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Congress Broadens Federal Criminal Trade Secret Statute

By Mark A. Klapow & Stephen M. Byers on December 21, 2012
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On December 18, 2012, Congress approved an amendment to the Economic Espionage Act (EEA) to cover service-related trade secrets and relax the interstate-commerce jurisdictional requirement. The amendment just approved by Congress expands liability in two ways. First, the amendment criminalizes the theft of service-related trade secrets, regardless of whether they are related to a physical product offered for sale. Specifically, the EEA now covers trade secrets “related to a product or service” and thereby closes the loop on the exception the Second Circuit relied upon in the Aleynikov matter.  Second, the amendment relaxes the language of the statute’s interstate or foreign commerce requirement. Prior to the Amendment, the EEA required that the product to which the trade secret related must be “produced for” or “placed in” interstate or foreign commerce. The amendment changes that language to require merely that the product or service to which the trade secret relates be “used in” or “intended for use in” interstate or foreign commerce.

Click here to read this full alert on Crowell.com.

Photo of Mark A. Klapow Mark A. Klapow
Read more about Mark A. KlapowEmail
Photo of Stephen M. Byers Stephen M. Byers

Stephen M. Byers is a partner in the firm’s White Collar & Regulatory Enforcement Group and serves on the group’s steering committee. He is also a member of the firm’s Government Contracts Group and E-Discovery & Information Management Group. Mr. Byers’s practice involves…

Stephen M. Byers is a partner in the firm’s White Collar & Regulatory Enforcement Group and serves on the group’s steering committee. He is also a member of the firm’s Government Contracts Group and E-Discovery & Information Management Group. Mr. Byers’s practice involves counseling and representation of corporate and individual clients in all phases of white collar criminal and related civil matters, including: internal corporate investigations; federal grand jury, inspector general, civil enforcement and congressional investigations; and trials and appeals.

Mr. Byers’s practice focuses on matters involving procurement fraud, health care fraud and abuse, trade secrets theft, foreign bribery, computer crimes and cybersecurity, and antitrust conspiracies. He has extensive experience with the federal False Claims Act and qui tam litigation, the Foreign Corrupt Practices Act, the Economic Espionage Act, and the Computer Fraud and Abuse Act. In addition to defense of government investigations and prosecutions, Mr. Byers has represented corporate victims of trade secrets theft, cybercrime, and other offenses. For example, he represented a Fortune 100 U.S. company in parallel civil and criminal proceedings that resulted in a $275 million criminal restitution order against a foreign competitor upon its conviction for trade secrets theft.

Read more about Stephen M. ByersEmail
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  • Posted in:
    Criminal
  • Blog:
    Trade Secrets Trends
  • Organization:
    Crowell & Moring LLP
  • Article: View Original Source

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