THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
} 
SENATE 
S. N6. 
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INTRODUCED BY HON. MANUEL B. VILLAR, JR. 
EXPLANATORY NOTE 
The development of proprietary economic information is an integral part of a nation's 
commerce. Its development, protection and lawfbl exchange is essential to the coinpetitiveness of 
critical segineiits of Philippine business and industry. 
The theft, misappropriation and wroiigfLd use of Philippine proprietary economic 
inforination by foreign goveminents and their agents or instrumentalities can cost our economy 
millions of pesos each year. 
Existing laws do not give adequate protection to proprietary economic infonnation. This 
bill seeks to prevent econoinic espionage. It also seeks to advance the development and lawful 
use of Philippine proprietary economic information by protecting such information from theft, 
wrongful destruction or alteration, misappropriation and conversion by foreign governnients and 
their agents or iiistrumentalities. 
MANUEL B. V 
LAR, JR. 
t 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
ECE IV 
SENATE 
s. $0.' 
4 
INTRODUCED BY HON. MANUEL B. 
VILLAR, JR. 
AN ACT DEFINING THE CRIME OF ECONOMIC ESPIONAGE AND PROVIDING 
PENALTIES THEREFOR 
Be it ennctecl by the Sennte and House ofRepresentntives ofthe Philippines in Congress 
nssein bled: 
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 economic 
i 11 forinati o n . 
SEC. 3. Definition of Tenns. 
As used in this Act, the term -- 
(1 ) "Foreign corporation, institution, or instrumentality" means any corporation, agency, 
component, institution; association, instrument 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) "Person1' 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 , 
plan, tools, ~neclianism, compounds, formulas, designs, prototype, 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 measure to keep such information confidential, 
(b) The information is not available generally to, or accessible by, the public, and 
(c) The infomation is not a matter of “public concern,” as defined by law. 
( 5 )  “Owner” means any Filipino person or any Philippine Government compound, department, 
or agency in which, rightful legal, beneficial, or equitable title to, or license in, proprietary 
economic information is reposes. 
(6) ”Filipino person” means 
(A) 111 the case of a natural person, a Philippine citizen or permanent resident alien; and 
(B) In the case of 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, is: 
(A) Any person who, 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, wrongfLilly copies, duplicates, sketches, draws, photographs, downloads, 
uploads, alters, destroys, photocopies, 
replicates, 
transmits, 
delivelrs, 
sends, 
mails, 
communicates, or conveys the same; 
(4) Receives, buys, or possesses Proprietary Economic Information, knowing the same to have 
been stolen or wrongfdly appropriated, obtained, or converted; 
(5) Attempts to commit any offense described in the preceding paragraphs (I), (2), (3), or (4); 
(6) Wrongfully solicits another to commit any offense described in paragraphs (I), (2), (3), or 
(4); or 
(7) Conspires with one or more other persons to commit any offense described in paragraphs (l), 
(Z), (3), or (41, 
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 more than 50% of the economic 
value of such proprietary information or imprisoned for a period ranging from 1.5 or 25 years, or 
both. 
(B) Any corporation that commits any offense described in the preceding subsection (A) shall 
be fined ail amount equivalent to the econoinic value of such proprietary information 
(C) The person or corporation mentioned in the preceding subsections in presumed to have acted 
with intent to injure any owner and benefit any foreign nation, government, corporation, 
institution or instniinentality, unless proven otherwise." 
SEC. 5. Vicarious Liability. 


SEC. 8. Construction with other laws. 
This Act shall not be construed to pre-empt or displace any other existing legal remedies, 
whether civil or criminal, for the misappropriation of proprietary economic information. 
9. Preservatioii of confidentiality. 
In any prosecution under this Act, the court shall preserve the confidentiality of alleged 
proprietary economic information by any reasonable and lawful means including but not limited 
lo 
(1) Granting of protective 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 propriety economic 
information without prior court approval. Any owner of the propriety economic information 
which is the subject of the offense may request the prosecution to seek such protective action. 
SEC. 10. Non-applicability of 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. 1 1. Separability 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. Presidential Decree No. 1602 is hereby amended, and 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. Effectivity. This Act shall take effect fifteen (15) days after its publication iii at least 
two (2) newspaper of general circulation. 
Approved,