Economic espionage is the illegal or covert acquisition of sensitive financial, trade, economic policy, proprietary, or technological information. The main law addressing this is the Economic Espionage Act of 1996 (EEA), 18 U.S.C. §§ 1831-1839. Under § 1831, economic espionage involves stealing trade secrets or intellectual property with intent or knowledge that it will benefit a foreign government or its agents.
The EEA was passed after U.S. employees shared technology with foreign states, raising national security concerns and threatening economic stability. The EEA imposes penalties of up to 15 years in prison and $5 million in fines for individuals, and up to three times the loss value for companies. In US v. Chung, 633 F. Supp. 2d 1134 - Dist. Court, CD California (2009), the Court clarified that prosecutors must prove the defendant knew the information was a trade secret and intended to benefit a foreign government.
Misappropriation for commercial gain, without intent to benefit a foreign state, falls under § 1832. This is often called corporate espionage and includes both domestic and foreign theft of trade secrets.
[Last reviewed in July of 2025 by the Wex Definitions Team]