Washington, DC – Today, the House Foreign Affairs Committee passed out of markup on a bipartisan vote the Protecting American Innovation and Development (PAID) Act (H.R. 8924), led by U.S. Representatives Young Kim (CA-40), who serves as Chairwoman of the House Foreign Affairs Subcommittee on the Indo-Pacific, and John Moolenaar (MI-02), who serves as Chairman of the Select Committee on the Chinese Communist Party. This bill exposes foreign adversaries stealing U.S. intellectual property (IP) and trade secrets of dual-use technologies critical to national security.
The PAID Act would require the Secretary of Commerce to identify and report on foreign adversary entities, including those affiliated with the Chinese Communist Party (CCP), Russia, North Korea, and Iran, using American IP related to a critical or emerging technology area, including hypersonic systems, artificial intelligence, and space technology, without a license.
Watch Rep. Kim speak in favor the PAID Act during the markup HERE.
“We must expose authoritarian regimes like the CCP who steals up to $600 billion worth of U.S. intellectual property and trade secrets each year. The PAID Act does exactly that, so we can hold bad actors accountable,” said Rep. Young Kim. “I thank my House Foreign Affairs Committee colleagues for supporting this commonsense bill to protect U.S. competitiveness and our national security.”
“It is the Chinese Communist Party’s playbook to steal our technology and leave our industry high and dry. We must push back against CCP IP theft and support the ingenuity of American tech companies. I’m encouraged that the PAID Act passed in the House Foreign Affairs Committee and eagerly await its passage in Congress,” said Chairman Moolenaar.
The PAID Act would boost public transparency regarding foreign adversary entities violating U.S. IP regulations by:
- Requiring the End-User Review Committee, who makes decisions related to export controls, to identify a foreign adversary entity using a U.S. patented invention or covered trade secret acquired through improper means such as theft, bribery, and espionage;
- Demanding the Secretary to publish a notice on such foreign adversary entities identified by the End-User Review Committee in the Federal Register;
- Providing U.S. small and medium-sized businesses with a voice by allowing them to submit a petition requesting the End-User Review Committee to investigate and determine whether a foreign adversary entity is in violation; and,
- Requiring the Secretary to submit to Congress a report listing all foreign adversary entities in violation.
