PAID Act of 2024

This bill requires the Secretary of Commerce to identify and report on foreign adversary entities that use U.S. patented inventions or trade secrets related to critical or emerging technology without a license. It amends the Export Control Reform Act of 2018 to add a new section on public transparency.

Sec. 2, Statement of policy: The bill adds a new policy objective to the Export Control Reform Act of 2018, stating that one purpose of U.S. export controls is to ensure continued U.S. strength and leadership in research and development of critical and emerging technologies.

Sec. 3, Public transparency regarding foreign adversary entities using intellectual property related to critical or emerging technology without a license: This section creates a new process. The Secretary of Commerce must publish in the Federal Register a notice identifying a foreign adversary entity if a majority of the End-User Review Committee determines the entity is using a patented invention or covered trade secret without a license, including through theft, bribery, misrepresentation, breach of secrecy, or espionage. A U.S. person who owns such intellectual property may petition the Committee, which must decide within 90 days. The Secretary may remove an entity from the list if it stops using the IP without a license or enters a licensing agreement or binding arbitration. Upon request from specified congressional committees, the Secretary must submit a report listing all identified entities with explanations. The bill defines 'critical or emerging technology' as any technology defined by the Under Secretary of Defense for Research and Engineering as a 'critical technology area.' It also defines 'foreign adversary' to include China (including Hong Kong and Macau), Russia, Cuba, North Korea, Iran, and the Venezuelan regime under Nicolas Maduro, and defines 'foreign adversary entity' broadly to include individuals and entities from those countries, as well as their subsidiaries and affiliates, with exceptions for entities majority-owned by U.S. nationals or with a U.S. ultimate parent.