Iowa's Rep. King Introduces Bill to Impose Duties on China for IP Rights Violations

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The Office of the U.S. Trade Representative would be directed to impose import duties on Chinese goods in an amount equivalent to the estimated losses suffered by U.S. intellectual property rights holders due to piracy and counterfeiting in China, under a bill (H.R. 3375) introduced Nov. 4 by Rep. Steven A. King (R-Iowa), a member of the House Judiciary Committee.

The bill also directs the USTR's Office to conduct a study on the amount of such losses and to submit a report to Congress on the subject every year.

“The creative genius of Americans, protected by our copyrights, trademarks and patents, is systematically being pirated by the Chinese whose government appears to be complicit,” according to a statement by King.

“My bill levies a duty on all Chinese imports in an amount necessary to both pay U.S. property rights holders for their stolen intellectual property and to administer the program. In short, it says to the Chinese: ‘Go ahead and steal U.S. intellectual property—we will do what you have refused to do and pay American innovators their due from the duties on Chinese goods.' ”

The statement also referred to a Sept. 30 report by the Congressional Research Service estimating that in 2009 American IP owners lost $48.2 billion in revenue due to IP violations in China.

The bill has been referred to the House of Representative Committee on Ways and Means.

H.R. 3375 at  

CRS report at