Rubio-Cornyn, China and IP: The Road to Hell Is Paved with Good Intentioned Legislation

Seton Motley | Less Government |
Seton Motley | Less Government |
Pointing in the Wrong Direction

God bless President Donald Trump.

One of the many 180s he’s forcing Establishment DC to make – is on our decades-long brainless dealings with Communist China.

We have for so very long voluntarily subjected ourselves to Communist China abuse.

It’s as if we’ve been rushing the fraternity Chi Comm – for nearly half a century.

And we’ve long been reprising Kevin Bacon’s role in the cinematic classic Animal House:

“Thank you, Sir – May I have another?”

Our trade with Communist China – has been anything but free…or fair.  From 2010:

China’s Multiple Barriers to American Products:

“Tariffs…Selective Use of VAT…Procurement Directives…QIPs to Keep Out Agricultural Goods…Restricting Market Access to Services…Keeping out Genuine Materials while they are Pirated…Demanding American R&D and Patents….”

Those last two – are Intellectual Property (IP) crimes.

Communist China – commits a LOT of IP crimes.

As mentioned – Communist China blocks genuine music and movies…because it would undercut the sales of their pirated music and movies.

99% of Music Downloads in China Are Pirated, Video Sites a Concern Too

As mentioned – Communist China mandates technology handovers.  If you want to do ANY business in China – you have to hand over your IP.

Forced Technology Transfer and Made in China 2025: An Introduction

When Communist China isn’t forcing you to give them your IP – they’re just stealing it.

One in Five U.S. Companies Say China Has Stolen Their Intellectual Property

Communist China steals a LOT of our IP:

“We’ve been fake ‘free trading’ with China since the early 1970s.

“But as a safety, let’s only calculate Chinese IP theft – since we quite stupidly granted them membership in the World Trade Organization (WTO): December 2001.

“And as another safety, let’s take the lowest number in China’s annual IP theft range.

“That’s $225 billion in Chinese IP theft.  Every year – for eighteen years.

“That makes the most conservative estimate – more than $4 TRILLION in Chinese IP theft.”

That’s a lot.

And of course, Communist China…is Communist.  So they are incessantly looking for ways to make surreptitious inroads into our national fabric.

Former Pentagon Analyst: China Has Backdoors to 80% of Telecoms

FBI Fears Chinese Hackers Have Back Door Into US Government & Military

Cisco Partners Sell Fake Routers to US Military

Backdoors Keep Appearing In Cisco’s Routers

Pre-Installed Backdoor on 700 Million Android Phones Sending Users’ Data to China

Perhaps most pernicious of the Communist China tech companies – are Huawei and ZTE.

Huawei, ZTE: ‘Chinese Back Doors’

China Can Spy on U.S. Citizens Through Their Huawei Smartphones, Spy Chief Warns

Top Intelligence Official Says Chinese ZTE Cellphones Pose Security Risk to U.S.

President Trump remains vigilant.

Trump May Declare a ‘National Emergency’ to Block Huawei, ZTE

As Trump’s DC-China turnaround has transpired, others have thankfully looked to assist.

Trump Signs Bill Banning Government Use of Huawei and ZTE Tech

Bill Will Pay to Remove Chinese Tech:

“The recently introduced United States 5G Leadership Act of 2019 aims to resolve concerns by banning American telecommunications companies from incorporating Chinese-made infrastructure – eventually with the goal of restricting all entities that threaten national security.

“The bill would pay some companies to remove Chinese and foreign equipment, making up to $700 million available for providers through a Supply Chain Security Trust Fund grant program.”

That too is a very good idea.

But sometimes people aim…and miss their mark.  The road to Hell – is paved with good intentioned legislation.

Rubio, Cornyn Introduce Bill to Prevent Huawei from Using Patent Troll Tactics, Weaponizing U.S. Legal System:

“The Prevent Abuse of the Legal System Act, or PALS Act, would subject any entity on the Department of Commerce’s banned Entity List to heightened pleading standards, provide additional transparency requirements, and includes other restrictions relating to the sale or license of patents.”

“Restrictions relating to the sale or license of patents”…?

That sounds great – for about two seconds.

Until you remember Communist China is really quite fond of not paying for patents…and instead simply steals them.

The PALS Act would almost entirely ban Communist China – from paying for our tech.  Which they occasionally, actually do.

So guess what Communist China will most likely do instead?  Steal, baby, steal.

A basic tenet of the patent system is that patent owners receive exclusive rights to their inventions for a limited time – in exchange for public disclosure of their inventions.

Now, I’m not entirely sure the public disclosure of patents is a good idea.  You say you want to allow patent holders to generate revenue from patents.  Forcing them to publish them – while trying to get people to pay you for them…seems to undermine that notion.

Public disclosure – seems to me to be BEGGING proven thieves like Communist China…to steal the patents rather than pay for them.

And get this: The PALS Act…just about entirely bans Communist China from paying US companies for their patents.  The very thing we’ve been (only, unfortunately, very recently) trying to get Communist China to do.

But…these are GLOBAL patents.  Published globally.

If Communist China is feeling generous – and wants to pay, rather than steal – they will simply license our patents…from other nations’ companies.  Who have also been invited to steal the patents – by the PALS Act.

That is – if Communist China doesn’t just steal it themselves.  As they’ve been invited to do – by the PALS Act.

All of which would mean – our patent-producing companies would get NOTHING.

And because the entirety of these transactions would take place outside the US – our patent-producing companies would be unable to prevent infringement of their patents or recover lost licensing royalties.

Instead, foreign countries will be able to steal U.S. technology with impunity – including Communist China.  And with impunity sell it to whomever they want – including Communist China.

What the PALS Act actually does – is outlaw US patent-producing companies from ever getting paid for their patents.

What the PALS Act actually does – is create a global No Go Zone for US patent producers.

Where there is nowhere they can make money – and nowhere they can’t get robbed.

I’m sure that is not what the PALS Act authors intended.

But that’s the Hell on Earth the PALS Act would create.

This first appeared in Red State.