S. 2384 – Reading Mode

113th CONGRESS

2d Session

S. 2384

IN THE SENATE OF THE UNITED STATES

May 22, 2014

Mr. Levin (for himself, Mr. McCain, Mr. Rockefeller, and Mr. Coburn) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To require the President to develop a watch list and a priority watch list of foreign countries that engage in economic or industrial espionage in cyberspace with respect to United States trade secrets or proprietary information, to provide for the imposition of sanctions with respect to foreign persons that knowingly benefit from such espionage, and for other purposes.

Short title

This Act may be cited as the Deter Cyber Theft Act of 2014.

Actions to address economic or industrial espionage in cyberspace

(a)

Report required

(1)

In general

Not later than 180 days after the date of the enactment of this Act, and annually thereafter, the President shall submit to the appropriate congressional committees a report on foreign economic and industrial espionage in cyberspace during the 12-month period preceding the submission of the report that—

(A)

identifies—

(i)

foreign countries that engage in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons;

(ii)

foreign countries identified under clause (i) that the President determines engage in the most egregious economic or industrial espionage in cyberspace with respect to such trade secrets or proprietary information (in this section referred to as priority foreign countries);

(iii)

technologies or proprietary information developed by United States persons that—

(I)

are targeted for economic or industrial espionage in cyberspace; and

(II)

to the extent practicable, have been appropriated through such espionage;

(iv)

articles manufactured or otherwise produced using technologies or proprietary information described in clause (iii)(II); and

(v)

to the extent practicable, services provided using such technologies or proprietary information;

(B)

describes the economic or industrial espionage engaged in by the foreign countries identified under clauses (i) and (ii) of subparagraph (A); and

(C)

describes—

(i)

actions taken by the President to decrease the prevalence of economic or industrial espionage in cyberspace; and

(ii)

the progress made in decreasing the prevalence of such espionage.

(2)

Determination of foreign countries engaging in economic or industrial espionage in cyberspace

For purposes of clauses (i) and (ii) of paragraph (1)(A), the President shall identify a foreign country as a foreign country that engages in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons if the government of the foreign country—

(A)

engages in economic or industrial espionage in cyberspace with respect to trade secrets or proprietary information owned by United States persons; or

(B)

facilitates, supports, fails to prosecute, or otherwise permits such espionage by—

(i)

individuals who are citizens or residents of the foreign country; or

(ii)

entities that are organized under the laws of the foreign country or are otherwise subject to the jurisdiction of the government of the foreign country.

(3)

Form of report

Each report required by paragraph (1) shall be submitted in unclassified form but may contain a classified annex.

(b)

Imposition of sanctions

(1)

In general

The President may, pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.), block and prohibit all transactions in all property and interests in property of each person described in paragraph (2), if such property and interests in property are in the United States, come within the United States, or are or come within the possession or control of a United States person.

(2)

Persons described

A person described in this paragraph is a foreign person the President determines knowingly requests, engages in, supports, facilitates, or benefits from the significant appropriation, through economic or industrial espionage in cyberspace, of technologies or proprietary information developed by United States persons.

(3)

Exception

The authority to impose sanctions under paragraph (1) shall not include the authority to impose sanctions on the importation of goods.

(c)

Definitions

In this section:

(1)

Appropriate congressional committees

The term appropriate congressional committees means—

(A)

the Committee on Armed Services, the Committee on Banking, Housing, and Urban Affairs, the Committee on Homeland Security and Governmental Affairs, the Committee on Finance, the Committee on Foreign Relations, and the Select Committee on Intelligence of the Senate; and

(B)

the Committee on Armed Services, the Committee on Homeland Security, the Committee on Financial Services, the Committee on Foreign Affairs, the Committee on Ways and Means, and the Permanent Select Committee on Intelligence of the House of Representatives.

(2)

Cyberspace

The term cyberspace—

(A)

means the interdependent network of information technology infrastructures; and

(B)

includes the Internet, telecommunications networks, computer systems, and embedded processors and controllers.

(3)

Economic or industrial espionage

The term economic or industrial espionage means—

(A)

stealing a trade secret or proprietary information or appropriating, taking, carrying away, or concealing, or by fraud, artifice, or deception obtaining, a trade secret or proprietary information without the authorization of the owner of the trade secret or proprietary information;

(B)

copying, duplicating, downloading, uploading, destroying, transmitting, delivering, sending, communicating, or conveying a trade secret or proprietary information without the authorization of the owner of the trade secret or proprietary information; or

(C)

knowingly receiving, buying, or possessing a trade secret or proprietary information that has been stolen or appropriated, obtained, or converted without the authorization of the owner of the trade secret or proprietary information.

(4)

Knowingly

The term knowingly, with respect to conduct, a circumstance, or a result, means that a person has actual knowledge, or should have known, of the conduct, the circumstance, or the result.

(5)

Own

The term own, with respect to a trade secret or proprietary information, means to hold rightful legal or equitable title to, or license in, the trade secret or proprietary information.

(6)

Person

The term person means an individual or entity.

(7)

Proprietary information

The term proprietary information means competitive bid preparations, negotiating strategies, executive emails, internal financial data, strategic business plans, technical designs, manufacturing processes, source code, data derived from research and development investments, and other commercially valuable information that a person has developed or obtained if—

(A)

the person has taken reasonable measures to keep the information confidential; and

(B)

the information is not generally known or readily ascertainable through proper means by the public.

(8)

Technology

The term technology has the meaning given that term in section 16 of the Export Administration Act of 1979 (50 U.S.C. App. 2415) (as in effect pursuant to the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.)).

(9)

Trade secret

The term trade secret has the meaning given that term in section 1839 of title 18, United States Code.

(10)

United States person

The term United States person means—

(A)

an individual who is a citizen or resident of the United States; or

(B)

an entity organized under the laws of the United States or any jurisdiction within the United States.