Sec. 125. Intellectual property violators list
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Not later than one year after the date of the enactment of this Act, and not less frequently than annually thereafter for 8 years, the Secretary of State, in coordination with the heads of other Federal departments and agencies as the President determines appropriate, shall create a list (referred to in this section as the intellectual property violators list ) that identifies— all state-owned enterprises incorporated in the PRC that have benefitted from— a significant act or series of acts of intellectual property theft that caused significant harm to an economic sector of the United States or a company, partnership or entity incorporated or organized in the United States or group or association of such entities; or an act or government policy of involuntary or coerced technology transfer of intellectual property owned by an entity identified company incorporated in the United States; and any foreign person with operational control of an entity described in paragraph (1), including senior corporate officers and principal shareholders of the entity.
To determine whether there is a credible basis for determining that an entity should be included on the intellectual property violators list, the Secretary of State, in coordination with the departments and agencies specified in subsection
(a)shall consider— any final adjudication by a court of competent authority in the United States that the entity has violated relevant United States laws intended to protect intellectual property rights; or substantial and credible information received from any entity described in subsection
(c)or other interested persons. In carrying out this section, the Secretary of State, in coordination with the departments and agencies specified in subsection (a), may consult, as necessary and appropriate, with— other Federal agencies, including independent agencies; entities in the private sector, including trade associations; civil society organizations with relevant expertise; and allies and partners of the United States. Not later than one year after the date of the enactment of this Act, and annually thereafter for 8 years, the Secretary of State shall publish in the Federal Register a report that— lists the entities identified pursuant to subsection (a)(1) and the corporate officers of such entities identified pursuant to subsection (a)(2); describes the circumstances surrounding acts or policies described in subsection (a)(1), including any role of the Government of the PRC; assesses, to the extent practicable, the economic advantage derived by the entities identified pursuant to subsection (a)(1); and assesses whether each entity described in subsection (a)(1) is using or has used stolen intellectual property in commercial activity within the sovereign jurisdiction of the United States. Concurrent with publication of the reports required under paragraph (1), the Secretary of State shall submit to the Foreign Relations Committee of the Senate and the Foreign Affairs Committee of the House of Representatives a classified version of the report that includes greater detail and intelligence about the information specified in subparagraphs
(A)through
(D)of paragraph (1). The Secretary of State and the head of any other Federal agency involved in the production of the intellectual property violators list shall protect from disclosure any proprietary information submitted by a private sector party and marked as confidential business information, unless the party submitting the information— had notice, at the time of submission, that such information would be disclosed by the Secretary; subsequently consents to the disclosure of such information; or is an entity listed on the intellectual property violators list. If confidential business information is provided by a private sector party in connection with the production of the intellectual property violators list, the Secretary of State shall include such information in the classified version of the report under subsection (d)(2). Proprietary information submitted by a private sector party (except an entity listed on the intellectual property violators list) under this section— shall be considered to be trade secrets and commercial or financial information exempt under subsection (b)(4) of section 552 of title 5, United States Code, from being made available to the public under subsection
(a)of that section; and shall be exempt from disclosure without the express approval of the party.