What is the Economic Espionage Act of 1996, and How is Compliance Determined?
The Economic Espionage Act of 1996 (EEA) describes the sanctions that organizations and individuals could face in the United States relating to business trade secret crimes. It addresses not only scenarios where individuals or organizations share trade secrets with foreign governments, but also trade secret theft against businesses. Congress modified the law in 2016 by passing the Defend Trade Secrets Act (DTSA), which gives owners the ability to sue infringers directly for misappropriation.
The EEA protects all forms of types of business, scientific, financial, technical, engineering, and economic information—so long as they derive their value from being kept secret, and the owner used reasonable means to keep them secret. It targets activities ranging from stealing and duplicating secrets to destroying them, purchasing them, or acquiring them through fraud and deception. Individuals can face imprisonment of up to 15 years, along with fines of up to $5 million or twice the gain or loss associated with the violation. Organizations can face fines that are the greater of up to $10 million, three times the trade secret’s value, or twice the loss or gain resulting from the violation. Additional sanctions and remedies can apply depending on the circumstances.
How Does Economic Espionage Act Hosting Work?
Entrusting your trade secret storage needs to an encrypted virtual cloud hosting provider can help you establish you’re taking reasonable steps to protect your secrets. Abacus Private Cloud allows you to use 256-bit AES encryption, multifactor authentication, NIST-compliant information handling protocols, SSL-A-rated servers, and other industry-leading safeguards to protect your secrets.
What Do I Need to Do to Audit & Maintain Compliance with the Economic Espionage Act?
Our specialists can work with you to ensure your account settings are configured to help protect your proprietary information from unauthorized access or disclosure. Our team can automate software updates, apply firmware patches, and provide around-the-clock support for your questions.