Skip to Content

Congress Acts to Strengthen Federal Trade Secret Protection
January 16, 2013
On December 28, 2012, President Obama signed into law the Theft of Trade Secrets Clarification Act of 2012, (the TTSCA), S. 3642, which broadens the scope of the Economic Espionage Act of 1996 (18 U.S.C. Sections 1831-39). The TTSCA expands protection of trade secrets to include products or services “used or intended for use in interstate or foreign commerce.” A related law, the Foreign Economic Espionage Penalty Enhancement Act of 2012, which increases penalties for misappropriating trade secrets, is expected to be enacted soon.

The newly enacted amendments are intended to address criticism directed at the outcome of a recent Second Circuit case reported at United States v. Aleyinikov, 676 F.3d 71( 2d Cir. 2012). In that decision, Sergey Aleynikov’s conviction for trade secret misappropriation of proprietary computer source code under the Economic Espionage Act was overturned. The basis for that decision was that the source code was not intended to be included in a product that is produced for, or placed in, interstate or foreign commerce.

Once it becomes law, the Foreign and Economic Espionage Penalty Enhancement Act of 2012 will increase maximum fines for economic espionage committed by individuals from $500,000 to $5 million, and for organizations from $10 million to not more than the greater of $10 million or three times the value of the stolen trade secret to the organization.
Related Practices
Intellectual Property International Trade Secrets / Noncompete Litigation and Consulting
©2024 Carlton Fields, P.A. Carlton Fields practices law in California through Carlton Fields, LLP. Carlton Fields publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information and educational purposes only, and should not be relied on as if it were advice about a particular fact situation. The distribution of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship with Carlton Fields. This publication may not be quoted or referred to in any other publication or proceeding without the prior written consent of the firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our Contact Us form via the link below. The views set forth herein are the personal views of the author and do not necessarily reflect those of the firm. This site may contain hypertext links to information created and maintained by other entities. Carlton Fields does not control or guarantee the accuracy or completeness of this outside information, nor is the inclusion of a link to be intended as an endorsement of those outside sites.

Disclaimer

The information on this website is presented as a service for our clients and Internet users and is not intended to be legal advice, nor should you consider it as such. Although we welcome your inquiries, please keep in mind that merely contacting us will not establish an attorney-client relationship between us. Consequently, you should not convey any confidential information to us until a formal attorney-client relationship has been established. Please remember that electronic correspondence on the internet is not secure and that you should not include sensitive or confidential information in messages. With that in mind, we look forward to hearing from you.