I) occurred on or after such date 
                                of enactment; and
                                    (II) 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) 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.
            (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 not less than 5 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.--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:
                            (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 subsection, and the imposition of both such 
                sanctions shall be treated as 2 sanctions for purposes 
                of this subsection.
                    (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) 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 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) determines that such a waiver is in the national 
        interests of the United States; and
            (2) 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) Termination of Sanctions.--Sanctions imposed under subsection 
(b) with respect to a foreign person identified in a report submitted 
under subsection (a) shall terminate if the President certifies to the 
appropriate congressional committees, before the termination takes 
effect, that the person is no longer engaged in the activity identified 
in the report.
    (e) 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 
        part 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.
    (f) 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.
            (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.
    (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) Export administration regulations.--The term ``Export 
        Administration Regulations'' means subchapter C of chapter VII 
        of title 15, Code of Federal Regulations.
            (4) Foreign entity.--The term ``foreign entity'' means an 
        entity that is not a United States person.
            (5) Foreign person.--The term ``foreign person'' means any 
        person that is not a United States person.
            (6) 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.
            (7) Person.--The term ``person'' means an individual or 
        entity.
            (8) Trade secret.--The term ``trade secret'' has the 
        meaning given that term in section 1839 of title 18, United 
        States Code.
            (9) United states person.--The term ``United States 
        person'' means--
                    (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.
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