Understanding the Economic Espionage Act of 1996 and Its Legal Framework

Definition & Meaning

The Economic Espionage Act of 1996 is a federal law in the United States that makes it illegal to steal or misappropriate trade secrets. This law specifically targets industrial espionage conducted by or for foreign entities. It establishes criminal penalties for those who knowingly acquire, receive, or possess stolen trade-secret information. While the Act allows the Department of Justice to pursue civil actions to stop violations, it does not permit individuals to file private lawsuits under its provisions.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A U.S. company discovers that a competitor has stolen its proprietary manufacturing process and reported it to the authorities. The competitor could face criminal charges under the Economic Espionage Act.

Example 2: An employee of a U.S. firm sells confidential client lists to a foreign corporation. This action could lead to prosecution under the Act for economic espionage. (hypothetical example)

Comparison with related terms

Term Definition Key Differences
Trade Secret Information that derives economic value from not being generally known and is subject to reasonable efforts to maintain its secrecy. The Economic Espionage Act specifically criminalizes the theft of trade secrets, while trade secret laws may also include civil remedies.
Intellectual Property Legal rights that result from intellectual activity in the industrial, scientific, literary, and artistic fields. Intellectual property encompasses a broader range of protections, while the Economic Espionage Act focuses solely on trade secrets.

What to do if this term applies to you

If you believe you are involved in a situation related to the Economic Espionage Act, consider the following steps:

  • Document any relevant information regarding the alleged misappropriation of trade secrets.
  • Consult with a legal professional who specializes in intellectual property or criminal law for tailored advice.
  • Explore US Legal Forms for templates that may assist you in addressing related legal issues.

Quick facts

Attribute Details
Jurisdiction Federal
Potential Penalties Criminal fines, imprisonment, and civil penalties
Extraterritorial Reach Yes, under certain conditions

Key takeaways

Frequently asked questions

A trade secret is information that provides a business advantage over competitors who do not know or use it, and it must be kept confidential.