[Weekly Compilation of Presidential Documents Volume 32, Number 41 (Monday, October 14, 1996)]
[Page 2040]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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 impeding 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.