FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
) 
) 
) 
Senate Bill No. 
£I 5 8 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The development of proprietary economic information is an integral part of 
a nation's commerce. Its development, protection and lawful exchange are 
essential to the competitiveness of critical segments of Philippine business and 
industry. 
The theft, misappropriation and wrongful use of Philippine proprietary 
economic 
information 
by 
foreign 
governments 
and 
their 
agents 
or 
instrumentalities can cost our economy millions and possibly billions, of pesos 
each year. 
Existing laws do not give adequate protection to proprietary economic 
information. It also seeks to advance the development and lawful use of 
Philippine proprietary economic information by protecting such information from 
the theft, wrongful destruction or alteration, misappropriation and conversion by 
foreign governments and their agents or instrumentalities. This bill seeks to 
prevent economic espionage. 
Hence, the immediate approval of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
First Regular Session 
SENATE 
Senate Bill No. 
458 
) 
) 
) 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
DEFINING THE CRIME OF 
~CONOMIC ESPIONAGE AND PROVIDING 
PENALTIES THEREFOR 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. - This Act may be cited as the "Economic 
Espionage and Protection of Proprietary Information Act." 
SEC. 2. Statement of Policy. - It is hereby declared the policy of the 
State to prevent economic espionage and further the development and lawful use 
of Philippine proprietary economi~ information. 
SEC. 3. Definition of Terms. - As used in this Act, the term -
1) "Foreign Corporation, institution or instrumentality" means any corporation, 
agency, component, institution, association, instrumentality or legal, 
commercial or business entity that is substantially owned, controlled, 
sponsored, commanded, managed, patronized, dominated or chartered by 
a foreign government or subdivision of a foreign government; 
2) "Foreign Agent" means any officer, employee, proxy, servant, delegate or 
representative of a foreign nation or government; 
3) "Person" means a natural person, corporation, agency, association, 
institution or any other legal, commercial, or business entity; 
4) "Proprietary economic information" means all forms and types of financial, 
business, scientific, technical, economic or engineering information 
including but not limited to data, plans, tools, mechanisms, compounds, 
formulas, designs, prototypes, processes, procedures, programs, codes or 
commercial strategies, whether tangible or intangible and whether stored, 
compiled 
or 
memorialized 
physically, 
electronically, 
graphically, 
photographically or in writing provided that the following concur: 
(a) the owner thereof has taken reasonable measures to keep such 
information col'lfidential; 


(b) the information is not available generally to, or accessible by, 
the public; and 
(c) the information is not a matter of "public concern", as defined by 
law. 
5) 
"Owner" means any Filipino person or any Philippine Government 
department, agency or instrumentality in which, rightful legal, beneficial or 
equitable title to or license in, proprietary economic information is reposed; 
6) "Filipino person" means -
(a) 
in the case of a natural person, a Philippine citizen or 
permanent resident alien; and 
(b) 
in the case of an artificial person, a juridical entity 
substantially owned or controlled by the Philippine 
Government or by Filipino citizens or permanent 
resident aliens, or incorporated under Philippine laws. 
SEC. 4. Economic Espionage. - Engaging in economic espionage to aid 
foreign nations, governments, corporations, institutions or instrumentalities. 
(a) Any person who; with intent to, or reason to believe it will Injure or 
disadvantage any owner and benefit or advantage any foreign nation, 
government, corporation, institution or instrumentality who -
1) steals, wrongfully appropriates, takes, carries away or conceals or by 
fraud, artifice or deception obtains proprietary economic information; 
2) wrongfully copies, duplicates, sketches, draws, photographs, downloads, 
uploads, alters, destroys, photocopies, replicates, transmits, delivers, 
sends, mails, communicates or conveys proprietary economic information; 
3) being entrusted with, or having lawful possession or control of, or access 
to, proprietary economic information, wrongfully copies, duplicates, 
sketches, draws, photographs, downloads, uploads, alters, destroys, 
photocopies, replicates, transmits, delivers, sends, mails, communicates 
or conveys the same; 
4) receives, buys or possesses proprietary economic information, knowing 
the same to have been stolen or wrongfully appropriated, obtained. or 
converted; 
5) attempts to commit any offense described in the preceding paragraphs 
(1),(2), (3) or (4); 
6) wrongfully solicits another to commit any offense described in paragraphs 
(1), (2), (3) or (4); or 
7) conspires with one or more other persons to commit any offense 
described in paragraphs (1), (2), (3) or (4) and one or more of such 
persons do any act to effect the object of the conspiracy, shall, except as 
provided in the next subsection (b), be fined not less than Five Hundred 


Thousand Pesos (P500,OOO.OO), or imprisoned for a period ranging from 
fifteen (15) to twenty-five (25) years, or both. 
(b) Any corporation that commits any offense described in the preceding 
subsection (a) shall be fined not less than One Million Pesos (P100,OOO,OOO.OO). 
SEC. 5. Vicarious liabilitv. - Any officer, director, manager or other 
person occupying a position of authority and responsibility for the acquisition, use 
or management of proprietary economic information for any corporation or other 
business or commercial entity whp -
(1) 
knows or has reason to know that agents or employees of 
the corporation or entity have wrongfully acquired or 
manipulated proprietary economic information in violation of 
Section 4 of this Act; and 
(2) 
directly or indirectly authorizes, permits or suffers the 
information wrongfully acquired or manipulated to be used 
to injure or disadvantage any owner and benefit or 
advantage any foreign nation, government, corporation, 
institution or instrumentality shall be fined not less than Five 
Hundred Thousand Pesos (P500,OOO.00) or imprisonment 
for a period ranging from ten (10) to fifteen (15) years, or 
both. 
SEC. 6. Forfeiture. - -
(a) Notwithstanding any provision of law to the contrary, any person convicted 
of a violation of this Act shall forfeit to the Philippine Government -
(1) any property constituting or derived from or any proceeds the person 
obtained, directly or indirectly from the commission of such violation; and 
(2) any of the person's property used, or intended to be used, in any 
manner or part, to commit or to facilitate the commission of a violation of this Act. 
(b) The court, in imposing penalty on the offender for a violation of this 
Act, shall order that the property described in subsection (a) of this section be 
forfeited in favor of the Philippine Government. 
SEC. 7. Extraterritoriality. -
(a) Notwithstanding any provision of law to the contrary, this Act applies to 
conduct occurring outside the territorial jurisdiction of the Philippines if -
(1) the offender is a Filipino citizen; or 
, 
(2) the victim of the offense is an "owner" as defined in Section 3 of this 
Act, and the offense was intended to have, or had an effect in the 
Philippines. 


SEC. 8. Construction with other laws. - This Act shall not be construed 
to preempt or displace any other existing legal remedies, whether civil or 
criminal, for the misappropriation of proprietary economic information. 
SEC. 9. Preservation of Confidentialitv. - In any prosecution under this 
Act, the court shall preserve the confidentiality of alleged proprietary economic 
information by any reasonable and I a f i I means including, but not limited to -
(1) 
the granting of protection orders in connection with discovery 
proceedings; and 
(2) 
the holding of in-camera hearings, sealing relevant portions of 
the record and the ordering of any person involved in the 
proceedings not to disclose the alleged proprietary economic 
information without prior court approval. Any owner of the 
proprietary economic information which is the subject of the 
offense may request the prosecution to seek such protective 
action. 
SEC. 10. Non-applicability to lawfully authorized law enforcement or 
intelligence activities. - Any· act in which information is seized, taken, 
transported, transmitted or transferred pursuant to, or in furtherance of any 
lawfully authorized investigative, protective or intelligence activity of a law 
enforcement agency of the Philippines, or of any of its political subdivisions, shall 
not be deemed a violation of Sections 4 and 5 of this Act. 
SEC. 11. Separabi/itv Clause - If any provision or part hereof, is held 
invalid or unconstitutional, the remainder of the law or the provision not otherwise 
affected shall remain valid and subsisting. 
SEC. 12. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation 
contrary to, or inconsistent with, the proVisions of this Act is hereby repealed, 
modified or amended accordingly. 
SEC. 13. Effectivitv Clause. - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved,