Friday, January 27 2023   \  Published by Allen & Overy .

New Protecting American Intellectual Property Act Authorizes Sanctions for Trade Secret Theft

New Protecting American Intellectual Property Act Authorizes Sanctions for Trade Secret Theft

On January 5, 2023, President Joe Biden signed into law the Protecting American Intellectual Property Act of 2022 (PAIP). PAIP requires that the President identify to Congress individuals and entities associated with theft of US trade secrets, and requires that sanctions be imposed on such identified persons. Though the scale of PAIP implementation remains to be seen, its enactment may impact IP dispute resolution and commercial due diligence worldwide.

PAIP overview

PAIP requires that the President submit a report to Congress within 180 days of passage (i.e., by July 4, 2023) and no less than annually thereafter, identifying non-US persons the President has determined:

- have knowingly engaged in, or benefitted from, significant theft of trade secrets from US persons,1 where such theft occurred after enactment of PAIP and is reasonably likely to result in, or has materially contributed to, a significant threat to the national security, foreign policy, or economic health or financial stability of the US

- have provided significant financial, material, or technological support for, or goods or services in support of or to benefit significantly from, such theft or

- is (i) an entity owned or controlled by, or that has acted or purported to act for or on behalf of, directly or indirectly; or (ii) a CEO or board member of, any of the foregoing. Read more

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