#aadth ,,congress  #b;d ,session  ,s4   
#ahij  ,,an ,,act  ,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 ,defend ,trade      
,secrets ,act of #bjaf4  #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 that is misappropriated   
may bring a civil action under this     
subsection if the trade secret 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 application but only in           

extraordinary circumstances1 issue an   
order providing for the seizure of      
property necessary 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 #fe of the     
,federal ,rules of ,civil ,procedure or 
another form of equitable relief 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-- 7aa7 the  
information is a trade secret2 and  7bb7
 the person against whom seizure would  
be ordered-- 7,,aa7 misappropriated the 
trade secret of the applicant by        
improper means2 or 7,,bb7 conspired to  
use improper means to misappropriate the
 trade secret of the applicant2  7,v7   
the person against whom seizure would be
 ordered has actual possession of-- 7aa7
 the trade secret2 and  7bb7 any        
property to be seized2  7,,vi7 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,,vii7 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,,viii7 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   
narrowest seizure of property necessary 
to achieve the purpose of this paragraph
 and direct that the seizure be         
conducted in a manner that minimizes any
 interruption of the business operations
 of third parties and1 to the extent    
possible1 does not interrupt the        
legitimate business operations of the   
person accused of misappropriating the  
trade secret2  7iii7 7,i7 be accompanied
 by an order protecting the seized      
property from disclosure by prohibiting 
access by the applicant or the person   
against whom the order is directed1 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 and  7,,ii7 provide that
 if access is granted by the court to   
the applicant or the person against whom
 the order is directed1 the access shall
 be consistent with subparagraph 7,d72  
7iv7 provide guidance to the law        
enforcement officials executing the     
seizure that clearly delineates the     
scope of the authority of the officials1
 including--  7,i7 the hours during     
which the seizure may be executed2 and  
7,,ii7 whether force may be used to     
access locked areas2  7v7 set a date for
 a hearing described in subparagraph    
7,f7 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 the 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  7vi7 require the person obtaining 
the order to provide the security       
determined adequate by the court for the
 payment of the damages that 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  7i7 ,in 
general ,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  7ii7 ,storage medium ,if the    

seized material includes a storage      
medium1 or if the seized material is    
stored on a storage medium1 the court   
shall prohibit the medium from being    
connected to a network or the ,internet 
without the consent of both parties1    
until the hearing required under        
subparagraph 7,b77v7 and described in   
subparagraph 7,f74  7iii7 ,protection of
 confidentiality ,the court shall take  
appropriate measures to protect the     
confidentiality of seized materials that
 are unrelated to the trade secret      
information ordered seized pursuant to  
this paragraph unless the person against
 whom the order is entered consents to  
disclosure of the material4  7iv7       
,appointment of special master ,the     
court may appoint a special master to   
locate and isolate all misappropriated  
trade secret information and to         
facilitate the return of unrelated      
property and data to the person from    
whom the property was seized4 ,the      
special master appointed by the court   

shall agree to be bound by a            
non-disclosure agreement approved by the
 court4  7,e7 ,service of order ,the    
court shall order that service of a copy
 of the order under this paragraph1 and 
the submissions of the applicant to     
obtain the order1 shall be made by a    
,federal law enforcement officer who1   
upon making service1 shall carry out the
 seizure under the order4 ,the court may
 allow ,state or local law enforcement  
officials to participate1 but may not   
permit the applicant or any agent of the
 applicant to participate in the        
seizure4 ,at the request of law         
enforcement officials1 the court may    
allow a technical expert who is         
unaffiliated with the applicant and who 
is bound by a court-approved            
non-disclosure agreement to participate 
in the seizure if the court determines  
that the participation of the expert    
will aid the efficient execution of and 
minimize the burden of the seizure4     
7,f7 ,seizure hearing  7i7 ,date ,a     

court that issues a seizure order shall 
hold a hearing on the date set by the   
court under subparagraph 7,b77v74  7ii7 
,burden of proof ,at a hearing held     
under this subparagraph1 the party who  
obtained the order under subparagraph   
7,a7 shall have the burden to prove the 
facts supporting the findings of fact   
and conclusions of law necessary to     
support the order4 ,if the party fails  
to meet that burden1 the seizure order  
shall be dissolved or modified          
appropriately4  7iii7 ,dissolution or   
modification of order ,a party against  
whom the order has been 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    
party who obtained the order4  7iv7     
,discovery time limits ,the court may   
make such orders modifying the time     
limits for discovery under the ,federal 
,rules of ,civil ,procedure as may be   
necessary to prevent the frustration of 
the purposes of a hearing under this    

subparagraph4  7,g7 ,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,b77vi7 shall not limit   
the recovery of third parties for       
damages4  7,h7 ,motion for encryption ,a
 party or a person who claims to have an
 interest in the subject matter seized  
may make a motion at any time1 which may
 be heard ex parte1 to encrypt any      
material seized or to be seized under   
this paragraph that is stored on a      
storage medium4 ,the motion shall       
include1 when possible1 the desired     
encryption method4  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   
reasonable1 provided the order does     
not--  7,i7 prevent a person from       
entering into an employment             
relationship1 and that conditions placed
 on such employment shall be based on   
evidence of threatened misappropriation 
and not merely on the information the   
person knows2 or  7,,ii7 otherwise      
conflict with an applicable ,state law  
prohibiting restraints on the practice  
of a lawful profession1 trade1 or       
business2  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 #b 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 which may be      
established by circumstantial evidence1 
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 #c 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#c7--  7,a7
 in subparagraph 7,b71 by striking the  
public and inserting another person who 
can obtain economic value from the      
disclosure or use of the information2   

and  7,b7 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 engineering1   
independent derivation1 or any other    
lawful means of acquisition2 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 ,trade
 secret theft enforcement  7a7 ,in      
general ,chapter #ij of title #ah1      
,united ,states ,code1 is amended-- 7#a7
 in section #ahcb7;b71 by striking      
#e1jjj1jjj and inserting the greater of 
#e1jjj1jjj or #c times the value of the 
stolen trade secret to the organization1
 including expenses for research and    
design and other costs of reproducing   
the trade secret that the organization  
has thereby avoided2 and  7#b7 in       
section #ahce-- 7,a7 by striking ,in any
 prosecution and inserting the          

following3  7a7 ,in general ,in any     
prosecution  2 and  7,b7 by adding at   
the end the following3  7b7 ,rights of  
trade secret owners ,the court may not  
authorize or direct the disclosure of   
any information the owner asserts to be 
a trade secret unless the court allows  
the owner the opportunity to file a     
submission under seal that describes the
 interest of the owner in keeping the   
information confidential4 ,no submission
 under seal made under this subsection  
may be used in a prosecution under this 
chapter for any purpose other than those
 set forth in this section1 or otherwise
 required by law4 ,the provision of     
information relating to a trade secret  
to the ,united ,states or the court in  
connection with a prosecution under this
 chapter shall not constitute a waiver  
of trade secret protection1 and the     
disclosure of information relating to a 
trade secret in connection with a       
prosecution under this chapter shall not
 constitute a waiver of trade secret    

protection unless the trade secret owner
 expressly consents to such waiver4  4  
7b7 ,,rico predicate offenses ,section  
#aifa7a7 of title #ah1 ,united ,states  
,code1 is amended by inserting sections 
#ahca and #ahcb 7relating to economic   
espionage and theft of trade secrets71  
before section #aiea4  #d4 ,report on   
theft of trade secrets occurring abroad 
7a7 ,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  7b7     
,reports ,not later than #a year after  
the date of 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  #e4    
,sense of ,congress ,it is the sense of 
,congress that-- 7#a7 trade secret theft
 occurs in the ,united ,states and      
around the world2  7#b7 trade secret    
theft1 wherever it occurs1 harms the    
companies that own the trade secrets and
 the employees of the companies2  7#c7  
chapter #ij of title #ah1 ,united       
,states ,code 7commonly known as the    
,economic ,espionage ,act of #aiif71    
applies broadly to protect trade secrets
 from theft2 and  7#d7 it is important  
when seizing information to balance the 
need to prevent or remedy               
misappropriation with the need to avoid 
interrupting the--  7,a7 business of    
third parties2 and  7,b7 legitimate     
interests of the party accused of       
wrongdoing4  #f4 ,best practices  7a7   
,in general ,not later than #b years    
after the date of enactment of this     
,act1 the ,federal ,judicial ,center1   
using existing resources1 shall develop 

recommended best practices for--  7#a7  
the seizure of information and media    
storing the information2 and  7#b7 the  
securing of the information and media   
once seized4  7b7 ,updates ,the ,federal
 ,judicial ,center shall update the     
recommended best practices developed    
under subsection 7a7 from time to time4 
7c7 ,congressional submissions ,the     
,federal ,judicial ,center shall provide
 a copy of the recommendations developed
 under subsection 7a71 and any updates  
made under subsection 7b71 to the--     
7#a7 ,committee on the ,judiciary of the
 ,senate2 and  7#b7 ,committee on the   
,judiciary of the ,house of             
,representatives4  #g4 ,immunity from   
liability for confidential disclosure of
 a trade secret to the government or in 
a court filing  7a7 ,amendment ,section 
#ahcc of title #ah1 ,united ,states     
,code1 is amended-- 7#a7 by striking    
,this chapter and inserting 7a7 ,in     
general4--,this chapter2  7#b7 in       
subsection 7a77#b71 as designated by    

paragraph 7#a71 by striking the         
reporting of a suspected violation of   
law to any governmental entity of the   
,united ,states1 a ,state1 or a         
political subdivision of a ,state1 if   
such entity has lawful authority with   
respect to that violation and inserting 
the disclosure of a trade secret in     
accordance with subsection 7b72 and     
7#c7 by adding at the end the following3
  7b7 ,immunity from liability for      
confidential disclosure of a trade      
secret to the ,government or in a court 
filing  7#a7 ,immunity ,an individual   
shall not be held criminally or civilly 
liable under any ,federal or ,state     
trade secret law for the disclosure of a
 trade secret that--  7,a7 is made-- 7i7
 in confidence to a ,federal1 ,state1 or
 local government official1 either      
directly or indirectly1 or to an        
attorney2 and  7ii7 solely for the      
purpose of reporting or investigating a 
suspected violation of law2 or  7,b7 is 
made in a complaint or other document   

filed in a lawsuit or other proceeding1 
if such filing is made under seal4  7#b7
 ,use of trade secret information in    
anti-retaliation lawsuit ,an individual 
who files a lawsuit for retaliation by  
an employer for reporting a suspected   
violation of law may disclose the trade 
secret to the attorney of the individual
 and use the trade secret information in
 the court proceeding1 if the           
individual--  7,a7 files any document   
containing the trade secret under seal2 
and  7,b7 does not disclose the trade   
secret1 except pursuant to court order4 
7#c7 ,notice  7,a7 ,in general ,an      
employer shall provide notice of the    
immunity set forth in this subsection in
 any contract or agreement with an      
employee that governs the use of a trade
 secret or other confidential           
information4  7,b7 ,policy document ,an 
employer shall be considered to be in   
compliance with the notice requirement  
in subparagraph 7,a7 if the employer    
provides a cross-reference to a policy  

document provided to the employee that  
sets forth the employer's reporting     
policy for a suspected violation of law4
  7,c7 ,non-compliance ,if an employer  
does not comply with the notice         
requirement in subparagraph 7,a71 the   
employer may not be awarded exemplary   
damages or attorney fees under          
subparagraph 7,c7 or 7,d7 of section    
#ahcf7;b77#c7 in an action against an   
employee to whom notice was not         
provided4  7,d7 ,applicability ,this    
paragraph shall apply to contracts and  
agreements that are entered into or     
updated after the date of enactment of  
this subsection4  7#d7 ,employee defined
 ,for purposes of this subsection1 the  
term employee includes any individual   
performing work as a contractor or      
consultant for an employer4  7#e7 ,rule 
of construction ,except as expressly    
provided for under this subsection1     
nothing in this subsection shall be     
construed to authorize1 or limit        
liability for1 an act that is otherwise 

prohibited by law1 such as the unlawful 
access of material by unauthorized      
means4  4  7b7 ,technical and conforming
 amendment ,section #ahch of title #ah1 
,united ,states ,code1 is amended by    
striking ,this chapter and inserting    
,except as provided in section          
#ahcc7;b71 this chapter4  ,passed the   
,senate ,april #d1 #bjaf4,secretary