Foreign and Economic Espionage Penalty Enhancement Act of 2012

(This measure has not been amended since it was passed by the Senate on December 19, 2012. The summary of that version is repeated here.)

Foreign and Economic Espionage Penalty Enhancement Act of 2012 - Amends the federal criminal code to increase the maximum fine for economic espionage (i.e., stealing or obtaining, duplicating or conveying, or buying or possessing trade secrets without authorization, intending or knowing that the offense will benefit any foreign government, foreign instrumentality, or foreign agent) committed by individuals (from $500,000 to $5 million) or by organizations (from $10 million to $10 million or 3 times the value of the stolen trade secret to the organization).

Directs the U.S. Sentencing Commission to review and amend the federal sentencing guidelines and policy statements applicable to offenses relating to the transmission of a stolen trade secret outside of the United States or economic espionage in order to reflect the intent of Congress that penalties for such offenses reflect the seriousness of, and potential and actual harm caused by, such offenses and provide adequate deterrence. Directs the Commission to: (1) consider the extent to which such guidelines and statements appropriately account for the simple misappropriation of a trade secret; (2) consider whether additional enhancements are appropriate to account for any transmission of a stolen trade secret outside of the United States and any such transmission that is committed for the benefit of a foreign government, instrumentality, or agent; and (3) ensure reasonable consistency with other relevant directives, guidelines and statements, and related federal statutes.

[112th Congress Public Law 269]
[From the U.S. Government Publishing Office]



[[Page 126 STAT. 2442]]

Public Law 112-269
112th Congress

                                 An Act


 
    To amend title 18, United States Code, to provide for increased 
      penalties for foreign and economic espionage, and for other 
            purposes. <<NOTE: Jan. 14, 2013 -  [H.R. 6029]>> 

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, <<NOTE: Foreign and 
Economic Espionage Penalty Enhancement Act of 2012. 18 USC 1 note.>> 
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Foreign and Economic Espionage 
Penalty Enhancement Act of 2012''.
SEC. 2. PROTECTING U.S. BUSINESSES FROM FOREIGN ESPIONAGE.

    (a) For Offenses Committed by Individuals.--Section 1831(a) of title 
18, United States Code, is amended, in the matter after paragraph (5), 
by striking ``not more than $500,000'' and inserting ``not more than 
$5,000,000''.
    (b) For Offenses Committed by Organizations.--Section 1831(b) of 
such title is amended by striking ``not more than $10,000,000'' and 
inserting ``not more than the greater of $10,000,000 or 3 times the 
value of the stolen trade secret to the organization, including expenses 
for research and design and other costs of reproducing the trade secret 
that the organization has thereby avoided''.
SEC. 3. <<NOTE: 28 USC 994 note.>> REVIEW BY THE UNITED STATES 
                    SENTENCING COMMISSION.

    (a) In General.--Pursuant to its authority under section 994(p) of 
title 28, United States Code, the United States Sentencing Commission 
shall review and, if appropriate, amend the Federal sentencing 
guidelines and policy statements applicable to persons convicted of 
offenses relating to the transmission or attempted transmission of a 
stolen trade secret outside of the United States or economic espionage, 
in order to reflect the intent of Congress that penalties for such 
offenses under the Federal sentencing guidelines and policy statements 
appropriately, reflect the seriousness of these offenses, account for 
the potential and actual harm caused by these offenses, and provide 
adequate deterrence against such offenses.
    (b) Requirements.--In carrying out this section, the United States 
Sentencing Commission shall--
            (1) consider the extent to which the Federal sentencing 
        guidelines and policy statements appropriately account for the 
        simple misappropriation of a trade secret, including the 
        sufficiency of the existing enhancement for these offenses to 
        address the seriousness of this conduct;

[[Page 126 STAT. 2443]]

            (2) consider whether additional enhancements in the Federal 
        sentencing guidelines and policy statements are appropriate to 
        account for--
                    (A) the transmission or attempted transmission of a 
                stolen trade secret outside of the United States; and
                    (B) the transmission or attempted transmission of a 
                stolen trade secret outside of the United States that is 
                committed or attempted to be committed for the benefit 
                of a foreign government, foreign instrumentality, or 
                foreign agent;
            (3) ensure the Federal sentencing guidelines and policy 
        statements reflect the seriousness of these offenses and the 
        need to deter such conduct;
            (4) ensure reasonable consistency with other relevant 
        directives, Federal sentencing guidelines and policy statements, 
        and related Federal statutes;
            (5) make any necessary conforming changes to the Federal 
        sentencing guidelines and policy statements; and
            (6) ensure that the Federal sentencing guidelines adequately 
        meet the purposes of sentencing as set forth in section 
        3553(a)(2) of title 18, United States Code.

    (c) Consultation.--In carrying out the review required under this 
section, the Commission shall consult with individuals or groups 
representing law enforcement, owners of trade secrets, victims of 
economic espionage offenses, the United States Department of Justice, 
the United States Department of Homeland Security, the United States 
Department of State and the Office of the United States Trade 
Representative.
    (d) <<NOTE: Deadline.>>  Review.--Not later than 180 days after the 
date of enactment of this Act, the Commission shall complete its 
consideration and review under this section.

    Approved January 14, 2013.

LEGISLATIVE HISTORY--H.R. 6029:
---------------------------------------------------------------------------

HOUSE REPORTS: No. 112-610 (Comm. on the Judiciary).
CONGRESSIONAL RECORD:
                                                        Vol. 158 (2012):
                                    July 31, Aug. 1, considered and 
                                        passed House.
                                    Dec. 19, considered and passed 
                                        Senate, amended.
                                    Dec. 30, House considered concurring 
                                        in Senate amendment.
                                                        Vol. 158 (2013):
                                    Jan. 1, House concurred in Senate 
                                        amendment.

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