New Federal Law Increases Penalties for Trade Secret Theft That Benefits Foreign Governments

Author: Marta Moakley, XpertHR Legal Editor

On January 14, 2013, President Obama signed the Foreign and Economic Espionage Penalty Enhancement Act of 2012. The new amendments to the Economic Espionage Act of 1996 (EEA) increase existing penalties for trade secret theft. +18 USCS § 1832.

Under the amendments, the maximum penalties for individuals have increased from $500,000 to $5,000,000. The penalties for organizations have increased from $10,000,000 to the greater of $10,000,000 or three times the value of the stolen trade secret, including other costs. The Act also provides that the federal sentencing guidelines be amended accordingly. +18 USCS § 2B1.1.

Employers with an international presence should take particular note of this legal development. Along with the recent enactment of the Theft of Trade Secrets Clarification Act of 2012, these stricter penalties may represent a trend toward additional trade secret theft legislation in 2013. Most significantly for employers, future proposed legislation may allow employers to file civil claims for damages related to trade secret theft and economic espionage. XpertHR will continue to cover developments on this and other trade secret matters.

Additional Resources

Stop Theft of Employer Property by Employees

Employee Management > Employee Communications > Minimizing Communications Theft

Employee Management > Employee Discipline > Workplace Theft

Employee Management > Terms of Employment > State Requirements