§3580.2. Definitions

            For the purpose of this Chapter, the following terms have the meanings ascribed to them in this Section, unless a different meaning clearly appears from the context:

            (1) "Foreign country of concern" means a foreign government listed in 15 CFR 7.4, including any agency of or any other entity of significant control of such foreign country of concern.

            (2) "Foreign entity" means an entity that is (a) owned or controlled by the government of a foreign country of concern, or (b) a partnership, association, corporation, organizing, or other combination of persons organized under the law of or having its principal place of business in a foreign country of concern, or a subsidiary of such entity.

            (3) "Foreign third-party litigation funder" means a foreign entity that is a third-party litigation funder.

            (4) "Litigation expenses" refers to costs typically incurred in the course of civil litigation, including but not limited to filing fees, expert witness fees, transcript fees, court costs, travel expenses, and office overhead, but not including funds intended for use by a party for personal or familial expenses, such as food, rent, mortgage payments, car payments, and medical bills.

            (5) "National security interests" means those interests relating to the national defense, foreign intelligence and counterintelligence, international and domestic security, and foreign relations.

            (6) "Proprietary information" means information developed, created, or discovered by a person, or which became known by or was conveyed to the person, which has commercial value in the person's business. The term includes but is not limited to domain names, trade secrets, copyrights, ideas, techniques, inventions, regardless of whether patentable, and other information of any type relating to designs, configurations, documentation, recorded data, schematics, circuits, mask works, layouts, source code, object code, master works, master databases, algorithms, flow charts, formulae, works of authorship, mechanisms, research, manufacture, improvements, assembly, installation, intellectual property including patents and patent applications, and information concerning the person's actual or anticipated business, research, or development or received in confidence by or for the person from any other source.

            (7) "Third-party litigation funder" means any person or entity that provides funding intended to defray litigation expenses or the financial impact of a negative judgment related to a civil action and has the contractual right to receive or make any payment that is contingent on the outcome of an identified civil action by settlement, judgment, or otherwise or on the outcome of any matter within a portfolio that includes the action and involves the same counsel or affiliated counsel. This term does not apply to:

            (a) The named parties, counsel of record, or law firm of record providing funding intended to defray litigation expenses related to the civil action.

            (b) A person or entity providing funding solely intended to pay costs of living or other personal or familial expenses during the pendency of such civil action where such funds are not used to defray litigation expenses.

            (c) Counsel of record, or law firm of record, or any referring counsel providing legal services on a contingency fee basis or to advance his or her client's legal costs where the services or costs are provided by counsel of record or law firm of record in accordance with the Rules of Professional Conduct.

            (d) A health insurer, medical provider, or assignee that has paid, is obligated to pay, or is owed any sums for health care for an injured person under the terms of a health insurance plan or other agreement.

            (e) A financial institution providing loans made directly to a party, counsel of record, or a law firm of record when repayment of the loan is not contingent upon the outcome of such civil action or on the outcome of any matter within a portfolio that includes such civil action and involves the same counsel or affiliated counsel.

            (f) A nonprofit legal organization exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code, or any person providing funding to a nonprofit legal organization that represents clients on a pro bono basis. This Subparagraph does not affect the award of costs or attorney fees to a nonprofit legal organization or related attorney.

            Acts 2024, No. 765, §1.