    [Public Papers of the Presidents of the United States: William J. Clinton (1996, Book II)]
    [October 11, 1996]
    [Pages 1814-1815]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Statement on Signing the Economic Espionage Act of 1996
    October 11, 1996

        Today I have signed into law H.R. 3723, the ``Economic Espionage Act
    of 1996.'' It strengthens our protections against the theft or misuse of
    proprietary business information. It will help us crack down on acts
    like software piracy and copyright infringement that cost American
    businesses billions of dollars in lost revenues. And it will advance our
    national security.
        This legislation makes the theft or misappropriation of trade
    secrets a Federal crime. The Act provides distinct monetary penalties
    and prison sentences for defined acts of economic espionage and trade
    secret theft. It also provides for criminal forfeiture of property used
    in or derived from economic espionage or trade secret theft and
    preserves the confidentiality of trade secrets in court proceedings.
        This Act is an outstanding example of my Administration, the
    Congress, and the business community working together to provide law
    enforcement with the tools to combat the problems of economic espionage
    and trade secret theft.
        Trade secrets are an integral part of virtually every sector of our
    economy and are essential to maintaining the health and competitiveness
    of critical industries operating in the United States. Economic
    espionage and trade secret theft threaten our Nation's national security
    and economic well-being.
        Until today, Federal law has not accorded appropriate or adequate
    protection to trade secrets, making it difficult to prosecute thefts
    involving this type of information. Law enforcement officials relied
    instead on antiquated laws that have not kept pace with the
    technological advances of modern society. This Act establishes a
    comprehensive and systemic approach to trade secret theft and economic
    espionage, facilitating investigations and prosecutions.
        This bill also strengthens protection for our national information
    infrastructure by eliminating gaps in the criminal laws covering attacks
    against computers and the information they contain. Importantly, it does
    so with without imped-

    [[Page 1815]]

    ing the development of legitimate uses of the information
    infrastructure.
        This Act will protect the trade secrets of all businesses operating
    in the United States, foreign and domestic alike, from economic
    espionage and trade secret theft and deter and punish those who would
    intrude into, damage, or steal from computer networks. I am pleased to
    sign it into law.

                                                          William J. Clinton

    The White House,

    October 11, 1996.

    Note: H.R. 3723, approved October 11, was assigned Public Law No. 104-
    294.