This bill directs the U.S. Trade Representative (USTR) to report to Congress annually on the estimated annual loss of revenue to holders of U.S. intellectual property rights as a result of intellectual property rights violations in China. The USTR must : (1) impose duties on merchandise from China in an amount equivalent to the estimated annual loss of revenue to holders of U.S. intellectual property rights as a result of such violations, and (2) distribute the proceeds of such duties to such U.S. intellectual property rights holders on a proportional basis.