WASHINGTON, D.C. — Chairman John Moolenaar (R-MI) of the House Select Committee on the CCP and Representative Young Kim (R-CA), Chairwoman of the House Foreign Affairs Subcommittee on the Indo-Pacific, introduced the Protecting American Innovation and Development (PAID) Act to address foreign adversaries' theft of American intellectual property (IP). The bill aims to hold these entities accountable for their actions that undermine U.S. businesses, national security, and global competitiveness.
The PAID Act mandates that the Secretary of Commerce identify and report on foreign adversary entities, including those linked to the Chinese Communist Party (CCP), Russia, North Korea, and Iran, which use American IP related to critical or emerging technology areas without proper licensing.
According to reports, the CCP and its affiliates steal up to $600 billion worth of U.S. IP and trade secrets annually.
“Chinese Communist Party-controlled companies like Huawei illegally siphon off our technology and leave American tech companies high and dry. I’m proud to cosponsor Rep. Kim’s bill that will push back against this theft and support the ingenuity of American tech companies," said Chairman Moolenaar.
“We cannot allow authoritarian regimes like the CCP, North Korea, Russia, and Iran to get away with IP theft, steal U.S. trade secrets, and undermine our national security,” said Rep. Kim. “That’s why I’m leading the PAID Act to expose foreign adversaries illegally accessing American IP and to protect U.S. businesses’ competitiveness and our national security.”
The PAID Act aims to enhance public transparency regarding foreign adversary entities violating U.S. IP regulations by:
- Allowing the End-User Review Committee to identify a foreign adversary entity using a patented invention or covered trade secret without a license acquired through improper means such as theft, bribery, or espionage;
- Requiring the Secretary of Commerce to publish notices on such foreign adversary entities identified by the End-User Review Committee in the Federal Register;
- Permitting Americans to submit petitions requesting the End-User Review Committee investigate whether a foreign adversary entity is in violation;
- Mandating that the Secretary submit a report listing all foreign adversary entities in violation to Congress.
