Senators Strive to Safeguard Small Businesses Against Foreign IP Theft

Senators have introduced a bill on Thursday with the aim of safeguarding the intellectual property of American companies, particularly small business owners, from foreign entities through law enforcement and innovative policy proposals.

The bipartisan American IP Defense and Enforcement Advancement Act, also known as the IDEA Act, is a response to the significant annual losses faced by business owners due to intellectual property theft. According to a 2017 report cited by the lawmakers from the Commission on the Theft of American Intellectual Property, the misuse of intellectual property costs the US economy an estimated $225 billion to $600 billion each year.

The IDEA Act, if passed, will reauthorize a state and local law enforcement program for intellectual property enforcement from 2024 to 2029, allocating $25 million per year. This program supports state, local, and tribal jurisdictions in preventing, reducing, investigating, and prosecuting crimes related to intellectual property theft. Initially authorized for 2009 to 2013, the program, called PRO-IP, provided funding for enforcement infrastructure in Austin, Texas, and Jackson, Mississippi, as well as a sheriff’s program in Chicago. The Office of the US Trade Representative will pay particular attention to a list of countries associated with rampant intellectual property theft against US small businesses, including China, Mexico, Guatemala, and Colombia.

Bipartisan lawmakers from both houses of Congress have consistently stressed the need for targeted solutions to combat intellectual property theft. In June, Republican lawmakers led by Rep. Mike Gallagher, R-Wis., chair of the House Select Committee on the Chinese Communist Party, urged the Justice Department to investigate intellectual property theft from Chinese actors targeting small businesses.

The IDEA Act includes various initiatives, such as an IP Protection Legal Aid program to provide guidance and protection for small business owners. It also authorizes studies by the Government Accountability Office to address the protection of intellectual property from misuse by countries on the watch list and the recovery of financial losses resulting from theft. The legislation also mandates annual reporting by the IP Enforcement Coordinator on theft prevention strategies and requires the Joint Strategic Plan Against Counterfeiting and Infringement to include prevention measures related to entities in or operating under watchlist countries.

Sens. Tammy Baldwin and John Cornyn, the co-sponsors of the IDEA Act, believe that this legislation will help preserve American innovation within the United States.

“Intellectual property crimes cost American businesses hundreds of billions of dollars each year, and small businesses often lack the resources to protect themselves against foreign bad actors,” said Cornyn, R-Texas. “This legislation would help protect Texans from intellectual property theft by strengthening the partnership between local, state, and federal law enforcement agencies and offering legal aid to small businesses at little or no cost.”

“I am proud to work with my Republican colleague to give Wisconsin’s small businesses the tools they need to protect themselves and their ideas and empower law enforcement to go after the bad actors that are profiting off American innovation,” said Baldwin, D-Wisc.

The IDEA Act is supported by the University of Wisconsin Law School, Wisconsin Alumni Research Foundation, Wisconsin Economic Development Corp., and the International AntiCounterfeiting Coalition, according to the lawmakers.

“The American IDEA Act is a crucial step towards leveling the playing field for American creators by providing resources, tools, and a strategic approach to target bad actors in key jurisdictions worldwide,” said Robert Barchiesi, president of The International AntiCounterfeiting Coalition. “We look forward to collaborating with Senator Baldwin and Senator Cornyn to ensure the enactment of this significant legislation.”