On April 29, 2014, Senators Hatch & Coons introduced the Defend Trade Secrets Act of 2014, the third bill in as many years to propose a federal civil cause of action for trade secret misappropriation by amending the Economic Espionage Act. This latest attempt, which closely resembles the 2012 bill (also co-sponsored by Senator Coons)
Circuit Court Opinion Confirms Broad Scope of Federal Criminal Trade Secrets Statute
In United States v. Jin, the Seventh Circuit recently ruled on several issues illustrating the broad scope of the federal Economic Espionage Act (EEA), namely: (1) The element requiring proof of intent to benefit someone other than the trade secret owner can be met even absent proof of intent to pass on stolen materials;
Second Circuit Affirms Conviction For Theft of Computer Code Under Federal Criminal Trade Secrets Statutes
In United States v. Agrawal, the Second Circuit upheld a jury’s 2010 conviction of a former Société Générale trader under the Economic Espionage Act (EEA) and the National Stolen Property Act (NSPA). The three-judge panel unanimously affirmed the NSPA conviction, but split on whether the EEA conviction could stand in light of the Second
Conflicting Court Decisions Highlight Difficulty of Prosecuting Foreign Corporations For Economic Espionage and Trade Secrets Theft
The Obama administration has made the protection of U.S. intellectual property a priority. But achieving that goal is rife with challenges, including the practical barriers to criminal prosecution of foreign corporations for economic espionage and trade secrets theft. Among those barriers is Rule 4 of the Federal Rules of Criminal Procedure, which specifies how jurisdiction
Congress Increases Criminal Penalties For Trade Secrets Theft
For the second time in as many months, Congress has amended the Economic Espionage Act (EEA). Last month, President Obama signed into law the Foreign and Economic Espionage Penalty Enhancement Act of 2012. As the name suggests, the new law enhances the EEA’s criminal penalties in response to a marked increase in international trade
Congress Broadens Federal Criminal Trade Secret Statute
On December 18, 2012, Congress approved an amendment to the Economic Espionage Act (EEA) to cover service-related trade secrets and relax the interstate-commerce jurisdictional requirement. The amendment just approved by Congress expands liability in two ways. First, the amendment criminalizes the theft of service-related trade secrets, regardless of whether they are related to a physical
DOJ Prosecution of Chinese State-Owned Enterprise for Trade Secrets Theft Offers Lessons for U.S. Businesses
For the first time, the U.S. Department of Justice has indicted a Chinese state-owned enterprise for violating the Economic Espionage Act, in connection with efforts to acquire manufacturing technology for titanium dioxide, a white pigment commonly used in paint, plastics and paper. The indictment specifically alleges that “the People’s Republic of China (PRC) publicly identified