Rep. Mike Gallagher, center, chair of the House Select Committee on the Chinese Communist Party, speaks at a news conference following a GOP caucus meeting on the Republican National Committee offices in Washington, D.C., Feb. 28, 2023. He’s joined by fellow Republicans Rep. Elise Stefanik, left, and Majority Whip Steve Scalise.
Chip Somodevilla | Getty Images
WASHINGTON — Two top Republican congressmen on Thursday urged the Justice Department to research mental property theft from American small businesses by Chinese actors.
Chinese IP theft costs the U.S. economy $600 billion a 12 months and has a disproportionate effect on small businesses, Reps. Mike Gallagher of Wisconsin and Roger Williams of Texas wrote in a letter to Attorney General Merrick Garland. The letter was also signed by 24 other Republican lawmakers.
“Ensuring the protection of American small businesses from IP-related crimes is crucial, and we urge the U.S. Department of Justice to utilize all tools and capabilities at its disposal,” the lawmakers wrote. Gallagher is chairman of the House Select Committee on the Chinese Communist Party, while Williams chairs the House Committee on Small Business.
Evidence of Chinese IP theft from U.S. businesses dates back several years. The multibillion-dollar economic toll estimate comes from a 2017 report from the National Bureau of Asian Research’s Commission on the Theft of American Mental Property.
A 2018 evaluation of IP theft by the U.S. Trade Representative found that the Chinese government “conducted and supported cyber intrusions into U.S. industrial networks, targeting confidential business information held by U.S. firms.”
In 2019, 1 in 5 North American firms on the CNBC Global CFO Council reported IP theft from Chinese firms inside the last 12 months.
The House CCP committee is pushing for the DOJ’s Task Force on Mental Property to prioritize theft scenarios amongst small businesses, which might cripple those with little means to recoup losses. The lawmakers cited a Fox Business News report describing the theft of a proprietary design from an irrigation company.
One other small business owner needed to contend with unauthorized copies of her violin teaching tool on the Chinese market in 2019, in keeping with the letter.
Gallagher and Williams requested an itemized briefing to their respective committees with overviews of current measures to guard IP rights — particularly against China — and details on the DOJ’s investigative efforts and counterfeit procedures, by June 30.
The House CCP committee was formed after the GOP regained control of the House following the 2022 midterm elections. It goals to look at threats posed to the U.S. by the Chinese government.