,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #bhda  ,,in ,,the ,,house ,,of  
,,representatives  ,may #bj1 #bjai,mr4  
,chabot introduced the following bill2  
which was referred to the ,committee on 
the ,judiciary1 and in addition to the  
,committee on ,foreign ,affairs1 for a  
period to be subsequently determined by 
the ,speaker1 in each case for          
consideration of such provisions as fall
 within the jurisdiction of the         
committee concerned  ,a ,,bill  ,to     
amend title #ce1 ,united ,states ,code1 
with respect to actions for patent      
infringement1 and for other purposes4   
#a4 ,short title ,this ,act may be cited
 as the ,zero ,tolerance for            
,electronics ,theft ,act or the ,,zte   
,theft ,act4  #b4 ,findings ,congress   
finds the following3  7#a7 ,the ,federal
 ,bureau of ,investigation 7,,fbi7 has  
determined that certain foreign actors  
pose a serious threat to the            
telecommunications supply chain4  7#b7  
,through cyber espionage and other      

deliberate acts1 billions of dollars in 
trade secrets1 intellectual property1   
and technology are stolen each year from
 the ,federal ,government1 corporations1
 and academic institutions4  7#c7 ,the  
,people's ,republic of ,china 7,china7  
is one of the two largest participants  
in cyber espionage4  7#d7 ,a #bjab      
report by the ,permanent ,select        
,committee on ,intelligence of the      
,house of ,representatives found that   
,china exerts cyber espionage           
capabilities through telecommunications 
components and systems marketed directly
 to businesses and other entities in the
 ,united ,states4  7#e7 ,a #bjah report 
by the ,office of the ,united ,states   
,trade ,representative found that       
,chinese government-owned entities were 
responsible for a substantial number of 
patent infringements4  7#f7 ,,zte       
,corporation1 based in ,china1          
demonstrates the risks associated with  
doing business in countries sanctioned  
by the ,united ,states and provides a   

model1 as well as advocates for1 the use
 of shell companies to subvert the      
export control laws of the ,united      
,states1 explicitly stating that the    
biggest advantage of this model is that 
it is more effective1 because it's      
harder for the ,u4,s4 ,government to    
trace it or investigate the real flow of
 the controlled commodities44  7#g7     
,united ,states businesses provide an   
estimated #be to #cj percent of the     
components used in products of ,,zte    
,corporation1 including smartphones4    
7#h7 ,the ,,fbi determined that ,,zte   
,corporation sold banned technology to  
,iran and used the methods discussed in 
paragraph 7#f7 to mask its transaction  
history in an effort to undermine       
investigations of the ,department of    
,commerce4  7#i7 ,since #bjjh1 ,,zte    
,corporation has been the defendant1    
counterclaimant1 or respondent in #gbb  
court actions4  7#aj7 ,on ,march #bc1   
#bjag1 the ,department of ,justice      
stated that ,,zte ,corporation has      

agreed to enter a guilty plea and to pay
 a #dcj1dhh1gih penalty to the ,united  
,states for conspiring to violate the   
,international ,emergency ,economic     
,powers ,act by illegally shipping      
,u4,s4-origin items to ,iran1           
obstructing justice and making a        
material false statement44  7#aa7 ,,zte 
,corporation has also previously reached
 settlement agreements with the ,bureau 
of ,industry and ,security of the       
,department of ,commerce and the ,office
 of ,foreign ,assets ,control of the    
,department of the ,treasury4  7#ab7    
,the ,bureau of ,industry and ,security 
subsequently found ,,zte ,corporation in
 violation of the settlement agreement  
with the ,bureau due to--  7,a7         
falsification of reports and            
correspondence with the ,bureau2 and    
7,b7 failure to discipline all          
individuals named in the settlement     
agreement4  7#ac7 ,on ,march #ac1 #bjah1
 the ,bureau of ,industry and ,security 
notified ,,zte ,corporation that the    

agency would activate a conditionally   
suspended denial order1 due to the      
determination by the agency that ,,zte  
,corporation had continuously made false
 statements to the ,united ,states      
,government4  7#ad7 ,on ,june #g1 #bjah1
 ,secretary of ,commerce ,wilbur ,ross  
announced that ,,zte ,corporation--     
7,a7 agreed to additional penalties and 
compliance measures which would supplant
 a prior order of the ,bureau2 and  7,b7
 would be removed from the ,department  
of ,commerce's ,denied ,persons ,list1 a
 list of individuals and entities that  
have been denied export privileges4  #c4
 ,sense of ,congress ,it is the sense of
 ,congress that-- 7#a7 ,,zte            
,corporation poses a significant risk to
 the economy and national security of   
the ,united ,states2 and  7#b7 ,,zte    
,corporation engages and will continue  
to engage in the theft of intellectual  
property to the detriment of businesses 
in the ,united ,states4  #d4 ,injunction
 ,section #bhc of title #ce1 ,united    

,states ,code1 is amended--  7#a7 by    
striking ,the several courts and        
inserting the following3  7a7 ,in       
general ,the several courts  2 and  7#b7
 by adding at the end the following3    
7b7 ,special rule  7#a7 ,preliminary    
injunction in certain cases             
,notwithstanding any other provision of 
law1 when a covered entity is a party to
 a civil action for patent infringement 
brought under this title1 an opposing   
party1 if seeking a preliminary         
injunction against such covered entity1 
need not demonstrate that irreparable   
harm would result from the failure to   
grant such injunction4  7#b7 ,covered   
entity defined ,in this subsection1 the 
term covered entity means an entity 7or 
subsidiary or affiliate thereof7 that-- 
7,a7 is providing or producing          
telecommunications1 software1 or        
electronics equipment2  7,b7 has a      
headquarters or a principal place of    
business located in a region            
administered or governed by the         

,people's ,republic of ,china 7excluding
 ,taiwan72  7,c7 was1 on or after ,march
 #h1 #bjaf1 denied export privileges2   
and  7,d7 was1 subsequent to such       
denial1 removed by the ,secretary of    
,commerce from the ,list of ,denied     
,persons maintained by the ,bureau of   
,industry and ,security of the          
,department of ,commerce upon the       
restoration of such privileges4  4  #e4 
,export privileges eligibility  7a7 ,in 
general ,beginning on and after the date
 that is #ahj days after the date of    
enactment of this ,act1 a covered entity
 may only be eligible for export        
privileges if such covered entity--     
7#a7 certifies to the ,attorney ,general
 that such covered entity-- 7,a7 with   
respect to patents in use by the covered
 entity1 has entered into license       
agreements with the ,united ,states     
persons that own such patents2  7,b7    
will abide by the laws of the ,united   
,states2 and  7,c7 will not engage in   
cyber espionage1 or the theft or        

misappropriation of intellectual        
property or trade secrets1 on behalf of 
themselves or a state actor2 and  7#b7  
maintains an export eligibility account 
in accordance with subsection 7b74  7b7 
,export eligibility accounts  7#a7      
,establishment ,the ,secretary of the   
,treasury1 at the request of a covered  
entity1 shall establish and manage an   
export eligibility account for the      
covered entity in accordance with this  
subsection4  7#b7 ,account balance ,to  
establish eligibility for export        
privileges under subsection 7a71 an     
account established under paragraph 7#a7
 shall-- 7,a7 at the time such account  
is established1 include an amount equal 
to #b1ejj1jjj1jjj provided by the       
covered entity2  7,b7 have a balance    
accessible only-- 7i7 by the ,secretary 
of the ,treasury for payments described 
in paragraph 7#c72 and  7ii7 by the     
covered entity-- 7,i7 upon closure of   
the account2 and  7,,ii7 for purposes of
 making deposits to maintain the account

 in accordance with subparagraph 7,c72  
and  7,c7 at all times after            
establishment1 include a minimum of     
#fjj1jjj1jjj4  7#c7 ,use of account     
,amounts in an account established under
 paragraph 7#a7 may be used by the      
,secretary of the ,treasury for         
payments-- 7,a7 made to a ,united       
,states person2 and  7,b7 that-- 7i7    
relate to final judgments in a patent   
infringement action against the         
applicable covered entity 7including    
interest1 attorney's fees1 and any other
 costs specified in such judgments72 and
  7ii7 the covered entity failed to     
make4  7#d7 ,certification ,the         
,attorney ,general1 in consultation with
 the ,secretary of the ,treasury and the
 ,secretary of ,commerce1 shall review  
and certify the account status of       
covered entities for purposes of        
eligibility for export privileges at    
least once every #g years4  7#e7        
,notification ,the ,attorney ,general   
shall notify ,united ,states ,customs   

and ,border ,protection and the ,bureau 
of ,industry and ,security of the       
,department of ,commerce of the         
identities of covered entities without  
an account providing eligibility for    
export privileges4  7c7 ,definitions ,in
 this section3  7#a7 ,covered entity    
,the term covered entity means an entity
 7or subsidiary or affiliate thereof7   
that-- 7,a7 is providing or producing   
telecommunications1 software1 or        
electronics equipment2  7,b7 has a      
headquarters or a principal place of    
business located in a region            
administered or governed by the         
,people's ,republic of ,china 7excluding
 ,taiwan72  7,c7 was1 on or after ,march
 #h1 #bjaf1 denied export privileges2   
and  7,d7 was1 subsequent to such       
denial1 removed by the ,secretary of    
,commerce from the ,list of ,denied     
,persons maintained by the ,bureau of   
,industry and ,security of the          
,department of ,commerce upon the       
restoration of such privileges4  7#b7   

,export privileges ,the term export     
privileges means1 with respect to items 
subject to the ,export ,administration  
,regulations 7as codified in subchapter 
,c of chapter ,,vii of title #ae1 ,code 
of ,federal ,regulations1 or any        
successor regulations7--  7,a7 the      
ability to engage in export and reexport
 transactions involving such items2 and 
7,b7 the access to such items4  7#c7    
,united ,states person ,the term ,united
 ,states person means-- 7,a7 a ,united  
,states citizen or national2  7,b7 an   
alien lawfully present in the ,united   
,states who has lawful status under the 
immigration laws 7as such term is       
defined in section #aja7;a7 of the      
,immigration and ,nationality ,act72    
7,c7 a partnership1 corporation1 or     
other legal entity organized under the  
laws of the ,united ,states2 or  7,d7 a 
partnership1 corporation1 or other legal
 entity that is organized under the laws
 of a foreign country and is controlled 
by entities described in subparagraph   

7,c7 or a ,united ,states citizen4