The act criminalizes the theft of trade secrets and provides for penalties of. Sections 1831 and 1832, to help thwart attempts by foreign entities in tent on stealing u. Upon passage of the eea, some members of the competitive intelligence ci community expressed concern that the. Economic espionage foreign government sponsored commercial trade secret theft the usual suspects employee steals for his own benefit, to harm the owner or both domestic or foreign competitor, or foreign. Pdf open borders, the us economic espionage act of 1996. Stealing trade secrets and economic espionage congressional research service summary stealing a trade secret is a federal crime when the information relates to a product in interstate or foreign commerce, 18 u. Osf understanding the economic espionage act of 1996. The economic espionage act as amended by the defend. The act subjects those accused of theft to possible federal criminal. This act may be cited as the economic espionage act of 1996. Prior to the passage of the economic espionage act of 1996, there was only a single, very limited federal statute that directly prohibited the misappropriation of trade secrets.
Economic espionage an overview sciencedirect topics. Economic espionage act an overview sciencedirect topics. It makes the theft or misappropriation of trade secrets a criminal offense. Introduction to the economic espionage act congress, recognizing the importance of the protection of intellectual property and trade secrets to the economic health and security of the united states, enacted the economic espionage act of 1996, pub. Americas adversaries throughout history have routinely taken their competitive efforts beyond the battlefield. The economic espionage act as amended by the defend trade. Understanding the economic espionage act of 1996 dave drab, director, information content security services august 2003. To amend title 18, united states code, to protect proprietary economic information, and for other purposes. The economic espionage act of 1996 was a 6 title act of congress dealing with a wide range of issues, including not only industrial espionage e. Protection of trade secrets amends the federal criminal code to prescribe penalties to be imposed on any person or organization that knowingly commits one of the following offenses, either intending or knowing that it will benefit any foreign government, instrumentality, or agent, or intending to.
These standard clauses include whistleblower protections and notice of immunity provisions for agreements with employees and certain contractors and consultants. Cyber law chapter 7 trade secrets flashcards quizlet. Cases from economic espionage act trade secrets institute. Trade secrets, as defined by the economic espionage act, are any information which derive independent economic values by not being readily known to competitors goldstein, 2007. Stealing trade secrets and an of federation of american. Code, federal register, code of federal regulations, u. Understanding the economic espionage act of 1996 5 texas. Understanding the economic espionage act of 1996 what is heinonline. Is any nation effectively dealing with this global threat. Krotoski, common issues and challenges in prosecuting trade secret and economic espionage act cases, 57 u. Economic espionage act of 1996 law and legal definition.
Attorneys bulletin to issues arising in trade secret prosecutions. The act amends the economic espionage act of 1996 eea and expands the jurisdiction of federal courts over cases concerning misappropriation of trade secrets. I took an active interest in this issue because of a comment made at scips february 1997 eea symposium. The economic espionage act eea of 1996 public law 104294, 110 stat. The economic espionage act of 1996 eea is an act that makes theft or misappropriation of trade secrets, especially through acts of industrial espionage, a federal crime. The economic espionage act of 1996 was signed into law by president clinton. The eea makes stealing or obtaining trade secrets by fraud and buying or receiving secrets so obtained a u. Competitive intelligence and the economic espionage act. The need for modernization of the economic espionage act. Notwithstanding any other provision of this agreement, employee will not be held criminally or civilly liable under any federal or state trade secret law for any disclosure of a trade secret that is made a in confidence to a federal, state, or local government official. Economic espionage act of 1996 how is economic espionage act of 1996 abbreviated. Xerox global services white paper understanding the. This article examines the background of this new law, provides critical analysis of its most important terms, describes the process involved in a reference of trade secret. Low this article has been rated as lowimportance on the projects.
The economic espionage act of 1996 is a powerful tool for combating trade secret theft, whether committed by agents of foreign governments or by freelancing thieves. Economic espionage may include the clandestine acquisition or outright theft of invaluable. Economic espionage act of 1996 lexicon communications corp. Notice of immunity under the economic espionage act of 1996, as amended by the defend trade secrets act of 2016 dtsa. This paper explores the principal provisions of that act, the seminal case law, and the implications for labor. Posner criticized the definition of trade secret in the economic espionage act at 18 u. If you would like to participate, visit the project page, or contribute to the discussion c this article has been rated as cclass on the projects quality scale. The economic espionage act of 1996 eea,2 signed into law by president bill clinton on october 11, 1996, creates two new federal criminal offenses involving the theft of trade secrets.
Understanding the economic espionage act of 1996 pdf, 2 kb. The effect of the economic espionage act eea on competitive intelligence has become a matter of concern among many ci practitioners and firms since its enactment in october 1996. The economic espionage act of 1996 was intended to address both the general need for a federal criminal deterrent against trade secret theft as well as the apparent threat from foreign statesponsored industrial espionage. Because it fills gaps in existing federal and state laws, the act should establish a clear framework for law enforcement agencies at all levels to pursue both interstate and.
The economic espionage act of 1996 was enacted to close these gaps in the law by providing a new tool for prosecuting the misappropriation of trade secrets in appropriate cases. Contents what activities are punishable under the economic espionage act of 1996. In 2009, the department of justice doj devoted an entire volume of its u. For example, the economic espionage act of 1996 in the united states is regarded as providing greater protection from misappropriation of proprietary information dreyfuss 1998. They frequently avoid using standing armies, shirk traditional spy circles, and go after the heart of what drives american prosperity and fuels american might. Melanie reid in 1996, congress passed the economic espionage act eea, 18 u. Economic espionage act of 1996 employment law and litigation. Economic espionage act of 1996 how is economic espionage. It was enacted in response to a recent second circuit decision that arguably narrowed the jurisdictional scope of the economic espionage act of 1996. One may pursue civil actions under state law for theft of trade secrets. Signed into law in 1996 criminalizes two types of trade secret misappropriation. The economic espionage act of 1996 is about economic espionage, but its also about so much more. Economic espionage act of 1996 is within the scope of wikiproject espionage, which aims to improve wikipedia s coverage of espionage, intelligence, and related topics.
An act to amend title 18, united states code, to protect proprietary economic information, and for other purposes. It provides criminal penalties for industrial espionage by or for a foreign entity. Introduction to the economic espionage act jm department. The need for modernization of the economic espionage act of 1996 published by scholarly commons at hofstra law, 2015. The unlawful targeting and theft of a nations critical economic intelligence.
Heinonline is a subscriptionbased resource containing nearly 2,700 academic and legal journals from inception. The government has also been busy publishing materials on economic espionage. The need for modernization of the economic espionage act of 1996. Read a summary of the act and its main provisions, then test yourself with a short quiz. The act authorizes civil proceedings by the department of justice to enjoin violations of the act, but does not create a private cause of action. Up to 10 million dollars or three times the value of the stolen trade. The economic espionage act eea outlaws two forms of trade secret theft. Economic the united states of america in congress assembled, espnage act of gctlon 1. Chapter 90 of title 18 was originally codified via the economic espionage act of 19961 and subsequently amended by the foreign and economic espionage penalty enhancement act of 2012. The united states made trade secret misappropriation a federal crime in 1996 through enactment of the economic espionage act. Notice of immunity under the economic espionage act of.