Legal Definitions - economic espionage

Economic espionage refers to the illegal or covert acquisition of sensitive financial, trade, economic policy, proprietary economic, or technological information with the specific intent or knowledge that this act will benefit a foreign government, a foreign government-controlled entity, or an agent acting on behalf of a foreign government.

This serious offense is primarily addressed in the United States by the Economic Espionage Act of 1996 (EEA). The EEA makes it a crime to steal or misappropriate trade secrets and other intellectual property when the perpetrator knows or intends that their actions will serve the interests of a foreign power. The key distinction for economic espionage, as opposed to general trade secret theft (sometimes called corporate espionage), is this direct link to benefiting a foreign government or its agents. The law aims to protect national security and economic stability by preventing foreign entities from gaining an unfair advantage through illicit means.

Here are some examples illustrating economic espionage:

• Scenario: Theft of Advanced Manufacturing Blueprints

  An engineer working for a U.S. company that develops highly specialized semiconductor manufacturing equipment is approached by an individual claiming to be a consultant for an international firm. The "consultant" is actually an agent of a foreign government. The engineer, knowing this, secretly copies the proprietary blueprints for a new, highly efficient chip fabrication process and provides them to the agent. The engineer understands that this information will be used by the foreign government to develop its own advanced semiconductor industry, giving it a significant economic and strategic advantage over U.S. competitors.

  This illustrates economic espionage because the engineer knowingly stole proprietary technological information (trade secrets) with the intent to benefit a foreign government, directly impacting the economic competitiveness and national security of the United States.

• Scenario: Leaking Confidential Economic Policy Data

  A high-ranking analyst at a U.S. government agency has access to classified reports detailing the nation's upcoming strategy for international trade negotiations and potential tariffs on specific imports. This analyst, motivated by a desire to see a particular foreign nation gain an economic edge, clandestinely transmits these confidential reports to an embassy official from that foreign country. The foreign government then uses this intelligence to adjust its negotiation tactics and economic policies, allowing its industries to circumvent future tariffs and gain an unfair advantage in global markets.

  This is an example of economic espionage because sensitive economic policy information was unlawfully acquired and shared with the intent to benefit a foreign government, potentially harming U.S. economic interests.

• Scenario: Stealing Pharmaceutical Research Data

  A researcher at a leading American pharmaceutical company, who has family ties and strong ideological leanings towards a specific foreign nation, downloads extensive proprietary data from ongoing clinical trials for a groundbreaking new cancer drug. The researcher then provides this data, along with detailed research methodologies and future development pipelines, to a state-sponsored research institute in that foreign country. The intent is to allow the foreign nation to accelerate its own drug development and production, bypassing years of costly research and development, thereby undermining the U.S. company's market position and intellectual property.

  This demonstrates economic espionage as proprietary economic and technological information (trade secrets) was stolen and provided with the clear intent to benefit a foreign government-controlled entity, giving it an unfair advantage in a critical industry.