Protect American IPR Act

I 116TH CONGRESS 1ST SESSION H. R. 902 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. IN THE HOUSE OF REPRESENTATIVES JANUARY 30, 2019 Mr. KING of Iowa introduced the following bill; which was referred to the Committee on Ways and Means A BILL To direct the President to impose duties on merchandise from the People’s Republic of China to compensate hold- ers 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 Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Protect American IPR 4 Act’’. 5 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H902.IH H902 kjohnson on DSK79L0C42 with BILLS 2 •HR 902 IH SEC. 2. STUDY AND REPORT ON VIOLATIONS OF UNITED 1 STATES INTELLECTUAL PROPERTY RIGHTS 2 IN CHINA OR BY CHINESE PERSONS. 3 (a) STUDY.—The United States Trade Representa- 4 tive, in consultation with the United States International 5 Trade Commission, shall conduct an annual study to de- 6 termine the estimated annual loss of revenue to holders 7 of United States intellectual property rights as a result 8 of direct or indirect violations of such intellectual property 9 rights in the People’s Republic of China or by any Chinese 10 person, including governmental entities of China, in the 11 preceding calendar year. 12 (b) REPORT.—Not later than 120 days after the date 13 of the enactment of this Act, and annually thereafter, the 14 United States Trade Representative shall submit to Con- 15 gress a report that contains the results of the study con- 16 ducted pursuant to subsection (a). 17 SEC. 3. IMPOSITION OF DUTIES ON MERCHANDISE FROM 18 CHINA AND DISTRIBUTION OF PROCEEDS OF 19 SUCH DUTIES TO HOLDERS OF CERTAIN 20 UNITED STATES INTELLECTUAL PROPERTY 21 RIGHTS. 22 Notwithstanding any other provision of law, the 23 President, acting through the United States Trade Rep- 24 resentative, shall impose duties on merchandise origi- 25 nating from China in an amount equivalent to— 26 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H902.IH H902 kjohnson on DSK79L0C42 with BILLS 3 •HR 902 IH (1) the estimated total loss of revenue to hold- 1 ers of United States intellectual property rights as 2 a result of violations of such intellectual property 3 rights in China during the previous calendar year, as 4 determined by the study conducted pursuant to sec- 5 tion 2(a), reduced by 6 (2) the total amount of any tariffs collected, 7 pursuant to section 301 of the Trade Act of 1974 8 (19 U.S.C. 2411) or any other provision of law au- 9 thorizing the President to act to safeguard intellec- 10 tual property rights, with respect to such violations 11 in such previous calendar year. 12 SEC. 4. COMPENSATION FOR LOSSES BORNE BY HOLDERS 13 OF UNITED STATES INTELLECTUAL PROP- 14 ERTY RIGHTS. 15 (a) ESTABLISHMENT OF TRUST FUND.—There is es- 16 tablished in the Treasury of the United States a trust 17 fund, to be known as the ‘‘American IPR Trust Fund’’ 18 (in this section referred to as the ‘‘Trust Fund’’), con- 19 sisting of such amounts as may be deposited to the Trust 20 Fund pursuant to subsection (b) to be used, in accordance 21 with subsection (c), for the purpose of compensating the 22 injury to holders of United States intellectual property 23 rights resulting from violations of such intellectual prop- 24 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H902.IH H902 kjohnson on DSK79L0C42 with BILLS 4 •HR 902 IH erty rights in China or by any Chinese person, including 1 governmental entities of China. 2 (b) FUNDING.—The Commissioner of U.S. Customs 3 and Border Patrol shall deposit into the Trust Fund any 4 amounts collected from duties imposed pursuant to section 5 3, which shall remain available until expended for the pur- 6 pose described in subsection (a). 7 (c) DISTRIBUTION OF FUNDS.— 8 (1) IN GENERAL.—From amounts in the Trust 9 Fund, the Commissioner of U.S. Customs and Bor- 10 der Patrol shall make payments annually to each 11 person the Commissioner determines, with respect to 12 the preceding calendar year— 13 (A) was— 14 (i) if an individual, a citizen or legal 15 permanent resident of the United States; 16 or 17 (ii) if an entity, organized under the 18 laws of the United States or any subdivi- 19 sion of the United States; 20 (B) held the rights to intellectual property 21 under the laws of the United States; and 22 (C) can establish quantifiable losses result- 23 ing from the violation, directly or indirectly, of 24 such rights in China or by any Chinese person, 25 VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H902.IH H902 kjohnson on DSK79L0C42 with BILLS 5 •HR 902 IH including governmental entities of China, dur- 1 ing such year. 2 (2) MAXIMUM PAYMENT.—The Commissioner 3 may not make a payment under this subsection to 4 any person for any year in an amount that is great- 5 er than the amount of the loss described in para- 6 graph (1)(C) established with respect to such person 7 in such year. 8 (d) CONSULTATION.—The Commissioner shall con- 9 sult with the United States Trade Representative and the 10 Secretary of Commerce in issuing such regulations as may 11 be necessary to carry out this Act. 12 Æ VerDate Sep 11 2014 04:30 Feb 09, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H902.IH H902 kjohnson on DSK79L0C42 with BILLS