II 

113TH CONGRESS 

1ST SESSION S. 884 

To require the Director of National Intelligence 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, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

MAY 7, 2013 

Mr. LEVIN (for himself, Mr. MCCAIN, Mr. COBURN, and Mr. ROCKEFELLER) 

introduced the following bill; which was read twice and referred to the 

Committee on Finance 

A BILL 

To require the Director of National Intelligence 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, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Deter Cyber Theft 

5 Act’’. 


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1 SEC. 2. ACTIONS TO ADDRESS FOREIGN ECONOMIC OR IN2 DUSTRIAL ESPIONAGE IN CYBERSPACE. 

3 (a) REPORT REQUIRED.— 

4 (1) IN GENERAL.—Not later than 180 days 

5 after the date of the enactment of this Act, and an6 nually thereafter, the Director of National Intel7 ligence shall submit to the appropriate congressional 

8 committees a report on foreign economic and indus9 trial espionage in cyberspace during the 12-month 

10 period preceding the submission of the report that— 

11 (A) identifies— 

12 (i) foreign countries that engage in 

13 economic or industrial espionage in cyber14 space with respect to trade secrets or pro15 prietary information owned by United 

16 States persons; 

17 (ii) foreign countries identified under 

18 clause (i) that the Director determines en19 gage in the most egregious economic or in20 dustrial espionage in cyberspace with re21 spect to such trade secrets or proprietary 

22 information (in this section referred to as 

23 ‘‘priority foreign countries’’); 

24 (iii) technologies or proprietary infor25 mation developed by United States persons 

26 that— 


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1 (I) are targeted for economic or 

2 industrial espionage in cyberspace; 

3 and 

4 (II) to the extent practicable, 

5 have been appropriated through such 

6 espionage; 

7 (iv) articles manufactured or other8 wise produced using technologies or propri9 etary information described in clause 

10 (iii)(II); 

11 (v) services provided using such tech12 nologies or proprietary information; and 

13 (vi) foreign entities, including entities 

14 owned or controlled by the government of 

15 a foreign country, that request, engage in, 

16 support, facilitate, or benefit from the ap17 propriation through economic or industrial 

18 espionage in cyberspace of technologies or 

19 proprietary information developed by 

20 United States persons; 

21 (B) describes the economic or industrial 

22 espionage engaged in by the foreign countries 

23 identified under clauses (i) and (ii) of subpara24 graph (A); and 

25 (C) describes— 


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1 (i) actions taken by the Director and 

2 other Federal agencies to decrease the 

3 prevalence of economic or industrial espio4 nage in cyberspace; and 

5 (ii) the progress made in decreasing 

6 the prevalence of such espionage. 

7 (2) DETERMINATION OF FOREIGN COUNTRIES

8 ENGAGING IN ECONOMIC OR INDUSTRIAL ESPIONAGE

9 IN CYBERSPACE.—For purposes of clauses (i) and 

10 (ii) of paragraph (1)(A), the Director shall identify 

11 a foreign country as a foreign country that engages 

12 in economic or industrial espionage in cyberspace 

13 with respect to trade secrets or proprietary informa14 tion owned by United States persons if the govern15 ment of the foreign country— 

16 (A) engages in economic or industrial espi17 onage in cyberspace with respect to trade se18 crets or proprietary information owned by 

19 United States persons; or 

20 (B) facilitates, supports, fails to prosecute, 

21 or otherwise permits such espionage by— 

22 (i) individuals who are citizens or resi23 dents of the foreign country; or 

24 (ii) entities that are organized under 

25 the laws of the foreign country or are othVerDate Mar 15 2010 04:07 May 08, 2013 Jkt 029200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S884.IS S884

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1 erwise subject to the jurisdiction of the 

2 government of the foreign country. 

3 (3) PRIORITIZATION OF COLLECTION AND

4 ANALYSIS OF INFORMATION.—The President shall 

5 direct the Director to make it a priority for the in6 telligence community to collect and analyze informa7 tion in order to identify articles described in clause 

8 (iv) of paragraph (1)(A), services described in clause 

9 (v) of that paragraph, and entities described in 

10 clause (vi) of that paragraph. 

11 (4) FORM OF REPORT.—Each report required 

12 by paragraph (1) shall be submitted in unclassified 

13 form but may contain a classified annex. 

14 (b) ACTION BY PRESIDENT.— 

15 (1) IN GENERAL.—Not later than 120 days 

16 after each report required by subsection (a)(1) is 

17 submitted, the President shall direct U.S. Customs 

18 and Border Protection to exclude from entry into 

19 the United States an article described in paragraph 

20 (2) if the President determines the exclusion of the 

21 article is warranted— 

22 (A) for the enforcement of intellectual 

23 property rights; or 

24 (B) to protect the integrity of the Depart25 ment of Defense supply chain. 


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1 (2) ARTICLE DESCRIBED.—An article described 

2 in this paragraph is an article— 

3 (A) identified under subsection 

4 (a)(1)(A)(iv); 

5 (B) produced or exported by an entity 

6 that— 

7 (i) is owned or controlled by the gov8 ernment of a priority foreign country; and 

9 (ii) produces or exports articles that 

10 are the same as or similar to articles man11 ufactured or otherwise produced using 

12 technologies or proprietary information 

13 identified under subsection (a)(1)(A)(iii); 

14 or 

15 (C) produced or exported by an entity 

16 identified under subsection (a)(1)(A)(vi). 

17 (c) CONSISTENCY WITH INTERNATIONAL AGREE18 MENTS.—This section shall be applied in a manner that 

19 is consistent with the obligations of the United States 

20 under international agreements. 

21 (d) DEFINITIONS.—In this section: 

22 (1) APPROPRIATE CONGRESSIONAL COMMIT23 TEES.—The term ‘‘appropriate congressional com24 mittees’’ means— 


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1 (A) the Committee on Armed Services, the 

2 Committee on Homeland Security and Govern3 mental Affairs, the Committee on Finance, the 

4 Committee on Foreign Relations, and the Select 

5 Committee on Intelligence of the Senate; and 

6 (B) the Committee on Armed Services, the 

7 Committee on Homeland Security, the Com8 mittee on Foreign Affairs, the Committee on 

9 Ways and Means, and the Permanent Select 

10 Committee on Intelligence of the House of Rep11 resentatives. 

12 (2) CYBERSPACE.—The term ‘‘cyberspace’’— 

13 (A) means the interdependent network of 

14 information technology infrastructures; and 

15 (B) includes the Internet, telecommuni16 cations networks, computer systems, and em17 bedded processors and controllers. 

18 (3) ECONOMIC OR INDUSTRIAL ESPIONAGE.— 

19 The term ‘‘economic or industrial espionage’’ 

20 means— 

21 (A) stealing a trade secret or proprietary 

22 information or appropriating, taking, carrying 

23 away, or concealing, or by fraud, artifice, or de24 ception obtaining, a trade secret or proprietary 

25 information without the authorization of the 


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1 owner of the trade secret or proprietary infor2 mation; 

3 (B) copying, duplicating, downloading, 

4 uploading, destroying, transmitting, delivering, 

5 sending, communicating, or conveying a trade 

6 secret or proprietary information without the 

7 authorization of the owner of the trade secret 

8 or proprietary information; or 

9 (C) knowingly receiving, buying, or pos10 sessing a trade secret or proprietary informa11 tion that has been stolen or appropriated, ob12 tained, or converted without the authorization 

13 of the owner of the trade secret or proprietary 

14 information. 

15 (4) INTELLIGENCE COMMUNITY.—The term 

16 ‘‘intelligence community’’ has the meaning given 

17 that term in section 3(4) of the National Security 

18 Act of 1947 (50 U.S.C. 401a(4)). 

19 (5) OWN.—The term ‘‘own’’, with respect to a 

20 trade secret or proprietary information, means to 

21 hold rightful legal or equitable title to, or license in, 

22 the trade secret or proprietary information. 

23 (6) PERSON.—The term ‘‘person’’ means an in24 dividual or entity. 


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1 (7) PROPRIETARY INFORMATION.—The term 

2 ‘‘proprietary information’’ means competitive bid 

3 preparations, negotiating strategies, executive 

4 emails, internal financial data, strategic business 

5 plans, technical designs, manufacturing processes, 

6 source code, data derived from research and develop7 ment investments, and other commercially valuable 

8 information that a person has developed or obtained 

9 if— 

10 (A) the person has taken reasonable meas11 ures to keep the information confidential; and 

12 (B) the information is not generally known 

13 or readily ascertainable through proper means 

14 by the public. 

15 (8) TECHNOLOGY.—The term ‘‘technology’’ has 

16 the meaning given that term in section 16 of the Ex17 port Administration Act of 1979 (50 U.S.C. App. 

18 2415) (as in effect pursuant to the International 

19 Emergency Economic Powers Act (50 U.S.C. 1701 

20 et seq.)). 

21 (9) TRADE SECRET.—The term ‘‘trade secret’’ 

22 has the meaning given that term in section 1839 of 

23 title 18, United States Code. 

24 (10) UNITED STATES PERSON.—The term 

25 ‘‘United States person’’ means— 


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1 (A) an individual who is a citizen of the 

2 United States or an alien lawfully admitted for 

3 permanent residence to the United States; or 

4 (B) an entity organized under the laws of 

5 the United States or any jurisdiction within the 

6 United States. 

Æ 


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