Chinese patents face US crackdown bill

Washington: A group of senior House lawmakers has introduced legislation aimed at preventing Chinese entities identified as national security threats from obtaining US patents, arguing that Beijing has used America’s intellectual property system to advance its economic and technological ambitions.

The proposed legislation, called the Prohibiting Adversarial Patents Act, was introduced by House Select Committee on China Chairman John Moolenaar, Congressman Scott Fitzgerald and Congressman Darrell Issa.

The bill would prohibit the issuance of a US patent to any person or entity identified as a threat to US national security under the Non-SDN CMIC List, the 1260H List or the Federal Communications Commission’s Covered List.

“The Chinese Communist Party seeks out US patents not because it believes in the right to own one’s intellectual property, but because stealing American innovation is part of its economic plan,” Moolenaar said.

“This legislation strengthens our laws against the CCP’s attempts to use lawfare to flood our judiciary with bogus patent lawsuits. No country abuses our open society and our legal system more than China, and that must be stopped,” he added.

The measure comes amid growing concern in Washington over China’s role in global technology competition and intellectual property disputes.

“The Chinese Communist Party has spent years exploiting the American economy to advance its own technological and military ambitions,” Fitzgerald said.

“The Prohibiting Adversarial Patents Act closes the door on hostile foreign entities using our patent system to gain economic leverage and undermine our national security,” he said.

Issa described the Chinese Communist Party as the foremost challenge to US economic and technological interests.

“Today, there is no greater threat to America’s economy, national security, or technological leadership than the Chinese Communist Party’s relentless effort to gain advantage over the United States by any means necessary — both legal and illegal,” Issa said.

“For too long, companies tied to the CCP have been allowed to benefit from the protections of America’s patent system while actively undermining our interests. This legislation ensures that entities posing a threat to our national security cannot exploit the very intellectual property protections that were designed to reward innovation and strengthen America,” he added.

The legislation has also drawn support from industry groups.

“We commend Congressman Fitzgerald, and Chairmen Issa and Moolenaar for their steadfast leadership in defending American businesses and US economic security,” the High Tech Inventors Alliance said in a statement.

“For too long, the US has allowed entities identified as national security threats to amass and weaponise US patents against critical domestic industries such as semiconductor manufacturing, digital infrastructure, and artificial intelligence. This legislation will help prevent foreign interests from abusing the US patent system and using it as a tool for economic warfare against America,” it said.

Supporters of the legislation argue that such companies can continue benefiting from patent licensing agreements and can also enforce patents in US courts against American firms.

According to data cited from the World Intellectual Property Organization, China filed more than 1.8 million patent applications in 2024, the highest of any country. In the United States, nearly 55 per cent of all patent applications in 2024 were filed by foreign residents, with China submitting a record 49,000 applications.

IANS