Prohibiting Adversarial Patents Act Would Limit Patent Rights of National Security-Designated Entities

U.S. House Republicans recently introduced legislation that would prohibit entities on federal national security watchlists from receiving or enforcing U.S. patents. The Council for Innovation Promotion (C4IP) responded with a statement urging Congress to reconsider the bill.

Congressman Scott Fitzgerald (R-WI), House Select Committee on China Chairman John Moolenaar (R-MI), and Congressman Darrell Issa (R-CA) introduced the Prohibiting Adversarial Patents Act of 2026, which would amend title 35 of the United States Code by adding a new Section 106 to Chapter 10. The bill was first introduced in 2023.

The legislation would prohibit the U.S. Patent and Trademark Office (USPTO) from issuing patents to individuals or entities identified as Chinese military-affiliated organizations. The restriction applies to entities on the Treasury Department’s Non-SDN Chinese Military-Industrial Complex (CMIC) List and companies identified as Chinese military companies in the most recent annual report submitted under Section 1260H of the FY2021 National Defense Authorization Act. It also applies to entities listed by the FCC under the Secure and Trusted Communications Networks Act of 2019. The prohibition extends “to any subsidiary, affiliate, successor, assign, legal representative, or privy of such a person.”

Fitzgerald introduced the bill alongside a companion measure, the Foreign Adversary Patent Disclosure Act, which would require additional disclosures from patent applicants with ties to foreign adversary nations.

Under the Prohibiting Adversarial Patents bill, any U.S. patent already issued to a covered person would be rendered unenforceable. No expedited review procedures, including those under the Patent Prosecution Highway Program, could be used to advance applications filed by covered persons. The bill preserves the ability of covered persons to file patent applications and does not affect the ownership or term of any patent they hold.

The bill also includes a waiver provision allowing the President to suspend the prohibition for successive periods of up to 180 days. To exercise the waiver, the President must determine that no essential security interest requires applying the prohibition, and must submit a report to the Senate and House Judiciary Committees at least 30 days in advance. The report must explain the basis for the waiver determination, describe the activity that led to the person’s designation, assess the activity’s significance to U.S. or allied national security interests, and detail any efforts to secure cooperation from the relevant government to end or penalize the activity. The bill further requires the President to exercise the waiver authority that is consistent with international obligations.

C4IP Executive Director Frank Cullen issued a statement on June 10 acknowledging that C4IP shares Congress’s commitment to protecting national security but warned that the bill poses a significant risk of unintended consequences. Cullen cautioned that by denying or restricting patent rights to foreign entities the “legislation could invite other nations to retaliate against American innovators abroad, including by stealing or misappropriating U.S.-owned technology.”

C4IP also raised concerns that the bill “may also conflict with U.S. treaty obligations and undermine the principle that patents are secure property rights,” warning that any erosion of confidence in the U.S. patent system risks consequences for innovation, investment, and U.S. technological leadership.

C4IP announced it will score support for the Prohibiting Adversarial Patents Act negatively in the Congressional Innovation Scorecard and stated that it “stands ready to work with Congress on targeted solutions to address legitimate security concerns while preserving the integrity, reliability, and global standing of the U.S. patent system.”