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

Jul 18, 2019 | Press Releases

Washington, D.C. — Today, U.S. Senators Marco Rubio (R-FL) and John Cornyn (R-TX) introduced legislation to prevent Chinese state-directed telecom company Huawei from retaliating against the United States and American companies by weaponizing our 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. The legislation would also give the United States government the explicit and unconditional right in federal statute to intervene as a party in such cases. Rubio introduced a similar amendment to the FY2020 National Defense Authorization Act.
As the federal government has taken strong measures to address Huawei’s deceptive and dangerous practices, Huawei’s business prospects in the United States have significantly diminished. But, Huawei is now threatening to use our patent system against American companies as a form of retaliation to circumvent these restrictions and preserve their ability to continue to profit off of the U.S. market.
“Congress should stop Huawei, a malign Chinese state-directed actor, from using patent troll tactics and weaponizing the U.S. legal system against American companies in retaliation for the Trump administration’s efforts to protect our nation and the future of 5G,” Rubio said. “Huawei poses a significant threat to U.S. economic and national security, as well as our critical infrastructure. This legislation makes it clear to the Chinese government and Communist Party that Huawei’s attempt to abuse American rule of law will not be tolerated.”
“It is widely known that China uses companies as proxies to wage its war on the American economy and our national security,” Cornyn said. “This legislation would stop firms like Huawei from using frivolous litigation to attack U.S.-based competitors and would help protect our trade interests from Chinese retaliation.”