,,ib  ,union ,calendar ,no4 #did  #aacth
 ,,congress  #b;d ,session  ,h4 ,r4     
#ebcc  ,report ,no4 #aac-feg  ,,in ,,the
 ,,house ,,of ,,representatives  ,july  
#bi1 #bjad ,mr4 ,holding 7for himself1  
,mr4 ,nadler1 ,mr4 ,coble1 ,mr4         
,conyers1 ,mr4 ,chabot1 ,mr4 ,jeffries1 
,mr4 ,richmond1 and ,ms4 ,del,bene7     
introduced the following bill2 which was
 referred to the ,committee on the      
,judiciary  ,december #aa1 #bjad        
,additional sponsors3 ,mr4 ,collins of  
,georgia1 ,mr4 ,reed1 ,mr4              
,sensenbrenner1 ,mr4 ,smith of ,texas1  
,mr4 ,hanna1 ,mr4 ,mc,henry1 ,mr4       
,deutch1 ,mr4 ,smith of ,missouri1 ,mr4 
,connolly1 ,mr4 ,chaffetz1 ,mr4         
,guthrie1 ,mr4 ,king of ,iowa1 ,mr4     
,marino1 ,mr4 ,bachus1 ,mr4 ,nunnelee1  
and ,mr4 ,pallone  ,december #aa1 #bjad 
,reported with an amendment1 committed  
to the ,committee of the ,whole ,house  
on the ,state of the ,union1 and ordered
 to be printed ,strike out all after the
 enacting clause and insert the part    

printed in italic ,for text of          
introduced bill1 see copy of bill as    
introduced on ,july #bi1 #bjad  ,a      
,,bill  ,to amend chapter #ij of title  
#ah1 ,united ,states ,code1 to provide  
,federal jurisdiction for the theft of  
trade secrets1 and for other purposes4  
#a4 ,short title ,this ,act may be cited
 as the ,trade ,secrets ,protection ,act
 of #bjad4  #b4 ,federal jurisdiction   
for theft of trade secrets  7a7 ,in     
general ,section #ahcf of title #ah1    
,united ,states ,code1 is amended by    
striking subsection 7b7 and inserting   
the following3  7b7 ,private civil      
actions  7#a7 ,in general ,an owner of a
 trade secret may bring a civil action  
under this subsection if the person is  
aggrieved by a misappropriation of a    
trade secret that is related to a       
product or service used in1 or intended 
for use in1 interstate or foreign       
commerce4  7#b7 ,civil seizure  7,a7 ,in
 general  7i7 ,application ,based on an 
affidavit or verified complaint         

satisfying the requirements of this     
paragraph1 the court may1 upon ex parte 
application1 issue an order providing   
for the seizure of property necessary to
 preserve evidence in a civil action    
brought under paragraph 7#a7 or to      
prevent the propagation or dissemination
 of the trade secret that is the subject
 of the action4  7ii7 ,requirements for 
issuing order ,the court may not grant  
an application under clause 7i7 unless  
the court finds that it clearly appears 
from specific facts that--  7,i7 an     
order issued pursuant to ,rule #fe7;b7  
of the ,federal ,rules of ,civil        
,procedure would be inadequate to       
achieve the purpose of this paragraph   
because the party to which the order    
would be issued would evade1 avoid1 or  
otherwise not comply with such an order2
  7,,ii7 an immediate and irreparable   
injury will occur if such seizure is not
 ordered2  7,,iii7 the harm to the      
applicant of denying the application    
outweighs the harm to the legitimate    

interests of the person against whom    
seizure would be ordered of granting the
 application and substantially outweighs
 the harm to any third parties who may  
be harmed by such seizure2  7,,iv7 the  
applicant is likely to succeed in       
showing that the person against whom    
seizure would be ordered misappropriated
 the trade secret by improper means1 or 
conspired to use improper means to      
misappropriate the trade secret1 and is 
in possession of the trade secret2  7,v7
 the application describes with         
reasonable particularity the matter to  
be seized and1 to the extent reasonable 
under the circumstances1 identifies the 
location where the matter is to be      
seized2  7,,vi7 the person against whom 
seizure would be ordered1 or persons    
acting in concert with such person1     
would destroy1 move1 hide1 or otherwise 
make such matter inaccessible to the    
court1 if the applicant were to proceed 
on notice to such person2 and  7,,vii7  
the applicant has not publicized the    

requested seizure4  7,b7 ,elements of   
order ,if an order is issued under      
subparagraph 7,a71 it shall--  7i7 set  
forth findings of fact and conclusions  
of law required for the order2  7ii7    
provide for the seizure of any property 
in a manner that minimizes any          
interruption of the business operations 
of third parties and1 to the extent     
possible1 does not interrupt those      
legitimate business operations of the   
person accused of misappropriating the  
trade secret that are unrelated to the  
trade secret that has allegedly been    
misappropriated2  7iii7 be accompanied  
by an order protecting the property from
 disclosure by restricting the access of
 the applicant1 including during the    
seizure1 and prohibiting any copies1 in 
whole or in part1 of the seized         
property1 to prevent undue damage to the
 party against whom the order has issued
 or others1 until such parties have an  
opportunity to be heard in court2  7iv7 
set a date for a hearing at the earliest

 possible time1 and not later than #g   
days after the order has issued1 unless 
the party against whom the order is     
directed and others harmed by the order 
consent to another date for such        
hearing1 except that a party against    
whom the order has issued or any person 
harmed by the order may move the court  
at any time to dissolve or modify the   
order after giving notice to the        
applicant who obtained the order2 and   
7v7 require the person obtaining the    
order to provide the security determined
 adequate by the court for the payment  
of such damages as any person may be    
entitled to recover as a result of a    
wrongful or excessive seizure or        
wrongful or excessive attempted seizure 
under this paragraph4  7,c7 ,protection 
from publicity ,the court shall take    
appropriate action to protect the person
 against whom an order under this       
paragraph is directed from publicity1 by
 or at the behest of the person         
obtaining the order1 about such order   

and any seizure under such order4  7,d7 
,materials in custody of court ,any     
materials seized under this paragraph   
shall be taken into the custody of the  
court4 ,the court shall secure the      
seized material from physical and       
electronic access during the seizure and
 while in the custody of the court4     
7,e7 ,service of order ,the court shall 
order that service of a copy of the     
order under this paragraph shall be made
 by a ,federal law enforcement officer1 
or may be made by a ,state or local law 
enforcement officer1 who1 upon making   
service1 shall carry out the seizure    
under the order4  7,f7 ,action for      
damage caused by wrongful seizure ,a    
person who suffers damage by reason of a
 wrongful or excessive seizure under    
this paragraph has a cause of action    
against the applicant for the order     
under which such seizure was made1 and  
shall be entitled to the same relief as 
is provided under section #cd7;d77#aa7  
of the ,trademark ,act of #aidf 7#ae    

,u4,s4,c4 #aaaf7;d77#aa774 ,the security
 posted with the court under            
subparagraph 7,b77v7 shall not limit the
 recovery of third parties for damages4 
7#c7 ,remedies ,in a civil action       
brought under this subsection with      
respect to the misappropriation of a    
trade secret1 a court may--  7,a7 grant 
an injunction--  7i7 to prevent any     
actual or threatened misappropriation   
described in paragraph 7#a7 on such     
terms as the court deems reasonable2    
7ii7 if determined appropriate by the   
court1 requiring affirmative actions to 
be taken to protect the trade secret2   
and  7iii7 in exceptional circumstances 
that render an injunction inequitable1  
that conditions future use of the trade 
secret upon payment of a reasonable     
royalty for no longer than the period of
 time for which such use could have been
 prohibited2  7,b7 award--  7i7  7,i7   
damages for actual loss caused by the   
misappropriation of the trade secret2   
and  7,,ii7 damages for any unjust      

enrichment caused by the                
misappropriation of the trade secret    
that is not addressed in computing      
damages for actual loss2 or  7ii7 in    
lieu of damages measured by any other   
methods1 the damages caused by the      
misappropriation measured by imposition 
of liability for a reasonable royalty   
for the misappropriator's unauthorized  
disclosure or use of the trade secret2  
7,c7 if the trade secret is willfully   
and maliciously misappropriated1 award  
exemplary damages in an amount not more 
than #c times the amount of the damages 
awarded under subparagraph 7,b72 and    
7,d7 if a claim of the misappropriation 
is made in bad faith1 a motion to       
terminate an injunction is made or      
opposed in bad faith1 or the trade      
secret was willfully and maliciously    
misappropriated1 award reasonable       
attorney's fees to the prevailing party4
  7c7 ,jurisdiction ,the district courts
 of the ,united ,states shall have      
original jurisdiction of civil actions  

brought under this section4  7d7 ,period
 of limitations ,a civil action under   
subsection 7b7 may not be commenced     
later than #e years after the date on   
which the misappropriation with respect 
to which the action would relate is     
discovered or by the exercise of        
reasonable diligence should have been   
discovered4 ,for purposes of this       
subsection1 a continuing                
misappropriation constitutes a single   
claim of misappropriation4  4  7b7      
,definitions ,section #ahci of title    
#ah1 ,united ,states ,code1 is amended--
  7#a7 in paragraph 7#c71 by striking   
and at the end2  7#b7 in paragraph 7#d71
 by striking the period at the end and  
inserting a semicolon2 and  7#c7 by     
adding at the end the following3  7#e7  
the term misappropriation means--  7,a7 
acquisition of a trade secret of another
 by a person who knows or has reason to 
know that the trade secret was acquired 
by improper means2 or  7,b7 disclosure  
or use of a trade secret of another     

without express or implied consent by a 
person who--  7i7 used improper means to
 acquire knowledge of the trade secret2 
7ii7 at the time of disclosure or use1  
knew or had reason to know that the     
knowledge of the trade secret was--     
7,i7 derived from or through a person   
who had used improper means to acquire  
the trade secret2  7,,ii7 acquired under
 circumstances giving rise to a duty to 
maintain the secrecy of the trade secret
 or limit the use of the trade secret2  
or  7,,iii7 derived from or through a   
person who owed a duty to the person    
seeking relief to maintain the secrecy  
of the trade secret or limit the use of 
the trade secret2 or  7iii7 before a    
material change of the position of the  
person1 knew or had reason to know      
that--  7,i7 the trade secret was a     
trade secret2 and  7,,ii7 knowledge of  
the trade secret had been acquired by   
accident or mistake2  7#f7 the term     
improper means--  7,a7 includes theft1  
bribery1 misrepresentation1 breach or   

inducement of a breach of a duty to     
maintain secrecy1 or espionage through  
electronic or other means2 and  7,b7    
does not include reverse engineering or 
independent derivation2 and  7#g7 the   
term ,trademark ,act of #aidf means the 
,act entitled ,an ,act to provide for   
the registration and protection of      
trademarks used in commerce1 to carry   
out the provisions of certain           
international conventions1 and for other
 purposes1 approved ,july #e1 #aidf 7#ae
 ,u4,s4,c4 #ajea et seq47 7commonly     
referred to as the ,trademark ,act of   
#aidf or the ,lanham ,act74  4  7c7     
,exceptions to prohibition ,section     
#ahcc of title #ah1 ,united ,states     
,code1 is amended1 in the matter        
preceding paragraph 7#a71 by inserting  
or create a private right of action for 
after prohibit4  7d7 ,conforming        
amendments  7#a7 ,the section heading   
for section #ahcf of title #ah1 ,united 
,states ,code1 is amended to read as    
follows3  #ahcf4 ,civil proceedings  4  

7#b7 ,the table of sections for chapter 
#ij of title #ah1 ,united ,states ,code1
 is amended by striking the item        
relating to section #ahcf and inserting 
the following3  #ahcf4 ,civil           
proceedings4  4  7e7 ,effective date    
,the amendments made by this section    
shall apply with respect to any         
misappropriation of a trade secret 7as  
defined in section #ahci of title #ah1  
,united ,states ,code1 as amended by    
this section7 for which any act occurs  
on or after the date of the enactment of
 this ,act4  7f7 ,rule of construction  
,nothing in the amendments made by this 
section shall be construed to modify the
 rule of construction under section     
#ahch of title #ah1 ,united ,states     
,code1 or to preempt any other provision
 of law4  7g7 ,applicability to other   
laws ,this section and the amendments   
made by this section shall not be       
construed to be a law pertaining to     
intellectual property for purposes of   
any other ,act of ,congress4  #c4       

,report on theft of trade secrets       
occurring abroad  7a7 ,reports ,not     
later than #a year after the date of the
 enactment of this ,act1 and biannually 
thereafter1 the ,attorney ,general1 in  
consultation with the ,intellectual     
,property ,enforcement ,coordinator1 the
 ,director1 and the heads of other      
appropriate agencies1 shall submit to   
the ,committees on the ,judiciary of the
 ,house of ,representatives and the     
,senate1 and make publicly available on 
the ,web site of the ,department of     
,justice and disseminate to the public  
through such other means as the         
,attorney ,general may identify1 a      
report on the following3  7#a7 ,the     
scope and breadth of the theft of the   
trade secrets of ,united ,states        
companies occurring outside of the      
,united ,states4  7#b7 ,the extent to   
which theft of trade secrets occurring  
outside of the ,united ,states is       
sponsored by foreign governments1       
foreign instrumentalities1 or foreign   

agents4  7#c7 ,the threat posed by theft
 of trade secrets occurring outside of  
the ,united ,states4  7#d7 ,the ability 
and limitations of trade secret owners  
to prevent the misappropriation of trade
 secrets outside of the ,united ,states1
 to enforce any judgment against foreign
 entities for theft of trade secrets1   
and to prevent imports based on theft of
 trade secrets overseas4  7#e7 ,a       
breakdown of the trade secret           
protections afforded ,united ,states    
companies by each country that is a     
trading partner of the ,united ,states  
and enforcement efforts available and   
undertaken in each such country1        
including a list identifying specific   
countries where trade secret theft1     
laws1 or enforcement is a significant   
problem for ,united ,states companies4  
7#f7 ,instances of the ,federal         
,government working with foreign        
countries to investigate1 arrest1 and   
prosecute entities and individuals      
involved in the theft of trade secrets  

outside of the ,united ,states4  7#g7   
,specific progress made under trade     
agreements and treaties1 including any  
new remedies enacted by foreign         
countries1 to protect against theft of  
trade secrets of ,united ,states        
companies outside of the ,united        
,states4  7#h7 ,recommendations of      
legislative and executive branch actions
 that may be undertaken to--  7,a7      
reduce the threat of and economic impact
 caused by the theft of the trade       
secrets of ,united ,states companies    
occurring outside of the ,united        
,states2  7,b7 educate ,united ,states  
companies regarding the threats to their
 trade secrets when taken outside of the
 ,united ,states2  7,c7 provide         
assistance to ,united ,states companies 
to reduce the risk of loss of their     
trade secrets when taken outside of the 
,united ,states2 and  7,d7 provide a    
mechanism for ,united ,states companies 
to confidentially or anonymously report 
the theft of trade secrets occurring    

outside of the ,united ,states4  7b7    
,definitions ,in this section3  7#a7    
,director ,the term ,director means the 
,under ,secretary of ,commerce for      
,intellectual ,property and ,director of
 the ,united ,states ,patent and        
,trademark ,office4  7#b7 ,foreign      
instrumentality1 etc ,the terms foreign 
instrumentality1 foreign agent1 and     
trade secret have the meanings given    
those terms in section #ahci of title   
#ah1 ,united ,states ,code4  7#c7 ,state
 ,the term ,state includes the ,district
 of ,columbia and any commonwealth1     
territory1 or possession of the ,united 
,states4  7#d7 ,united ,states company  
,the term ,united ,states company means 
an organization organized under the laws
 of the ,united ,states or a ,state or  
political subdivision thereof4          
,december #aa1 #bjad ,reported with an  
amendment1 committed to the ,committee  
of the ,whole ,house on the ,state of   
the ,union1 and ordered to be printed