Statement of Administration Policy: H.R. 3723 - Economic Espionage Act

(House)
(McCollum (R) Florida and 2 cosponsors)

The Administration strongly supports the enactment of legislation to deter and punish the theft or other unauthorized use of trade secrets and has submitted legislation to provide appropriate sanctions against persons who engage in such activities. The Administration supports many provisions of H.R.. 3723, but will seek Senate amendments to:

• Modify the provision on territorial scope (Section 689(e)) to conform it to the Administration's proposal. The Administration proposal provides for limited extraterritorial jurisdiction in circumstances designed to meet law enforcement's needs while minimizing friction with our allies. By contrast, H.R. 3723 would apply U.S. criminal law to certain organizations incorporated outside the United States that have no contact with the United States.
  
  
• Amend the offense provision (Section 689(a)) to reflect the intent of the Administration's proposal. The Administration proposal distinguished conduct that is criniinal from that which is innocent, by clarifying that an offense has occurred only if the accused knew or had reason to know that a trade secret had been stolen, misappropriated, or wrongfully converted.