Under U.S. law, the theft or misappropriation of trade secrets can result in serious legal repercussions, both criminal and civil, primarily under the Economic Espionage Act (EEA) and the Defend Trade Secrets Act (DTSA).
Criminal Consequences:
1-Penalties for Individuals: Under the Economic Espionage Act (EEA), individuals who steal trade secrets can face fines of up to $500,000 and imprisonment for up to 10 years. If the theft is done to benefit a foreign government, the penalties are harsher, with fines reaching $1 million and imprisonment up to 15 years.
2-Penalties for Corporations: Companies found guilty of stealing trade secrets may be fined up to $5 million. If the theft benefits a foreign entity, the fines can increase to three times the value of the stolen information or up to $10 million.
3-Asset Seizure: The government can confiscate stolen trade secrets, any property used in committing the crime, and profits gained from the theft. This ensures offenders do not benefit from their illegal actions.
- Damages: Courts may award monetary damages for economic losses caused by the theft, including punitive damages that could triple the actual harm incurred.
- Injunctions: Courts can issue injunctions to stop further use or disclosure of the stolen trade secrets and protect them from public exposure.
- Attorney’s Fees and Costs: Reasonable attorney’s fees and court costs may also be awarded to the plaintiff.
Additional impacts :
Reputation Damage: Companies involved in trade secret theft often suffer significant harm to their reputation. This damage can weaken their relationships with customers, investors, and business partners, ultimately affecting their competitive position in the market.
National Security Concerns: When trade secret theft involves foreign governments or agents, it can lead to serious consequences such as trade restrictions or the exclusion of corporate officers from entering the United States. These cases may also draw heightened scrutiny from federal authorities due to their potential impact on national security.
These laws aim to deter trade secret theft while providing robust mechanisms for victims to seek justice and recover losses.
