S. B No. 
LZ3Z 
Introduced by Senator Miriam Defensor Santiaso 
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EXPLANATORY NOTE 
The development of proprietary economic information is an integral part of a nation's 
commerce. Its development, protection and lawful exchange is 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 of pesos each year. 
Existing laws do not give adequate protection to proprietary economic information This 
bill seeks to prevent economic espionage. It also seeks to advance the development and lawful 
use of Philippine proprietary economic information by protecting such information form theft, 
wrongkl destruction or alteration, misappropriation and conversion by foreign governments and 
their agents or instrumentalities 
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Introduced by Senator mriam Defensor Santiago 
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AN ACT 
DEFINING THE! k M ! 3  OF ECONOMIC ESPIONAGE AND PROVIDING PENALTIES 
THEWFOR 
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Be ii enacted !by the Senate and House of Represeniatives of the Phil@pines in Congress 
assem bled: 
SECTION 
1. 
Short Title. 
This Act may be cited as the “Economic Espionage 
and Protection ofkobrietary 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 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. 
a cia b in ss 
s ien i IC, t chtuca?, economic, or engineermg information i x R . %  
udmg, uf no 1. h%e& td 
(4) ‘?ropr;ietaT ecm mic information: means all f rms and t es of 


data, plans, tools, mechanism, 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 information 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, rightfbl legal, beneficial, or equitable title to, or license 
in, proprietary economic information is reposes. 
(6) ‘Filipino person’ means - 
(A) in the case of a natural person, a Philippine citizen or permanent resident alien; 
and 
(€3) 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. 
(A) Any person who, who - 
(1) steals, wronghlly 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, 
dra s, photographs, downloads, uploads, alters, destroys, photocopies, 
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lcates, transmts, delivers, sends, mails, communicates, or conveys the s a m ~  
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(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 (I), (2), 
(3), or (4); 
(6) wrongfiilly solicits another to commit any offense described in paragraphs (l), 
(2), (31, or (4); or 
(7) conspires with one or more other persons to commit any offense described in 
paragraphs (l), (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 more than 50% of the economic value of such 
proprietary information or imprisoned for a period ranging from 15 or 25 years, 
or both 
@)Any corporation that commits any offense described in the preceding 
subsection (A) shall be fined an amount equivalent to the economic value of such 
proprietaq 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 instrumentality, unless proven otherwise " 
SEC. 5. 
Vicarious liability. 
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 who - 
(1) knowingly permitted or failed to prevent the commission of any of the acts enumerated 
in Section 4" 
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 - - 
an property co stituting, or derived om my proc eds the person obtained, 
directly9 inJrectly, &om t%e commission of suc t viofations, an& 


(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. 
(l3) 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. 
Extra-territoriality. 
(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 citizens or permanent resident of the Philippines; 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 affect in the Philippines. 
(3) the offender foreign corporation is conducting business in the Philippines through 
agents or subsidiaries and has caused damage to the “owner” in the conduct of its 
business abroad” 
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. 
SEC. 9. 
Preservation of confidentiality. 
In any prosecution under this Act, the court shall preserve the confidentiality of alleged 
proprietary economic information by any reasonable and lawhl means including, but not limited 
to - 
(1) the granting of protective orders in connection with discovery proceedings; and 
(2) the holding of in camera hearing, sealing relevant portions of the record, and the 
ordering of any person involved in the proceedings not to disclose the alleged 
proprietary economic information which is the subject of the offense may request the 
prosecution to seek such protective action. 
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SEC. 9. 
Preservation of confidentiality. 
In any prosecution under this Act, the court shall preserve the confidentiality of alleged 
proprietary economic information by any reasonable and l a a  means including but not limited to 
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(1) granting of protective orders in connection with discovery proceedings; and 
(2) the holding d f 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 hrtherance 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. 
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 in at least two (2) newspaper of general circulation. 
Approved. 
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