Representative David Schweikert (R-AZ) is teaming up with Representative Don Beyer (D-VA) to introduce a bipartisan bill designed to improve security within domestic industries on the international stage.
What the Bill Does
Rep. Schweikert's Advancing American Innovation Act clarifies that licensing activity under Section 337 of the 1930 Tariff Act satisfies its domestic industry requirement only when it results in the adoption and development of products incorporating the patented technology for sale in the United States.
In other words, simply owning or licensing a patent isn't enough. To qualify, the licensing must actually result in products that use the patented technology being developed and sold in the United States.
Additionally, the bill requires the U.S. International Trade Commission (ITC) to identify dispositive issues at the outset of an investigation and requires an initial determination on those issues within 100 days, weighing an exclusion order on public health and welfare, the U.S. economy, competitive conditions, and American consumers before barring products from entry.
Moreover, complainants in patent cases must disclose the identity of any third-party litigation funder and file funding agreements with the Commission, with sanctions for noncompliance, and anyone relied upon to establish a domestic industry must join the complaint under oath.
What Lawmakers are Saying
"Section 337 exists to protect companies that make things in this country," said Rep. Schweikert in a press release. "Right now, a complainant with hidden financial backers can ask a trade agency to block products from the American market without ever showing an industry here at home. If you want the federal government to keep products out of the country on your behalf, you should be able to show what you build here and who is financing your case. Any legitimate patent holder can do both."
Rep. Beyer added, "The ITC is a critical forum that was created to shield U.S. businesses from unfair foreign competition. It is a powerful tool but unfortunately it has been misused by patent licensing entities who target American companies with needless and unjustified litigation. This legislation would help refocus the Commission on its core mission and protect the U.S. economy and American jobs."
