President Obama Signs Trade Secrets Clarification Act and House of Representatives Considers Enhancing Economic Espionage Act Penalties

The Senate passed the legislation in November and the House of Representatives approved the legislation earlier this month.

The legislation directly responds to the Second Circuit’s decision in U.S. v. Aleynikov, 676 F.3d 71 (2d Cir. 2012), which overturned a jury verdict finding the defendant violated 18 U.S.C. 1832(a) of the Economic Espionage Act by stealing computer code from his employer. The court held that the statute did not apply because the computer code failed to satisfy the interstate or foreign commerce requirement.

 

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