Bipartisan Legislation Introduced to Protect Small Business Innovation and Intellectual Property

Strategic Insights -

U.S. Representatives Derek Tran (D-CA-45) and Don Bacon (R-NE-02) have introduced the Small Business Innovation Research (SBIR) Foreign Interference Safeguard Act to strengthen small business due diligence programs and protect intellectual property from foreign entities like the Chinese Communist Party. The legislation aims to reauthorize the SBIR and Small Business Technology Transfer (STTR) Due Diligence Program through FY 2030, giving federal agencies more time to strengthen their programs and assess risks from foreign threats.

Key Takeaways:

  • The SBIR Foreign Interference Safeguard Act would extend the SBIR Due Diligence Program through FY 2030, providing federal agencies with more time to strengthen their programs and assess risks from foreign threats.
  • The legislation aims to protect intellectual property from foreign entities like the Chinese Communist Party, which exploit cybersecurity gaps and other vulnerabilities to steal technology.
  • The SBIR program provides funding to small businesses developing innovative technologies, with many of these innovations being sensitive and vulnerable to foreign malign actors.
  • The Due Diligence Program was established in the Small Business Innovation Research (SBIR)/Small Business Technology Transfer (STTR) Extension Act of 2022 to assess risks from foreign threats regarding the cybersecurity practices, patents, employee relationships, and foreign ownership of small businesses seeking awards from the SBIR program.
  • Representative Tran has remained dedicated to uplifting small businesses in Congress, and this legislation aligns with his efforts to ensure small businesses have the resources necessary to succeed.
  • The SBIR Foreign Interference Safeguard Act is a bipartisan effort to strengthen national security and ensure small businesses can safely and securely drive innovation.

Statistics:

  • The SBIR program provides funding to small businesses developing innovative technologies, with many of these innovations being sensitive and vulnerable to foreign malign actors.
  • The SBIR program is set to expire in 2025 under current law, but the proposed extension would keep it effective through FY 2030.
  • The Due Diligence Program was established in 2022 to assess risks from foreign threats regarding the cybersecurity practices, patents, employee relationships, and foreign ownership of small businesses seeking awards from the SBIR program.
  • Representative Tran has co-led several bipartisan pieces of legislation to support small businesses, including the Plain Language in Contracting Act, the Small Business Advocacy Improvements Act, and the Connecting Small Businesses with Career and Technical Education Graduates Act.
  • The SBIR program has only been in full effect for one solicitation cycle thus far, with agencies setting up due diligence programs throughout 2023.

Sources:

  • Tran.house.gov/media/press-releases/representatives-tran-bacon-introduce-bipartisan-legislation-promote-small-business-innovation-and-protect-intellectual-property
  • H.R. 787, the Plain Language in Contracting Act
  • H.R. 832, the Small Business Advocacy Improvements Act
  • H.R. 1642, the Connecting Small Businesses with Career and Technical Education Graduates Act
  • H.R. 881, the DHS Restrictions on Confucius Institutes and Chinese Entities of Concern Act