Sunday, November 2, 2014

School Essay: Economic Espionage Act





Economic Espionage Act
Leslie K. Penny
Chancellor University
Module 8 Research Assignment 5







Abstract
Economic espionage is not a term shared often around the dinner table.  Although, if you are a business owner(s) that has lost money due to this sordid affair, then you are very aware of what economic espionage is.  The Economic Espionage Act was signed into law in 1996 as an endeavor to protect America's economic secrets (Counterintelligence, 2013) and this essay will further educate one on the subject. 









           


Economic Espionage Act
            Economic espionage is a mouthful and some may ask, "what is that?".  However, when the phrase "theft of trade secrets" is mentioned, some indication of understanding dawns on the audience.  Even so, economic espionage is not a term shared often around the dinner table.  Although, if you are a business that has lost money due to this sordid affair, then you are very aware of what economic espionage is.  According to C. Frank Figliuzzi, Assistant Director of the Counterintelligence Division of the FBI, more than $13 billion dollars was taken this fiscal year from the American economy due to economic espionage (Figliuzzi, 2012).  However, the Economic Espionage Act (EEA) is in place to help combat that threat to America.
            The Economic Espionage Act was signed into law in 1996 as an endeavor to protect America's economic secrets (Counterintelligence, 2013).  The EEA has made it a criminal offense aimed at anyone "intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent, knowingly:
1)     steals, or without authorization appropriates, takes, carries away, or conceals, or by fraud, artifice, or deception obtains a trade secret;
2)     without authorization copies, duplicates, sketches, draws, photographs, downloads, uploads, alters, destroys, photocopies, replicates, transmits, delivers, sends, mails, communicates, or conveys a trade secret;
3)     receives, buys or possesses a trade secret, knowing the same to have been stolen or appropriated, obtained or converted without authorization;
4)     attempts to commit any offense described in any paragraphs (1) through (3); or
5)     conspires with one or more other persons to commit any offense described in any of paragraphs (1) through (3), and one or more such persons do any act to effect the object of the conspiracy, shall, except as provided in subsection (b), be fined not more than $5,000,000 or imprisoned not more than 15 years, or both" (18 USC 1831 - Economic espionage, 2013).
            Trade secrets are defined as "all forms and types of financial, business, scientific, technical, economic or engineering information, including patterns, plans, compilations, program devices, formulas, designs, prototypes, methods, techniques, processes, procedures, programs, or codes whether tangible or intangible, and whether or how stored, compiled, or memorized physically, electronically, graphically, photographically or in writing, which the owner has taken reasonable measures to protect, and has as independent economic value" (Counterintelligence, 2013).  In other words, if a company wants the EEA to apply then they must be able to prove that they took reasonable measures to protect their secret information.  Theft of trade secrets arises when a person "(1) knowingly performs targeting or acquisitions of trade secrets or intends to convert a trade secret to (2) knowingly benefit anyone other than the owner" which is "commonly referred to as Industrial Espionage (Counterintelligence, 2013).   
            To conclude, economic espionage is a serious threat.  One of which the assistant director of the counterintelligence division of the FBI, C. Frank Figliuzzi, points out that this year's fiscal statistics of economic espionage as surpassing the recorded statistics for fiscal year 2012 (Figliuzzi, 2012).  Mr. Figliuzzi claims to expect those statistics to continue to rise because "foreign intelligence services and their collectors become more creative and more sophisticated in their methods to undermine American business and erode the one thing that most provides American business its leading edge; our ability to innovate" (Figliuzzi, 2012).  Business need to take head of this warning and do everything in their power to protect their important information.














Works Cited

18 USC 1831 - Economic espionage. (2013). Retrieved 08 20, 2013, from Cornell University Law School: http://www.law.cornell.edu/uscode/text/18/1831
Counterintelligence. (2013). Retrieved 08 20, 2013, from The FBI Federal Bureau of Investigation: http://www.fbi.gov/about-us/investigate/counterintelligence/economic-espionage
Figliuzzi, C. F. (2012, 06 28). Testimony. Retrieved 08 20, 2013, from The FBI Federal Bureau of Investigation: http://www.fbi.gov/news/testimony/economic-espionage-a-foreign-intelligence-threat-to-americans-jobs-and-homeland-security

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