[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3723 Received in Senate (RDS)]
104th CONGRESS
2d Session
H. R. 3723
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 18, 1996
Received
_______________________________________________________________________
AN ACT
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 TRADE SECRETS.
(a) In General.--Chapter 31 of title 18, United States Code, is
amended by adding at the end the following:
``Sec. 670. Protection of trade secrets
``(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 a trade secret, that is
related to or is included in a product that is produced for or
placed in interstate or foreign commerce, to the economic
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 that trade secret;
wrongfully copies or otherwise controls a trade secret, 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;
``(2) the term `foreign agent' means any officer, employee,
proxy, servant, delegate, or representative of a foreign
government;
``(3) the term `trade secret' means all forms and types of
financial, business, scientific, technical, economic, or
engineering information, including patterns, plans,
compilations, program devices, formulas, designs, prototypes,
methods, techniques, processes, procedures, programs, or codes, whether
tangible or intangible, and whether or how stored, compiled, or
memorialized physically, electronically, graphically, photographically,
or in writing if--
``(A) the owner thereof has taken reasonable
measures to keep such information secret; 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; and
``(4) the term `owner', with respect to a trade secret,
means the person or entity in whom or in which rightful legal
or equitable title to, or license in, the trade secret is
reposed.
``(d) Criminal Forfeiture.--
``(1) Notwithstanding any other provision of State law, any
person convicted of a violation under this section 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
subsections (d) and (j) of such section, which shall not apply
to forfeitures under this section.
``(e) 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 trade secrets, 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
any trade secret.
``(f) Civil Proceedings to Enjoin Violations.--
``(1) Generally.--The Attorney General may, in a civil
action, obtain appropriate injunctive relief against any
violation of this section.
``(2) Exclusive Jurisdiction.--The district courts of the
United States shall have exclusive original jurisdiction of
civil actions under this subsection.
``(g) 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--
``(i) a United States citizen or permanent
resident alien; or
``(ii) an organization substantially owned
or controlled by United States citizens or
permanent resident aliens, or incorporated in
the United States; or
``(B) an act in furtherance of the offense was
committed in the United States.
``(h) 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 a trade
secret.
``(i) 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.''.
(b) Clerical Amendment.--The table of sections at the beginning of
chapter 31, United States Code, is amended by adding at the end the
following new item:
``670. Protection of trade secrets.''.
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 670 (relating to economic espionage),'' after
``(bribery in sporting contests),''.
Passed the House of Representatives September 17, 1996.
Attest:
ROBIN H. CARLE,
Clerk.