Report on IP Theft Due Soon

The Intellectual Property Act of 2022 is now law. It requires the President to impose sanctions on any foreign person identified in required periodic reports to Congress as having knowingly engaged in or benefitted from the theft of trade secrets of U.S. persons, if the theft is likely to result in a significant threat to national security. It is a step in the government’s response to increasing thefts of U.S. intellectual property by foreign adversaries and the risks such thefts pose to strategic U.S. interests. The law is fundamentally concerned with protecting trade secrets in critical areas such as semiconductors, AI and advanced manufacturing, but allows for wider application. There is no prescribed method for obtaining relief from a designation by the President. Foreign persons need to be prepared to demonstrate that IP in their portfolios has been lawfully obtained or developed. The first report to Congress is due by June 8, 2023.