Understanding the Economic Espionage Act of 1996

Abstract

The Economic Espionage Act of 1996 was intended to address both the general need for a federal criminal deterrent against trade secret theft as well as the apparent threat from foreign state-sponsored industrial espionage. This article examines the background of this new law, provides critical analysis of its most important terms, describes the process involved in a reference of trade secret theft to the federal authorities, and suggests practical strategies for businesses to take advantage of this resource as well as to avoid exposure to liability for the mishandling of information belonging to others.