II 

113TH CONGRESS 

2D SESSION S. 2384 

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. 

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. 

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


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1 SECTION 1. SHORT TITLE. 

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

3 of 2014’’. 

4 SEC. 2. ACTIONS TO ADDRESS ECONOMIC OR INDUSTRIAL 

5 ESPIONAGE IN CYBERSPACE. 

6 (a) REPORT REQUIRED.— 

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

8 after the date of the enactment of this Act, and an9 nually thereafter, the President shall submit to the 

10 appropriate congressional committees a report on 

11 foreign economic and industrial espionage in cyber12 space during the 12-month period preceding the sub13 mission of the report that— 

14 (A) identifies— 

15 (i) foreign countries that engage in 

16 economic or industrial espionage in cyber17 space with respect to trade secrets or pro18 prietary information owned by United 

19 States persons; 

20 (ii) foreign countries identified under 

21 clause (i) that the President determines 

22 engage in the most egregious economic or 

23 industrial espionage in cyberspace with re24 spect to such trade secrets or proprietary 

25 information (in this section referred to as 

26 ‘‘priority foreign countries’’); 


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1 (iii) technologies or proprietary infor2 mation developed by United States persons 

3 that— 

4 (I) are targeted for economic or 

5 industrial espionage in cyberspace; 

6 and 

7 (II) to the extent practicable, 

8 have been appropriated through such 

9 espionage; 

10 (iv) articles manufactured or other11 wise produced using technologies or propri12 etary information described in clause 

13 (iii)(II); and 

14 (v) to the extent practicable, services 

15 provided using such technologies or propri16 etary information; 

17 (B) describes the economic or industrial 

18 espionage engaged in by the foreign countries 

19 identified under clauses (i) and (ii) of subpara20 graph (A); and 

21 (C) describes— 

22 (i) actions taken by the President to 

23 decrease the prevalence of economic or in24 dustrial espionage in cyberspace; and 


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1 (ii) the progress made in decreasing 

2 the prevalence of such espionage. 

3 (2) DETERMINATION OF FOREIGN COUNTRIES

4 ENGAGING IN ECONOMIC OR INDUSTRIAL ESPIONAGE

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

6 (ii) of paragraph (1)(A), the President shall identify 

7 a foreign country as a foreign country that engages 

8 in economic or industrial espionage in cyberspace 

9 with respect to trade secrets or proprietary informa10 tion owned by United States persons if the govern11 ment of the foreign country— 

12 (A) engages in economic or industrial espi13 onage in cyberspace with respect to trade se14 crets or proprietary information owned by 

15 United States persons; or 

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

17 or otherwise permits such espionage by— 

18 (i) individuals who are citizens or resi19 dents of the foreign country; or 

20 (ii) entities that are organized under 

21 the laws of the foreign country or are oth22 erwise subject to the jurisdiction of the 

23 government of the foreign country. 


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1 (3) FORM OF REPORT.—Each report required 

2 by paragraph (1) shall be submitted in unclassified 

3 form but may contain a classified annex. 

4 (b) IMPOSITION OF SANCTIONS.— 

5 (1) IN GENERAL.—The President may, pursu6 ant to the International Emergency Economic Pow7 ers Act (50 U.S.C. 1701 et seq.), block and prohibit 

8 all transactions in all property and interests in prop9 erty of each person described in paragraph (2), if 

10 such property and interests in property are in the 

11 United States, come within the United States, or are 

12 or come within the possession or control of a United 

13 States person. 

14 (2) PERSONS DESCRIBED.—A person described 

15 in this paragraph is a foreign person the President 

16 determines knowingly requests, engages in, supports, 

17 facilitates, or benefits from the significant appro18 priation, through economic or industrial espionage in 

19 cyberspace, of technologies or proprietary informa20 tion developed by United States persons. 

21 (3) EXCEPTION.—The authority to impose 

22 sanctions under paragraph (1) shall not include the 

23 authority to impose sanctions on the importation of 

24 goods. 

25 (c) DEFINITIONS.—In this section: 


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means— 

4 (A) the Committee on Armed Services, the 

5 Committee on Banking, Housing, and Urban 

6 Affairs, the Committee on Homeland Security 

7 and Governmental Affairs, the Committee on 

8 Finance, the Committee on Foreign Relations, 

9 and the Select Committee on Intelligence of the 

10 Senate; and 

11 (B) the Committee on Armed Services, the 

12 Committee on Homeland Security, the Com13 mittee on Financial Services, the Committee on 

14 Foreign Affairs, the Committee on Ways and 

15 Means, and the Permanent Select Committee 

16 on Intelligence of the House of Representatives. 

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

18 (A) means the interdependent network of 

19 information technology infrastructures; and 

20 (B) includes the Internet, telecommuni21 cations networks, computer systems, and em22 bedded processors and controllers. 

23 (3) ECONOMIC OR INDUSTRIAL ESPIONAGE.— 

24 The term ‘‘economic or industrial espionage’’ 

25 means— 


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1 (A) stealing a trade secret or proprietary 

2 information or appropriating, taking, carrying 

3 away, or concealing, or by fraud, artifice, or de4 ception obtaining, a trade secret or proprietary 

5 information without the authorization of the 

6 owner of the trade secret or proprietary infor7 mation; 

8 (B) copying, duplicating, downloading, 

9 uploading, destroying, transmitting, delivering, 

10 sending, communicating, or conveying a trade 

11 secret or proprietary information without the 

12 authorization of the owner of the trade secret 

13 or proprietary information; or 

14 (C) knowingly receiving, buying, or pos15 sessing a trade secret or proprietary informa16 tion that has been stolen or appropriated, ob17 tained, or converted without the authorization 

18 of the owner of the trade secret or proprietary 

19 information. 

20 (4) KNOWINGLY.—The term ‘‘knowingly’’, with 

21 respect to conduct, a circumstance, or a result, 

22 means that a person has actual knowledge, or should 

23 have known, of the conduct, the circumstance, or the 

24 result. 


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

2 trade secret or proprietary information, means to 

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

4 the trade secret or proprietary information. 

5 (6) PERSON.—The term ‘‘person’’ means an in6 dividual or entity. 

7 (7) PROPRIETARY INFORMATION.—The term 

8 ‘‘proprietary information’’ means competitive bid 

9 preparations, negotiating strategies, executive 

10 emails, internal financial data, strategic business 

11 plans, technical designs, manufacturing processes, 

12 source code, data derived from research and develop13 ment investments, and other commercially valuable 

14 information that a person has developed or obtained 

15 if— 

16 (A) the person has taken reasonable meas17 ures to keep the information confidential; and 

18 (B) the information is not generally known 

19 or readily ascertainable through proper means 

20 by the public. 

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

22 the meaning given that term in section 16 of the Ex23 port Administration Act of 1979 (50 U.S.C. App. 

24 2415) (as in effect pursuant to the International 


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

2 et seq.)). 

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

4 has the meaning given that term in section 1839 of 

5 title 18, United States Code. 

6 (10) UNITED STATES PERSON.—The term 

7 ‘‘United States person’’ means— 

8 (A) an individual who is a citizen or resi9 dent of the United States; or 

10 (B) an entity organized under the laws of 

11 the United States or any jurisdiction within the 

12 United States. 

Æ 


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