[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3723 Introduced in House (IH)]
104th CONGRESS
2d Session
H. R. 3723
To amend title 18, United States Code, to protect proprietary economic
information, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 26, 1996
Mr. McCollum (for himself and Mr. Schumer) introduced the following
bill; which was referred to the Committee on the Judiciary
_______________________________________________________________________
A BILL
To amend title 18, United States Code, to protect proprietary economic
information, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Economic Espionage Act of 1996''.
SEC. 2. PROTECTION OF PROPRIETARY ECONOMIC INFORMATION.
(a) In General.--Chapter 31 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 669. Protection of proprietary economic information
``(a) Offense.--Whoever--
``(1) with the intent to, or with reason to believe that
the offense will, benefit any foreign government, foreign
instrumentality, or foreign agent; or
``(2) with the intent to divert that information to the use
or benefit of anyone other than the owner thereof, and with the
intent to, or with reason to believe that the offense will,
disadvantage any owner of proprietary economic information that
is related to or is included in a product that is produced for
or placed in interstate or foreign commerce;
wrongfully copies or otherwise controls any economic proprietary
information, or attempts or conspires to do so shall be punished as
provided in subsection (b).
``(b) Punishment.--
``(1) Generally.--The punishment for an offense under this
section is--
``(A) in the case of an offense under subsection
(a)(1), a fine under this title or imprisonment for not
more than 25 years, or both; and
``(B) in the case of an offense under subsection
(a)(2), a fine under this title or imprisonment for not
more than 15 years.
``(2) Increased maximum fine for organizations.--If an
organization commits an offense--
``(A) under subsection (a)(1), the maximum fine, if
not otherwise larger, that may be imposed is
$10,000,000; and
``(B) under subsection (a)(2), the maximum fine, if
not otherwise larger, that may be imposed is
$5,000,000.
``(c) Definitions.--As used in this section--
``(1) the term `foreign instrumentality' means any agency,
bureau, ministry, component, institution, association, or any
legal, commercial, or business organization, corporation, firm,
or entity that is substantially owned, controlled, sponsored,
commanded, managed, or dominated by a foreign government or
subdivision thereof;
``(2) the term `foreign agent' means any officer, employee,
proxy, servant, delegate, or representative of a foreign nation
or government;
``(3) the term `proprietary economic information' means all
forms and types of financial, business, scientific, technical,
economic, or engineering information including data, plans,
tools, mechanisms, compounds, formulas, designs, prototypes,
processes, procedures, programs, codes, or commercial
strategies, whether tangible or intangible, and whether stored,
compiled, or memorialized physically, electronically,
graphically, photographically, or in writing if--
``(A) the owner thereof has taken reasonable
measures to keep such information confidential; and
``(B) the information derives independent economic
value, actual or potential, from not being generally
known to, and not being readily ascertainable through
proper means by, the public;
``(4) the term `owner' means the person in whom, or United
States Government component, department, or agency in which,
rightful legal, beneficial, or equitable title to, or license
in, proprietary economic information is reposed; and
``(5) the term `United States person' means--
``(A) in the case of a natural person, a United
States citizen or permanent resident alien; and
``(B) in the case of an organization, an entity
substantially owned or controlled by United States
citizens or permanent resident aliens, or incorporated
in the United States.
``(d) Criminal Forfeiture.--
``(1) Notwithstanding any other provision of State law, any
person convicted of a violation under this chapter shall
forfeit to the United States--
``(A) any property constituting, or derived from,
any proceeds the person obtained, directly or
indirectly, as the result of such violation; and
``(B) any of the person's property used, or
intended to be used, in any manner or part, to commit
or facilitate the commission of such violation, if the
court in its discretion so determines, taking into
consideration the nature, scope, and proportionality of
the use of the property in the offense.
``(2) The court, in imposing sentence on such person, shall
order, in addition to any other sentence imposed pursuant to
this section, that the person forfeit to the United States all
property described in this section.
``(3) Property subject to forfeiture under this section,
any seizure and disposition thereof, and any administrative or
judicial proceeding in relation thereto, shall be governed by
the provisions of section 413 of the Comprehensive Drug Abuse
Prevention and Control Act of 1970 (21 U.S.C. 853), except for
subsection 413(d) which shall not apply to forfeitures under
this section.
``(e) Territorial Application.--
``(1) This section applies to conduct occurring within the
United States.
``(2) This section also applies to conduct occurring
outside the United States if--
``(A) the offender is a United States person; or
``(B) an act in furtherance of the offense was
committed in the United States.
``(f) Nonpreemption of Other Remedies.--This section shall not be
construed to preempt or displace any other remedies, whether civil or
criminal, provided by United States Federal, State, commonwealth,
possession, or territory law for the misappropriation of proprietary
economic information.
``(g) Orders To Preserve Confidentiality.--In any prosecution or
other proceeding under this section, the court shall enter such orders
and take such other action as may be necessary and appropriate to
preserve the confidentiality of proprietary economic information,
consistent with the requirements of the Federal Rules of Criminal and
Civil Procedure, the Federal Rules of Evidence, and all other
applicable laws. An interlocutory appeal by the United States shall lie
from a decision or order of a district court authorizing or directing
the disclosure of proprietary economic information.
``(h) Exceptions to Prohibition.--
``(1) This section does not prohibit and shall not impair
any otherwise lawful activity conducted by an agency or
instrumentality of the United States, a State, or a political
subdivision of a State.
``(2) This section does not prohibit the reporting of any
suspected criminal activity to any law enforcement agency or
instrumentality of the United States, a State, or a political
subdivision of a State, to any intelligence agency of the
United States, or to Congress.''.
SEC. 3. WIRE AND ELECTRONIC COMMUNICATIONS INTERCEPTION AND
INTERCEPTION OF ORAL COMMUNICATIONS.
Section 2516(1)(c) of title 18, United States Code, is amended by
inserting ``section 669 (relating to economic espionage),'' after
``(bribery in sporting contests),''.
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