The ECON Act is designed to protect American businesses from unfair foreign competition and intellectual property theft. It creates new tools for the U.S. government to fight back when foreign companies or countries steal American trade secrets or use government money to undercut American prices.

The law expands what counts as trade secret theft. It's now illegal not just to steal a trade secret, but also to use someone else's trade secret to develop or modify a product without permission—even if this happens outside the U.S.—as long as the person tries to bring that product into America. The President can now punish foreign individuals or companies that commit serious intellectual property theft by imposing sanctions (like freezing assets or banning them from doing business in the U.S.). To make this fair, the bill requires a special government committee to review complaints and recommend whether sanctions are actually warranted.

The bill also tackles unfair pricing practices. Foreign state-owned companies can't artificially lower their prices below what it costs them to make something, especially when their government is subsidizing them, because this can destroy American competitors. If a U.S. company gets hurt by this kind of predatory pricing, they can sue in federal court. Finally, the State Department will create two new programs: one to help U.S. allies defend themselves against economic pressure from hostile countries, and another to help developing nations identify and remove trade barriers so they can trade more freely.

ECON Act

Risch, James E.

Economic and Commercial Opportunities and Networks Act of 2023 or the ECON Act This bill addresses economic issues in foreign relations and intellectual property (IP) infringement. The bill expands the criminal offense of trade secrets theft to include the unauthorized modifying or developing of a product in a way that would not be possible without another party's trade secret. This offense shall apply to non-U.S. conduct if the offender attempts to import the product into the United States. Furthermore, the President may impose sanctions against a foreign person (individual or entity) that has committed a significant theft of IP belonging to a U.S. person. The President must also establish or designate a multiagency committee to (1) review petitions alleging such acts of IP theft, and (2) recommend whether to impose sanctions for the alleged theft. The bill also prohibits foreign state-owned entities in international commerce from engaging in predatory pricing, defined in the bill as setting prices for a good below the average variable cost in a manner that may foreseeably harm competition. An injured party may sue in federal court. In deciding such cases, the court may consider the economic support and government subsidies provided by the entity's foreign state owner. Furthermore, the Department of State must establish a pilot program to create economic defense response teams to provide targeted support for countries facing an urgent or specific coercive economic threat from a U.S. adversary. The State Department must establish another pilot program to assist developing partner countries with identifying trade barriers and facilitating trade.