The Economic Espionage Act Criminal Statute
Let’s get familiar with the text of the statute under which the Federal Government might prosecute economic espionage. Details count, so let’s have a look!
18 U.S. Code § 1831 – Economic Espionage
Economic espionage is listed under Title 18, which is the felony part of U.S. Federal law, right next to racketeering and wire fraud and all the other very bad things.
(a) In General.—Whoever, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly—
There is an element of mens rea, the mindset required to prosecute an offender, in this statute. You cannot merely appropriate a trade secret by happenstance–you must intend to give stuff to a foreign power, and possibly know that you have done so.
(1) steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains a trade secret;
This is pretty straightforward–did you steal someone’s stuff by tricking them? That’s bad.
(2) without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys a trade secret;
These are all the ways you might steal and transmit a trade secret, almost all of them in sending documents.
(3) receives, buys, or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained, or converted without authorization;
Buying stolen stuff counts as much as stealing it.
(4) attempts to commit any offense described in any of paragraphs (1) through (3); or
Trying and failing to commit economic espionage counts as much as succeeding! No points for sucking at being a bad guy!
(5) conspires with one or more other persons to commit any offense described in any of paragraphs (1) through (3), and one or more of such persons do any act to effect the object of the conspiracy,
Conspiracy counts, too! Just like other major crimes like healthcare fraud or drug trafficking.
…shall, except as provided in subsection (b), be fined not more than $5,000,000 or imprisoned not more than 15 years, or both.
Yikes! A maximum of fifteen years in prison! That’s more than many Federal felonies! This is a serious offense.
(b) Organizations.—Any organization that commits any offense described in subsection (a) shall be fined not more than the greater of $10,000,000 or 3 times the value of the stolen trade secret to the organization, including expenses for research and design and other costs of reproducing the trade secret that the organization has thereby avoided.
Businesses can also being convicted of this crime, with a maximum penalty $10 million or three times the value of the stolen trade secret. Crime in this instance will certainly not pay if you run afoul of this statute.
Are you a target for economic espionage?
With so much money at stake, economic espionage is a bigger business than you might imagine.
What is your company doing to prevent it?
