South OC Times

On July 2, 2024, U.S. Representative Young Kim (CA-40), Chairwoman of the House Foreign Affairs Subcommittee on the Indo-Pacific, and Select Committee on the Chinese Communist Party Chairman John Moolenaar (MI-02) introduced the Protecting American Innovation and Development (PAID) Act. The legislation aims to hold foreign adversaries accountable for stealing American intellectual property (IP), violating laws, and undermining U.S. businesses, national security, and global competitiveness.

The PAID Act mandates the Secretary of Commerce to identify and report on foreign adversary entities using American IP related to critical or emerging technology areas without a license. These entities include those affiliated with the Chinese Communist Party (CCP), Russia, North Korea, and Iran. The technologies in question encompass hypersonic systems, artificial intelligence, and space technology.

Every year, up to $600 billion worth of U.S. IP and trade secrets are reportedly stolen by the CCP.

“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. Young 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.”

Chairman Moolenaar added his support: “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.”

The PAID Act seeks to enhance public transparency regarding foreign adversary entities violating U.S. IP regulations through several measures:

- 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 about such entities identified by the End-User Review Committee in the Federal Register.

- Permitting Americans to submit petitions requesting an investigation into whether a foreign adversary entity is in violation.

- Mandating that the Secretary submit a report listing all violating foreign adversary entities to Congress.