,,ii  #aaith ,,congress  #b;d ,session  
,s4 #ebeb  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #e1    
#bjbf,mr4 ,hagerty 7for himself1 ,mr4   
,kim1 ,mr4 ,scott of ,south ,carolina1  
and ,ms4 ,cortez ,masto7 introduced the 
following bill2 which was read twice and
 referred to the ,committee on ,banking1
 ,housing1 and ,urban ,affairs  ,a      
,,bill  ,to prevent foreign adversaries 
from threatening the national security  
of the ,united ,states by extracting key
 technical features of closed-source1   
,united ,states-owned artificial        
intelligence models1 and for other      
purposes4  #a4 ,short title ,this ,act  
may be cited as ,blocking ,large-scale  
,adversarial ,distillation ,efforts ,act
 of #bjbf or ,,blade ,act4  #b4 ,sense  
of ,congress ,it is the sense of        
,congress that-- 7#a7 artificial        
intelligence models owned by ,united    
,states private sector entities are     
essential for advancing economic and    
national security interests of the      

,united ,states2  7#b7 many of the most 
advanced artificial intelligence models 
owned by ,united ,states entities are   
closed-source models whose unique       
technical characteristics are not openly
 shared or published2  7#c7 the         
unauthorized acquisition of model       
capabilities1 such as model weights1    
model architectures1 and other technical
 characteristics of closed-source       
artificial intelligence models1 by      
persons of concern through model        
extraction attacks represents a threat  
to the national security and foreign    
policy interests of the ,united ,states1
 as well as the intellectual property   
rights and economic competitiveness of  
,united ,states entities2  7#d7 the     
,united ,states ,government1 in         
cooperation with private owners of      
closed-source artificial intelligence   
models1 should take steps to identify1  
punish1 and deter model extraction      
attacks on the protected capabilities of
 closed-source artificial intelligence  

models by persons of concern2  7#e7     
model extraction attacks against ,united
 ,states closed-source artificial       
intelligence models allow foreign       
adversaries a short cut to acquiring    
advanced artificial intelligence        
capabilities2 and  7#f7 authorized model
 training practices that adhere to the  
terms of service or are otherwise       
consistent with contractual terms set by
 the owners of closed-source artificial 
intelligence models are a legitimate    
research method that play an important  
role in artificial intelligence research
 and are fundamentally distinct from    
model extraction attacks addressed by   
this ,act4  #c4 ,definitions ,in this   
,act3 7#a7 ,appropriate congressional   
committees ,the term appropriate        
congressional committees means-- 7,a7   
the ,committee on ,foreign ,affairs of  
the ,house of ,representatives2 and     
7,b7 the ,committee on ,banking1        
,housing1 and ,urban ,affairs of the    
,senate4  7#b7 ,closed-source artificial

 intelligence model ,the term           
closed-source artificial intelligence   
model means any artificial intelligence 
model with the following                
characteristics3 7,a7 ,proprietary key  
technical information1 such as          
underlying model weights1 that are      
necessary to reproduce and independently
 recreate the model and that are not    
willingly shared with third parties or  
otherwise made publicly available by the
 owner of the model4  7,b7 ,access and  
use governed by terms of service or     
contractual agreements that are         
established by the owner of the model4  
7,c7 ,access that is provided via an    
application program interface or another
 consumer-facing1 owner-controlled      
interface without enabling third parties
 to obtain1 modify1 or host the         
closed-source artificial intelligence   
model on their own data servers or other
 technology unless specifically         
authorized by the owner of the model4   
7#c7 ,country of concern ,the term      

country of concern means-- 7,a7 the     
,people's ,republic of ,china1 including
 the ,hong ,kong and ,macau ,special    
,administrative ,regions2  7,b7 the     
,russian ,federation2 and  7,c7 any     
other foreign country-- 7i7 listed in   
,country ,group ,d3#e in ,supplement    
,no4 #a to part #gdj of title #ae1 ,code
 of ,federal ,regulations1 as published 
on ,january #a1 #bjbf1 that is          
designated by the ,secretary of         
,commerce as a country of concern for   
purposes of this section and for which  
notice of such designation has been     
published in the ,federal ,register2 and
  7ii7 identified by the ,secretary of  
,commerce1 acting through the ,under    
,secretary of ,commerce for ,industry   
and ,security1 pursuant to an assessment
 required by subsection 7a7 or 7e7 of   
section #d4  7#d7 ,person of concern    
,the term person of concern means any   
foreign person that-- 7,a7 is located or
 headquartered in1 or the ultimate      
parent company of which is headquartered

 in1 a country of concern2  7,b7 is     
operating under the direction or control
 of any entity located or headquartered 
in1 or the ultimate parent company of   
which is headquartered in1 a country of 
concern2 or  7,c7 is conducting or      
attempting to conduct a model extraction
 attack against closed-source artificial
 intelligence models owned by ,united   
,states persons and outside of          
authorized model training practices4    
7#e7 ,foreign person ,the term foreign  
person means a person that is not a     
,united ,states person4  7#f7           
,fraudulent account network provider    
7,a7 ,in general ,the term fraudulent   
account network provider means any      
foreign person that knowingly and       
intentionally creates1 obtains1         
maintains1 sells1 brokers1 or otherwise 
provides access to an account that      
allows a person of concern to access a  
closed-source artificial intelligence   
model that the entity would otherwise be
 prohibited from accessing as a result  

of location restrictions in the terms of
 service or a contractual agreement     
created by the owner of the model4  7,b7
 ,exception ,for purposes of            
subparagraph 7,a71 an entity that       
creates or transmits location           
information to enable persons within    
countries of concern to access the      
internet for purposes of freedom of     
expression is not1 on the basis of that 
activity alone1 a fraudulent account    
network provider4  7#g7 ,model          
extraction attack  7,a7 ,in general ,the
 term model extraction attack means the 
unauthorized extracting of the          
capabilities of a closed-source         
artificial intelligence model to        
replicate1 develop1 train1 or improve   
another artificial intelligence model1  
if such extraction-- 7i7 circumvents    
technical1 contractual1 or other access 
controls1 identity verification         
requirements1 or geographic access      
restrictions implemented by the owner of
 the model2  7ii7 is conducted through  

fraudulent1 misrepresented1 or          
unauthorized credentials2 or  7iii7     
violates the terms1 conditions1 or      
restrictions governing access to or use 
of the model1 as established by the     
owner1 that specifically prohibit the   
use of model outputs or interactions to 
replicate1 develop1 train1 or improve   
another artificial intelligence model4  
7,b7 ,inference of purpose ,for purposes
 of subparagraph 7,a71 the purpose of   
extraction may be inferred from the     
totality of circumstances1 including--  
7i7 the volume1 structure1 pattern1     
coordination1 or timing of the          
extraction activity2  7ii7 the          
concentration of extractions on specific
 model capabilities2  7iii7 the use of  
multiple accounts in a coordinated      
manner2 or  7iv7 the correlation of     
extraction activity within the          
development timeline of another         
artificial intelligence model4  7,c7    
,exclusion ,for purposes of subparagraph
 7,a71 model training activities        

conducted in compliance with the terms1 
conditions1 and restrictions governing  
access to and use of a closed-source    
artificial intelligence model1 or       
otherwise conducted within a permitted  
exception or the express authorization  
of the owner of the model1 are not model
 extraction attacks4  7#h7 ,operating   
,committee for ,export ,policy ,the term
 ,operating ,committee for ,export      
,policy means the ,operating ,committee 
for ,export ,policy referred to in      
section #agfc7;c7 of the ,export        
,control ,reform ,act of #bjah 7#ej     
,u4,s4,c4 #dhbb7;c774  7#i7 ,owner ,the 
term owner means1 with respect to a     
closed-source artificial intelligence   
model1 the person that-- 7,a7 holds     
intellectual property rights 7including 
trade secret1 copyright1 patent1 or     
other proprietary rights71 contractual  
rights1 or a combination thereof1       
sufficient to authorize or restrict     
third-party access to1 use of1          
extraction from1 or reproduction of the 

model1 or any version1 instance1 or     
deployment the model1 whether such      
rights were obtained through            
development1 acquisition1 assignment1   
license1 or otherwise2 and  7,b7 is a   
,united ,states person4  7#aj7 ,person  
,the term person means individual or    
entity4  7#aa7 ,united states person    
,the term ,united ,states person means--
 7,a7 a ,united ,states citizen or an   
alien lawfully admitted for permanent   
residence to the ,united ,states2  7,b7 
an entity organized under the laws of   
the ,united ,states or any jurisdiction 
within the ,united ,states1 including a 
foreign branch of such an entity2 or    
7,c7 any person located in the ,united  
,states4  #d4 ,assessment of model      
extraction attacks and fraudulent       
account network providers  7a7 ,in      
general ,not later than #ahj days after 
the date of the enactment of this ,act1 
the ,secretary of ,commerce1 acting     
through the ,under ,secretary of        
,commerce for ,industry and ,security   

and in coordination with the head of    
each agency that is a member of the     
,operating ,committee for ,export       
,policy1 shall complete an assessment to
 determine-- 7#a7 which1 if any1 persons
 of concern have conducted or are       
currently conducting model extraction   
attacks against closed-source artificial
 intelligence models owned by ,united   
,states persons2 and  7#b7 which1 if    
any1 persons of concern are fraudulent  
account network providers4  7b7 ,matters
 ,to be included ,the assessment        
required by subsection 7a7 shall include
 the following3 7#a7 ,a determination of
 which persons of concern-- 7,a7 have   
either previously or are currently      
engaging in model extraction attacks2 or
  7,b7 are fraudulent account network   
providers4  7#b7 ,a determination of the
 countries1 if any-- 7,a7 from which    
model extraction attacks have           
originated2 and  7,b7 in which          
fraudulent account network providers    
exist4  7#c7 ,an identification of      

which1 if any1 agencies or              
instrumentalities of governments of     
countries of concern have provided or   
are providing material assistance to    
entities identified pursuant to         
paragraph 7#a74  7#d7 ,an analysis of   
the methods employed by persons of      
concern identified pursuant to paragraph
 7#a71 including-- 7,a7 the role of     
fraudulent account network providers in 
model extraction attacks1 including1 to 
the extent possible1 the physical       
location of offices and data centers of 
such providers2 and  7,b7 a             
determination1 to the extent possible1  
of the number of attempted model        
extraction attacks that occurred during 
the #b calendar years preceding the date
 on which the ,secretary of ,commerce1  
acting through the ,under ,secretary of 
,commerce for ,industry and ,security1  
begins the assessment required by       
subsection 7a74  7#e7 ,an examination of
 the strengths and weaknesses of various
 detection approaches that can be used  

to determine whether a model extraction 
attack has occurred or is occurring4    
7#f7 ,an assessment of the economic and 
national security consequences of       
successful model extraction attacks by  
persons of concern that occurred during 
the #b calendar years preceding the date
 on which the ,secretary of ,commerce1  
acting through the ,under ,secretary of 
,commerce for ,industry and ,security1  
begins the assessment required by       
subsection 7a74  7#g7 ,steps detailing  
how the ,united ,states ,government is  
assisting owners of closed-source       
artificial intelligence models that have
 been the target or victim of model     
extraction attacks in detecting model   
extraction attacks1 deterring future    
model extraction attacks1 and punishing 
persons of concern that engage in model 
extraction attacks or are fraudulent    
account network providers4  7#h7 ,a     
diplomatic strategy to leverage allies  
and partners of the ,united ,states in  
detecting and preventing model          

extraction attacks by persons of        
concern4  7c7 ,public consultation  7#a7
 ,in general ,in conducting the         
assessment required by subsection 7a71  
the ,secretary of ,commerce1 acting     
through the ,under ,secretary of        
,commerce for ,industry and ,security   
and in coordination with the head of    
each agency that is a member of the     
,operating ,committee for ,export       
,policy1 shall consult with owners of   
closed-source artificial intelligence   
models that have been the targets or    
victims of model extraction attacks1    
academic experts1 industry fora1 and    
other appropriate entities-- 7,a7 to    
identify patterns of behavior and       
methods of attackers to better inform   
efforts of the ,united ,states          
,government and the private sector to   
detect model extraction attacks2  7,b7  
to develop best practices for defending 
against model extraction attacks2 and   
7,c7 to develop best practices for      
identifying activities of fraudulent    

account network providers that          
facilitate model extraction attacks4    
7#b7 ,voluntary participation ,the      
participation of owners of closed-source
 artificial intelligence models         
described in paragraph 7#a7 in          
consultations under that paragraph shall
 be voluntary4  7d7 ,report  7#a7 ,in   
general ,not later than #baj days after 
the date of the enactment of this ,act1 
the ,secretary of ,commerce1 acting     
through the ,under ,secretary of        
,commerce for ,industry and ,security   
and in coordination with the head of    
each agency that is a member of the     
,operating ,committee for ,export       
,policy1 shall submit to the appropriate
 congressional committees a report that 
contains the findings of the assessment 
required by subsection 7a74  7#b7       
,updates ,not later than one year after 
submitting the report required by       
paragraph 7#a71 and annually thereafter 
for #c years1 the ,secretary of         
,commerce1 acting through the ,under    

,secretary of ,commerce for ,industry   
and ,security1 shall submit to the      
appropriate congressional committees an 
update to the report listing any        
additional persons of concern identified
 pursuant to subsection 7a74  7#c7 ,form
 ,the report required by paragraph 7#a71
 and each update required by paragraph  
7#b71 shall be submitted in unclassified
 form1 but may contain a classified     
annex4  7e7 ,routine assessment ,the    
,secretary of ,commerce1 acting through 
the ,under ,secretary of ,commerce for  
,industry and ,security and in          
coordination with the head of each      
agency that is a member of the          
,operating ,committee for ,export       
,policy1 shall routinely assess for--   
7#a7 model extraction attacks directed  
against owners of closed-source         
artificial intelligence models that     
occur after the date of completion of   
the assessment required by subsection   
7a72  7#b7 fraudulent account network   
providers that facilitate model         

extraction attacks after that date2 and 
7#c7 any material changes related to    
other matters specified in subsection   
7b74  7f7 ,industry coordination ,the   
,secretary of ,commerce1 acting through 
the ,under ,secretary of ,commerce for  
,industry and ,security and in          
coordination with the head of each      
agency that is a member of the          
,operating ,committee for ,export       
,policy1 shall establish an             
information-sharing mechanism that      
allows owners of closed-source          
artificial intelligence models to       
voluntarily1 quickly1 and confidentially
 share information about model          
extraction attacks and fraudulent       
account network providers with the      
,department of ,commerce4  7g7 ,,ai     
model extraction attackers list  7#a7   
,in general ,the ,secretary of          
,commerce1 acting through the ,under    
,secretary of ,commerce for ,industry   
and ,security and in coordination with  
the head of each agency that is a member

 of the ,operating ,committee for       
,export ,policy1 shall-- 7,a7 maintain a
 list1 to be known as the ,,ai ,model   
,extraction ,attackers ,list1 that      
displays information about specific     
persons of concern identified pursuant  
to an assessment required by subsection 
7a7 or 7e7 as having conducted or       
directed model extraction attacks in the
 past year2 and  7,b7 publish the list  
on a publicly available website of the  
,department of ,commerce4  7#b7         
,protection of confidential information 
,the ,secretary of ,commerce1 acting    
through the ,under ,secretary of        
,commerce for ,industry and ,security1  
may not1 in publishing the list required
 by paragraph 7#a7 on a publicly        
available website of the ,department of 
,commerce1 disclose confidential        
information provided by the owner of a  
closed-source artificial intelligence   
model without the express permission of 
the owner4  7h7 ,public guidance  7#a7  
,in general ,not later than #baj days   

after the date of the enactment of this 
,act1 the ,secretary of ,commerce1      
acting through the ,under ,secretary of 
,commerce for ,industry and ,security   
and in coordination with the head of    
each agency that is a member of the     
,operating ,committee for ,export       
,policy1 shall publish a report         
comprising of best practices to detect1 
prevent1 and respond to model extraction
 attacks4  7#b7 ,public access ,the     
report required by paragraph 7#a7 shall 
be publicly available4  7#c7 ,protection
 of confidential information ,in making 
the report required by paragraph 7#a7   
publicly available1 the ,secretary may  
not disclose confidential information   
provided by the owner of a closed-source
 artificial intelligence model without  
the express permission of the owner4    
#e4 ,deterring model extraction attacks 
and fraudulent account network providers
  7a7 ,consideration of addition to     
,entity ,list  7#a7 ,in general ,not    
later than #baj days after the date of  

the enactment of this ,act1 the ,under  
,secretary of ,commerce for ,industry   
and ,security1 in coordination with the 
head of each agency that is a member of 
the ,end-,user ,review ,committee1 shall
 add each entity described in paragraph 
7#b7 to the ,entity ,list maintained by 
the ,bureau of ,industry and ,security  
and set forth in ,supplement ,no4 #d to 
part #gdd of title #ae1 ,code of        
,federal ,regulations1 or any successor 
regulations4  7#b7 ,entities described  
,an entity described in this paragraph  
is-- 7,a7 an entity that is a person of 
concern identified1 under subsection 7a7
 or 7e7 of section #d1 as having        
conducted model extraction attacks or   
having facilitated such attacks via     
fraudulent account networks2 or  7,b7 a 
subsidiary of such an entity 7to be     
determined by ownership of #ej percent  
or more in the aggregate1 directly or   
indirectly74  7b7 ,imposition of        
sanctions  7#a7 ,in general ,the        
,president shall1 pursuant to the       

,international ,emergency ,economic     
,powers ,act 7#ej ,u4,s4,c4 #agja et    
seq471 block and prohibit all           
transactions in all property and        
interests in property of each person of 
concern identified under subsections 7a7
 and 7e7 of section #d if such property 
and interests in property are in the    
,united ,states1 come within the ,united
 ,states1 or are or come within the     
possession or control of a ,united      
,states person4  7#b7 ,exceptions  7,a7 
,exception relating to the provision of 
humanitarian assistance ,sanctions under
 paragraph 7#a7 may not be imposed with 
respect to transactions or the          
facilitation of transactions for-- 7i7  
the sale of agricultural commodities1   
food1 medicine1 or medical devices2     
7ii7 the provision of humanitarian      
assistance2 or  7iii7 transporting goods
 or services that are necessary to carry
 out operations relating to humanitarian
 assistance4  7,b7 ,exception for       
intelligence1 law enforcement1 and      

national security activities ,sanctions 
under this subsection shall not apply to
 any authorized intelligence1 law       
enforcement1 or national security       
activities of the ,united ,states4  7#c7
 ,waiver  7,a7 ,in general ,the         
,president may1 subject to subparagraph 
7,b71 waive the application of          
subsection 7a7 or 7b7 with respect to a 
person if1 before issuing the waiver1   
the ,president submits to ,congress--   
7i7 a certification in writing that the 
issuance of the waiver is in the        
national interests of the ,united       
,states2 and  7ii7 a report explaining  
the basis for the certification4  7,b7  
,form of report ,each report required by
 subparagraph 7,a7 shall be submitted in
 unclassified form but may include a    
classified annex4  7#d7 ,penalties ,a   
person that violates1 attempts to       
violate1 conspires to violate1 or causes
 a violation of this subsection or any  
regulation1 license1 or order issued to 
carry out that subsection shall be      

subject to the penalties set forth in   
subsections 7b7 and 7c7 of section #bjf 
of the ,international ,emergency        
,economic ,powers ,act 7#ej ,u4,s4,c4   
#agje7 to the same extent as a person   
that commits an unlawful act described  
in subsection 7a7 of that section4