What is the Economic Espionage Act?

Intellectual property theft is a growing concern in our global economy. Whether it’s trade secrets, proprietary technology, or confidential business strategies, companies rely on their intellectual assets to stay competitive. The Economic Espionage Act (EEA) of 1996 was enacted to combat the theft of intellectual property and protect businesses from losing valuable information to competitors, both foreign and domestic. If you own a business or manage sensitive intellectual property, understanding this law is crucial, which is why you should continue reading and reach out to a skilled Orleans Parish, Louisiana intellectual property lawyer to learn more. Here are some of the questions you may have:

How Does the Economic Espionage Act Protect Businesses?

The Economic Espionage Act makes it a federal crime to steal or misappropriate trade secrets for the benefit of another party, whether an individual or an organization. This law applies to two main categories of intellectual property theft:

• Economic Espionage (18 U.S.C. § 1831): This provision applies when a trade secret is stolen with the intent to benefit a foreign government, instrumentality, or agent. Given the increasing concerns over international corporate espionage, this part of the law is particularly significant for businesses with global operations.
• Theft of Trade Secrets (18 U.S.C. § 1832): Unlike economic espionage, this provision targets individuals or entities that steal trade secrets for commercial advantage rather than for a foreign government. Even if a competitor uses stolen trade secrets for personal financial gain, they can be prosecuted under the EEA.

The law covers a broad range of intellectual property, including proprietary formulas, manufacturing processes, financial data, research findings, and more. Companies often work for years to develop these assets, making their protection a legal and financial priority.

What Are the Penalties for Violating the Act?

The penalties for violating the EEA are severe. Those convicted of economic espionage under 18 U.S.C. § 1831 can face:

• Up to 15 years in prison
• Fines of up to $5 million for individuals
• Corporations involved in such theft may be fined up to $10 million or three times the value of the stolen trade secret, whichever is greater

For commercial trade secret theft under 18 U.S.C. § 1832, the penalties include:

• Up to 10 years in prison
• Fines of up to $250,000 for individuals
• Businesses convicted of trade secret theft may face fines of up to $5 million

Additionally, courts may impose injunctions, restitution, and forfeiture of profits gained from the stolen information. These harsh penalties underscore the federal government’s commitment to protecting intellectual property.

Ultimately, if you need legal guidance on how to protect your intellectual assets, consulting with a knowledgeable attorney is a smart first step. Please don’t hesitate to contact Lemler IP today.