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💡intro to intellectual property review

Economic Espionage

Written by the Fiveable Content Team • Last updated September 2025
Written by the Fiveable Content Team • Last updated September 2025

Definition

Economic espionage refers to the act of stealing or misappropriating trade secrets for the benefit of a foreign government or its agents. It is a form of corporate espionage that targets sensitive business information and intellectual property with the aim of gaining a competitive economic advantage.

5 Must Know Facts For Your Next Test

  1. Economic espionage is a federal crime in the United States, punishable by up to 15 years in prison and a $5 million fine for individuals, or a $10 million fine for organizations.
  2. The Defend Trade Secrets Act (DTSA) of 2016 provides a federal civil cause of action for the misappropriation of trade secrets, allowing companies to sue in federal court.
  3. Remedies available for the misappropriation of trade secrets include injunctive relief, damages, and the seizure of misappropriated trade secrets.
  4. Economic espionage often involves the use of cyber attacks, insider threats, and other sophisticated methods to gain unauthorized access to sensitive business information.
  5. The U.S. government has identified China as the primary perpetrator of economic espionage, targeting a wide range of industries, including technology, aerospace, and manufacturing.

Review Questions

  • Explain the key differences between economic espionage and corporate espionage.
    • The primary difference between economic espionage and corporate espionage is the involvement of a foreign government. Economic espionage specifically refers to the theft or misappropriation of trade secrets for the benefit of a foreign government or its agents, while corporate espionage is the unauthorized acquisition of a company's sensitive information by competitors or other parties for commercial gain, without the involvement of a foreign government. Both, however, target a company's intellectual property and trade secrets, with the aim of gaining a competitive advantage.
  • Describe the remedies available for the misappropriation of trade secrets under the Defend Trade Secrets Act (DTSA).
    • The Defend Trade Secrets Act (DTSA) provides several remedies for the misappropriation of trade secrets, including: 1) Injunctive relief to prevent the actual or threatened misappropriation of trade secrets, 2) Damages for the actual loss caused by the misappropriation, as well as any unjust enrichment obtained by the perpetrator, and 3) The seizure of misappropriated trade secrets by the court, if necessary to prevent their dissemination. These remedies are designed to protect companies from the harmful effects of economic espionage and the loss of their valuable intellectual property.
  • Evaluate the role of the U.S. government in addressing the threat of economic espionage, particularly from China.
    • The U.S. government has taken a proactive approach to addressing the threat of economic espionage, especially from China. The government has identified China as the primary perpetrator of these activities, targeting a wide range of industries critical to the U.S. economy. In response, the government has implemented several measures, such as the Defend Trade Secrets Act, to provide stronger legal protections and remedies for companies affected by the misappropriation of trade secrets. Additionally, the government has increased collaboration with the private sector, sharing intelligence and best practices to help companies defend against these threats. However, the challenge of economic espionage remains significant, and the government must continue to evolve its strategies and work closely with industry to effectively counter this persistent and evolving national security threat.